Student debt was previously just indexed to the Consumer Price Index (CPI) inflation rate, but the 2024 budget will change this to the lower of the Wage Price Index (WPI) or CPI.
This will be backdated to retroactively apply to last year’s indexation (7.1%), which the government estimates could wipe more than $3 billion from existing student loans.
This was one of the major recommendations from the Australian Universities Accord – a review into the higher education system – and the government says it is part of the first stage of reforms implemented on the back of the review.
Minister for Skills and Training Brendan O’Connor said this continues the government’s work to reduce financial barriers to education and training.
“By backdating…
