Analysis release today of the 2017-18 Budget by the National Foundation of Australian Women (NFAW) has highlighted the impact of Higher Education changes announced in the 2017-18 Budget on Australian women.
“These changes announced in the Budget to Higher Education will disproportionally impact women, who earn less over a lifetime of employment. Women tend to be concentrated in lower paid occupations such as nursing and teaching, and are more likely than men to take time out of the workforce to raise children.” Madeleine Laming said.
The Government’s changes to higher education include:
• An increase in fees of 7.5% by 2021, lifting the average student share of fees from 42% to 46%.
• A reduction in the income at which graduates start repaying their HELP debts from $55,000 to $42,000.
“The way in which the proposed repayment scheme is structured will make women vulnerable to hardship.” Madeleine Laming warned.
Unlike normal income tax, the HELP loan repayments apply to a person’s entire income. This dramatically impacts the effective marginal tax rates of women with HELP loans as their incomes rise.