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.
In both higher education and the vocational education and training sector, the student loan tax is 20%. Thus a student accessing either $20,000 loan to support their studies ends up with a debt obligation to the Australian Government of $24,00.
The Independent Tertiary Education Council Australia (ITECA), with the great support of its members and working collaboratively with other stakeholders, is actively lobbying to permanently end the student loan tax. For more information on the loan tax download the following documents:
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 permanently end the student loan tax.
Thanks to the great support of the its membership, ITECA has been to have the student loan tax suspended as part of the Australian Government's 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%.
The campaign to permanently end the student loan tax is one that independent higher education and vocational training providers are backing. They are raising it with their local parliamentarians, 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 as an ITECA member.
Our members across the higher education and vocational training sectors play a key roll in determining our advocacy policy that sees ITECA provide national leadership and local advocacy. The work of the ITECA policy team in Canberra, with their strong links across key parliamentarians and departmental staff, is backed by an equally strong policy team working with state and territory governments.
For more information on how to get involved in the campaign to permanently end the student loan tax send an email to [email protected] or telephone 1300 421 017.
ITECA Membership — It's a great time to get involved.