University graduates earning $730 a week will have to start repaying their student loans from Sunday after the Turnbull Government signed a deal to reclaim $250 million in higher education debt.
The bill passed on Tuesday requires graduates to repay at least 1 per cent of their student debt once they start earning $45,000 a year, reducing the threshold from $56,000.
The government originally wanted to reduce the repayment threshold to $42,000, but it was turned down due to the median wage for full-time workers being $66,000.