Student Debt Bombshell: Millions of Aussies to Receive HUGE Cash Boost – Here’s When You Can Expect the Windfall
- Millions of Australians with student debt will see a 20% reduction in their balance, with the average ex-student receiving a massive $5520 wipeout
- The tax office will start applying the cut from mid-November, with 50% of eligible recipients seeing the change by the end of the month
- Assistant Treasurer Daniel Mulino promises that ‘soon millions of Australians with student debt will get a text message from the ATO when the 20% cut to their debt has been processed’
In a major win for Aussie students and graduates, the government’s promise to slash Higher Education Contribution Scheme (HECS) debts by 20% is finally set to become a reality. The tax office will begin applying the reduction from mid-November, with millions of Australians expected to receive a huge cash boost in the coming weeks.
According to Assistant Treasurer Daniel Mulino, ‘soon millions of Australians with student debt will get a text message from the ATO when the 20% cut to their debt has been processed’. This is a significant development for the 3 million Australians who have been waiting for the debt relief to kick in.
The reduction will be backdated to June 1, before indexation, and will be applied automatically to eligible recipients. This means that no action is required from debtors to receive the cut – it will simply appear in their accounts.
Education Minister Jason Clare hailed the move as a ‘big deal for 3 million Australians’, saying that ‘this cut is already locked in to people’s balances at 1 June but soon they will be able to see it and feel it’. He added that ‘just out of uni, just getting started, this is taking a weight off their back’.
For someone with the average debt of $27,600, this will see a whopping $5520 wiped from their balance. This is a significant reduction that will make a real difference to the lives of millions of Australians.
So, when can you expect to receive your cash boost? The tax office anticipates that 50% of people with a student debt will see the cut kick in by the end of November, with almost everybody else seeing the reduction applied to their balance by mid-December.
Stay tuned for more updates on this developing story, and get ready to receive your text message from the ATO when the 20% cut to your debt has been processed.