Friday 6 May 2011

Another Labor budget coming to 'redistribute' my wealth

The annual Federal budget for Australia will be announced next week. As usual some of the "nasties" are being leaked beforehand. One that will directly affect me is the proposed reduction in the "discount" applied to up-front payments of university HECS fees. As I always pay my fees in full up-front I usually pay only 80% of the "list price" for my courses. The discount is apparently going to be reduced to only 10% by the Labor government, since its believed that only "rich" students can afford to pay their HECS up-front and benefit from the discount.

At only 10% reduction for paying up-front its hardly worth it. I may as well let the HECS debt accumulate and use the money to pay off some of my other debts that are being charged 8%, 10% or more interest. HECS liabilities only increase by the CPI each year (around 3%), so its a relatively cheap loan.

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