After months of anticipation, the Federal Government’s changes to the HECS indexation rules have finally become law, passing through Parliament on Tuesday night.
Under the new legislation, the annual indexation of student loans will be capped at the lower of either inflation or wage growth.
This change, which takes effect retroactively from June 2023, will reverse the 7.1% increase in student debts caused by last year’s indexation.
As a result, some individuals will receive a credit on their loans, while others could see a refund directly in their bank accounts.
The reforms are expected to reduce student debt by $3 billion, benefitting an estimated three million Australians.
What is HECS?
HECS-HELP is a…
