when will the 20 hecs reduction be applied

The 20% HECS reduction will be applied based on the loan balance as of June 1, 2025, before indexation. The Australian Taxation Office (ATO) will roll out the reduction in stages, with most reductions expected to be applied before the end of the calendar year 2025. However, some more complicated cases might take until early 2026 to finalize. No action is required by loan holders to receive the reduction, and the ATO will notify them once it has been applied to their loan account.