One of the great travesties of Australia’s tertiary education system is that students accessing either a FEE-HELP Loan or a VET Student Loan is required to pay a student loan tax on top of the amount that they borrow.

For higher education students, student loan tax is 25% and thus for a student accessing a $40,000 FEE-HELP Loan the total debt obligation to the Australian Government becomes $50,000. 

Students undertaking a Diploma or higher qualification with independent Registered Training Organisations (RTOs) face a student loan tax of 20% and thus a student accessing a $18,000 loan ends up with a debt obligation to the Australian Government of $21,600.

The Independent Tertiary Education Council Australia (ITECA), with the great support of its members and working collaboratively with other stakeholders, is actively lobbying to have the student loan tax permanently removed.  For more information on the loan tax download the following documents:

........No Student Loan Tax Downloads ― 

ITECA continues to discuss this matter with Ministers and their advisors plus politicians across the political spectrum.  This is building an awareness of the inequities caused by the student loan tax and the need to have it permanently removed.

Thanks to the great support of the its membership, ITECA has been to have the student loan tax suspended for six months during the Covid-19 response and, more recently, secured a commitment from the Australian Government to reduce the FEE-HELP student loan tax from 25% to 20%.

This is a campaign that independent providers are getting behind.  They are raising it with their local parliamentarian, something that has been a powerful tool that’s helping drive the debate nationally.  If you’re an independent tertiary education provider supporting students with FEE-HELP or VET Students Loans, it’s a great time to get involved. For more information on how to get involved send an email to policy@iteca.edu.au or telephone 1300 421 017.

ITECA Membership — It's a great time to get involved.

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