The government has already delivered the first phase of HELP debt relief by fixing indexation rates, backdated to June 2023. This change ensures student debt can't grow faster than wages, reducing the 2023 indexation rate from 7.1% to 3.2% and the 2024 rate from 4.7% to 4.0%. For someone with an average HELP debt of $27,000, this means around $1,200 wiped from their loan.

Building on this reform, the government has announced that all student loan debts will be cut by a further 20% if re-elected, wiping approximately $16 billion in debt. This would mean an average reduction of $5,520 per person. The changes will also increase the minimum repayment threshold from $54,000 to $67,000, saving someone earning $70,000 around $1,300 in annual repayments.

"This is a game-changer for more than three million Australians," Education Minister Jason Clare said. "Last year we wiped $3 billion in student debt and this is the next step. All up, it means we are wiping close to $20 billion in student debt."

To calculate how much you will have saved from the changes already, you can visit this site: https://www.education.gov.au/higher-education-loan-program/higher-education-loan-program-help-indexation-credit

[1] https://ministers.education.gov.au/clare/legislation-passes-wipe-3-billion-student-debt-3-million-australians

[2] https://ministers.dss.gov.au/editorial/16686

[3] https://ministers.education.gov.au/clare/new-data-reveals-state-state-benefit-labors-plan-cut-student-debts-20-cent

[4] https://www.studyassist.gov.au/news/government-announces-reduction-help-loan-debts

[5] https://www.pm.gov.au/media/albanese-labor-government-cut-further-20-cent-all-student-loan-debts