20% debt reduction
We have completed processing of the 20% reduction for all student and training support debts that existed on 1 June 2025.
You can view your loan account using the ATO app or ATO online services. Find out what you can expect to see on your account at View your study loan account online.
Refunds were processed where a study loan account was in credit after the 20% reduction, and you had no outstanding tax or other Commonwealth debts. In most cases, refunds were sent to the nominated bank account on our records, which may have been your tax agent's account. Contact your tax agent if you have any questions.
If your study loan is in credit after the 20% reduction, you may get a refund. In some cases – especially if you made repayments by credit or debit card – you may need to contact us so we can process the refund manually. Please check your income tax account first, as we are working to get those refunds out as soon as possible.
Compulsory repayment changes
From 1 July 2025, compulsory repayments for student and training support debts have moved to a marginal repayment system:
- They are only calculated on the income above minimum repayment threshold instead of the total repayment income.
- The minimum repayment income needed to make a compulsory repayment is $67,000 for the 2025–26 income year.
- These rates and thresholds will be indexed each year in line with average weekly earnings.
See the latest Study and training loan repayment thresholds and rates
Compulsory repayment estimate
You can get an estimate of your new compulsory repayment on the Department of Education's Reduction and repayment estimatorExternal Link. Our Study and training loan repayment calculator will be updated in June 2026.
What the changes mean for study loan holders
Depending on your income:
- Most people's compulsory repayments will be lower from their 2026 tax return onwards.
- Some people will no longer need to make a compulsory repayment as their repayment income is $67,000 or less.
- There is no change for people earning $179,286 or more.
The tax withheld from your pay throughout the year can include an amount towards your compulsory repayment. As a result of these changes, if you're an employee:
- you may have less tax withheld from your pay towards a compulsory repayment
- any additional amounts already withheld may be refunded to you when you lodge your 2026 tax return – if you have no outstanding tax or other Commonwealth debts.
Example: compulsory repayment change
Grace has a HELP debt. She has one employer and has a repayment income of $80,000 in the 2025–26 income year.
Before the law change, Grace’s compulsory repayment would have been $2,800 (or 3.5% of her total $80,000 repayment income).
Now, Grace pays 15% of her 2025–26 repayment income above $67,000 (the minimum repayment income for that year). This means her compulsory repayment is $1,950 (15% of $13,000).
Grace's employer is aware of her study loan. They are now using the updated tax tables and withholding less tax from Grace's pay.
Grace is paid fortnightly, so she gets around $32 extra each pay (calculated as ($2,800 − $1,950) ÷ 26).
End of exampleIf you pay your tax in instalments:
- these changes will not be applied until 1 July 2026
- you'll receive any extra tax you paid in the 2025–26 income year in your 2026 tax assessment – if you have no outstanding tax or other Commonwealth debts
- you may want to vary your instalments in 2025–26 to accommodate a lower compulsory repayment. You can get advice from a registered tax agent on whether you should vary your instalments.
Don’t forget – you can still make voluntary repayments at any time to reduce your debt.