Australians with HECS debts will take home more pay from today, with changes to the student loan repayment system now in place.
The federal government has introduced a marginal repayment scheme, replacing the previous system where repayments were calculated on total income.
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Under the new approach, only earnings above the threshold will be subject to repayments.
That threshold has been lifted from $54,435 to $67,000 for the 2025–26 financial year.
According to government figures, a worker earning $70,000 will save about $50 each fortnight, or $1,300 annually.
The reforms come alongside legislation passed earlier this year that cut all student debts by 20 per cent.
The government says the changes are designed to make the system fairer and reduce cost-of-living pressures.
Treasurer Jim Chalmers said: “Young people are front and centre of Labor’s economic plan.”
“We’re slashing student debt to ease pressure on young people and we’re making repayments fairer to help with the cost of living.”
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