They couldn’t view their real-time debts, including indexation amounts and repayments, on the Australian Taxation Office website via myGov – and in a rather generous move, the Australian government decided to waive the annual indexation for these impacted students for both previous years and 2023.
Last year, the threshold sat at $48,361, which meant that anyone with a student loan earning above this amount had to start repaying. This year, that threshold has been adjusted to $51,549, granting a brief respite for some. Although these changes are annual, the consistent upward trend signifies the rising costs and challenges that come with modern Australian life.The increasing financial strain is apparent when you examine the inflation-linked indexation rate, a sizable 7.
Adding to their woes is the alarming revelation from the ATO that 15 per cent of Australians, , struggle with their student debt. A recent survey indicated that over half of these debt-ridden individuals are anxious about their repayment capability – which is something that makes me anxious, given the cost of living crisis we are currently experiencing.
Such escalating debt especially impacts young people and women, amplifying societal inequalities – something I could rave on and on about – but I’ll save that for another day.