This bill is currently before Parliament.
Education & skills
People with HELP student debts would have their annual debt increase applied on 1 November instead of 1 June.
Monique Ryan said the current system increases HELP student debts before counting repayments already taken from workers’ pay. She said the change would prevent more than $3 billion in extra debt increases over 10 years. The explanatory memorandum estimates a $1.159 billion saving for borrowers through 2029–30. It estimates a $374 million budget cost, partly offset by $819 million in earlier repayments of the original debt.
Under the Higher Education Support Act 2003, Australia’s HELP system has indexed debts each 1 June before compulsory repayments withheld during the preceding financial year are assessed, meaning people can be charged indexationAn increase intended to match rising prices. on money already repaid. As graduates faced balances that could barely fall, the bill’s sponsor linked the inequity to more than $3 billion over a decade; the Parliamentary Budget Office released a costing on 3 June 2026, and Monique Ryan MP introduced the private member’s bill on 29 June to move indexationAn increase intended to match rising prices. to 1 November, count repayments first and use newer CPI and WPI data.
The evidence pack does not contain criticism of the bill itself. The included speeches argue that the current system unfairly increases debts before recognising repayments, and both speakers support changing it.
Monique Ryan MP introduced this bill. Supportive speeches so far have come from Community Strong Australia, some crossbench members.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
39 days
Updated 07 Aug 2026.
Meaning
People with HELP student debts would have their annual debt increase applied on 1 November instead of 1 June.
People making required or voluntary repayments would have those payments counted before their remaining debt increases.
People with HELP debts would receive about 16 months without a debt increase, up from about 11 months during the changeover.
People with HELP debts would have future increases calculated using price and wage data for the June quarter, instead of the previous December quarter.
People with HELP debts would see the new calculation factor published before 1 November each year.
People affected by the one-off change could be covered by transition rulesTemporary rules for moving to a new system. made by the minister.
4 Paragraph 140‑5(b) Omit “1 June in that financial year”, substitute “1 November in the next financial year”. 5 Subsection 140‑5(1) (step 3 of the method statement) Omit “1 June in the immediately preceding financial year”, substitute “1 November in the financial year”. 6 Subsection 140‑5(1) (step 3 of the method statement) Omit “1 June”, substitute “1 November”.Higher Education Support Amendment (Fix HECS) introduced text
7 Method statement in subsection 140‑5 Omit the example, substitute: Example: Lorraine is studying part‑time for a Degree of Bachelor of Communications. On 1 November 2027, Lorraine had an accumulated HELP debt of $15,000. She incurred a HELP debt of $1,500 on 31 March 2027. She made a voluntary repayment of $525 on 1 May 2028. Lorraine lodged her 2027‑28 income tax return and a compulsory repayment amount of $3,000 was assessed and notified on her income tax notice of assessment on 3 September 2028. To work out Lorraine’s former accumulated HELP debt before indexation on 1 November 2028:Higher Education Support Amendment (Fix HECS) introduced text
The purpose of the Higher Education Support Amendment (Fix HECS) Bill 2026 is to change the timing of HELP debt indexation under the Higher Education Support Act 2003 (Cth). Under the Higher Education Support Act 2003 (Cth), HELP debts are indexed annually on 1 June. This is before compulsory repayments withheld over the financial year prior to 1 June have been ‘assessed’. Meaning, that indexation occurs on a balance for which compulsory repayments have not been accredited. The Fix HECS Bill moves the annual indexation date from 1 June to 1 November, extending the period during which a HELPHigher Education Support Amendment (Fix HECS) explanatory memorandum
8 Subsections 140‑10(1) and (1A) Omit “June” (wherever occurring), substitute “November”. 9 Subsection 140‑10(1B) Omit “1 June in a financial year”, substitute “1 November in a financial year”. 10 Subsection 140‑10(1B) (steps 1 and 2 of the method statement) Omit “31 December”, substitute “30 June”. 11 Subsection 140‑10(1B) (step 3 of the method statement) Omit “1 June”, substitute “1 November”. 12 Subsection 140‑10(1C) Omit “1 June in a financial year”, substitute “1 November in a financial year”. 13 Subsection 140‑10(1C) (steps 1 and 2 of the method statement) Omit “31 December”,Higher Education Support Amendment (Fix HECS) introduced text
15 Section 140‑20 Omit “June” (wherever occurring), substitute “November”.Higher Education Support Amendment (Fix HECS) introduced text
24 Transitional rules (1) The Minister may, by legislative instrument, make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by this Act. (2) The rules may directly amend the text of this Act and the Higher Education Support Act 2003.Higher Education Support Amendment (Fix HECS) introduced text
Context
Under the Higher Education Support Act 2003, Australia’s HELP system has indexed debts each 1 June before compulsory repayments withheld during the preceding financial year are assessed, meaning people can be charged indexationAn increase intended to match rising prices. on money already repaid. As graduates faced balances that could barely fall, the bill’s sponsor linked the inequity to more than $3 billion over a decade; the Parliamentary Budget Office released a costing on 3 June 2026, and Monique Ryan MP introduced the private member’s bill on 29 June to move indexationAn increase intended to match rising prices. to 1 November, count repayments first and use newer CPI and WPI data.
HELP debts operate under the Higher Education Support Act
The Higher Education Support Act 2003 provides the legal basis for HELP debts and their annual indexationAn increase intended to match rising prices..
Higher Education Support Amendment (Fix HECS) explanatory memorandum ↗Annual indexationAn increase intended to match rising prices. can apply before repayments are credited
Under the existing rules, HELP debts are indexed on 1 June before compulsory repayments withheld during the preceding financial year have been assessed and added to the account.
Higher Education Support Amendment (Fix HECS) explanatory memorandum ↗The Parliamentary Budget Office costs the proposed fix
The costing was publicly released on the PBO website, giving the proposal a published estimate of its budget impact.
Higher Education Support Amendment (Fix HECS) explanatory memorandum ↗Monique Ryan MP introduces the Fix HECS Bill
The private member’s bill would delay indexationAn increase intended to match rising prices. from 1 June to 1 November so voluntary and compulsory repayments can be deducted first and newer CPI and WPI data can be used.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Key criticism
The evidence pack does not contain criticism of the bill itself. The included speeches argue that the current system unfairly increases debts before recognising repayments, and both speakers support changing it.
The pack contains the bill proposer’s speech and one other supportive speech. It does not provide an opposing party’s case, committee evidence or a government response.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
Monique Ryan supports the bill, saying moving HECS indexationAn increase intended to match rising prices. to 1 November would ensure repayments are credited before indexationAn increase intended to match rising prices. and save graduates money at a manageable cost to the budget.
Read in Hansard ↗Zali Steggall supports the bill because moving the indexationAn increase intended to match rising prices. date would ensure repayments are counted before graduates are charged indexationAn increase intended to match rising prices. on debt they have already repaid.
Read in Hansard ↗All speeches by bloc
2 speakers · 2 support
“This bill moves the annual indexation date of HECS from 1 June to 1 November. That five-month shift would mean that both voluntary and compulsory repayments made during the financial year were credited to a person's HECS and student loan balance before indexation was applied.”Read the full speech in Hansard ↗
“I commend the member for Kooyong for bringing forward this sensible reform. I urge the parliament and the Albanese government to support it. You cannot, with any credibility, talk about intergenerational inequity or a system that is fair where you're encouraging Australians to build a better future and not change this aspect of indexation and the timing. None of us in this place would accept it on any kind of debt repayment if it were for mortgages or anything else. It is unacceptable that it continues to be the case for student debts and HECS-HELP. I commend this bill to the House, and I urge everybody to be fair to graduates and change this date.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
