Millions of Australians will experience a 20 per cent reduction in student debt from November, but indexation woes could continue without careful action.

A one-off reduction on all Higher Education Loan Program (HELP) debts, including university loans, known as HECS, will be backdated to June 1.

Federal education minister Jason Clare said on October 5 students "will be able to see it and feel it".

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

But the law will also raise the income threshold for minimum HECS debt repayments and change how student debt is repaid.

The minimum compulsory repayment threshold will increase to $67,000 in the 2025-26 income year up from $56,156 in 2024-25.

H&R Block's tax communications director Mark Chapman told

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