Plenty of Australians may have a little extra in their paycheck soon thanks to the federal government’s HECS debt reduction plan.
The Labor government made a promise to slash student debt by 20 per cent if elected last month and the “game-changing” cut is expected to be legislated when parliament returns on July 22.
This will impact your student debt balance if you have one and, eventually, your pay.
After the passage of the legislation, the Australian Tax Office (ATO) will apply the 20 per cent reduction and it will be calculated on what that person’s debt was as of June 1, 2025.
“The ATO will automatically apply the 20…