AS ROY SPAGNOLO & ASSOCIATES Chartered Accountants BILL TO REDUCE STUDENT DEBT NOW LAW Legislation has recently been enacted which delivers on the 2025/26 Federal Budget announcement to reduce student debts. Pursuant to this legislation: There is a one-off 20% reduction to Higher Education Loan Program debts and other student loans that were incurred on or before 1 June 2025; The minimum repayment threshold is increased from $54,435 in the 2024/25 income year to $67,000 in the 2025/26 income year (to continue to increase each year with the growth in wages); and A marginal repayment system is introduced where compulsory student loan repayments are calculated only on income above the new $67,000 threshold (rather than having it based on a percentage of the repayment income). A CHARTERED ACCOUNTANTS AUSTRALIA NEW ZEALAND Like Us On facebook f 193 Yambil Street, Griffith NSW 2680 Ph: 6964 4400 | www.royspagnolo.com.au 137898 AS ROY SPAGNOLO & ASSOCIATES Chartered Accountants BILL TO REDUCE STUDENT DEBT NOW LAW Legislation has recently been enacted which delivers on the 2025/26 Federal Budget announcement to reduce student debts . Pursuant to this legislation : There is a one - off 20 % reduction to Higher Education Loan Program debts and other student loans that were incurred on or before 1 June 2025 ; The minimum repayment threshold is increased from $ 54,435 in the 2024/25 income year to $ 67,000 in the 2025/26 income year ( to continue to increase each year with the growth in wages ) ; and A marginal repayment system is introduced where compulsory student loan repayments are calculated only on income above the new $ 67,000 threshold ( rather than having it based on a percentage of the repayment income ) . A CHARTERED ACCOUNTANTS AUSTRALIA NEW ZEALAND Like Us On facebook f 193 Yambil Street , Griffith NSW 2680 Ph : 6964 4400 | www.royspagnolo.com.au 137898