The Albanese government has passed its HECS debt indexation relief bill.
The change means the indexation rate will now be set to either the Wage Price Index or CPI, depending on what was lower.
It will apply to the 2024 indexation rate and be retrospectively applied to the 2023 rate too.
It will see the 7.1% rise in indexation from 2023 reduced to 3.2%, and the 2024 rate down to 4.0%, with credits provided via the ATO.
This change applies to HELP, VET Student Loan, Australian Apprenticeship Support Loan and other student support loans.
Those who completely paid off their HECS debt before indexation applied on June 1 last year, will not get a refund or a credit, but those who had HECS debt that was indexed on June 1 last year or June 1 this year will receive the credit.
The Federal Government had aimed to pass the legislation last week, but the Greens moved an amendment to add another HECS policy of wiping debts by 20%, which Labor says it plans to do if it wins the next election.
The amendment was ultimately voted it down, which saw the bill passed without amendment and without objection on Tuesday.