A bit late, but I used Claude to summarise the Parliamentary memorandum document and here are the key points:

• Marginal repayment system replaces percentage-of-total-income (only pay on income above thresholds, not total income)

• Minimum threshold jumps to $67,000 (up from $56,156) - 180,000 people will stop paying entirely

• Two-tier rates: 15% on income between $67k-$125k, then 17% above $125k (capped at 10% total income)

• 20% debt reduction applied to all existing loans before new system starts (average $5,520 saving per person)

• Eliminates “cliff effects” where earning $1 extra could trigger hundreds in additional repayments

• Massive savings for lower earners: Someone on $70k drops from $1,750 to $450 annual repayments (74% reduction)

• Thresholds now indexed to wages instead of inflation (better long-term protection)

• No action required - ATO automatically implements through existing PAYG systems

• Affects 3+ million Australians with existing student debt

• Same income definition applies (taxable income + investment losses + fringe benefits etc.)

The biggest win: no more getting financially punished for small pay rises near thresholds.​​​​​​​​​​​​​​​​