The Times Australia
The Times Australia

.
Times Media

.

Albanese promises changes to HELP repayment arrangements to ease cost of living

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra



People repaying HELP student debts would get cost-of-living relief under changes to repayment arrangements to be announced by Prime Minister Anthony Albanese on Sunday.

The minimum threshold for repayments to start would be lifted by more than $10,000 a year, from about $54,000 in 2024-25 to $67.000 in 2025-26. This threshold would be indexed so it always remained about 75% of average graduate earnings.

The government would also move to a marginal repayment system for HELP debts. That would in the short term be to the advantage of people on incomes just above the threshold.

This change, which does not alter the overall amount of the person’s debt, was recommended by Bruce Chapman, the academic who was a designer of the original HECS scheme in the 1980s. Chapman undertook work for the universities accord released by Education Minister Jason Clare.

The accord recommended “reducing the financial burden of repayment on low-income earners and limiting disincentives to work additional hours by moving to a system of HELP repayment based on marginal rates”.

In a Sunday speech, Albanese will say the changes will boost take home pay for one million young Australians.

The average HELP debt holder would pay about $680 less annually in their repayments.

A university graduate earning $70,000 would have their minimum repayments reduced by $1,300. A graduate on $80,000 would receive a cut of $850.

The targeted relief would apply to all graduates earning up to $180,000 annually.

The changes extend to student loans for vocational education.

The government plans to bring in legislation for the changes next year, but it is not clear whether this will be before or after the election, which must be held by May.

The cost over the forward estimates would be about $300 million.

Albanese said:“We will make it easier for young Australians to save in the future and we are going to make the system better and fairer as well. This is good for cost of living. Good for intergenerational fairness. Good for building Australia’s future.”

This is the government’s second recent round of changes to the HELP scheme .

In changes to indexation in this year’s budget the government announced it would cut the student debt of more than three million people, wiping more than $3 billion from what people owe.

It capped the HELP indexation rate to be the lower of either the Consumer Price Index (CPI) or the Wages Price Index (WPI), backdated from June 1 last year. Indexation had been based on the CPI. Legislation for the budget change is currently before the parliament.

Read more https://theconversation.com/albanese-promises-changes-to-help-repayment-arrangements-to-ease-cost-of-living-242700

The Times Features

The Rise of Meal Replacement Shakes in Australia: Why The Lady Shake Is Leading the Pack

Source Meal replacement shakes are having a moment in Australia, and it’s not hard to see why. They’re quick, convenient, and packed with nutrition, making them the perfect solu...

HCF’s Healthy Hearts Roadshow Wraps Up 2024 with a Final Regional Sprint

Next week marks the final leg of the HCF Healthy Hearts Roadshow for 2024, bringing free heart health checks to some of NSW’s most vibrant regional communities. As Australia’s ...

The Budget-Friendly Traveler: How Off-Airport Car Hire Can Save You Money

When planning a trip, transportation is one of the most crucial considerations. For many, the go-to option is renting a car at the airport for convenience. But what if we told ...

Air is an overlooked source of nutrients – evidence shows we can inhale some vitamins

You know that feeling you get when you take a breath of fresh air in nature? There may be more to it than a simple lack of pollution. When we think of nutrients, we think of t...

FedEx Australia Announces Christmas Shipping Cut-Off Dates To Help Beat the Holiday Rush

With Christmas just around the corner, FedEx is advising Australian shoppers to get their presents sorted early to ensure they arrive on time for the big day. FedEx has reveale...

Will the Wage Price Index growth ease financial pressure for households?

The Wage Price Index’s quarterly increase of 0.8% has been met with mixed reactions. While Australian wages continue to increase, it was the smallest increase in two and a half...

Times Magazine

The Most Effective Method for Keeping Your Windows Clean

Window cleaning can be a pain. It's tedious, time-consuming and often results in streaks or missed spots. What if there was a way to clean your windows quickly and easily? We'll tell you how to clean your windows in the most efficient manner possi...

NetApp and Children’s Cancer Institute Unite for CEO Dare to Cure

NetApp, the intelligent data infrastructure company, is proud to announce its partnership with Children’s Cancer Institute as the Presenting Partner of the CEO Dare to Cure Challenge, a major fundraising event supporting critical research into ch...

Vehicle Emissions Star Rating using public data to inform consumer purchasing decisions

Global open data company Link Digital has used open source technology to develop a new Vehicle Emissions  Star Rating (VESR) website for the New South Wales Government to help drivers consider the efficiency and  environmental impact of their nex...

Quick Guide to Buying a Canopy Tent for Small Business Owners

Small businesses find it hard to afford conventional advertising because it is expensive and entails a lot of waste. Small business owners invariably find participating in trade fairs, exhibitions, fairs, and other outdoor events more productive ...

Protecting Stray Cats in Your Community

Stray cats are a common sight in many neighbourhoods in Melbourne and all around Australia. These feline wanderers, often abandoned or born on the streets, struggle to survive in the harsh urban environment. Many of them face dangers such as traf...

Microbes living on air a global phenomenon

UNSW researchers have found their previous discovery of bacteria living on air in Antarctica is likely a process that occurs globally, further supporting the potential existence of microbial life on alien planets.   In their first follow-up t...