Queenslanders With HECS-DEBT To See Biggest Increase In Decades

Economists concerned for students

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Queenslanders with a HECS debt are set to see the biggest index hike in over 30 years.

From June 1, Queenslanders with HECS-HELP debt from tertiary education are expected to be hit with the most significant increase in decades.

While HECS-HELP does not accumulate interest, it is subject to inflation annually.

Last year’s indexation rate reached 3.9 percent; inflation is set to reach a whopping 7.1 percent from June 1.

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The changes are expected to impact around three million people across the country with 15 percent of Australians currently holding onto to HECS debt. 

A recent survey by Finder of 300 Australians showed that more than half of the respondents said they would struggle to pay it back with 14 percent believing they would never have the ability to pay it back.

The current Australian has an average of $23,685 in HECS debt with other Australians racking up a HECS debt worth hundreds of thousands of dollars. 

The new increase could see people who make a compulsory contribution of $3,375 over the next financial year, make a dent of only $1,499 due to inflation. 

In a bid to take the pressure off young Australians, some economists are calling for the Government to intervene and put a hold on indexation for one year.

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Georgie Marr

16 May 2023

Article by:

Georgie Marr

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