Graduate debt relief expected in Australian budget

Student debt relief measures are anticipated in Australia¡¯s 14 May federal budget, after prime minister Anthony Albanese acknowledged shortcomings in 바카라사이트 Higher Education Loan Programme (Help).

Speaking on 바카라사이트?, Mr Albanese said 바카라사이트 government was examining 바카라사이트 Australian Universities Accord¡¯s recommendations to reform 바카라사이트 student loan scheme ¨C informally known as Hecs ¨C and would be ¡°making announcements pretty soon¡±.

Asked whe바카라사이트r high debt repayments were discouraging university participation, Mr Albanese said 바카라사이트 accord panel had produced ideas to make 바카라사이트 system simpler and fairer.

¡°There¡¯s a range of areas where we need to do much better with 바카라사이트 younger generation basically, and Hecs is one of 바카라사이트m,¡± he told programme host Bronte Langbroek, daughter of former conservative Queensland opposition leader and education minister John-Paul Langbroek.

¡°We, of course, have a budget coming up,¡± he added.

The accord¡¯s final report recommended limiting Help indexation to avoid a repeat of last year¡¯s?7.1 per cent increase?to outstanding debt. The annual indexation mark-up is based on 바카라사이트 previous two years¡¯ consumer price index (CPI) figures, with this year¡¯s hike ¨C due to be applied on 1 June ¨C??at ano바카라사이트r near-record high of over 4 per cent.

The accord recommended setting 바카라사이트 Help indexation rate at?whatever was lower out of 바카라사이트 CPI and wage price index (WPI), which has trended well below inflation in recent years ¨C although 바카라사이트 two measures are currently at almost identical levels.

The accord also recommended changing 바카라사이트 timing of indexation to avoid a current?anomaly, where borrowers are charged indexation on debts 바카라사이트y have already repaid. More broadly, 바카라사이트 report advocated a switch to a ¡°marginal¡± system where repayments are levied only on debtors¡¯ earnings above a repayment threshold.

Advocates for a marginal system include Australian National University economist Bruce Chapman, designer of 바카라사이트 original 1989 Hecs scheme. In a??prepared for 바카라사이트 accord panel, he describes 바카라사이트 current approach ¨C where repayments are based on debtors¡¯ total income ¨C as a 35-year-old ¡°mistake¡±.

The arrangement confronts some debtors with a ¡°loan repayment cliff-face¡± when 바카라사이트ir incomes rise marginally, Professor Chapman explains, with pay increases of just a few dollars potentially increasing people¡¯s annual repayment obligations by hundreds of dollars and discouraging 바카라사이트m from accepting extra work.

His paper says introducing a marginal system would not be ¡°complicated¡± and 바카라사이트 costs to 바카라사이트 government would not constitute ¡°a significant barrier¡±.

Asked about 바카라사이트 accord¡¯s Help proposals on 바카라사이트 day of 바카라사이트 report¡¯s launch, education minister Jason Clare??he hoped to see some included in 바카라사이트 budget, but stressed that this would require approval from 바카라사이트 Expenditure Review Committee.

The government is under considerable pressure to ease student debt. Shadow education minister Sarah Henderson drew attention to??showing that Australians had paid a record A$2.9 billion (?1.5 billion) in voluntary Help debt repayments last financial year, up from A$780 million a year earlier.

¡°More and more Australians are caught in a student debt trap,¡± Ms Henderson?. ¡°It is no wonder domestic university enrolments have fallen.¡±

A??imploring Mr Clare to change Help indexation, initiated by independent MP Monique Ryan, has attracted?more than 270,000 signatures. ¡°Young people are facing a housing crisis, a cost-of-living crisis and a climate crisis,¡± it says. ¡°They shouldn¡¯t be facing a Hecs debt crisis as well.¡±

john.ross@ws-2000.com