Private member’s bill targets 1st June debt increase
A private member’s bill to change HECS indexation from 1st June to 1st November is being introduced to Parliament on 28th June, with support from universities and student unions. Independent federal member for Kooyong Monique Ryan says the change would make the student debt system fairer for millions of students and graduates.
Parliamentary Budget Office costings released earlier in June found students and graduates would save $3.2 billion in HECS indexation over 10 years if the date changed. Under the current system, annual indexation is applied before repayments made in the preceding financial year are credited to a person’s account.
Dr Monique Ryan, Independent Federal Member for Kooyong, said: “It’s completely unfair that people who make repayments every time they get paid are still indexed on their debt as if those repayments haven’t been made. It’s a stealth tax that the government should not be charging.”
Support across the sector
Universities Australia and the National Union of Students have backed the proposed HECS indexation change. Luke Sheehy, CEO of Universities Australia, said: “Students and graduates are doing it tough, and they deserve a fairer deal. Practical HELP reform that reduces unfair debt pressures is a meaningful step forward, alongside the bigger task of replacing Job-ready Graduates.”
Three million students across Australia saw their HECS debt rise by more than $1 billion last month. The proposal comes amid higher living costs, with student representatives arguing the current timing of indexation adds to debt pressures.
Felix Hughes, National President of the National Union of Students, said delaying indexation until compulsory repayments have been credited would be “a simple, common-sense reform that would make the HELP system fairer and reduce the burden of student debt”. The next step is the bill’s introduction to Parliament on 28th June.
Last updated: 29 June 2026, 11:45 am
