Latest news with #HECS
The Advertiser
11 hours ago
- Business
- The Advertiser
If you're going for a home loan but still have a HECS debt, you might want to wait
People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect. Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage. The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts. The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage. The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months. Treasurer Jim Chalmers said the changes would make lending rules fairer. "We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said. The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis. APRA has written to lenders and the industry to advise them of the changes and their new obligations. The revised standards for banks will come into effect on September 30, 2025. In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances. The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner. Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home. "HECS was never meant to be a handbrake on owning a home," he said. "That's not fair and we're fixing it." The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election. During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected. The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025. The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied. This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction. People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect. Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage. The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts. The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage. The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months. Treasurer Jim Chalmers said the changes would make lending rules fairer. "We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said. The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis. APRA has written to lenders and the industry to advise them of the changes and their new obligations. The revised standards for banks will come into effect on September 30, 2025. In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances. The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner. Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home. "HECS was never meant to be a handbrake on owning a home," he said. "That's not fair and we're fixing it." The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election. During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected. The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025. The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied. This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction. People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect. Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage. The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts. The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage. The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months. Treasurer Jim Chalmers said the changes would make lending rules fairer. "We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said. The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis. APRA has written to lenders and the industry to advise them of the changes and their new obligations. The revised standards for banks will come into effect on September 30, 2025. In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances. The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner. Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home. "HECS was never meant to be a handbrake on owning a home," he said. "That's not fair and we're fixing it." The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election. During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected. The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025. The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied. This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction. People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect. Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage. The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts. The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage. The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months. Treasurer Jim Chalmers said the changes would make lending rules fairer. "We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said. The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis. APRA has written to lenders and the industry to advise them of the changes and their new obligations. The revised standards for banks will come into effect on September 30, 2025. In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances. The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner. Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home. "HECS was never meant to be a handbrake on owning a home," he said. "That's not fair and we're fixing it." The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election. During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected. The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025. The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied. This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction.
Sky News AU
3 days ago
- Business
- Sky News AU
From PM-in-waiting to dog-patting VC: Bill Shorten roasted for ‘cringe' social media video while in $860,000 uni boss job
Former Labor leader turned university boss Bill Shorten has been savaged online for posting a bizarre social media video described by viewers as 'cringe' and 'slop'. The video has prompted debate about his lucrative $860,000 per year salary and the state of university leadership amid massive job cuts. The failed Labor leader was once on track to become prime minister before it all fell apart at the 2019 election in dramatic fashion when he proposed massive changes to negative gearing and franking credits. But nowadays, Bill Shorten has retired from politics into a cushy Vice Chancellor position at University of Canberra worth $860,000, at the same time the institution cuts more than 150 staff. While those academics pack up their desks, Mr Shorten is posting quirky social media videos to his personal Instagram. In the video, Mr Shorten can be seen awkwardly patting a dog while two young girls run around him in circles and dance in sped-up footage reminiscent of 'Benny Hill'. The scene, presumably intended to be light-hearted, was quickly met with ridicule online. 'Shorten's salary is reported as $860k per year and you serve this cringe slop,' one user said in response. 'A million bucks a year as VC for this?' another said. 'Reminder he's getting paid $860,000 a year while your HECS debts are insanely high, oh and by the way he also got his degree for free too. 'My HECS is paying Bill to run delegate numbers.' The backlash has amplified ongoing criticism of Mr Shorten's ascension to the University of Canberra's top job. His appointment to Vice Chancellor, without professional academic experience, doubled his salary from the $404,000 he earned as a frontbencher in the Albanese government. The $860,000 package includes superannuation and benefits. Meanwhile, the university has saved about $30 million by letting go of 150 staff.
Yahoo
13-06-2025
- Business
- Yahoo
$330 a week cash boost available for thousands in weeks
Thousands of Australians studying nursing, teaching, midwifery and social work will soon be able to access the federal government's Prac Payment. These students often report experiencing 'placement poverty' as they need to work unpaid for up to 26 weeks in order to graduate. The new Commonwealth Prac Payment will provide a $331.65 a week payment for eligible students while they are undertaking a placement. This is benchmarked at the single Austudy rate. Prime Minister Anthony Albanese said students shouldn't have to worry about whether they could afford to do placements. RELATED HECS indexation amount for 3 million Australians revealed: 'Add $882' ATO, Centrelink warning over $100 million Powerball lottery win Centrelink cash boost coming from July 1 for millions of Aussies 'If you're studying nursing at TAFE, you can apply starting this week. For uni students, you'll be able to apply from the 1st of July,' he said. 'Whether you want to teach the next generation or care for your fellow Australians, we're providing real support to help you graduate.' Around 68,000 higher education students and more than 5,000 eligible VET students are estimated to be eligible for the payment each year. The government has said it will invest $427.4 million over the forward estimates to introduce the payment from July 1. Yahoo Finance has spoken to students required to do unpaid placements who said the hundreds, if not thousands, of lost hours of potential work mean they struggle to afford basics like food and housing. The payment was a recommendation of the Australian Universities Accord, which reviewed the performance and effectiveness of the higher education system. Teaching students, for example, have to do 16 weeks of unpaid practical experience, nurses do 20 weeks, and social workers do 26 weeks. The payment will be available to domestic students studying a Bachelor's or Master's of nursing, teaching, midwifery and social work, or a Diploma of nursing, while they are undertaking a mandatory placement. Students will need to be on a Commonwealth income support payment, such as ABSTUDY, Austudy, Youth Allowance or DVA Education Allowance. Or they will need to show that they work more than 15 hours per week during their normal uni studies and don't earn more than $1,500 per week before tax. The payment won't be available to allied health professions, despite the placement requirements also being in place for them. The government will be cutting HECS debts by 20 per cent and said this will be the first piece of legislation introduced when parliament returns on July 22. This will be backdated so it applies from June 1 this year, before indexation was applied. The indexation rate this year was 3.2 per cent, based off the Consumer Price Index. Someone with the average $27,600 debt would see around $5,520 wiped from their outstanding loans. The minimum repayment threshold for student loans is also set to be raised on July 1. Those with debt will start repayment loans once their income hits $67,000, up from the current $54,000 threshold. Compulsory repayments will only be calculated on the income above the $67,000 threshold instead of the total annual in retrieving data Sign in to access your portfolio Error in retrieving data
The Hindu
06-06-2025
- Business
- The Hindu
Seminar on Environmental Clearance Requirements and Compliance
Hubert Enviro Care Systems (HECS), in association with CREDAI Chennai, organised a seminar on Environmental Clearance Requirements and Compliance. Mohammed Ali, Managing Director of South India Shelters and President of CREDAI Chennai, highlighted about the bottlenecks faced in securing Environmental Clearances (ECs) for construction projects. He pointed out the potential implications of the recent Supreme Court judgment on the sector, calling for greater clarity, streamlined procedures, and proactive stakeholder engagement. J.R. Moses, CEO of HECS emphasized the critical need to understand and adapt to the evolving legal landscape, according to a statement. Balasubramaniam, Professor of Chemical Engineering at Anna University and Member of the State Disaster Management Committee, spoke about waste management, emphasising the intersection of science and policy. He called for an integrated approach to turn environmental challenges into sustainable development strategies.
Perth Now
02-06-2025
- Business
- Perth Now
‘Too lazy': Labor blasted over ‘rigged' system
Aussies keen to see their student loan debts cut by 20 per cent as promised by Labor in the federal election may not be so happy when they check their accounts. Since Sunday, students with HELP or HECS loans would have seen their debts increase by 3.2 per cent as indexation kicked in. Indexation serves to adjust student loans according to inflation – but the timing at which they are applied has been heavily criticised for years. 'HELP debts aren't actually very helpful,' independent Tasmanian senator Tammy Tyrell said. 'Today, students are watching their debts go up, with the money they've paid through the year nowhere in sight. Senator Tammy Tyrrell has called for the government to address HECS/HELP indexation. NewsWire / Martin Ollman Credit: News Corp Australia 'Banks reduce your loan before charging interest. Credit unions do too. Just not the government who pretend someone's repayments don't exist. It's costing students thousands of dollars all because Labor is too lazy to fix its accounting. 'Labor's HELP debt changes are one-off sugar hits. If they're genuine about making a difference for students, they could fix this rigged system when parliament returns. Just count someone's payments before interest is charged. 'It doesn't make sense to me that someone's debt is indexed before taking into account the thousands of dollars they've paid throughout the year,' she said. It does not take into account debt that has been paid off throughout the year, Senator Tyrrell said. NCA NewsWire /Brendan Beckett Credit: News Corp Australia 'Imagine if banks did that with your home loan – took your money, charged you interest but the repayments don't come off the outstanding balance. I reckon people would be pretty upset about that, so why do we expect students to put up with it? 'A student's HECS-HELP debt should be indexed after the yearly repayments are taken off. 'No matter what the indexation rate is, it's not a fair system when you're indexing badly. We need to change the timing, not the rate.' Education Minister Jason Clare said Labor's policy to reduce HECS debts by 20 per cent would be backdated to June 1 before indexation was applied. Education Minister Jason Clare says legislation will be backdated so debt is actually cut by the promised 20 per cent. NewsWire / Martin Ollman Credit: News Corp Australia 'It will be the first Bill that we introduce into the parliament when parliament sits for the first time in the last week of July,' Mr Clare told ABC radio. 'What that legislation will do is cut everyone's debt by 20 per cent and backdate that cut. And that's important because every 1st of June in every year HECS debts or student debts get indexed. 'That 20 per cent cut will come into effect before that indexation effectively happens to make sure that we honour the promise we made and we cut everyone's debt by 20 per cent. The Australian Universities Accord Final Report 2024 determined that the indexation should be applied later in the year after compulsory repayments made during the previous financial year were deducted from a student's balance.
