The release of today’s Intergenerational Report confirms that the Abbott Government’s unfair and unnecessary plan for $100,000 degrees will lead to a blow-out in student debt and a massive increase in the cost of bad debt to the taxpayer.
The report shows that, despite massive cuts to direct funding, government spending per student will increase from $19,100 to $23,100 by 2054-55 (2014 dollars) as a result of the blow-out in student debt and the resulting increased cost of HECS.
The report itself makes clear that HECS debt is projected to increase as a share of GDP due to “longer repayment periods associated with higher average debts” (p. 87).
It is clear in the Intergenerational report that this reckless government’s plans for higher education fee deregulation will create a fiscal time bomb and leave future generations to pick up the pieces.
In light of this evidence, the Abbott Government needs to end its empty ‘debt and deficit’ rhetoric, and abandon its plan to burden students with $100,000 degrees and the taxpayer with debts which will never be repaid.