HELP and Student Loan Repayments

The Government has announced changes to the Higher Education Loan Program (HELP) and other student loan repayment systems to make them fairer. Starting in the 2025/26 financial year, the minimum repayment threshold will increase from $54,435 to $67,000.

HELP repayments will be based only on income above this threshold, allowing individuals to make smaller repayments in the early years of their loans.

 Subject to legislation, these changes will take effect on 1 July 2025. Additionally, there will be a one-time 20% reduction in every Australian's HELP or student loan debt, which will be applied before indexation on 1 June 2025. Indexation will then apply only to the remaining balance after this reduction.

If you have any questions in relation to the matters discussed in this blog, please get in touch with us.