Student loan changes now in effect
From 1 July 2025, the income threshold for compulsory student loan repayments has increased to $67,000. Repayments will now be calculated only on income above this threshold, using a new marginal rate system. Most taxpayers with student loans will see smaller repayments from their 2026 tax return onwards, and some may no longer need to make repayments at all.
20% loan reduction confirmed
A 20% reduction will be applied to all eligible study and training loans held on 1 June 2025. The ATO will process this automatically, with most reductions expected before year-end. If your loan is in credit after the adjustment, you may receive a refund — make sure your bank details are up to date. Indexation rates have also been revised down for 2023 and 2024, with recredits already applied.