The federal government will cut around $3bn in student debts through a key change to the Hecs and Help programs, reversing last years horror indexation hike and delivering a $1,200 saving for the average person.
The measure, to be outlined in this months federal budget, will ensure student debts cant outpace wage growth in the future by capping the indexation rate for Hecs and Help loans.
The WPI has been significantly lower than the CPI in 2022 and 2023, however it is expected to overtake the CPI by 2025. In 2023, the indexation rate based on the WPI was less than half that of the CPI, sitting at just 3.2%.
The change, which requires legislation, would be retrospective and backdated to 1 June 2023, effectively turning back the clock on las…
Read the full article at: https://www.theguardian.com/australia-news/article/2024/may/05/labor-to-wipe-3bn-from-hecs-and-help-debts-through-indexation-changes