The higher education Student Loan Tax levied on students accessing a FEE-HELP loan to study with most independent higher education providers is being reduced from 25% to 20% after sustained advocacy by the Independent Tertiary Education Council Australia (ITECA) and other stakeholders in the sector.
Key Issues —
Students studying with most independent higher education providers and who access a FEE-HELP loan are slugged a 25% Student Loan Tax. Thus, when borrowing $40,000 to fund their tuition the student’s total debt to the Australian Government becomes $50,000.
The ITECA higher education membership has long thought that the Student Loan Tax was most egregious. It penalises students selecting an independent higher education provider to undertake studies in order to achieve their life and career goals as the tax is only levied on students borrowing with an independent higher education providers* but not at public universities. It was in the context that the Time To End The Student Loan Tax campaign was initiative by ITECA to support the work of other stakeholders in the sector. For more information on this campaign visit:
ITECA Member Campaign —
◾ Time To End The Student Loan Tax
The impact of this campaign is reflected in the decision by the Minister for Education, the Hon Dan Tehan MP, to align the 25% Student Loan Tax in the higher education sector to the lower 20% rate in the vocational education and training sector. The lower rate is levied on students accessing a VET Student Loan to undertake Diploma or higher qualifications.
“The reduction in the Student Loan Tax shows what ITECA members can achieve in terms of policy reform when they come together. ITECA is pleased to be working not only with our members, but also alongside other stakeholders in the sector, on the permanent removal of the student loan tax,” said Troy Williams, ITECA Chief Executive.
With the great support of members, ITECA successfully lobbied to have both the Student Loan Tax suspended for six months as part of the Covid-19 response. That this advocacy has seen the Australian Government commit to a further reduction of the FEE-HELP student loan tax is a great outcome for students studying with independent higher education providers.
ITECA continues its to work with its members and stakeholders in the sector to see the Student Loan Tax brought to a permanent end.
Independent providers support around 10% of the 1.5 million students in higher education.
Member Engagement —
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 Committee.
Further Information —
For more information on this issue please send an email to [email protected] or telephone 1300 421 017. Stay up to date via Twitter @ITECAust or via Facebook at www.facebook.com/ITECAust.
Disclaimer & Copyright:
The material published on this website page is intended for general information only and is not legal advice or other professional advice. It may not be reproduced without ITECA’s prior written consent.
* Except: Bond University, The University of Notre Dame Australia, University of Divinity, and Torrens University Australia.