Three million Australians are a step closer to seeing their student loans slashed after Labor’s debt relief bill passed through the House of Representatives.
If the bill passes through the Senate, the ATO will apply an automatic credit for the difference between the current indexation rate and new indexation rate, backdated to June 1 last year.
Education Minister Jason Clare said a graduate with an average debt of $26,500 would have about $1200 wiped from their outstanding loan under the new policy.
Those who repaid their HELP debt after indexation was applied last year and this year will receive their credit via a refund to their bank account.
“We are…
