Tertiary education fees in Australia
Encyclopedia
As a general rule, all students who attend Australian tertiary education institutions are charged higher education fees. However, several measures are in place to relieve the costs of tertiary education
in Australia
.
Most students are Commonwealth supported. This means that they are only required to pay a part of the cost of tuition, called the "student contribution", while the Commonwealth pays the balance; and students are able to defer payment of their contribution as a HELP loan. Other domestic students are full fee-paying (non-Commonwealth supported) and receive no other direct government contribution to the cost of their education. They can also obtain subsidised HELP loans from the Government up to a lifetime limit of $100,000 for medicine, dentistry and veterinary science programs and $80,000 for all other programs.
Australian citizens and (with some limitations) permanent residents
are able to obtain interest free loans from the government under the Higher Education Loan Programme (HELP) which replaced the Higher Education Contribution Scheme (HECS).
HELP is jointly administered by the Department of Education, Science and Training (DEST) and the Australian Taxation Office
(ATO).
In addition, qualified students may be entitled to Youth Allowance or Austudy Payment to assist them financially while they are studying. These support payments are means and assets tested. Further assistance is available in the form of scholarships.
Overseas students are charged fees for the full cost of their education and are ineligible for any loans from the Commonwealth, but may apply for international scholarships.
Labor
Government saw a need for the country to increase the number of university graduates and for more civil and military
research. To do this, it dramatically increased the number of scholarships it offered to enter university and allowed women to apply for these scholarships (they were previously exclusive to men). The Menzies
Liberal
Government also supported and extended the ability of ordinary Australians to attend university.
In the 1960s, the Menzies Government encouraged and funded the establishment of new universities to cater for increasing demand. These universities were built in outlying suburb
s and offered special research scholarship
s to encourage students to undertake postgraduate research studies. Many of the universities that were established under this scheme are members of Innovative Research Universities Australia
.
In 1967, the Government created a category of non-university tertiary institution (called College of Advanced Education
(CAE)) that would be funded by the Commonwealth. These CAEs were easier to access and cheaper to attend than the traditional university, while delivering many university-equivalent Bachelor degrees.
in Australia more accessible to working
and middle class
Australians. The Whitlam
Labor Government abolished university fees on 1 January 1974. This decision did not greatly change the socio-economic backgrounds of students attending universities because only 20 to 25 percent of students paid fees as most had Commonwealth scholarships. Another reason for the lack of change was because low high school retention rates had resulted in many young people from disadvantaged backgrounds not completing secondary education and therefore never having the opportunity to choose to attend university.
Labor Government set up the Higher Education Contributions Scheme (HECS), which was developed by economist and lecturer at the Australian National University
, Bruce Chapman and championed by Education Minister John Dawkins
(see Dawkins Revolution
). Under the original HECS, an $1,800 fee was charged to all university students, and the Commonwealth paid the balance. A student could defer payment of this HECS amount (in which case it was called a HECS debt) and repay the debt through the tax system, when the student's income reached a certain level. As part of the reforms, Colleges of Advanced Education entered the University sector by various means.
In 1996, the new Howard
Coalition Government, while otherwise retaining the HECS system, created a three-tier HECS fee structure. Fees were charged on the basis of the perceived value of courses. Courses considered to have most likelihood of generating higher income for students in the future (e.g. Law
and Medicine
) were the most expensive and those least likely to generate higher income (e.g. Nursing
and Arts
) were the least expensive. At the same time, HECS charges increased by an average of 40%. Universities were permitted to create full-fee places on which they could charge full up-front fees to students who missed out on a HECS place.
As part of the changes, from 2007, HECS places became known as Commonwealth supported places (CSP). A student in a CSP is only entitled to study for a maximum of 7 years full-time (16 years part-time) at CSP rates. This is known as Student Learning Entitlement (SLE). After that period the student must take either a post-graduate FEE-HELP load (if available) or study at full-fee rates.
The HECS debt became a pre-2005 debt, while HECS-HELP referred to a post-2005 debt. HECS-HELP (formerly HECS) maintains the same principles as HECS. If a student receives a HECS-HELP loan, the Commonwealth government pays the loan amount directly to the higher education provider on behalf of the student.
An alternative option is FEE-HELP (formerly PELS). FEE-HELP provides eligible fee-paying students with a loan to cover their postgraduate fees. This option is only available for post-graduate students attempting an eligible post-graduate course. In 2007, the FEE-HELP lifelong limit is $80,000, and $100,000 for students studying dentistry, medicine or veterinary science. Students cannot borrow any more than $50,000, even once the debt is repaid.
When a student has used up the SLE, he or she may only study under a FEE-HELP course (capped at $50,000) or as part of a full-fee course. Full-fee courses are relatively expensive because the student must pay the costs upfront, resulting in a significantly larger debt than a standard HECS-HELP loan, usually taken for its lower academic entrance requirements.
FEE-HELP courses are available at a post-graduate level (and occasionally for some undergraduate full-fee places) however they are not available at every institution or in every course. The only remaining option is a full-fee place paid upfront.
The discount for voluntary repayments of existing HECS debt was reduced from 15% to 10% at the start of 1 January 2005.
and Australian permanent resident
s.
Commonwealth supported places are allocated to students by the tertiary admissions centre in each state or territory:
The allocation is usually based on secondary school results (through the UAI
, ENTER
, TER
or OP
scores), TAFE qualifications and previous university results.
The student contribution varies between courses. It is based upon the expected earnings following a students' graduation, not the cost of providing the course. Higher education providers can set the student contribution level for each unit of study, up to a maximum level set by the Government. It is said that, due to government underfunding of universities, universities almost always charge the highest level allowable.
An eligible student can either pay the entire student contribution and receive a 20% discount or defer payment of the contribution through a HECS-HELP loan. It is possible to defer payment of some of the contribution and pay part upfront. In cases of part payment, a 20% discount is received on the amount paid. Only Australian citizens and permanent humanitarian visa holders are eligible for HECS-HELP loans. Students who are New Zealand citizens or new Australian permanent residents must pay the entire contribution upfront and receive no discount.
Commonwealth supported students are entitled to the equivalent of seven years of full time study in a CSP, called a Student Learning Entitlement (SLE).
/UAI
/TER
tertiary entrance rank or other qualifications exceed a certain minimum. Most postgraduate courses do not have Commonwealth supported places available and therefore all these students are fee-paying. Fee-paying students are charged the full cost of their course, with no Commonwealth contribution.
Fee-paying students can obtain loans under the Higher Education Loan Programme, called FEE-HELP loans, to cover all or part of their fees. Undergraduate students who obtain these loans are charged a 20% loan fee on top of the amount borrowed. This does not apply to post graduate courses. Students are able to borrow a lifetime maximum FEE-HELP loan of $100,000 for medicine, dentistry and veterinary science programs and $80,000 for all other programs (adjusted for inflation
). In 2005, FEE-HELP loans replaced the Open Learning Deferred Payment Scheme (OLDPS), the Postgraduate Education Loan Scheme (PELS) and the Bridging for Overseas-Trained Professionals Loan Scheme (BOTPLS).
As in the FEE-HELP loan scheme, a 20% fee applies on the amount borrowed. This 20% 'administration fee' will be removed for OS-HELP loans received after 1 Jan 2010.
to the Consumer Price Index
(CPI) on 1 June each year, based on the annual CPI to March of that year. The indexation rate applied on 1 June 2006 was 2.8% and 3.4% on 1 June 2007. Indexation applies to the part of the debt that has been unpaid for 11 months or more. Thus, indexation is calculated on the opening HELP debt balance on 1 July of the previous year plus any debt incurred in the first half of the current year (usually for first semester courses) less any compulsory and voluntary repayments, with bonus. Any HELP debt incurred on second semester courses (usually determined in June) will not be subject to indexation until the next year. After indexation, the new balance is rounded down to a whole dollar amount.
HELP account debtors can make voluntary repayments. These repayments attract a 10% bonus for repayments over $500. This means that if a person voluntarily repays $1000, the debt is reduced by $1100. If the remaining debt is less than $500 the bonus still applies on repayment of their balance of the debt. As making voluntary repayments does not exempt the person from compulsory repayments, if the person intends to pay off the total debt voluntarily, it is financially advantageous for them to do it before lodging the tax return. This will attract the 10% bonus on the repayment, and there would be no balance on the debt to which the compulsory repayment provisions can apply. Better still, if the voluntary repayment is made before the indexation date of 1 June, the avoiding of the indexation adjustment is an additional bonus. Even factoring in the 10% bonus on voluntary repayments, many people elect not to pay off their debt in advance of the required repayments because it still works out to be probably the cheapest loan someone will ever receive.
If a person with a HELP debt dies, any compulsory repayment included on their income
tax notice of assessment relating to the period prior to their death must be paid
from their estate, but the remainder of their debt is canceled.
and will be repaid compulsorily over time through the taxation system. If the HELP Repayment Income (HRI) of a person with a HELP debt exceeds a certain threshold, which for the 2007/08 financial year is $39,825, a compulsory payments will be deducted from the person's tax for the year. To work out the HRI, the ATO will add back to the person's taxable income any net rental loss claimed against that taxable income and add fringe benefits and exempt foreign income received, which have not been included in the taxable income. Unlike marginal tax rates, the repayment rate applies on the full HRI, so that a person with a HRI of $39,500 in the 2007/08 tax year would not have to make any compulsory HELP repayment, but a person with a HRI of $40,000 would make a payment of $1,600. This is 4% of the HRI (not taxable income or the debt balance) of $40,000. The compulsory repayment amount cannot exceed the balance of the HELP debt.
The rates for compulsory repayment for the 2010/11 financial year, also compared with previous years, are:
It is also possible to make voluntary payments to further reduce the debt. Until 31 December 2004 voluntary payments over $500 earned a 15% bonus, but from 1 January 2005 this was reduced to 10%. From 1 January 2012 subject to the passage of legislation the bonus will be further reduced, to 5%.
Tertiary education
Tertiary education, also referred to as third stage, third level, and post-secondary education, is the educational level following the completion of a school providing a secondary education, such as a high school, secondary school, university-preparatory school...
in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
.
Most students are Commonwealth supported. This means that they are only required to pay a part of the cost of tuition, called the "student contribution", while the Commonwealth pays the balance; and students are able to defer payment of their contribution as a HELP loan. Other domestic students are full fee-paying (non-Commonwealth supported) and receive no other direct government contribution to the cost of their education. They can also obtain subsidised HELP loans from the Government up to a lifetime limit of $100,000 for medicine, dentistry and veterinary science programs and $80,000 for all other programs.
Australian citizens and (with some limitations) permanent residents
Australian permanent resident
Australian permanent residents are residents of Australia who hold permanent residency visas but are not citizens of the Commonwealth of Australia....
are able to obtain interest free loans from the government under the Higher Education Loan Programme (HELP) which replaced the Higher Education Contribution Scheme (HECS).
HELP is jointly administered by the Department of Education, Science and Training (DEST) and the Australian Taxation Office
Australian Taxation Office
The Australian Taxation Office is an Australian Government statutory agency and the principal revenue collection body for the Australian Government. The ATO has responsibility for administering the Australian federal taxation system and superannuation legislation...
(ATO).
In addition, qualified students may be entitled to Youth Allowance or Austudy Payment to assist them financially while they are studying. These support payments are means and assets tested. Further assistance is available in the form of scholarships.
Overseas students are charged fees for the full cost of their education and are ineligible for any loans from the Commonwealth, but may apply for international scholarships.
History
In 1940, the CurtinJohn Curtin
John Joseph Curtin , Australian politician, served as the 14th Prime Minister of Australia. Labor under Curtin formed a minority government in 1941 after the crossbench consisting of two independent MPs crossed the floor in the House of Representatives, bringing down the Coalition minority...
Labor
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...
Government saw a need for the country to increase the number of university graduates and for more civil and military
Military
A military is an organization authorized by its greater society to use lethal force, usually including use of weapons, in defending its country by combating actual or perceived threats. The military may have additional functions of use to its greater society, such as advancing a political agenda e.g...
research. To do this, it dramatically increased the number of scholarships it offered to enter university and allowed women to apply for these scholarships (they were previously exclusive to men). The Menzies
Robert Menzies
Sir Robert Gordon Menzies, , Australian politician, was the 12th and longest-serving Prime Minister of Australia....
Liberal
Liberal Party of Australia
The Liberal Party of Australia is an Australian political party.Founded a year after the 1943 federal election to replace the United Australia Party, the centre-right Liberal Party typically competes with the centre-left Australian Labor Party for political office...
Government also supported and extended the ability of ordinary Australians to attend university.
In the 1960s, the Menzies Government encouraged and funded the establishment of new universities to cater for increasing demand. These universities were built in outlying suburb
Suburb
The word suburb mostly refers to a residential area, either existing as part of a city or as a separate residential community within commuting distance of a city . Some suburbs have a degree of administrative autonomy, and most have lower population density than inner city neighborhoods...
s and offered special research scholarship
Scholarship
A scholarship is an award of financial aid for a student to further education. Scholarships are awarded on various criteria usually reflecting the values and purposes of the donor or founder of the award.-Types:...
s to encourage students to undertake postgraduate research studies. Many of the universities that were established under this scheme are members of Innovative Research Universities Australia
Innovative Research Universities Australia
Innovative Research Universities , formerly Innovative Research Universities Australia, is a network of seven comprehensive universities committed to conducting research of national and international standing....
.
In 1967, the Government created a category of non-university tertiary institution (called College of Advanced Education
College of Advanced Education
The College of Advanced Education was a class of Australian tertiary education institution that existed from 1967 until the early 1990s. They ranked below universities, but above Colleges of Technical and Further Education which offer trade qualification...
(CAE)) that would be funded by the Commonwealth. These CAEs were easier to access and cheaper to attend than the traditional university, while delivering many university-equivalent Bachelor degrees.
Whitlam's abolition of university fees
During the early 1970s, there was a significant push to make tertiary educationTertiary education
Tertiary education, also referred to as third stage, third level, and post-secondary education, is the educational level following the completion of a school providing a secondary education, such as a high school, secondary school, university-preparatory school...
in Australia more accessible to working
Working class
Working class is a term used in the social sciences and in ordinary conversation to describe those employed in lower tier jobs , often extending to those in unemployment or otherwise possessing below-average incomes...
and middle class
Middle class
The middle class is any class of people in the middle of a societal hierarchy. In Weberian socio-economic terms, the middle class is the broad group of people in contemporary society who fall socio-economically between the working class and upper class....
Australians. The Whitlam
Gough Whitlam
Edward Gough Whitlam, AC, QC , known as Gough Whitlam , served as the 21st Prime Minister of Australia. Whitlam led the Australian Labor Party to power at the 1972 election and retained government at the 1974 election, before being dismissed by Governor-General Sir John Kerr at the climax of the...
Labor Government abolished university fees on 1 January 1974. This decision did not greatly change the socio-economic backgrounds of students attending universities because only 20 to 25 percent of students paid fees as most had Commonwealth scholarships. Another reason for the lack of change was because low high school retention rates had resulted in many young people from disadvantaged backgrounds not completing secondary education and therefore never having the opportunity to choose to attend university.
HECS
In 1989, the HawkeBob Hawke
Robert James Lee "Bob" Hawke AC GCL was the 23rd Prime Minister of Australia from March 1983 to December 1991 and therefore longest serving Australian Labor Party Prime Minister....
Labor Government set up the Higher Education Contributions Scheme (HECS), which was developed by economist and lecturer at the Australian National University
Australian National University
The Australian National University is a teaching and research university located in the Australian capital, Canberra.As of 2009, the ANU employs 3,945 administrative staff who teach approximately 10,000 undergraduates, and 7,500 postgraduate students...
, Bruce Chapman and championed by Education Minister John Dawkins
John Dawkins
John Sydney "Joe" Dawkins, AO , Australian politician, was Treasurer in the Keating Labor government from December 1991 to December 1993...
(see Dawkins Revolution
Dawkins Revolution
The Dawkins Revolution was a series of Australian tertiary education reforms instituted by the then Labor Education Minister John Dawkins....
). Under the original HECS, an $1,800 fee was charged to all university students, and the Commonwealth paid the balance. A student could defer payment of this HECS amount (in which case it was called a HECS debt) and repay the debt through the tax system, when the student's income reached a certain level. As part of the reforms, Colleges of Advanced Education entered the University sector by various means.
In 1996, the new Howard
John Howard
John Winston Howard AC, SSI, was the 25th Prime Minister of Australia, from 11 March 1996 to 3 December 2007. He was the second-longest serving Australian Prime Minister after Sir Robert Menzies....
Coalition Government, while otherwise retaining the HECS system, created a three-tier HECS fee structure. Fees were charged on the basis of the perceived value of courses. Courses considered to have most likelihood of generating higher income for students in the future (e.g. Law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
and Medicine
Medicine
Medicine is the science and art of healing. It encompasses a variety of health care practices evolved to maintain and restore health by the prevention and treatment of illness....
) were the most expensive and those least likely to generate higher income (e.g. Nursing
Nursing
Nursing is a healthcare profession focused on the care of individuals, families, and communities so they may attain, maintain, or recover optimal health and quality of life from conception to death....
and Arts
ARts
aRts, which stands for analog Real time synthesizer, is an audio framework that is no longer under development. It is best known for previously being used in KDE to simulate an analog synthesizer....
) were the least expensive. At the same time, HECS charges increased by an average of 40%. Universities were permitted to create full-fee places on which they could charge full up-front fees to students who missed out on a HECS place.
2005/6 reforms
In 2005 the Commonwealth government deregulated university fees, permitting universities to increase fees by a maximum of 25%.As part of the changes, from 2007, HECS places became known as Commonwealth supported places (CSP). A student in a CSP is only entitled to study for a maximum of 7 years full-time (16 years part-time) at CSP rates. This is known as Student Learning Entitlement (SLE). After that period the student must take either a post-graduate FEE-HELP load (if available) or study at full-fee rates.
The HECS debt became a pre-2005 debt, while HECS-HELP referred to a post-2005 debt. HECS-HELP (formerly HECS) maintains the same principles as HECS. If a student receives a HECS-HELP loan, the Commonwealth government pays the loan amount directly to the higher education provider on behalf of the student.
An alternative option is FEE-HELP (formerly PELS). FEE-HELP provides eligible fee-paying students with a loan to cover their postgraduate fees. This option is only available for post-graduate students attempting an eligible post-graduate course. In 2007, the FEE-HELP lifelong limit is $80,000, and $100,000 for students studying dentistry, medicine or veterinary science. Students cannot borrow any more than $50,000, even once the debt is repaid.
When a student has used up the SLE, he or she may only study under a FEE-HELP course (capped at $50,000) or as part of a full-fee course. Full-fee courses are relatively expensive because the student must pay the costs upfront, resulting in a significantly larger debt than a standard HECS-HELP loan, usually taken for its lower academic entrance requirements.
FEE-HELP courses are available at a post-graduate level (and occasionally for some undergraduate full-fee places) however they are not available at every institution or in every course. The only remaining option is a full-fee place paid upfront.
The discount for voluntary repayments of existing HECS debt was reduced from 15% to 10% at the start of 1 January 2005.
Commonwealth supported students
The Commonwealth Government determines the number and allocation of Commonwealth supported undergraduate places with each public higher education providers each year through the Commonwealth Grant Scheme (CGS). A Commonwealth supported place is a higher education place for which the Commonwealth Government makes a contribution to the higher education provider towards the cost of a student's education. The student only makes a contribution towards the cost of education, known as the student contribution. Commonwealth supported places are available to citizens of Australia and New ZealandNew Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
and Australian permanent resident
Australian permanent resident
Australian permanent residents are residents of Australia who hold permanent residency visas but are not citizens of the Commonwealth of Australia....
s.
Commonwealth supported places are allocated to students by the tertiary admissions centre in each state or territory:
- Universities Admissions CentreUniversities Admissions CentreThe Universities Admissions Centre Pty Ltd is the organisation that processes centralised applications for admission to tertiary education courses at participating institutions, mainly in NSW and the ACT...
(UAC) in NSW and ACT - Queensland Tertiary Admissions Centre
- South Australian Tertiary Admissions Centre in South Australia and the Northern Territory
- University of TasmaniaUniversity of TasmaniaThe University of Tasmania is a medium-sized public Australian university based in Tasmania, Australia. Officially founded on 1 January 1890, it was the fourth university to be established in nineteenth-century Australia...
in Tasmania - Victorian Tertiary Admissions CentreVictorian Tertiary Admissions CentreThe Victorian Tertiary Admissions Centre is the administrative body which processes applications for universities in the state of Victoria...
(VTAC) in Victoria - Tertiary Institutions Service Centre in Western Australia.
The allocation is usually based on secondary school results (through the UAI
Universities Admission Index
The Universities Admission Index was used in New South Wales and the Australian Capital Territory, Australia, as the primary criterion for entry into most undergraduate-entry university programs...
, ENTER
Equivalent National Tertiary Entrance Rank
The Equivalent National Tertiary Entrance Rank was the national Australian tertiary entrance rank, administered by Universities Australia...
, TER
Tertiary Entrance Rank
The Tertiary Entrance Rank was a tertiary entrance score used in several Australian states and the Northern Territory as a tool for selection to universities in Australia...
or OP
Overall Position
The Overall Position is a tertiary entrance rank used in the Australian state of Queensland for selection into universities. Like similar systems used throughout the rest of Australia, the OP shows how well a student has performed in their senior secondary studies compared to all other OP-eligible...
scores), TAFE qualifications and previous university results.
The student contribution varies between courses. It is based upon the expected earnings following a students' graduation, not the cost of providing the course. Higher education providers can set the student contribution level for each unit of study, up to a maximum level set by the Government. It is said that, due to government underfunding of universities, universities almost always charge the highest level allowable.
Student Contribution |
|||||
| Band | Curriculum Areas | Post- 1 Jan 2010 CSP students | Pre- 1 Jan 2010 CSP students | Pre- 1 Jan 2005 HECS students | |
| 2010 Maximum Contribution per EFTSL |
font style="color:gray;">Post-1 Jan 2005 | Post-1 Jan 1997 | Pre-1 Jan 1997 | ||
| National Priority | Mathematics Mathematics Mathematics is the study of quantity, space, structure, and change. Mathematicians seek out patterns and formulate new conjectures. Mathematicians resolve the truth or falsity of conjectures by mathematical proofs, which are arguments sufficient to convince other mathematicians of their validity... ª, Statistics Statistics Statistics is the study of the collection, organization, analysis, and interpretation of data. It deals with all aspects of this, including the planning of data collection in terms of the design of surveys and experiments.... ª, Science Science Science is a systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe... ª, |
$0 – $4,429 | $0 – $4,162 | $0 – $4,077 | $0 – $3,061 |
| Band 1 | Education Education Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts... ^, Nursing Nursing Nursing is a healthcare profession focused on the care of individuals, families, and communities so they may attain, maintain, or recover optimal health and quality of life from conception to death.... ^, Humanities Humanities The humanities are academic disciplines that study the human condition, using methods that are primarily analytical, critical, or speculative, as distinguished from the mainly empirical approaches of the natural sciences.... , Behavioural science, Social studies Social studies Social studies is the "integrated study of the social sciences and humanities to promote civic competence," as defined by the American National Council for the Social Studies... , Foreign language Foreign language A foreign language is a language indigenous to another country. It is also a language not spoken in the native country of the person referred to, i.e. an English speaker living in Japan can say that Japanese is a foreign language to him or her... s, Visual and Performing arts Performing arts The performing arts are those forms art which differ from the plastic arts insofar as the former uses the artist's own body, face, and presence as a medium, and the latter uses materials such as clay, metal or paint which can be molded or transformed to create some physical art object... , Nursing Nursing Nursing is a healthcare profession focused on the care of individuals, families, and communities so they may attain, maintain, or recover optimal health and quality of life from conception to death.... ª, Education Education Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts... ª, Clinical Psychology Clinical psychology Clinical psychology is an integration of science, theory and clinical knowledge for the purpose of understanding, preventing, and relieving psychologically-based distress or dysfunction and to promote subjective well-being and personal development... |
$0 – $5,310 | $0 – $5,201 | ||
| Band 2 | Computing Computing Computing is usually defined as the activity of using and improving computer hardware and software. It is the computer-specific part of information technology... , Built Environment Built environment The term built environment refers to the human-made surroundings that provide the setting for human activity, ranging in scale from personal shelter and buildings to neighborhoods and cities that can often include their supporting infrastructure, such as water supply or energy networks.The built... , Health Sciences, Engineering Engineering Engineering is the discipline, art, skill and profession of acquiring and applying scientific, mathematical, economic, social, and practical knowledge, in order to design and build structures, machines, devices, systems, materials and processes that safely realize improvements to the lives of... , Surveying Surveying See Also: Public Land Survey SystemSurveying or land surveying is the technique, profession, and science of accurately determining the terrestrial or three-dimensional position of points and the distances and angles between them... , Agriculture Agriculture Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the... |
$0 – $7,567 | $0 – $7,412 | $0 – $5,807 | |
| Band 3 | Law Law Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus... , Dentistry Dentistry Dentistry is the branch of medicine that is involved in the study, diagnosis, prevention, and treatment of diseases, disorders and conditions of the oral cavity, maxillofacial area and the adjacent and associated structures and their impact on the human body. Dentistry is widely considered... , Medicine Medicine Medicine is the science and art of healing. It encompasses a variety of health care practices evolved to maintain and restore health by the prevention and treatment of illness.... , Veterinary science, Accounting, Administration, Economics Economics Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"... , Commerce Commerce While business refers to the value-creating activities of an organization for profit, commerce means the whole system of an economy that constitutes an environment for business. The system includes legal, economic, political, social, cultural, and technological systems that are in operation in any... |
$0 – $8,859 | $0 – $8,677 | $0 – $6,798 | |
| Notes: ^ removed 2010 reform, ª Added 2010 reform, numbers or figures - Deprecated | |||||
An eligible student can either pay the entire student contribution and receive a 20% discount or defer payment of the contribution through a HECS-HELP loan. It is possible to defer payment of some of the contribution and pay part upfront. In cases of part payment, a 20% discount is received on the amount paid. Only Australian citizens and permanent humanitarian visa holders are eligible for HECS-HELP loans. Students who are New Zealand citizens or new Australian permanent residents must pay the entire contribution upfront and receive no discount.
Commonwealth supported students are entitled to the equivalent of seven years of full time study in a CSP, called a Student Learning Entitlement (SLE).
Fee-paying students
Students who do not receive a Commonwealth supported place may obtain a fee-paying place, as long as their ENTEREquivalent National Tertiary Entrance Rank
The Equivalent National Tertiary Entrance Rank was the national Australian tertiary entrance rank, administered by Universities Australia...
/UAI
Universities Admission Index
The Universities Admission Index was used in New South Wales and the Australian Capital Territory, Australia, as the primary criterion for entry into most undergraduate-entry university programs...
/TER
Tertiary Entrance Rank
The Tertiary Entrance Rank was a tertiary entrance score used in several Australian states and the Northern Territory as a tool for selection to universities in Australia...
tertiary entrance rank or other qualifications exceed a certain minimum. Most postgraduate courses do not have Commonwealth supported places available and therefore all these students are fee-paying. Fee-paying students are charged the full cost of their course, with no Commonwealth contribution.
Fee-paying students can obtain loans under the Higher Education Loan Programme, called FEE-HELP loans, to cover all or part of their fees. Undergraduate students who obtain these loans are charged a 20% loan fee on top of the amount borrowed. This does not apply to post graduate courses. Students are able to borrow a lifetime maximum FEE-HELP loan of $100,000 for medicine, dentistry and veterinary science programs and $80,000 for all other programs (adjusted for inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
). In 2005, FEE-HELP loans replaced the Open Learning Deferred Payment Scheme (OLDPS), the Postgraduate Education Loan Scheme (PELS) and the Bridging for Overseas-Trained Professionals Loan Scheme (BOTPLS).
OS-HELP
OS-HELP is a loan scheme to assist some undergraduate domestic students to undertake some, but not all, of their course of study overseas. Students are able to obtain a loan of $5,299 for every six months, but can only receive a total of two loans throughout their lifetime. Unlike other loans in the HELP, the loan amount is paid directly to the student and the terms for the loans are set out by the tertiary providers.As in the FEE-HELP loan scheme, a 20% fee applies on the amount borrowed. This 20% 'administration fee' will be removed for OS-HELP loans received after 1 Jan 2010.
HELP loan management
HELP debts do not attract interest, but are instead indexedIndexation
Indexation is a technique to adjust income payments by means of a price index, in order to maintain the purchasing power of the public after inflation....
to the Consumer Price Index
Consumer price index
A consumer price index measures changes in the price level of consumer goods and services purchased by households. The CPI, in the United States is defined by the Bureau of Labor Statistics as "a measure of the average change over time in the prices paid by urban consumers for a market basket of...
(CPI) on 1 June each year, based on the annual CPI to March of that year. The indexation rate applied on 1 June 2006 was 2.8% and 3.4% on 1 June 2007. Indexation applies to the part of the debt that has been unpaid for 11 months or more. Thus, indexation is calculated on the opening HELP debt balance on 1 July of the previous year plus any debt incurred in the first half of the current year (usually for first semester courses) less any compulsory and voluntary repayments, with bonus. Any HELP debt incurred on second semester courses (usually determined in June) will not be subject to indexation until the next year. After indexation, the new balance is rounded down to a whole dollar amount.
HELP account debtors can make voluntary repayments. These repayments attract a 10% bonus for repayments over $500. This means that if a person voluntarily repays $1000, the debt is reduced by $1100. If the remaining debt is less than $500 the bonus still applies on repayment of their balance of the debt. As making voluntary repayments does not exempt the person from compulsory repayments, if the person intends to pay off the total debt voluntarily, it is financially advantageous for them to do it before lodging the tax return. This will attract the 10% bonus on the repayment, and there would be no balance on the debt to which the compulsory repayment provisions can apply. Better still, if the voluntary repayment is made before the indexation date of 1 June, the avoiding of the indexation adjustment is an additional bonus. Even factoring in the 10% bonus on voluntary repayments, many people elect not to pay off their debt in advance of the required repayments because it still works out to be probably the cheapest loan someone will ever receive.
If a person with a HELP debt dies, any compulsory repayment included on their income
tax notice of assessment relating to the period prior to their death must be paid
from their estate, but the remainder of their debt is canceled.
Repayments
HELP debts are administered by the Australian Taxation OfficeAustralian Taxation Office
The Australian Taxation Office is an Australian Government statutory agency and the principal revenue collection body for the Australian Government. The ATO has responsibility for administering the Australian federal taxation system and superannuation legislation...
and will be repaid compulsorily over time through the taxation system. If the HELP Repayment Income (HRI) of a person with a HELP debt exceeds a certain threshold, which for the 2007/08 financial year is $39,825, a compulsory payments will be deducted from the person's tax for the year. To work out the HRI, the ATO will add back to the person's taxable income any net rental loss claimed against that taxable income and add fringe benefits and exempt foreign income received, which have not been included in the taxable income. Unlike marginal tax rates, the repayment rate applies on the full HRI, so that a person with a HRI of $39,500 in the 2007/08 tax year would not have to make any compulsory HELP repayment, but a person with a HRI of $40,000 would make a payment of $1,600. This is 4% of the HRI (not taxable income or the debt balance) of $40,000. The compulsory repayment amount cannot exceed the balance of the HELP debt.
The rates for compulsory repayment for the 2010/11 financial year, also compared with previous years, are:
| HELP Repayment Income (HRI) compulsory repayment 2006-2011 | ||||||
|---|---|---|---|---|---|---|
| HRI 2005/06 | HRI 2006/07 | HRI 2007/08 | HRI 2008/09 | HRI 2009/10 | HRI2010–11 | Repayment Rate |
| Below $36,185 | Below $38,149 | Below $39,825 | Below $41,595 | Below $43,151 | Below $44,912 | Nil |
| $36,185–$40,306 | $38,149-$42,494 | $39,825-$44,360 | $41,595–$46,333 | $43,151–$48,066 | $44,912–$50,028 | 4% of HRI |
| $40,307–$44,427 | $42,495-$46,938 | $44,360-$48,896 | $46,334–$51,070 | $48,067–$52,980 | $50,029–$55,143 | 4.5% of HRI |
| $44,428–$46,762 | $46,839-$49,300 | $48,897-$51,466 | $51,071–$53,754 | $52,981–$55,764 | $55,144–$58,041 | 5% of HRI |
| $46,763–$50,266 | $49,301-$52,994 | $51,466-$55,322 | $53,755–$57,782 | $55,765–$59,943 | $58,042–$62,390 | 5.5% of HRI |
| $50,267–$54,439 | $52,995-$57,394 | $55,323-$59,915 | $57,783–$62,579 | $59,944–$64,919 | $62,391–$67,570 | 6% of HRI |
| $54,440–$57,304 | $57,395-$60,414 | $59,916-$63,068 | $62,580–$65,873 | $64,920–$68,336 | $67,571–$71,126 | 6.5% of HRI |
| $57,305–$63,062 | $60,415-$66,485 | $63,069-$69,405 | $65,874–$72,492 | $68,337–$75,203 | $71,127–$78,273 | 7% of HRI |
| $63,063–$67,199 | $66,486-$70,846 | $69,406-$73,959 | $72,493–$77,247 | $75,204–$80,136 | $78,274–$83,407 | 7.5% of HRI |
| $67,200 and above | $70,847 and above | $73,960 and above | $77,248 and above | $80,137 and above | $83,408 and above | 8% of HRI |
It is also possible to make voluntary payments to further reduce the debt. Until 31 December 2004 voluntary payments over $500 earned a 15% bonus, but from 1 January 2005 this was reduced to 10%. From 1 January 2012 subject to the passage of legislation the bonus will be further reduced, to 5%.
Sources
- Going To Uni website
- Department of Education, Employment and Workplace Relations website (previously Department of Education, Science and Training)
- ATO Higher education loan schemes essentials site
- "International student funding comparisons: Australia and New Zealand" by Professor Nicholas Barr. The Guardian, 9 October 2001.
- Calculus Group Study Abroad Site