The bulk of the nation\u2019s $67.6 billion HECS1 loans were held by those living in Melbourne and Sydney, according to their 2023-24 tax returns.\u00a0\u00a0<\/p>\n
Almost 2.4 million taxpayers\u00a0have\u00a0a HECS debt, with the average balance sitting at $28,500, according to new analysis of Australian Taxation Office data2 by KPMG Australia. Around half of Australia\u2019s HECS loans are held by people aged under 30.<\/p>\n
The student loan\u00a0balances were\u00a0found\u00a0in suburbs that attracted\u00a0highly skilled workers, well-paid jobs and strong long-term career prospects, KPMG urban economist Terry Rawnsley said.<\/p>\n
\u201cRather than signalling financial stress,\u00a0it\u00a0shows\u00a0how higher education can act as an investment in future earnings,\u201d\u00a0Mr\u00a0Rawnsley said.<\/p>\n
“A large HECS balance is often a signal of advanced qualifications, and these qualifications are typically associated with higher-paying occupations in sectors such as law, medicine, and technology.\u00a0\u00a0This is really a story about the geography of opportunity.\u201d<\/p>\n
Melbourne had\u00a0the largest number of taxpayers with a HECS debt (532,262 people) and the highest total balance ($16.4 billion), narrowly ahead of Sydney, where 483,606 taxpayers owe a combined $15.2 billion.<\/p>\n
\u201cResidents in suburbs such as Darlington, Chippendale, Collingwood and Carlton North have the biggest HECS debts due to the easy access they provide to\u00a0major employment hubs, and therefore\u00a0some of the\u00a0country\u2019s\u00a0highest-paying jobs,\u201d\u00a0Mr\u00a0Rawnsley said.<\/p>\n
Average HECS balances exceeded\u00a0$30,000 in both Melbourne and Sydney\u00a0but several cities are well above that benchmark, particularly,\u00a0Gold Coast ($31,000),\u00a0Western Sydney ($30,100) and the\u00a0Canberra ($29,300)\u00a0were\u00a0above the\u00a0$28,500\u00a0national average.<\/p>\n
“We’re seeing some of the strongest growth in HECS balances outside the largest capitals\u00a0in\u00a0what is further evidence that highly skilled workers are\u00a0increasingly\u00a0choosing to build their careers\u00a0outside Australia’s major cities,\u201d Mr Rawnsley said.<\/p>\n
\u201cDarwin recorded\u00a0an\u00a0annual growth of 6%, followed by Cairns at 5.3%\u00a0and Adelaide and Hobart at 5%.<\/p>\n
“The Gold Coast stands out with one of the largest\u00a0average\u00a0HECS balances outside the major capitals, as the city\u2019s\u00a0economy\u00a0becomes\u00a0more\u00a0diversified and\u00a0attracts\u00a0more highly skilled workers.\u201d<\/p>\n
HECS continues to be one of the most accessible and supportive student loan systems globally,\u00a0Mr Rawnsley said.<\/p>\n
\u201cWhile outstanding balances may reflect the rising costs of higher education, HECS empowers graduates to achieve higher wages in the long run, offering significant financial and career benefits over time,”\u00a0he\u00a0said.<\/p>\n
The number of Australians holding a HECS debt has dropped 3.5% since 2021-22, the data showed showing\u00a0an increasing\u00a0proportion\u00a0of young people\u00a0choosing pathways into the workforce other than university\u00a0such as accessing\u00a0Free Tafe\u00a0programs.<\/p>\n
\u201cAustralia’s future workforce is taking shape as young people choose new pathways into work and training\u201d,\u00a0Mr Rawnsley said.<\/p>\n","protected":false},"excerpt":{"rendered":"The bulk of the nation\u2019s $67.6 billion HECS1 loans were held by those living in Melbourne and Sydney,…\n","protected":false},"author":2,"featured_media":824796,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[10968,64,63,4816,44],"class_list":["post-824795","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-10968","tag-au","tag-australia","tag-media-release","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/824795","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=824795"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/824795\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/824796"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=824795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=824795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=824795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}