The proposed reduction of HECs debts outstanding as at 1 June 2025 has now become law.

If you had a HECs debt at 1 June 2025, it will be reduced by 20% in the coming weeks. You do not need to do anything, the reduction will happen automatically. You can check when it has been processed by logging into your mygov account.

2 Potential Action Points

1. If the reduction results in a credit balance you need to ensure your bank details are correct with the ATO in order to receive the refund.
2. If the reduction results in your debt being repaid, you need to tell your employer in order that they withhold less tax each pay.

As ever, if you have any questions please get in touch.