Election result changes student loan strategy

by

Ed.

From smallcaps.com.au: Prime Minister Anthony Albanese’s government plans to reduce all student loan amounts by 20%, prompting a shift in repayment strategies for borrowers.

To maximise benefits from this change, individuals with HECS-HELP debt should avoid early repayments this year and instead aim to retain higher loan balances until the discount is applied.

Financial planning tips include saving in high-interest accounts to repay debts just before indexation and considering salary sacrificing to improve borrowing capacity for home loans.

Filed under: Tax - Individuals