From atlaswealth.com: The Australian government has reformed the indexation of HECS loans, reducing the rate from 7.1% to 3.2%, which allows students greater financial relief.

New guidelines enable banks to exclude HECS repayments from serviceability assessments, thereby improving borrowing capacity for applicants with small HECS debts and high incomes.

Borrowers can also refinance their home loans while maintaining HECS debts, potentially increasing their take-home pay by eliminating the HECS liability.