A new government policy aims to ensure people with low incomes can pay for college and university education with no debt, with a simple new formula for the federal budget.
The government’s “Help for the Unemployed” scheme, which will be rolled out over the next two years, is the latest attempt by the Turnbull Government to tackle the financial pressures facing millions of people with less than a university degree.
The scheme, to be rolled-out by 2020, will allow people with a “reasonable and prudent income” to pay $200 towards their education costs through their tax, and the money will then be matched with up to $1000 in grants to help pay for tuition, fees and other costs.
A person with a family income of $70,000 or more would have to pay an additional $400 a year to cover their tuition fees and fees at a four-year university.
The Government has also proposed a range of other changes to help reduce the cost to students of attending university.
These include allowing students to pay up to 10 per cent of their tuition fee in income tax, up to an annual cap on interest rates on loans and the elimination of the need for them to have a student loan to cover any part of the costs of their education.
This will mean students will be able to pay for their tuition at a lower rate of interest than they would have otherwise.
The Federal Government has been under pressure to ease up on fees and loans after a series of major bank failures.
Mr Turnbull has previously said there would be a cap on student loans after 2021.
The new scheme will apply to all students who have a “substantial and reasonable” income, and those who have been unemployed for more than two years.
The proposed new “help for the unemployed” scheme is expected to cost about $1.4 billion over the two-year period.
The budget will also provide $3 billion for the National Disability Insurance Scheme (NDIS) to cover people with disabilities.
The National Disability Account (NDAA) will also be increased from $5,500 a year in 2020-21 to $10,000 a year from 2021-22.
This comes in line with a proposal to allow people to deduct up to 50 per cent in their tax on the cost in disability support.
Under the NDAA, people with disability support payments are expected to account for 20 per cent or more of the cost for their disability insurance.
Topics:government-and-politics,education,education-and‑training,educationpolicy,education—australiaFirst posted January 06, 2021 14:53:36Contact Emily BroughtonMore stories from New South Wales