Millions of Australian Student Debts Slashed

The Australian Taxation Office is notifying thousands of Australians via text message about a 20% reduction in their student debts. This substantial policy initiative, a key promise from Labor's re-election campaign, has been enacted and is being implemented throughout November and December.

The reforms apply to all Higher Education Loan Program debts and other income-contingent student loans. Beyond the debt reduction, the government is also raising the repayment threshold to $67,000 and lowering repayment rates, providing significant annual savings for middle-income earners.

This measure is expected to be a game-changer for over three million Australians with student loans. The government is funding the difference between discounted repayments and actual costs through taxpayers and borrowing, building on previous policies to ease student debt burdens.