On 2 November 2024 the Australian Government announced it is making the Higher Education Loan Program (HELP) and student loan repayment system fairer by changing the repayment system and increasing the amount people can earn before they are required to start repaying their loan.
From 1 July 2025 the minimum repayment threshold will change from $54,435 in 2024-25 to $67,000 in 2025-26.
This change will also introduce a marginal repayment system where compulsory student loan repayments are calculated on just the income above the new $67,000 threshold rather than having it based on total annual income.
This new repayment system means that people will make smaller compulsory repayments, and only once their income reaches a level where they can afford to do so.
This change responds to a recommendation from the Australian Universities Accord and will require legislation to be passed through both Houses of Parliament.
Your revised compulsory repayment amount for 2025-26 will be determined by the Australian Taxation Office (ATO) when you lodge your tax return, and your annual income is confirmed.
To find out more go to Making student repayments fairer.