The government has promised a huge change is coming to Australians’ student debt balances, with legislation to adjust how indexation is calculated.
The government has revealed plans to slash the student debt balance of more than three million with one key change.
Backdated to June 1 last year, increased would now be the lower of the two between the Consumer Price Index and the Wage Price Index .Last financial year, the average HELP debt of $26,500 jumped by $1881.50, or 7.1 per cent, based on the CPI measure which records inflation by noting the changes in a basket of consumer goods and services.Over the same period, the WPI rose only 3.2 per cent — which would have seen the average HELP debt increase by $848.
The move, which will be included in the May budget, is hoped to provide “significant relief” to those with student loans amid the fight against inflation.
Records Inflation Brendan O’Connor Sky News Young People Haver Student Loan Student Loan Holder Student Debs Federal Education Minister Indexation Jump Loan Accounts Student Debt Student Loans Debt Increase Jason Clare Newswire-Politics Andrew Clennell
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