The Federal government has announced major changes to HECS indexation as part of the budget on May 14th. Debt will now be indexed to wage growth as opposed to the Consumer Price Index (CPI) and that reform will be applied retroactively to last year.
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HECS fees, tied to inflation, are set to rise by 4.8 percent in June, down from last year’s 7.1 percent rise. With a debt of $26,494, the average student will be liable for an extra $1,272, extrapolating from figures published by the Australian Taxation Office.
The open letter addressed the broader context of cost of living pressures, the declining value of a university degree, and a more precarious job market as key reasons for more consultation prior to indexation.
Students, impacted by the fee increases of the Job-ready Graduates Package, the cost-of-living crisis, unaffordable housing, and without the means to make repayments, will be hardest hit by the indexation.