Some three million Australians with a student debt will soon see their balance owed reduced as the tax office prepares to implement a 20 per cent cut.

The Australian Tax Office will apply the reprieve from mid-November and anticipates half of everyone who owes a student debt will be better off by December.

Almost everyone else will see the cut applied before Christmas, Education Minister Jason Clare says.

"This is already locked in to people's balances ... but soon they will be able to see it and feel it," he said.

"Just out of uni, just getting started - this is taking a weight off their back."

The cut will be backdated to June 1, before indexation happened.

Recipients will receive a text or email when the cut occurs and will be able to check their accounts to view the lower balance

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