Australians will need to earn at least $67,000 next year before they need to start repaying their student debt.
Prime Minister Anthony Albanese said, from July 1 next year, the amount Australians with a student debt had to repay per year would be reduced and the threshold when people needed to start repaying would be raised.
Prime Minister Albanese said the reforms would apply to everyone who has a student debt, including all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other student support loans.
He said the minimum repayment threshold would be lifted from around $54,000 in 2024-25 to $67,000 in 2025-26 and a system where repayments were based on the portion of a person’s income above the new $67,000 threshold would be introduced.
“For someone on an income of $70,000 this will mean they will pay around $1300 less per year in repayments.
“This will deliver significant and immediate cost of living relief to Australians with student debt, allowing them to keep more of their hard-earned money at a time when many are looking to save for a house deposit or start a family.”
The announcement came at the same time as the Government pledged to cut overall student debt by 20 percent if re-elected.
