Government to slash HELP debt by $3bn
ATO releases list of 100 largest HELP debts
Policy change will backdate indexation to 2023
The federal government will slash HECS-HELP debts by $3bn, reversing last year’s hike in indexation. The policy change will be backdated to June 1, 2023, meaning last year’s 71 per cent indexation will be lowered to the WPI of 32 per cent. The announcement comes after the Australian Tax Office (ATO) released the country’s 100 largest HELP debts through a Freedom of Information request. The ATO data shows that the largest HELP debt is more than $1 million, while the average debt is around $30,000. The government’s decision to cut HECS-HELP debts has been welcomed by students and graduates, who have been struggling with the rising cost of living. The change is expected to save graduates around $1,000 per year on their repayments. However, the policy change has also been criticized by some, who argue that it will benefit high-income earners more than low-income earners.
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