INTHEBLACK June 2026 - Magazine - Page 37
“For younger professionals, rising indexation creates
a sense that the goalposts are moving and that undermines
confidence in longer-term financial planning.”
MARK CHAPMAN FCPA, H&R BLOCK
fees to where they were before, when they
were much fairer.”
Other suggestions to help people manage
the rising level of debt have been put forward,
including one from University of Canberra
vice-chancellor Bill Shorten, who has proposed
a 1 per cent levy on company profits, estimated
to raise billions of dollars a year. Shorten argues
that businesses benefit directly from a skilled
graduate workforce and should contribute to
the cost of training employees. Without such
contributions, he says, the financial burden falls
more heavily on graduates and taxpayers.
Critics remain unconvinced. Many note
that small and medium enterprises employ
few graduates, yet would still be affected
by the levy.
“University research benefits the entire
community and should be funded through
general tax revenue,” says Bruce Chapman.
MOVING THE GOALPOSTS
The vulnerabilities brought on by higher
fees were not immediately apparent.
Indexation held at 1.8 per cent in 2020
and fell to 0.6 per cent in 2021. But because
HECS-HELP debts are indexed to CPI,
bigger balances get hit harder when inflation
goes up. And if indexation is higher than
what is being repaid in a given year, the debt
can grow — even with regular repayments.
The surging inflation post-pandemic made
this clear. In 2023, HECS-HELP debts were
indexed at 7.1 per cent, which was the highest
rate in decades, adding more than A$1960 to
an average A$27,600 balance in a single year.
Mark Chapman says the issue is often less
about the absolute size of the debt and more
about uncertainty. “For younger professionals,
rising indexation creates a sense that the
goalposts are moving and that undermines
confidence in longer-term financial planning.”
That uncertainty carries real financial
ALTERNATE PATHWAYS
Some students in Australia are sidestepping rising
HECS-HELP debt altogether by starting with governmentfunded Technical and Further Education (TAFE) courses.
Certificates and diplomas can often be credited toward
a university degree, reducing both the number of units
required and the overall cost.
For example, Victoria University offers a Certificate IV
and Diploma of Accounting under the Free TAFE program
for eligible students, providing a pathway into a bachelor
degree without upfront tuition fees.
Similar options are available nationally, with fee-free
courses in Queensland and subsidised courses in priority
sectors such as agriculture, community services and
technology in Tasmania.
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