Cathy McGowan (Indi, Independent) Share this | Hansard source

I move amendment (2) circulated in my name:

(2) Schedule 3, page 40 (after line 7), after item 35, insert:

35A At the end of section 154 -15

  Add:

(3) In working out a person's repayable debt for an *income year for the purposes of section 154-20, ignore any part of the person's *accumulated HELP debt referred to in paragraph 154-1(1)(b) in relation to that income year that relates to a unit of study undertaken on a regional campus, unless the person's *repayment income for the income year is $56,205 or more.

(4) A unit of study is undertaken on a regional campus by a person if:

  (a) the person is enrolled at a particular campus to undertake the unit of study; and

  (b) either:

     (i) during the year in which the unit of study is undertaken, a regional loading was payable to the higher education provider in respect of the campus; or

     (ii) the Minister determines, under subsection (5), that this subparagraph applies to the campus for the year in which the unit of study is undertaken.

(5) The Minister may, by legislative instrument, determine that subparagraph (4)(b)(ii) applies to a campus for a year if the Minister is satisfied that, during that year, the campus has an above average number of students whose permanent home (as defined in section 19A of the Social Security Act 1991) is in a regional area.

This amendment is designed to create a financial incentive for students to study at regional universities by creating a HELP-debt-repayment-free period for students studying at regional campuses. Under the amendment, regional students would have a HELP-debt-repayment-free period on the units completed at a regional campus until they reach the $56,205 threshold under the government's proposed legislation. Repayments would then continue as per the government's proposed legislation. The HELP-debt-repayment-free period would apply to students attending a campus that receives a Commonwealth Grant Scheme regional loading or that the minister has identified as having an above-average number of students whose home address is at a regional location.

The Parliamentary Budget Office has costed this proposal as having a $21.6 million cost. I repeat: $21.6 million—nothing in the scheme of things, considering the investment that it would give to regional Australia. This investment will make a significant difference in increasing higher education participation by regional and low-SES students and by reducing the financial burden.

Colleagues, and particularly colleagues from regional Australia: I call on you to consider this recommendation, because this amendment will encourage regional students to remain in our regions and potentially attract regional students from the cities, providing a financial incentive to students to study in regional areas and addressing one of the biggest threats to sustainability of rural communities. The package before us has not adequately considered the impact on regional students, and my proposed amendments will go some way to ensure more students study in regional Australia. I commend this amendment to the House.

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