Access advice to guide your steps
$3Billion of HECS/Fee HELP debt to be wiped off for Australians.
The Bill was finally passed around how the 1 June indexation is calculated each year.
The CPI method came under scrutiny back in June 2023, when we had the student debts grow by a record 7.1%.
The new legislation will see the indexation on 1 June be either CPI (which it is currently) or the Wage Price Index (WPI) - which is the proxy for AWOTE.
Apart from this fix there are two things I like about the Bill.
1. It is going to be back dated to 1 June 2023, so the 7.1% indexation will be trimmed back down to 3.2%, and this years will go from 4.7% down to 4.0%
2. Anyway that has paid off their debt since 1 June 2023 will get a credit from the ATO.
Actual savings may vary depending on individual circumstances, including repayments made during the year.
Another part of the Bill was around the Commonwealth Prac Payment, this will kick off from 1 July 2025 and offer financial support for Teaching, Nursing, Midwifery and Social Work students while completing their practical subjects.
This website may contain general advice, but does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement. In the event that Funded Futures Financial Services is providing personal advice it will be communicated via a ‘statement of advice’.
Funded Futures Financial Planning ABN 81 646 656 804 T/A Funded Futures Financial Services is a Corporate Authorised Representatives and is authorised through Cobalt Advisers Pty Ltd ABN 64 628 654 099 who is an Australian Financial Services Licencee # 512550.
© 2024 Funded Futures | All Rights Reserved | Developed by
