The 20% HECS discount will be applied retrospectively to all student loan balances as of June 1, 2025. The legislation for this discount passed in July 2025 and will be implemented by the Australian Taxation Office (ATO) automatically. The discount applies before indexation is recalculated on the reduced debt amount. Most reductions are expected to be applied before the end of the calendar year 2025, but some complex cases may take until early 2026. Borrowers who have already paid off their loans after June 1 may be eligible for a refund of the discount amount.
