|
It’s great that students are willing to invest in skills training and higher education to achieve their life an career goals. Many take out a government loan to fund their tuition fees and it’s abhorent that the Australian Government whacks these students with a 20% loan tax.
The 20% student loan tax contradicts the Australian ethos of giving everyone a fair go. It particularly impacts those needing financial support the most, creating a divide between who can and cannot afford to pay for their tertiary education, thereby undermining the principle of equal opportunity access to skills training.
Placing students at the heart of the higher education system is essential, as they are the architects of their own future. By prioritising students’ needs, aspirations, and success, we unlock their limitless potential. To do this, they need governments to back their decision to study with either a quality independent or public provider.
 |
Penalising Students
Understanding The Student Loan Tax
|
| |
Students who study with an independent RTO and access the VET Student loan program, and most higher education students with independent providers that access a FEE-HELP loan have to pay an additional 20% tax on top of their student loan (public servants use the less offensive term of ‘loan fee’).
So, if the student invests in their education and borrows $18,000, they are taxed and additional 20% simply for the privilege of accessing the FEE-HELP loan. thus their total loan would be $21,600.
What’s worse is that the total debt to the Australian Government that includes the 20% student loan tax is indexed in line with inflation every year.
|
The 20% student loan tax undermines the Australian Government’s ambition to make tertiary education accessible for all. It disproportionately affects lower-income students who rely on loans, making it harder for them to achieve their life and career goals, contrary to the government’s commitment to education equality.
 |
Time To Act
What's Required By The Australian Government
|
| |
The Independent Tertiary Education Council Australia (ITECA), back by students around the country, is asking the Australian Government to commit to a reduction of this student loan tax. This will create a fairer and more equitable higher education system.
Abolishing the student loan tax immediately is the preferred goal; however, a graduated phase-down with a commitment for its ultimate abolition will be viewed by students as a positive first step.
|
Australians investing in their own higher education deserve a better deal from the Australian Government. These students have been ambitious and made a decision to invest in their own education, career and life goals. It’s a genuine travesty that they are taxed for doing so.
It’s time to end the student loan tax.
Further Information —
If you have any questions concerning this policy advocacy, please send an email to [email protected] or telephone 1300 421 017.
This information may be reproduced in limited circumstances under a Creative Commons: Attribution-NonCommercial-NoDerivatives 4.0 License. Information published on this webpage is intended for general information only and no warranty is providers as to accuracy or completeness thus an reliance you place on this material is therefore strictly at your own risk..
|