Federal Member for Flynn, Colin Boyce said today, some three million Australians will be hit with a crippling 7.1 per cent increase in their student loans. Fuelled by Labor’s high inflation, this is the highest HECS indexation rate in more than 30 years.
Mr Boyce said as a start, the Coalition has called for the government to cancel the proposed high risk Startup Year loans scheme and reform the unjust tax payments system which allows the ATO to index student loans which have been paid off.
“This dramatic increase in HECS and other student loans is impacting on so many local residents living in the Flynn electorate. The Albanese Government’s cost of living crisis is hurting so many local families,” Mr Boyce said.
“For students and young Australians with a HECS debt, this 7.1 per cent increase in student loans is in stark contrast to indexation rates under the former Coalition government which averaged just two per cent, per year. It is clear that after one year in government, the Albanese Labor Government has no solutions to help Australians pay down their student debts.
“Given HECS debts must be considered in any home loan application, I am also concerned that a higher student debt will impact on the borrowing power of local residents.
“Rather than put their heads in the sand, it is time that Labor started to take their cost-of-living crisis seriously and reduce inflation to bring this back in line.”