Information for VET students seeing historical loan amounts now appearing on their ATO record.
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In 2022, the department identified an issue with its systems which led to some VET loan data not being sent to the Australian Taxation Office (ATO) as it normally would be. An independent review found the main cause of the delayed loan transfer was faults in the VSL IT system in place at the time.
We are sorry for any concerns this issue may have caused for any affected students.
The department took action to address this, which included arranging for the waiving of historical indexation on all affected loans and waiving the entirety of pre-2017 affected debts, and received funding to build a new, modernised IT system.
The new VSLConnect IT system implemented in November 2025 addresses the limitations of the previous IT system, increasing the visibility of the transfer of payments and loans.
Update – November 2026
The department continues to monitor for any delays to ensure any affected loans are remediated and transferred to students’ ATO accounts, and is contacting impacted students.
As some individuals may not have been aware of these loans, the Australian Government will waive annual indexation on identified loans up to 2023.
For all loans transferred to the ATO as part of this process, the department will ensure that those eligible receive the 20% student loan reduction announced by the Australian Government.
Historical indexation waived for affected students
The department is contacting students with loans eligible for a waiver of historical indexation. Annual indexation on identified and eligible loans will be waived up to 1 June 2023. In most cases, the indexation waiver will be applied as a single transaction covering all affected years up to 2023. Indexation amounts will apply for all other relevant years from 1 June 2024 onwards.
Application of 20% reduction
If the census date for the study was on or before 1 June 2025, the student loan is eligible for the 20% student loan reduction. For more information see Twenty percent reduction FAQs.
No action required from students
The department is individually contacting affected students to advise of the transfer and where to find information and support. The training providers of the affected students are also being notified.
The department and the Department of Education are working together and with the ATO to provide information and support for affected individuals. Further information for higher education students is available on the Department of Education.
Further information
Information on checking your ATO loan account, repaying your loan and what to do if you are facing hardship is available at Delayed VET Student Loans.
Contacting the department
If you have any further queries about this matter, please contact the VET Student Loans Team via Student Enquiries.