Education minister stands by three-decade high indexation rate of 7.1% but acknowledges need for minor reforms amid backlash
Get our morning and afternoon news emails, free app or daily news podcast
Critics of soaring indexation on student debts have welcomed the education minister’s commitment to look into an accounting quirk in the way loans are indexed which could save graduates hundreds of dollars in repayments.
Hecs debts rise annually with inflation on 1 June, but loan repayments aren’t processed until tax returns are lodged, which can be months later. This means indexation is applied to portions of debts already paid – often by thousands of dollars.
More Stories
China ‘evaluating’ US offer to engage in trade negotiations
AfD ‘extremist’ label sets up political high-wire act for Friedrich Merz
US designates two powerful Haitian gangs as terrorist groups