Labor has reduced the minimum repayments people with student debts have to make and that means more money back in people’s pockets now.

The ATO has updated withholding schedules to reflect the Government’s fairer student loan repayment rates, with employers to implement the new rates from 24 September 2025.

For someone earning $70,000 a year, the new rates mean an annual repayment reduction of $1,300, or around $50 per fortnight.

The changes also see the minimum repayment threshold lifted from $54,435 in 2024-25 to $67,000 in 2025-26, an increase of over $10,000. 

For someone on an income of $60,000, their minimum annual repayment will fall from $600 to zero – a boost in take-home pay of around $23 per fortnight.

Students are also repaying less debt overall under the Federal Labor Government. Labor has slashed student debt by 20 per cent. 

The ATO is implementing that now and most people will see that debt reduction applied to their 1 June balance before the end of year.

Under Labor, young Australians are earning more and keeping more of what they earn.

Quotes attributable to Federal Member for Bendigo, Lisa Chesters MP:

"Federal Labor is slashing student debt to ease pressure on young people and we’re making repayments fairer to help with the cost of living.

“This will help millions of Australians including over 18,000 constituents in the Bendigo electorate, many of them just out of uni, just out of TAFE, just out of home, just getting started.

"Local constituents with a student debt will also receive a text message from the ATO when the 20 per cent cut to their debt has been processed, a cut we promised during the 2025 Federal election and have delivered.”