In effect Applies from 1 June 2025 · Updated
Study loans: 20% cut to balances, and a new repayment system
Study and training support loans, including HECS-HELP, that existed on 1 June 2025 are reduced by 20% of the balance on that date. The ATO applies the reduction backdated to 1 June 2025 and notifies people when it appears on their account. Separately, compulsory repayments are now worked out under a marginal system: only income above the threshold is counted.
What the reduction means in numbers
The reduction is 20% of what you owed on 1 June 2025. Your loan account in ATO online services through myGov shows the balance and the reduction once applied.
Repayment thresholds
| Income year | Repayments start above | Rate on income above the threshold |
|---|---|---|
| 2025–26 | $67,000 | 15% up to $125,000 |
| 2026–27 | $69,528 | 15% up to $129,717 |
Above those incomes the rate steps up; the super and HECS-HELP rates page has the full tables, and the HECS-HELP repayment calculator works out your repayment.
HECS-HELP repayment calculator
Sources
- ATO: Study and training support loan changes are now law
- ATO: Study and training loan repayment thresholds and rates
Figures last checked against official sources: . General information, not financial or tax advice.
Page history
: published.