How much will you save on your HECS debt?
HECS debts will now be indexed to the lower between the Consumer Price Index or the Wage Price Index.
As the reform will be backdated to 2023, last year’s indexation rise of 7.1% will be lowered to 3.2% under the new policy. For the average graduate, this will mean $1,200 in savings.
The policy will also be applicable for apprentices who have student debts through the VET Student Loan program or Australian Apprenticeship Support Loan.
| If your HECS balance is: | You will get this back: |
| $15,000 | $675 |
| $25,000 | $1,120 |
| $30,000 | $1,345 |
| $35,000 | $1,570 |
| $40,000 | $1,795 |
| $45,000 | $2,020 |
| $50,000 | $2,245 |
| $100,000 | $4,485 |
This is a huge win for the community
I spoke to so many people in Wentworth who were concerned about this and I’m incredibly proud to have been part of community and crossbench efforts to advocate for this change.
Congratulations in particular to independent MP Dr Monique Ryan for receiving nearly 290,000 signatures on her petition calling on the government to make HECS fairer. It shows the power of independents listening to community and delivering on their priorities.
But there is still more to be done
This is an important first step, however there is still so much more to be done to support young Australians. That means addressing the high cost of arts degrees, expanding paid placements, and fixing how student debt is treated when graduates apply for a mortgage. And, we also need much stronger action on the housing crisis, climate change, and tax reform.
Learn more:
- Daily Telegraph:Crossbench demand Labor fix student debt for hike (link)
- ABC News: Spender asks Education Minister to change HECS indexation (link)
- SMH: Crippling HECS debts spark crossbench calls for home loan overhaul (link)
- SMH: Banks open to overlooking student debt in home loans (link)
- 7 News: Spender says current HECS repayment system wouldn’t be tolerated in other lending channels (link)
- Video: my response to the HECS/HELP debt changes (link)
- Graphic: what do the HECS/HELP changes mean for you? (link)