Independent Tertiary Education Council Australia (ITECA) Media Release
To improve equity and access to higher education, the 20% student loan tax on FEE-HELP loans needs to be abolished, according to the Independent Tertiary Education Council Australia (ITECA), the peak body representing independent higher education, skills training, and international education providers.
The 20% student loan tax (formally known as a ‘loan fee’) is levied by the Australian Government on FEE-HELP loans taken out by students studying with most independent higher education providers.
“This tax is effectively a tax on learning, unfairly burdening students who choose these institutions for their education,” said Troy Williams, ITECA Chief Executive Officer.
The 20% student loan tax is highly discriminatory as it only applies to students studying with independent higher education providers.
“This creates an uneven playing field and penalises students for their choice of institution despite these providers often offering specialised and high-quality education tailored to industry needs,” Mr Williams said.
The Student Loan Tax The 20% student loan tax (formally known as a ‘loan fee’) is levied by the Australian Government on FEE-HELP loans taken out by students studying with most independent higher education providers. Tax is incompatible with the Australian Universities Accord Final Report recommendations, which advocate for high levels of participation and attainment in higher education. The Accord emphasises the need for inclusive and equitable access to education, recognising that our nation’s future prosperity relies on a well-educated and highly skilled workforce.
“The imposition of this student loan tax is inconsistent with the broader objectives of the Australian Universities Accord Final Report recommendations of increasing tertiary education participation through a more inclusive approach. Removing this tax will have positive benefits by making higher education more accessible to all Australians,” Mr Williams said.
Our country needs to increase the number of skilled workers and ensure they have access to lifelong learning opportunities. To achieve this, we must support higher participation among groups historically under-represented in higher education.
“These students require adequate financial support to succeed throughout their learning journeys, not to be whacked with a 20% student loan tax,” Mr Williams said.
ITECA Believes abolishing the 20% student loan tax is essential for fostering an inclusive, equitable, and robust higher education system.
“This week, ITECA wrote to every member of the federal parliament to raise the profile of how the student loan tax acts as a disincentive for thousands of students looking to undertake higher education,” Mr Williams said.
This is one of the many reforms required to put students at the heart of a high performing higher education system that recognises the significant contribution of independent higher education institutions.
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