VET Student Loans (VSL) Provider Newsletter – December 2025

Welcome to the VSL Provider Newsletter – December 2025

In the final edition for the year, we reflect on the year that has been and what to expect in 2026.

In 2025, we saw benefits for current and former VET Student Loans (VSL) students. The passing of legislation reducing student loan debt by 20% affected an estimated 126,000 VSL students. The minimum repayment threshold changed, increasing the amount people can earn before they are required to start repaying their loan from $54,435 in 2024-25 to $67,000 in 2025-26. From 1 July, the Commonwealth Prac Payment (CPP) became available for eligible Diploma of Nursing students. The CPP will provide over $300 per week during their mandatory prac placement.

This year also saw changes to how VSL providers report student loan data. From October, only data for students that have been admitted to an approved course was required instead of the previous reporting of eligible students admitted to a course. System changes were introduced to better protect students’ Tax File Numbers and VSLConnect was successfully launched in November.

The total number of VSL providers stands at 159: 6 new providers were approved, and 4 existing providers were reapproved. There were 5 providers who failed the approval/reapproval process but 3 were approved after applying for a reconsideration. We anticipate finalising at least 10 more applications for reapproval by the end of this year. Providers who have applied for an additional period but do not receive a decision on their application by 24 December 2025, will have their approval extended until their applications are finalised. Next year is looking to be another big year with about 28 private providers up for reapproval.

We wish you, your staff and your students all the very best for the holiday season and the New Year and take this opportunity to thank you for your support, patience and understanding over the year.

Please note: the department will be closed from Thursday 25 December, reopening on Friday 2 January.

VSLConnect – payment delays and new reports

The department has transitioned to a new system to manage the VSL Program. VSLConnect replaces the ageing VPAYS system and now manages VSL payments to providers. During the transition, there were some one-off delays to provider payments, but these have now been resolved. We thank you for your patience while payments were finalised.

With VSLConnect, providers now have access to new payment reports. To view these reports, log in to TCSI Analytics and navigate to the VET Assessment and Payment section.

If you have any questions about VSLConnect or the new payment reports, please contact us at VSLConnectEngagement@dewr.gov.au.

Passage of VET Student Loans (Miscellaneous Measures) Bill 2025

What this means for past handling of VSL students’ Tax File Numbers

On 27 November 2025, the VET Student Loans (Miscellaneous Measures) Bill 2025 (the Bill) passed parliament. The Bill ensures that current and former VSL approved providers were authorised to handle VSL students’ Tax File Numbers (TFNs) for a VET Student Loan from the program’s commencement until 30 September 2025 when IT system changes were completed.

Please note, the Bill does not extend to HELP student records and VET FEE-HELP (VFH) student records because these schemes have authority for TFN handling under the Higher Education Support Act 2003.

For further details see VET Student Loans (Miscellaneous Measures) Bill 2025 – Parliament of Australia.

What does this mean for VSL providers?

As a result of the Bill and the IT system changes completed on 30 September, you no longer need to handle TFNs in the program from 1 October 2025, nor are you authorised to do so. This means you:

• must not request, collect, use, disclose or make any further records of VSL students’ TFNs, even if the student has consented to you undertaking these actions.
• must take reasonable steps to securely remove or de-identify all VSL students’ TFN information held in your systems.

Remember, if a student needs to update their TFN in their eCAF, you must follow the process of putting the eCAF into ‘revision status’ so the student can update the TFN in their eCAF.

What to do with VSL students TFN information Records?

On 30 October 2025 the department communicated to you about the Bill and the obligations that apply. The email also included information for dual sector providers and what they must do.

If you did not receive the email communication or have any questions regarding the next steps you must take, please email vetstudentloans@dewr.gov.au.

New look for the VSL webpage

There have been major changes to the VET Student Loans webpage to simplify how we present information for providers and students. The webpage has been updated to direct users where to go for information about the program, for news that may affect them and where to submit a query.

The VSL Student Information Booklet has been republished as the VSL Student Manual. It has been designed so users can easily access information on devices. The language has been written in plain English and information previously published on sub-pages and fact sheets has been incorporated into the Student Manual. Students will now have all the information they need in the one resource.

Similarly, the VSL Manual for Providers has also been reformatted, restructured and republished as the VSL Provider Manual. The duplication of information on our webpages has been reduced with 15 fact sheets incorporated into the Provider Manual. It provides key information on how to administer the VSL program in your organisation and guidance with payment, reporting and compliance requirements.

Both the VSL Student Manual and VSL Provider Manual are published as HTML as the most accessible format for users with low vision or who use screen readers. However, a downloadable version is also available.

Tuition Protection Levy

The 2025 VSL Tuition Protection Levy (VSL Levy) collection is well underway, with invoices sent on 11 November 2025. Please ensure payment is received by Thursday 11 December 2025 to avoid any late payment penalties.

Here are some tips to ensure payment is received successfully and on time:

• Pay the exact amount displayed on the 2025 VSL Tuition Protection Levy invoice.

• Make the payment a few days prior to the due date at the latest to allow for processing time by your financial institution.

  Note: payment needs to be received on or before the due date in accordance with section 9 of the VET Student Loans (VSL Tuition Protection Levy)(Risk Rated Premium and Special Tuition Protection Components) Determination 2025.

• Check the details inputted match the details provided on the invoice.
• If you are also liable for paying the HELP Tuition Protection Levy and/or the Up-front Payments Tuition Protection Levy, ensure each levy is paid separately to the correct levy account. The account reference is different on each levy invoice. Do not include payment of other levy invoices in the same transaction.

Late payment, failure to pay, or reconciling issues because of either payment into the wrong account or the incorrect amount could adversely affect your risk ratings for the next three years and may also result in regulatory action.

If you have any questions regarding the 2025 VSL Levy, please contact the Tuition Protection Service using the online contact form.

Why your students need a Unique Student Identifier (USI)

Every student accessing a VET Student Loan (VSL) must have a Unique Student Identifier (USI). A USI is a student’s lifelong education number required for all nationally recognised study, including university and vocational education and training (VET).

Why your students need a USI:

• Links student loan information.
• Creates a USI VET transcript showing all nationally recognised training completed since 2015.
• Enables students to complete their eCAF.
• It is a mandatory requirement to issue a qualification and access Commonwealth financial assistance.

Creating a USI

Students can create a USI through the Student Portal at Create your USI - Unique Student Identifier . When creating a USI, students should ensure that their details (first name, last name and date of birth) are accurate and match the information in their eCAF.

To avoid verification issues, which may impact conferral of awards, we recommend you advise students to use the same identification document to create their USI and Tax File Number (TFN).

Students who have studied a VET course since 2015, including while at secondary school, will already have a USI and can find it at Find your USI | Unique Student Identifier.

For more information, visit the Unique Student Identifier website.

Subscribing to the VSL Provider Newsletter

The VSL Provider Newsletter is how we let you know about program updates and reminders about the program administrative requirements. Let your colleagues know they can subscribe to the newsletter in less than a minute at VET Student Loans – subscribe. You can access previous copies of the newsletter at VET Student Loans Provider Newsletter.