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MEDIA RELEASE
HECS HELPS 1.7 MILLION TO ACCESS UNIVERSITY
11 September, 2003 MIN 460/03
Latest data from the Australian Taxation Office shows that 1.7
million students have been assisted to access university study
through the Higher Education Contribution Scheme (HECS).
The success of HECS in supporting the sustainable growth of
higher education opportunities is evident with the large number of
people having taken advantage of the interest-free loan scheme since
it was introduced by Labor in 1989. More than 600,000 people have
already repaid their loans, totalling $4 billion.
The ATO data shows that more than 1.1 million people currently
have a HECS loan. The cost of these loans to the Australian taxpayer
is currently around $9 billion. This has increased from $4 billion
in 1995, when there were around 708,000 loan holders.
|
STATE/TERRITORY |
HECS DEBT - 1995 |
HECS DEBT - 2003 |
|
ACT |
$110,524,254 |
$254,910,258 |
|
NSW |
$1,160,438,560 |
$2,903,402,059 |
|
NT |
$33,283,474 |
$72,211,261 |
|
QLD |
$596,991,882 |
$1,868,540,570 |
|
SA |
$272,007,862 |
$749,378,569 |
|
TAS |
$69,023,906 |
$217,151,603 |
|
VIC |
$1,122,675,404 |
$2,777,686,271 |
|
WA |
$344,330,260 |
$925,429,262 |
The total HECS debt level is forecast to rise to $13 billion by
2006/07 as even more people take advantage of loans under the
Government’s proposed expansion of student loan access.
Around 90% of people with a HECS debt owe less than $18,000 and
around 80% owe less than $14,000. Around 5% owe more than $20,000.
The average HECS debt is about $8,500.
|
STATE/TERRITORY |
AVERAGE HECS DEBT - 2003 |
|
ACT |
$9,037 |
|
NSW |
$8,393 |
|
NT |
$6,899 |
|
QLD |
$8,339 |
|
SA |
$8,607 |
|
TAS |
$8,491 |
|
VIC |
$8,747 |
|
WA |
$8,350 |
Students are not required to repay their loan until their income
reaches the minimum threshold of $24,365. Under the Government’s
proposed reforms, this will be increased to $30,000 in 2005.
Taxpayers currently contribute around three-quarters of the cost
of higher education. They also carry around $300 million a year in
costs to support HECS in the form of discounts, write-downs and
unpaid debts.
HECS has enabled many Australians to participate in higher
education that would not otherwise have had the chance. It is
regarded internationally as an innovative and equitable way to
support higher education delivery.
Media contact:
Dr Nelson’s Office Ross Hampton 0419 484 095 |
