ATO offering 20% Discount on HELP/HECS Debt

The government is applying a 20% reduction to all eligible student and training debts that existed on 1 June 2025. If you have multiple loans, each one will receive its own 20 percent cut. 

Why the Government Is Doing This 

The reduction is part of a national effort to ease cost of living pressures. It aims to support Australians who are still repaying study loans, especially younger people who are managing major life costs such as careers, renting, starting families or saving for a home. 

How It Works 

• The 20 percent cut is applied to your debt balance as at 1 June 2025 before indexation 

• Indexation for 2025 will be recalculated based on this reduced amount • There is nothing you need to do. The reduction is automatic 

• Most reductions will be completed by the end of 2025, with some finalised in early 2026 

How You Will Be Notified 

The ATO will notify you once the reduction has been applied. You may receive this through

 • SMS 

• Email 

• Your myGov inbox 

Make sure the ATO has your correct contact details so you do not miss the update. You can check your loan balance anytime using the ATO app or ATO online services. 

If Your Loan Becomes a Credit after the reduction 

If the 20% reduction places your account in credit, the ATO may: 

1. Use your credit to pay any outstanding ATO or Commonwealth debts 

2. Refund the remaining amount to your nominated bank account 

Refunds are processed separately from the reduction and most will be completed by January 2026. You will not be notified when the refund is processed, so keep your bank details updated to avoid delays. 

Find Out What This Means For You