HECS debt relief nears as Labor eyes further uni reform
Legislation was introduced to parliament on Wednesday to slash HECS debts by 20 per cent and increase income thresholds before minimum repayments kick in.
It is expected to be passed with the support of the opposition in the coming weeks.
Prime Minister Anthony Albanese credited the bill as a key reason behind Labor's victory in the May election.
"Because it resonated with those young Australians in particular, who are looking for intergenerational equity measures, which is what this is, saving some three million Australians an average of $5500 each," he said during question time.
Federal Education Minister Jason Clare said the policy will make the system fairer.
"It means you start paying off your uni degree when uni starts to pay off for you," he said while introducing the bill to the House of Representatives earlier on Wednesday.
People earning between $60,000 and $180,000 will save hundreds of dollars each year under the changes.
Someone on $70,000 will save the most on minimum repayments - $1300 a year - due to an increase to the thresholds for when the debts must be paid.
The bill is set to sail through both houses of parliament, with Opposition Leader Sussan Ley telling Sky News: "We will be constructive where we can."
Bruce Chapman, the architect of the HECS scheme, said the relief would make the system fairer by giving those on lower salaries more money in their pockets.
But the top priority should be reviewing the price of each degree because humanities students finish with the highest level of debt and end up being the lowest-paid graduates.
"All the prices are wrong," Professor Chapman told AAP.
Mr Clare said further reforms were being looked at after the failure of the former Liberal government's job-ready program.
The program aimed to fill skills shortages by making it cheaper to take courses such as teaching, nursing and psychology, while doubling the cost of popular degrees including law, communications, business, humanities and the arts.
"If the intention there was to reduce the number of people doing arts degrees, it hasn't worked," Mr Clare said.
"People study the courses they're interested in, that they want to do, that they love."
The universities' accord final report branded the program "deeply unfair" because it punished students who followed their interests.
It recommended that fees reflect future earning potential as part of 47 recommendations to reform the sector.
The universities sector welcomed the HECS bill but called on the government to repeal the jobs-ready graduates scheme.
"Scrapping the job-ready graduates package to make student fees fairer and expanding the Commonwealth prac payment could help shift the dial on participation, which is what the country needs," Universities Australia chief executive Luke Sheehy said.
Other aspects about how HECS debts were paid off also needed to be addressed, Prof Chapman said.
HECS repayments are taken from a person's pay if they earn above an income threshold.
But the money isn't immediately taken off the total debt and is instead deducted as a lump sum at the end of the financial year after indexation has been applied.
The university accord recommended the arrangement be changed to make the system fairer.
The Australian Tertiary Education Commission has been established in an interim capacity to implement long-term university reform and will review the HECS system over the next 12 months.
Mr Clare will introduce further legislation to make the commission a permanent body.
Students and graduates will soon receive a cut to higher education debts but advocates say the government must do more to make university fees fairer.
Legislation was introduced to parliament on Wednesday to slash HECS debts by 20 per cent and increase income thresholds before minimum repayments kick in.
It is expected to be passed with the support of the opposition in the coming weeks.
Prime Minister Anthony Albanese credited the bill as a key reason behind Labor's victory in the May election.
"Because it resonated with those young Australians in particular, who are looking for intergenerational equity measures, which is what this is, saving some three million Australians an average of $5500 each," he said during question time.
Federal Education Minister Jason Clare said the policy will make the system fairer.
"It means you start paying off your uni degree when uni starts to pay off for you," he said while introducing the bill to the House of Representatives earlier on Wednesday.
People earning between $60,000 and $180,000 will save hundreds of dollars each year under the changes.
Someone on $70,000 will save the most on minimum repayments - $1300 a year - due to an increase to the thresholds for when the debts must be paid.
The bill is set to sail through both houses of parliament, with Opposition Leader Sussan Ley telling Sky News: "We will be constructive where we can."
Bruce Chapman, the architect of the HECS scheme, said the relief would make the system fairer by giving those on lower salaries more money in their pockets.
But the top priority should be reviewing the price of each degree because humanities students finish with the highest level of debt and end up being the lowest-paid graduates.
"All the prices are wrong," Professor Chapman told AAP.
Mr Clare said further reforms were being looked at after the failure of the former Liberal government's job-ready program.
The program aimed to fill skills shortages by making it cheaper to take courses such as teaching, nursing and psychology, while doubling the cost of popular degrees including law, communications, business, humanities and the arts.
"If the intention there was to reduce the number of people doing arts degrees, it hasn't worked," Mr Clare said.
"People study the courses they're interested in, that they want to do, that they love."
The universities' accord final report branded the program "deeply unfair" because it punished students who followed their interests.
It recommended that fees reflect future earning potential as part of 47 recommendations to reform the sector.
The universities sector welcomed the HECS bill but called on the government to repeal the jobs-ready graduates scheme.
"Scrapping the job-ready graduates package to make student fees fairer and expanding the Commonwealth prac payment could help shift the dial on participation, which is what the country needs," Universities Australia chief executive Luke Sheehy said.
Other aspects about how HECS debts were paid off also needed to be addressed, Prof Chapman said.
HECS repayments are taken from a person's pay if they earn above an income threshold.
But the money isn't immediately taken off the total debt and is instead deducted as a lump sum at the end of the financial year after indexation has been applied.
The university accord recommended the arrangement be changed to make the system fairer.
The Australian Tertiary Education Commission has been established in an interim capacity to implement long-term university reform and will review the HECS system over the next 12 months.
Mr Clare will introduce further legislation to make the commission a permanent body.
Students and graduates will soon receive a cut to higher education debts but advocates say the government must do more to make university fees fairer.
Legislation was introduced to parliament on Wednesday to slash HECS debts by 20 per cent and increase income thresholds before minimum repayments kick in.
It is expected to be passed with the support of the opposition in the coming weeks.
Prime Minister Anthony Albanese credited the bill as a key reason behind Labor's victory in the May election.
"Because it resonated with those young Australians in particular, who are looking for intergenerational equity measures, which is what this is, saving some three million Australians an average of $5500 each," he said during question time.
Federal Education Minister Jason Clare said the policy will make the system fairer.
"It means you start paying off your uni degree when uni starts to pay off for you," he said while introducing the bill to the House of Representatives earlier on Wednesday.
People earning between $60,000 and $180,000 will save hundreds of dollars each year under the changes.
Someone on $70,000 will save the most on minimum repayments - $1300 a year - due to an increase to the thresholds for when the debts must be paid.
The bill is set to sail through both houses of parliament, with Opposition Leader Sussan Ley telling Sky News: "We will be constructive where we can."
Bruce Chapman, the architect of the HECS scheme, said the relief would make the system fairer by giving those on lower salaries more money in their pockets.
But the top priority should be reviewing the price of each degree because humanities students finish with the highest level of debt and end up being the lowest-paid graduates.
"All the prices are wrong," Professor Chapman told AAP.
Mr Clare said further reforms were being looked at after the failure of the former Liberal government's job-ready program.
The program aimed to fill skills shortages by making it cheaper to take courses such as teaching, nursing and psychology, while doubling the cost of popular degrees including law, communications, business, humanities and the arts.
"If the intention there was to reduce the number of people doing arts degrees, it hasn't worked," Mr Clare said.
"People study the courses they're interested in, that they want to do, that they love."
The universities' accord final report branded the program "deeply unfair" because it punished students who followed their interests.
It recommended that fees reflect future earning potential as part of 47 recommendations to reform the sector.
The universities sector welcomed the HECS bill but called on the government to repeal the jobs-ready graduates scheme.
"Scrapping the job-ready graduates package to make student fees fairer and expanding the Commonwealth prac payment could help shift the dial on participation, which is what the country needs," Universities Australia chief executive Luke Sheehy said.
Other aspects about how HECS debts were paid off also needed to be addressed, Prof Chapman said.
HECS repayments are taken from a person's pay if they earn above an income threshold.
But the money isn't immediately taken off the total debt and is instead deducted as a lump sum at the end of the financial year after indexation has been applied.
The university accord recommended the arrangement be changed to make the system fairer.
The Australian Tertiary Education Commission has been established in an interim capacity to implement long-term university reform and will review the HECS system over the next 12 months.
Mr Clare will introduce further legislation to make the commission a permanent body.
Students and graduates will soon receive a cut to higher education debts but advocates say the government must do more to make university fees fairer.
Legislation was introduced to parliament on Wednesday to slash HECS debts by 20 per cent and increase income thresholds before minimum repayments kick in.
It is expected to be passed with the support of the opposition in the coming weeks.
Prime Minister Anthony Albanese credited the bill as a key reason behind Labor's victory in the May election.
"Because it resonated with those young Australians in particular, who are looking for intergenerational equity measures, which is what this is, saving some three million Australians an average of $5500 each," he said during question time.
Federal Education Minister Jason Clare said the policy will make the system fairer.
"It means you start paying off your uni degree when uni starts to pay off for you," he said while introducing the bill to the House of Representatives earlier on Wednesday.
People earning between $60,000 and $180,000 will save hundreds of dollars each year under the changes.
Someone on $70,000 will save the most on minimum repayments - $1300 a year - due to an increase to the thresholds for when the debts must be paid.
The bill is set to sail through both houses of parliament, with Opposition Leader Sussan Ley telling Sky News: "We will be constructive where we can."
Bruce Chapman, the architect of the HECS scheme, said the relief would make the system fairer by giving those on lower salaries more money in their pockets.
But the top priority should be reviewing the price of each degree because humanities students finish with the highest level of debt and end up being the lowest-paid graduates.
"All the prices are wrong," Professor Chapman told AAP.
Mr Clare said further reforms were being looked at after the failure of the former Liberal government's job-ready program.
The program aimed to fill skills shortages by making it cheaper to take courses such as teaching, nursing and psychology, while doubling the cost of popular degrees including law, communications, business, humanities and the arts.
"If the intention there was to reduce the number of people doing arts degrees, it hasn't worked," Mr Clare said.
"People study the courses they're interested in, that they want to do, that they love."
The universities' accord final report branded the program "deeply unfair" because it punished students who followed their interests.
It recommended that fees reflect future earning potential as part of 47 recommendations to reform the sector.
The universities sector welcomed the HECS bill but called on the government to repeal the jobs-ready graduates scheme.
"Scrapping the job-ready graduates package to make student fees fairer and expanding the Commonwealth prac payment could help shift the dial on participation, which is what the country needs," Universities Australia chief executive Luke Sheehy said.
Other aspects about how HECS debts were paid off also needed to be addressed, Prof Chapman said.
HECS repayments are taken from a person's pay if they earn above an income threshold.
But the money isn't immediately taken off the total debt and is instead deducted as a lump sum at the end of the financial year after indexation has been applied.
The university accord recommended the arrangement be changed to make the system fairer.
The Australian Tertiary Education Commission has been established in an interim capacity to implement long-term university reform and will review the HECS system over the next 12 months.
Mr Clare will introduce further legislation to make the commission a permanent body.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Age
2 hours ago
- The Age
Power giant warns of ‘two-speed' green shift which benefits only the rich
Millions of Australians face being left behind in the race to greener energy, one of the nation's largest power distributors has warned, as renters miss out on huge savings from solar panels while homes without off-street parking cannot install electric vehicle chargers. From this year, home-owners with solar panels stand to benefit from even bigger electricity bill cuts following the introduction of federal government rebates wiping thousands of dollars off the cost of installing batteries that can soak up their excess energy. Increasing home battery uptake has many advantages: it will enable Australia to harness more of its world-leading per-person solar panel uptake to use after sunset, drive down greenhouse gas emissions and smooth out volatile price swings across the market. But the household clean energy boom may create winners and losers, warns Ausgrid, the largest power distribution company on Australia's eastern seaboard. The company points to renters and lower-income Australians who are unable to make the switch and are forced to stay on increasingly expensive fossil fuel-based energy supplies. 'The problem we see is that if you don't own your own home, or have the financial wherewithal, you are faced with the full system cost of the transition,' said Rob Amphlett Lewis, Ausgrid's group executive of distributed services. Loading 'What we are in danger of is a two-speed transition that works for the 'haves' and is paid for by the 'have-nots'.' Ausgrid and other Australian distribution network service providers are seeking to expand their reach beyond building and maintaining the network's poles and wires and into other future-facing functions where they believe they are well placed to deliver more efficient outcomes for consumers. Their push, however, has opened a major new rift in the industry between network operators and a wide range of other electricity market participants, which are urging regulators against any waiver from 'ring-fencing' rules designed to prevent monopolies from encroaching on competitive markets, and argue it could drive up costs.
Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
Power giant warns of ‘two-speed' green shift which benefits only the rich
Millions of Australians face being left behind in the race to greener energy, one of the nation's largest power distributors has warned, as renters miss out on huge savings from solar panels while homes without off-street parking cannot install electric vehicle chargers. From this year, home-owners with solar panels stand to benefit from even bigger electricity bill cuts following the introduction of federal government rebates wiping thousands of dollars off the cost of installing batteries that can soak up their excess energy. Increasing home battery uptake has many advantages: it will enable Australia to harness more of its world-leading per-person solar panel uptake to use after sunset, drive down greenhouse gas emissions and smooth out volatile price swings across the market. But the household clean energy boom may create winners and losers, warns Ausgrid, the largest power distribution company on Australia's eastern seaboard. The company points to renters and lower-income Australians who are unable to make the switch and are forced to stay on increasingly expensive fossil fuel-based energy supplies. 'The problem we see is that if you don't own your own home, or have the financial wherewithal, you are faced with the full system cost of the transition,' said Rob Amphlett Lewis, Ausgrid's group executive of distributed services. Loading 'What we are in danger of is a two-speed transition that works for the 'haves' and is paid for by the 'have-nots'.' Ausgrid and other Australian distribution network service providers are seeking to expand their reach beyond building and maintaining the network's poles and wires and into other future-facing functions where they believe they are well placed to deliver more efficient outcomes for consumers. Their push, however, has opened a major new rift in the industry between network operators and a wide range of other electricity market participants, which are urging regulators against any waiver from 'ring-fencing' rules designed to prevent monopolies from encroaching on competitive markets, and argue it could drive up costs.
Sky News AU
3 hours ago
- Sky News AU
‘A big deal': PM Modi meets King Charles as India-UK free trade deal signed
Entertainment Reporter Bronte Coy discusses King Charles' meeting with Indian Prime Minister Narendra Modi. 'The King has been keeping busy,' Ms Coy told Sky News host Caroline Di Russo. 'This was part of a two-day visit by the Indian prime minister, which was largely to discuss the free trade deal which he'd signed earlier in the day before meeting King Charles. 'That deal was three years in the making, so quite a big deal, particularly post-Brexit. 'The prime minister also turned up with a tree sapling as part of an environmental initiative that he himself had launched, so absolutely the way to the King's heart there, with plants and gardening and the environment.'
