Australian student debts to be cut by 20 per cent from by end of year

Australians with student loans are set to have thousands of dollars wiped from their debts before the end of the year.

The Albanese government’s new HELP and HECS payment reshuffle came into effect on Wednesday, cutting student debt by 20 per cent.

The Australian Taxation Office (ATO) will begin to erase the amount from student debts as they stood on June 1.

Most reductions will be applied at the end of the calendar year, however, some complex cases may not be completed until early 2026, the ATO said.

The Department of Education announced it would wipe more than $16 billion in debt for more than three million Australians.

“We promised cutting student debt would be the first thing we did back in parliament — and that’s exactly what we’ve done,” Prime Minister Anthony Albanese sai