Millions of Australians with HECS debt are set for substantial relief thanks to the Albanese government’s latest reforms. The changes include a higher repayment threshold and reduced indexation rates, providing financial relief for around three million people. The ATO has already started processing credits for eligible Australians.
HECS Debt Changes: What You Need to Know
The government aims to ease the burden of HECS debt with two major changes. First, the repayment threshold will increase by more than 20 per cent. The minimum threshold will rise from $54,435 in 2024-25 to $67,000 in 2025-26. Second, repayments will only apply to income above $67,000 instead of a person’s total income.
These measures will allow lower-income earners to…
