Student loans debt update
If you’re among the more than three million Australians with a student loan, there’s welcome news
.
The government’s legislation to reduce student loan debt by 20% is now being applied on debt balance as at 1 June 2025, before indexation was applied, with the 2025 indexation recalculated on the reduced debt amount.
Most people were due to receive their reduction before the end of 2025, and more complex reductions are being processed by the ATO in early 2026. The ATO will notify you via SMS, email or your myGov inbox when your reduction has been applied.
If your loan account’s in credit after the reduction is applied, you may receive a refund – although, if you have outstanding tax or other Commonwealth debts, the ATO will apply your credit to these debts first.
An additional change is that compulsory repayments have also moved to a marginal repayment system. Repayments are calculated on the part of your income above starting limit of $67,000 (instead of your total repayment income).
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Article archive
January - March 2026 archive
- Will a shareholders agreement protect a business from a family law dispute?
- ATO crackdown on profit restructuring leading to higher tax bills: RSM
- Super balance not a priority for young Aussies, SMC reports
- When to Update Your Business Trading Terms
- Support for rebuilding after natural disasters
- Are you ready for Payday superannuation?
- Calculate your costs to start a business
- Most Reliable Car Brands in 2026
- Payday super part 2: not quite ‘all systems go’
- Privacy Compliance Sweep 2026: Is Your Business Ready?
- 6 ways to improve your business plan
- ‘Looking like a rough start’: SMEs set to feel the pinch as CPI spikes
- Student loans debt update
- New SMSF education directions
- Accountants must keep ‘watchful eye’ on financial abuse
- Rare and vanishing: Animals That May Go Extinct Soon
- What is a Commercial Lease?
- 8 tips to improve your online sales
- ATO cracking down on tax dodgers trying to leave the country
- Digital Assets You Forgot You Own (and Why They Still Matter at Tax Time)
- ‘Not insurmountable’: What accountants need to know ahead of Payday Super
- Heading overseas? Centrelink and the ATO might need to know
- The ATO’s new draft rules could change your holiday home tax claims
- Which country produces the most electricity annually?