Today the government announced big changes to the HELP repayment system. Its proposal involves several interconnected conceptual and practical considerations.
The first issue is where to set the first repayment threshold – how much should a HELP debtor earn before they start repaying? The government proposal is for a higher first threshold.
The second issue is annual repayment amounts, which affect the disposable income of debtors and how long it takes them to repay their debt. The government proposal is for most debtors to repay less HELP debt each year, increasing their annual disposable income but also their repayment time.
The third issue is the method of repayment. Should it be – as we have had since 1989…
