If you're going for a home loan but still have a HECS debt, you might want to wait
People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect.
Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage.
The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts.
The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage.
The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months.
Treasurer Jim Chalmers said the changes would make lending rules fairer.
"We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said.
The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis.
APRA has written to lenders and the industry to advise them of the changes and their new obligations.
The revised standards for banks will come into effect on September 30, 2025.
In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances.
The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner.
Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home.
"HECS was never meant to be a handbrake on owning a home," he said.
"That's not fair and we're fixing it."
The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election.
During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected.
The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025.
The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied.
This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction.
People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect.
Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage.
The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts.
The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage.
The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months.
Treasurer Jim Chalmers said the changes would make lending rules fairer.
"We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said.
The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis.
APRA has written to lenders and the industry to advise them of the changes and their new obligations.
The revised standards for banks will come into effect on September 30, 2025.
In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances.
The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner.
Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home.
"HECS was never meant to be a handbrake on owning a home," he said.
"That's not fair and we're fixing it."
The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election.
During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected.
The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025.
The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied.
This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction.
People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect.
Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage.
The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts.
The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage.
The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months.
Treasurer Jim Chalmers said the changes would make lending rules fairer.
"We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said.
The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis.
APRA has written to lenders and the industry to advise them of the changes and their new obligations.
The revised standards for banks will come into effect on September 30, 2025.
In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances.
The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner.
Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home.
"HECS was never meant to be a handbrake on owning a home," he said.
"That's not fair and we're fixing it."
The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election.
During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected.
The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025.
The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied.
This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction.
People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect.
Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage.
The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts.
The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage.
The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months.
Treasurer Jim Chalmers said the changes would make lending rules fairer.
"We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said.
The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis.
APRA has written to lenders and the industry to advise them of the changes and their new obligations.
The revised standards for banks will come into effect on September 30, 2025.
In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances.
The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner.
Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home.
"HECS was never meant to be a handbrake on owning a home," he said.
"That's not fair and we're fixing it."
The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election.
During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected.
The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025.
The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied.
This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction.
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A mother-of-two's retirement savings will see a boost of about $14,800, with about 200,000 mums benefiting from the change annually. But while most Australians will enjoy more in their super accounts, those with balances over $3 million, about 80,000 people, will have their accounts tax doubled from 15 per cent to 30 per cent. Parents will gain an additional 10 days, totalling 120 days, of parental leave for babies born after July 1. For 2.4 million people on social security payments, the new financial year brings a 2.4 per cent increase to some payments due to indexation. Families on the Family Tax Benefit Part A, will receive $227.36 a fortnight for children aged under 13 and $295.82 for children aged 13 or over. Those on Family Tax Benefit Part B see their payments increase to $193.34, and those with a youngest child aged five or over, the rate will increase to $134.96 a fortnight. While aged pension rates aren't increasing, the threshold for the income and assets a pensioner must earn under to receive a full pension will lift by 2.4 per cent. Four new Medicare items will support longer consultation times and higher rebates for specialised gynaecological care from Tuesday. They apply to initial and follow-up consultations which last a minimum of 45 minutes, either in person or via video, while new menopause and perimenopause health assessments will also be made available. "You simply can't be serious about strengthening Medicare without a serious focus on women's health," Health Minister Mark Butler said. "Women consume about 60 per cent of all health services in this country and they face a range of significant costs simply by virtue of being women." Meanwhile, energy bill support will continue from the government, bringing down pressure on households and small businesses with a $150 rebate automatically applied to bills in two quarterly instalments. 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The rate at which superannuation is paid into workers' nest eggs will increase from 11.5 per cent to 12 per cent and expand to working parents who take leave to care for their babies. A mother-of-two's retirement savings will see a boost of about $14,800, with about 200,000 mums benefiting from the change annually. But while most Australians will enjoy more in their super accounts, those with balances over $3 million, about 80,000 people, will have their accounts tax doubled from 15 per cent to 30 per cent. Parents will gain an additional 10 days, totalling 120 days, of parental leave for babies born after July 1. For 2.4 million people on social security payments, the new financial year brings a 2.4 per cent increase to some payments due to indexation. Families on the Family Tax Benefit Part A, will receive $227.36 a fortnight for children aged under 13 and $295.82 for children aged 13 or over. Those on Family Tax Benefit Part B see their payments increase to $193.34, and those with a youngest child aged five or over, the rate will increase to $134.96 a fortnight. While aged pension rates aren't increasing, the threshold for the income and assets a pensioner must earn under to receive a full pension will lift by 2.4 per cent. Four new Medicare items will support longer consultation times and higher rebates for specialised gynaecological care from Tuesday. They apply to initial and follow-up consultations which last a minimum of 45 minutes, either in person or via video, while new menopause and perimenopause health assessments will also be made available. "You simply can't be serious about strengthening Medicare without a serious focus on women's health," Health Minister Mark Butler said. "Women consume about 60 per cent of all health services in this country and they face a range of significant costs simply by virtue of being women." Meanwhile, energy bill support will continue from the government, bringing down pressure on households and small businesses with a $150 rebate automatically applied to bills in two quarterly instalments. But some households could be in for a power bill shock as new benchmark prices take effect, with NSW customers on standing offers facing increases of between 8.3 per cent to 9.7 per cent. Southeast Queensland customers on default plans can expect hikes of between 0.5 per cent and 3.7 per cent, while people in South Australia face rises of 2.3 per cent to 3.2 per cent. Victorian households can expect an average one per cent bump, with some distribution zones actually set for small price drops. Australians will get a boost to minimum wages while more will be squirrelled away into retirement nest eggs under changes taking place at the start of a new financial year. July 1 marks brighter news for the hip pockets of Australians with increases to wages and welfare payments and continued energy bill support. The national minimum wage will increase 3.5 per cent, with the lowest-paid workers taking home $24.95 per hour, or $948 per week. The rate at which superannuation is paid into workers' nest eggs will increase from 11.5 per cent to 12 per cent and expand to working parents who take leave to care for their babies. A mother-of-two's retirement savings will see a boost of about $14,800, with about 200,000 mums benefiting from the change annually. But while most Australians will enjoy more in their super accounts, those with balances over $3 million, about 80,000 people, will have their accounts tax doubled from 15 per cent to 30 per cent. Parents will gain an additional 10 days, totalling 120 days, of parental leave for babies born after July 1. For 2.4 million people on social security payments, the new financial year brings a 2.4 per cent increase to some payments due to indexation. Families on the Family Tax Benefit Part A, will receive $227.36 a fortnight for children aged under 13 and $295.82 for children aged 13 or over. Those on Family Tax Benefit Part B see their payments increase to $193.34, and those with a youngest child aged five or over, the rate will increase to $134.96 a fortnight. While aged pension rates aren't increasing, the threshold for the income and assets a pensioner must earn under to receive a full pension will lift by 2.4 per cent. Four new Medicare items will support longer consultation times and higher rebates for specialised gynaecological care from Tuesday. They apply to initial and follow-up consultations which last a minimum of 45 minutes, either in person or via video, while new menopause and perimenopause health assessments will also be made available. 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Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
The areas where one in 10 tweens are on the NDIS
One in 10 older children are on the National Disability Insurance Scheme in some parts of the country, indicating families' reliance on the $48 billion scheme is extending past what is considered the age for early intervention. An analysis of participation data found 10 regional districts, including the NSW Central and Mid North Coasts and Loddon and Barwon in regional Victoria, have about 10 per cent of children aged nine to 14 who are NDIS participants. Nationally, 6.9 per cent of children aged nine to 14 were on the NDIS in March 2025, compared to 5.9 per cent of children aged seven to 14 two years earlier. The increase in older children's participation poses a challenge for the Albanese government's attempts to control the scheme's growth because it shows families are continuing to seek NDIS support even after early intervention pathways wrap up on a child's ninth birthday. This undermines the argument that NDIS support for young children – of whom 11 per cent use the scheme at six years old – helps target developmental challenges early so they can exit the scheme. Martin Laverty, a former NDIA board member, said the NDIS was not designed for the volume of children who have entered the scheme. 'It's not an overstatement to say that the volume of children entering and staying in the scheme longer than was ever intended is compounding the total scheme cost and that pressure on the taxpayer,' he said, calling for more support to be provided 'adjacent' to the scheme. Planned NDIS reforms – which would see more support for people with less intense needs being delivered outside the scheme, by the states – will not begin to roll out from July, as originally anticipated, as negotiations continue between the states and federal government.
