The government introduced legislation on July 23 that will enact its election promise to reduce student debt by 20 per cent.
This legislation will:
• Provide a one-off, 20 per cent reduction to Higher Education Loan Program (HELP) debts in the Higher Education Support Act 2003, and other student loans provided under the Student Loans Acts that were incurred on or before June 1 this year.
• Increase the minimum repayment threshold from $54,435 in 2024-25 to $67,000 in 2025-26.
• Introduce a marginal repayment system where compulsory student loan repayments are calculated only on income above the new $67,000 threshold, rather than having it based on a percentage of the repayment income.
In other news for businesses, the $20,000 instant asset write-off has been extended by 12 months to June 30 next year.
The $20,000 asset threshold applies to the cost of eligible depreciating assets, eligible amounts included in the second element of the cost of a depreciating asset (cost additions) and general small business pools.
Katrina Brennan, Principal, SRJ Walker Wayland Business Growth Advisors, Accountants and Auditors, Level 2/2 Innovation Parkway, Birtinya, 5301 9957, srjww.com.au
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