FEE-HELP Student Loan Tax Advocacy

Date —

9 September 2020

Education Sector/s —
Higher Education

Summary —

The FEE-HELP Student Loan Tax is a 25% charge levied by the Australian Government on students studying with most independent higher education providers*. After strong advocacy undertaken by the Independent Tertiary Education Council Australia (ITECA), the Minister for Education has agreed that it should be reduced to 20%. ITECA continues to take a leadership role in advocating for its permanent elimination.

Key Issues —

The practical outcome of the FEE-HELP Student Loan Tax is that 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.

Thanks to the great support of the its membership, ITECA has been to have the student loan tax suspended for six months (units of study with census dates from 1 April to 30 September 2020) during the Covid-19 response. This was a key measures set out in the Covid-19 Response – Backing independent tertiary education providers action plan put to government by ITECA.

The ITECA policy advocacy team in Canberra have been actively working with the Minister for Education to secure two key reforms as set out below.


Policy Advocacy ―
FEE-HELP Student Loan Tax


Suspension Extension: Having the current FEE-HELP Student Loan Tax suspension extended to 30 June 2020; and

Permanent Removal: Having the FEE-HELP Student Loan Tax permanently removed.

The suspension, and ultimate removal, of the FEE-HELP Student Loan tax are just two of the may issues that ITECA is negotiating to see included in the 2020 Australian Government budget to be presented to the parliament on 6 October 2020.

“One of the great travesties of Australia’s tertiary education system is that students accessing either a FEE-HELP Loan are required to pay a student loan tax on top of the amount that they borrow. The loan tax needs to go,” said Troy Williams, ITECA Chief Executive.

ITECA will also raise the student loan tax when it appears before a Senate Committee hearing to review the JobReady legislative  package on 17 September 2020.

Getting Involved —

ITECA’s ability to play a lead role in matters associated with this issue rests on the advice and guidance of individuals serving on the ITECA Higher Education Reference Group.  ITECA Membership – It's a great time to get involved.

Further Information —

If you're an ITECA member and would like more information on this matter, the ITECA team would value the opportunity to talk to you.  Simply send an email to higher.education@iteca.edu.au or telephone 1300 421 017.  Stay up to date via Twitter, Facebook and LinkedIn.


Disclaimer & Copyright —

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 any reliance you place on this material is therefore strictly at your own risk.

* Students at Bond University, The University of Notre Dame Australia, University of Divinity, and Torrens University Australia do not pay the student loan fee


IHEA Independent Higher Education Australia

Other News


VET In Schools Provider Views

A new assessment of what makes for a successful VET in schools program highlights that engaged secondary schools leadership is the key to success. More


Student Loan Tax In Senate

ITECA tells the Senate that legislation before the parliament that cuts the higher education student loan tax from 25% to 20% should be passed. More


RTO’s Kick Goals With Employers

Employer satisfaction with independent RTOs is set out in a new fact sheet that sets out performance on measures including the relevance of skills taught. More