Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Hansard source

One Nation does not believe we should forgive HECS or HELP debt. People have a duty to pay off their loans. However, there are some issues with how indexation is applied to the HECS-HELP debt. Credit where credit is due, these issues were outlined well in a recent ABC article which explained:

More than 3 million Australians saw their student debt rise with inflation on Thursday as an indexation of 7.1 per cent was applied to the debts.

It is the highest indexation in more than three decades, with average $25,000 HECS-HELP debts rising by $1,775.

The problem, as the article says, is that:

Under the current rules, indexation is applied to the original debt and not the current balance.

For example, if you have a debt of $30,000 and over the course of the next 11 months you pay off $3,000 the ATO's indexation will be applied to the original $30,000, not the $27,000 balance. This isn't right, and it doesn't encourage people.

But, as I said, we do believe that people should pay off their debts. We see too many people who are abusing the system of HECS and HELP debts. There is about $70 billion owed to the taxpayers that they fund students. If you've paid for something, you are going to work harder for it. If you have to pay for it out of your own pocket, you will work harder to achieve your goals. Nothing's free, at all, in this country. Taxpayers work hard. They put their taxes towards providing these universities for these students. That's why students should be able to pay their way. A system where they don't start paying it back until they start working is fair. It won't be abused, then, if they have to pay their way.

But on this other issue of indexation, by all means, it should be addressed. I'm pleased to see that the Labor minister has had it brought it to their attention and is interested in addressing this issue. (Time expired)