Higher Education Student Loan Tax Temporary Suspension Welcomed

Legislation has been introduced into the Australian Parliament that temporarily suspends th e higher
education Student Loan Tax incurred by students borrowing to fund their education. The legislation is
welcomed by the Independent Tertiary Education Council Australia (ITECA), the peak body representing
independent providers in the higher education, vocational education, training and skills sectors.

The Student Loan Tax sees students studying with most independent higher education providers incur a
charge of 25% over and above the value of the loan taken out to fund their studies.

Legislation before the Australian Parliament introduces an exemption from the requirement to pay the
25% loan fee for units of study with census dates from 1 April t o 30 September 2020.

“The six -month suspension of the higher education Student Loan Tax was announced as part of a series
of reforms to support students during the Covid -19 crisis, and in this context, this legislation is
welcomed,” said Mr Troy Williams, ITECA Chief Executive.

ITECA is currently lobbying for the permanent removal of the higher education Student Loan Tax as it acts
to limit a student’s choice of independent higher education provider.

“ITECA believes that the higher education Student Loan Tax should be permanently withdrawn. It’s
absurd that we are taxing higher education student s who choose to study with independent higher
education provider s to achieve their life and career goals,” Mr Williams said.

While stu dents studying with independent higher education providers pay the tax (except for Bond
University, The University of Notre Dame Australia, University of Divinity, and Torrens University
Australia ), students at public universities do not pay the higher edu cation Student Loan Tax.

“It’s time to end the higher education Student Loan Tax permanently. At the end of the day this is about
student choice. We want students to study at the higher education provider that best supports them
without incurring an additional debt burden when doing so,” Mr Williams said.

The legislation introduced into the parliament on 11 June 2020 amends the Higher Education Support Act
2003 (Cth ) and is currently before the House of Representatives.

Independent providers support a round 10% of the 1.5 million student s in higher education.

/Public Release. View in full here.