Millions of Australians are still waiting weeks to see the promised student debt relief take effect after new legislation was passed in late September. The laws fulfill a key election pledge to cut student debt by 20 per cent for all Australians.
It has now been revealed when people can expect to see this relief applied. The Australian Taxation Office (ATO) will begin implementing the cut from mid-November, with around 50 per cent of student debt holders expected to see the reduction by the end of that month. The remainder will have the cut applied by mid-December.
“Soon, millions of Australians with student debt will receive a text message from the ATO when the 20 per cent cut to their debt has been processed—a cut we promised during the election and have delivered,” Assistant Treasurer Daniel Mulino said. “This is helping students and graduates across the country as they take the next step in their lives.”
The reduction will be backdated to reflect debt balances as of June 1, before indexation. People will be notified via text message or email when the cut is applied and can check their accounts to see the new, lower balance. For someone with the average student debt of $27,600, this will result in $5,520 being wiped.
No action from debtors is required; the cut will be applied automatically. “We promised we would cut your student debt by 20 per cent, and we are delivering,” Education Minister Jason Clare said. “This is a big deal for 3 million Australians. The cut is already locked into balances as of June 1, but soon they will be able to see and feel it. For those just out of university and starting their careers, this takes a significant weight off their shoulders.”
