The Government’s student debt reforms are being rolled out from today after its HECS indexation changes passed Parliament last month.
The legislation means indexation cannot exceed the lower rate of either inflation or wage growth figures.
It comes after HECS debts increased by 7.1% in 2023, in line with inflation. This increase will be adjusted to 3.2% — the wage index.
Under the changes, the Government estimates that a $25,000 HECS debt will be reduced by over $1,000.
The reform, which the Opposition supported, meant the Government essentially owed people a 3.9% refund on the HECS indexation they were charged in June 2023.
Those who’ve paid off their HECS since then will have the difference credited to them.
Australians can check their student debt by logging onto their ATO account through myGov.
