Student Loan Tax Elimination Call

Date —

3 August 2020

Education Sector/s —
Higher Education ◾ Vocational Education & Training

Summary —

Presently, students taking out a FEE-HELP loan or a VET Student Loan with most independent higher education providers are slugged a student loan tax of 25% of 20%, respectively. The Independent Tertiary Education Council Australia (ITECA) has stepped-up the advocacy for the permanent removal of the student loan tax and, in the immediate term, an extension of the temporary suspension that’s now in place.

Key Issues —

The suspension of the FEE-HELP student loan tax and the tax on VET Student loans was announced in April 2020 to support students and independent providers deal with the challenges associated with the Covid-19 pandemic. As the public health crisis continues, ITECA has lobbied the Australian Government for an extension of this suspension until 30 June 2021, along with mounting the strong case for its permanent withdrawal.

Concerning the FEE-HELP Student Loan Tax, the Australian Government has announced its intent to reduce the amount from 25% to 20%, which has been welcomed by ITECA; however, there is more to be done.

ITECA has long argued that the student loan tax is a significant barrier to individuals investing in their education to achieve their life and career goals, thus has campaigned strongly for the permanent removal of the Student Loan Tax. For more information on this campaign, visit:

.......www.nostudenttax.com.au

The Australian Government, as part of its Covid-19 emergency response, temporarily waived the obligation of students the requirement to pay the Student Loan Tax for units of study with census dates from 1 April to 30 September 2020. The came about following concerted advocacy by ITECA, backed by other stakeholders.

Given the ongoing nature of the Covid-19 pandemic and the impact on both students and independent tertiary education providers, ITECA has formally put to the Australian Government the recommendation that the Student Loan Tax exemption be extended through to 30 June 2021.

ITECA has reiterated its position that the Student Loan Tax be permanently withdrawn and has recommended this be a measure to be included in the 2020 Australian Government budget to be presented to parliament in October 2020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 the ITECA Higher Education Reference Committee  and the ITECA Vocational Education and Training Reference Committee.  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 policy@iteca.edu.au or telephone 1300 421 017.  Stay up to date via Twitter, Facebook and LinkedIn.

 

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