How will the change work?
The government will make the change retrospective, once it passes legislation.
Given the wage price index up until September last year had been below 4 per cent, it means the indexation rate for June 1, 2023, will be slashed from 7.1 per cent to 3.2 per cent, and the rate for June 1 this year will be cut from 4.7 per cent to 4 per cent.
What that all means is once the legislation has passed, the government will apply a credit for the difference between the rates of indexation on all existing student loans.
Has HECS debt been wiped?
No.
The government is just giving some money back as part of a cost-of-living relief measure, and the change has not yet taken effect.
The government needs new legislation to make this…
