Indexation the killer
For context, here is a tweet I wrote on November 3:
“My 27yo daughter’s #HECS debt is now about 20% greater than when she finished her bachelor’s degree at UTS, and she has been making payments on it since 2020 — so quite obviously is battling just to keep up, let alone get on top of it. #auspol”
Damian Coburn’s excellent contribution on the government debt load our children carry did not specifically mention the indexation of the debt to CPI rises, but my daughter is adamant that they are the killer.
Was indexation always in place? Or did that happen with the JRG or other changes? I don’t know.
But the compounding effect of constant rises—especially in an era of wage stagnation—has and will contribute to a disastrous “lifetime of debt” that Australia will regret, especially if we are concerned about the reluctance of financially insecure young women to have children.
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