Easing the education debts – what does it mean for you?
15 Nov 2024
This month the Federal Government has announced it would reduce annual repayments on HELP or student loan debt.
The changes, which come into effect from 1 July 2025, will see a new minimum repayment threshold of $67,000 before a person needs to make any repayments. It will also have a tiered rate for repayments based on income level.
| Income Thresholds | Marginal Rate of Repayment |
| Below $67,000 | Nil |
| Income above $67,000 to $124,999 | 15c for each dollar over $67,000 |
| Income above $125,000 | $8,700 plus 17c for each dollar over $125,000 |
Government calculations suggest that every person with a HELP debt earning under $180,000 will be better off and people earning over $180,000 will see no change to their repayments.
This is a welcomed change to assist graduate vets in managing their education debt and will provide relief. However, it does not remove the debt. Rather, it allows for its repayment over a longer period.
The AVA is continuing to advocate for education debt forgiveness, particularly for veterinary graduates who work in rural and regional areas. This is an essential measure that will help ease workforce shortage issues in regional Australia. Over the next couple of weeks, the AVA will be in Canberra meeting with Members of Parliament and highlighting the workforce needs of the veterinary sector.
Read more about the AVA's 2025 Election Priorities.