What’s new

A 20% reduction to student loan debt

If you have an outstanding loan debt balance as at 1 June 2025, the Australian Taxation Office (ATO) will automatically apply the 20% reduction to your loan debt account. You do not need to do anything to receive the 20% reduction.

If you are still studying and accessing a VET Student Loan, make sure you continue to meet your loan obligations such as completing your progression forms.

A student incurs a VETSL debt when the provider is paid for the tuition fees reported for a fee period. This generally occurs the month after the census date of the unit of study. At that point you will be able to view your outstanding balance in your myGov account. Please note, occasionally these timeframes can be delayed. This can be due to a provider delay in reporting of student enrolment information. Alternatively, a student may have delayed submitting their progression form or submitted it with incorrect information.

For more information see Cutting VET Student Debt by 20%: Frequently asked questions.

Making student loan repayments fairer

The student loan repayment system has changed, increasing the amount people can earn before they are required to start repaying their loan.

The minimum compulsory repayment threshold has increased from $56,156 to $67,000 in 2025-26. This change also introduces a system where HELP repayments are calculated only on the income above the new $67,000 threshold rather than repayments being based on total annual income.

The new repayment schedule will take effect for the 2025-2026 income year.

Table 1: Repayment thresholds

These changes apply to anyone who has a student loan debt, including all VET Student Loans, VET FEE-HELP, Australian Apprenticeship Support Loans, HELP and other income contingent loans.

For further information visit Making HELP and student loan repayments fairer - Department of Education, Australian Government.