PoliticalClaims.au

The Coalition's reduction of the HECS repayment threshold was a genuine policy change that affected approximately 180,000-200,000 additional graduates who began making repayments at lower income levels [7].

This represents a shift in the social contract around higher education funding - requiring graduates to contribute earlier in their careers. **Criticisms of the policy change include:** - Lower-income graduates, including those in entry-level positions or part-time work, were required to begin repayments sooner - The change occurred alongside other higher education cost pressures, including increased student contribution amounts in some fields - Critics argued it represented a shift toward greater individual responsibility for education costs rather than public investment **Government justifications included:** - The HELP loan scheme had grown to $66.6 billion in outstanding debt by 2019-20, with increasing repayment times [1] - The new lower threshold was paired with lower initial repayment rates (1-2%) to minimize burden - Indexation was changed from Average Weekly Earnings to CPI, which generally grows more slowly - The policy aimed to ensure the long-term sustainability of the income-contingent loan system **Comparative analysis:** This was not unique Coalition policy.

Both major parties have adjusted the threshold based on their fiscal priorities and views on education funding.