Changes to HECS tax scales
The Australian Government’s Universities Accord (Cutting Student Debt by 20 per cent) Bill 2025 has passed Parliament, these changes apply to wages payments from 24th September. New tax scales are being rolled out in Xero now.
For many of your employees, this will mean a smaller compulsory repayment is taken out of their pay (or none at all). This translates to more money in their hands – you may need to update scheduled bank transfers.
As the legislation has been back dated to 1st July 2025, employees who have had tax withheld using the old rates may receive a refund when they complete their 2026 tax return.
26/09/2025
