New bill aims to cut HELP debt and make repayments fairer for students
On 23 July 2025, the Universities Accord (Cutting Student Debt by 20 per cent) Bill 2025 was introduced into Parliament, proposing significant changes to the Higher Education Loan Program (HELP). The legislation aims to reduce existing HELP debt by 20% for eligible graduates, providing immediate financial relief for millions of Australians with student loans.
Fairer repayment system to increase income threshold and lower compulsory repayments
The bill also seeks to make the HELP loan repayment system fairer by raising the income threshold at which graduates must begin repaying their loans. This means that individuals will be able to earn more before compulsory repayments are triggered. Additionally, the size of compulsory repayments will be reduced, ensuring that graduates face smaller deductions from their pay as they start their careers.
Government responds to cost-of-living pressures faced by graduates
These reforms are designed to address growing concerns about student debt and cost-of-living pressures faced by recent graduates. By easing the repayment burden and reducing overall debt, the government hopes to support young Australians as they enter the workforce and contribute to the economy.
Sector welcomes move to improve access and affordability
Universities, student groups, and education advocates have broadly welcomed the proposed changes, noting that they will make higher education more accessible and affordable. The reforms are expected to benefit both current students and those with existing HELP debts.
Next steps: Parliamentary debate and implementation
The bill will now be debated in Parliament, with further details on eligibility and implementation to be clarified as the legislation progresses. If passed, the changes are expected to take effect in the coming financial year.
