More than 3 million HECS debt holders will have their balances slashed by 20 per cent from mid-next month, as the Albanese government follows through on a core election promise it introduced to parliament on the first day of the new term.

From mid-November the Australian Taxation Office will begin the process of applying the cuts to all HECS debts. It is expected that 50 per cent of student debt holders will get the reduction on their statements by the end of November. The remainder of debt holders should have their balances cut by mid-December.

“We promised we would cut your student debt by 20 per cent, and we are delivering. This is a big deal for 3 million Australians,” Education Minister Jason Clare said in a statement.

“This cut is already locked in to people’s balances at 1 June,

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