WEBVTT - Indexation & HECS/HELP Debt 0:00:00.680 --> 0:00:04.920 Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr 0:00:04.960 --> 0:00:08.680 the Order Kerni Whoalbury and a waddery woman. And before 0:00:08.680 --> 0:00:11.160 we get started on She's on the Money podcast, I 0:00:11.160 --> 0:00:14.319 would like to acknowledge the traditional custodians of the land 0:00:14.400 --> 0:00:17.680 of which this podcast is recorded on a wondery country, 0:00:18.120 --> 0:00:22.240 acknowledging the elders, the ancestors and the next generation coming 0:00:22.320 --> 0:00:26.960 through as this podcast is about connecting, empowering, knowledge sharing 0:00:27.080 --> 0:00:30.120 and the storytelling of you to make a difference for 0:00:30.240 --> 0:00:32.720 today and lasting impact for tomorrow. 0:00:33.320 --> 0:00:34.120 Let's get into it. 0:00:34.800 --> 0:00:38.840 She's on the Money, She's on the Money. 0:00:57.720 --> 0:01:00.639 Hello, and welcome to She's on the Money, the podcast 0:01:00.680 --> 0:01:05.199 for millennials who want financial freedom, hex or help. Debt 0:01:05.440 --> 0:01:09.800 has long been described as the best debt you can have. Debatable, 0:01:10.160 --> 0:01:11.680 it's very debatable. 0:01:11.200 --> 0:01:15.360 Debatable, but still described it as that who described Is 0:01:15.400 --> 0:01:17.600 it still the case just producer. 0:01:17.319 --> 0:01:18.320 Or was it the internet? 0:01:19.360 --> 0:01:22.800 Look, I think that it's both of those things probably, 0:01:23.200 --> 0:01:25.479 But listen, as you said before we started recording this 0:01:25.680 --> 0:01:30.800 v let's baby, I think we should really got helped 0:01:30.800 --> 0:01:33.400 it Now though it helped it or hextet, what's the. 0:01:33.120 --> 0:01:35.360 They're they're same, They're the same, so I will probably 0:01:35.400 --> 0:01:37.840 accidentally call it hex interchangeably. 0:01:38.120 --> 0:01:40.280 So HEX is for those of us who. 0:01:40.080 --> 0:01:43.720 Are elder millennials, and we had Hex's debt, but it 0:01:43.760 --> 0:01:46.039 has since been updated to be called just across the 0:01:46.080 --> 0:01:49.440 board help debt helped. It sounds more cute, does it. 0:01:49.720 --> 0:01:52.160 I think it's kind of crue anyway. I don't. I 0:01:52.160 --> 0:01:54.040 don't care what it's called. I'm just mad that I 0:01:54.080 --> 0:01:55.560 can't make X jokes. 0:01:56.360 --> 0:01:59.840 Isn't as as a sexy though, that's not that's for sure. 0:01:59.880 --> 0:02:02.600 But we are talking about this because we have been 0:02:02.600 --> 0:02:05.000 getting so many messages, six. 0:02:04.680 --> 0:02:08.280 Million of them, six fi million to be exact. I 0:02:08.280 --> 0:02:09.720 would never overestimate either. 0:02:09.919 --> 0:02:11.840 Oh no, certainly not. We don't do that here at 0:02:11.880 --> 0:02:12.240 chees on them. 0:02:12.320 --> 0:02:12.960 Absolutely not. 0:02:13.120 --> 0:02:18.160 So how scared should we be of headlines like he's indexation, 0:02:18.520 --> 0:02:20.640 everything's rising? Well, I don't know. 0:02:21.040 --> 0:02:23.200 Well, it makes sense that we've been getting so many messages, 0:02:23.280 --> 0:02:26.040 right because we are hearing all through the news that 0:02:26.080 --> 0:02:28.240 on the first of June HEX is going to be 0:02:28.280 --> 0:02:31.600 indexed by seven point one percent. And I guess today 0:02:31.760 --> 0:02:33.359 is the day that we are going to be talking 0:02:33.360 --> 0:02:36.200 about that, because it is wild and when I just 0:02:36.240 --> 0:02:37.920 need to make sure that everyone is aware that I 0:02:38.000 --> 0:02:41.240 do mean the first of June, not the thirtieth of June, 0:02:41.360 --> 0:02:43.440 because a few people have messaged me because I was 0:02:43.480 --> 0:02:45.600 on Instagram Stories just like talking about it the other 0:02:45.680 --> 0:02:47.360 day and they're like, oh, don't you mean the thirtieth 0:02:47.440 --> 0:02:50.359 of June when you know end of financial year happens. No, 0:02:50.880 --> 0:02:53.160 this happens on the first of June, ahead of the 0:02:53.240 --> 0:02:56.160 end of financial year, so that in a month, basically, 0:02:56.200 --> 0:02:59.160 in the next thirty days, they can calculate what your 0:02:59.280 --> 0:03:02.440 repayments were be with the new level of indexation and 0:03:02.520 --> 0:03:05.200 can hit the ground running from the first of July basically. 0:03:05.280 --> 0:03:06.600 So I'm not wrong. 0:03:07.040 --> 0:03:09.239 I just feel the need to, like, you know, back 0:03:09.280 --> 0:03:10.760 myself a little bit and be like, this is why 0:03:10.760 --> 0:03:13.240 I'm correct. But also people were right to slide into 0:03:13.240 --> 0:03:16.040 my dams because I'm consistently wrong. So if you would 0:03:16.080 --> 0:03:17.560 like to correct me, you are more than welcome to 0:03:17.680 --> 0:03:19.720 so don't. Yeah, I feel like a dip when I 0:03:19.760 --> 0:03:22.960 correct myself, right, Sure, I just feel a little bit 0:03:23.040 --> 0:03:24.720 rude when I'm like, I was right. 0:03:25.280 --> 0:03:27.280 I know it is. It is a bit awkward when 0:03:27.320 --> 0:03:29.320 you have to be like Oh, actually I did. I 0:03:29.800 --> 0:03:31.320 think this is the correct. 0:03:31.080 --> 0:03:33.280 Yeah, Like, actually, I don't know if you know this, 0:03:33.440 --> 0:03:37.560 but like I'm really into finance, like really really into finance. 0:03:37.600 --> 0:03:40.160 And while I might get dates wrong consistently, if it 0:03:40.240 --> 0:03:41.920 was the thirtieth of June, I would know because that's 0:03:41.960 --> 0:03:43.080 my birthday. 0:03:43.240 --> 0:03:45.640 Oh thirty is the June's your birthday? That end July? 0:03:46.240 --> 0:03:49.440 Yes, sexy, I'm an end of financial year. Baby. Is 0:03:49.440 --> 0:03:50.520 there a better. 0:03:50.320 --> 0:03:53.520 Dated in the year than the thirtieth of June. 0:03:53.640 --> 0:03:56.040 I hope you get a big chunk of return for 0:03:56.080 --> 0:03:56.720 your birthday. 0:03:56.880 --> 0:03:59.160 No, I always end up owing money. It is actually 0:03:59.200 --> 0:04:02.360 a joke, is okay? Thank you for tho as well wishes. Though. 0:04:02.560 --> 0:04:04.000 Let's talk about debt. 0:04:04.440 --> 0:04:08.640 So you've probably heard on the news the term student 0:04:08.800 --> 0:04:09.960 debt avalanche. 0:04:10.040 --> 0:04:11.240 It's dramatic, isn't it. 0:04:11.240 --> 0:04:14.960 It seems dramatic. And I'm also like, I'm not yet scared, 0:04:15.000 --> 0:04:16.440 but like should I be scared? 0:04:16.480 --> 0:04:17.320 Whyren't you scared? 0:04:18.040 --> 0:04:20.600 I just stowed a headline that they're trying to make 0:04:20.680 --> 0:04:23.039 you scared, and you're still like, nah, take it, take it. 0:04:23.240 --> 0:04:24.960 I can take it, because like to me, I feel 0:04:24.960 --> 0:04:26.280 like avalanche, that's nothing. 0:04:26.440 --> 0:04:29.680 It's thirty bucks a month. I'm like, I don't really mind, 0:04:29.760 --> 0:04:31.520 to be honest, but like, should I be more worried 0:04:31.520 --> 0:04:32.799 about we should? 0:04:33.040 --> 0:04:34.760 I mean, at the end of the day, when they're 0:04:34.760 --> 0:04:37.400 talking about the student debt avalanche, it is proposed that 0:04:37.440 --> 0:04:39.880 on the first of June, the student debt here in 0:04:39.920 --> 0:04:42.200 Australia on the first of June is going to increase 0:04:42.240 --> 0:04:44.960 by five billion dollars this year because of that seven 0:04:45.000 --> 0:04:46.640 point one level of indexation. 0:04:47.200 --> 0:04:48.880 So that's a lot of money. 0:04:48.960 --> 0:04:51.080 And I mean for you, you might go whatever, it's 0:04:51.080 --> 0:04:53.559 thirty bucks, but to a lot of people, thirty bucks 0:04:53.640 --> 0:04:55.720 is a lot of money. And when you're paying back 0:04:55.760 --> 0:04:58.160 your HEX debt, especially if you're on a lower income 0:04:58.200 --> 0:05:00.160 and you're not maybe you know, in one of those 0:05:00.200 --> 0:05:02.839 high marginal tax brackets, but you're in the bracket where 0:05:02.839 --> 0:05:05.400 you're starting to pay back your debt, it just feels 0:05:05.440 --> 0:05:07.880 like it stacks on a little bit, like it genuinely 0:05:07.960 --> 0:05:10.200 feels like you're getting nowhere. And I mean you are, 0:05:10.320 --> 0:05:12.800 I promise, but it just feels like you're going backwards. 0:05:13.080 --> 0:05:14.880 And I think that there's just this I don't know, 0:05:14.960 --> 0:05:20.520 it's just a unspoken concept of hex versus help that 0:05:20.600 --> 0:05:23.160 it's there to help you, and it feels like you're 0:05:23.200 --> 0:05:25.200 kind of being kicked while you're down. Like you already 0:05:25.200 --> 0:05:26.960 have hex debt, You already see it on your pay 0:05:27.000 --> 0:05:29.800 slip coming out. You already know that that's money that's 0:05:29.839 --> 0:05:32.479 not going into your back pocket. We know how we 0:05:32.520 --> 0:05:35.160 feel about debt in general. Yes, we've spoken about the 0:05:35.160 --> 0:05:38.280 difference between good, bad, and okay debt here on the podcast. 0:05:38.560 --> 0:05:40.320 But I just feel like we're all just a little 0:05:40.320 --> 0:05:43.480 bit salty with indexation because for so long we've just 0:05:43.520 --> 0:05:46.520 talked about how hex slash help debt doesn't have an 0:05:46.560 --> 0:05:49.200 interest rate associated with it, right, So when you hear 0:05:49.200 --> 0:05:51.800 that beck, you smile and nod, go yeah great, but 0:05:51.880 --> 0:05:54.719 it is indexed, So it kind of feels like we're 0:05:54.760 --> 0:05:56.200 being kicked while we're down. 0:05:56.480 --> 0:05:57.400 Does that make sense? 0:05:57.680 --> 0:06:00.839 Kind of? But I guess, like what my estion is 0:06:00.839 --> 0:06:04.920 is what is indexation and what are the basics of it? 0:06:05.080 --> 0:06:05.839 Stunning question. 0:06:06.040 --> 0:06:09.119 So indexation basically just means an adjustment to a price 0:06:09.240 --> 0:06:12.039 or a wage or other value based on the changes 0:06:12.080 --> 0:06:15.360 in other prices or a composite indicator of prices. Right, 0:06:15.640 --> 0:06:17.640 So we spoke about it a couple of weeks ago 0:06:17.720 --> 0:06:22.440 on the podcast where indexation is basically how much something 0:06:22.520 --> 0:06:25.720 increases in value over time. And my favorite example of this, 0:06:25.800 --> 0:06:28.159 which I didn't give you a saved it for this podcast. 0:06:28.960 --> 0:06:33.400 The maccas cone. Oh Maca's ice cream cone, right, yes, 0:06:33.640 --> 0:06:35.560 So like, do you remember back in the day. I 0:06:35.600 --> 0:06:39.080 don't know if you ever had this luxury, but my 0:06:39.160 --> 0:06:42.719 mum would give me a fifty cent coin silver. 0:06:42.920 --> 0:06:43.520 It was silver. 0:06:43.880 --> 0:06:46.200 I don't know if anyone sin silver coins these days, 0:06:46.200 --> 0:06:49.000 because they can't buy you anything anymore. But I get 0:06:49.040 --> 0:06:51.520 a fifty cent cone from macis. 0:06:51.560 --> 0:06:53.719 I actually remember when they were thirty cent. 0:06:53.720 --> 0:06:55.720 I feel like they went twenty cents. I feel like 0:06:55.839 --> 0:06:58.080 twenty twenty. But last time I spoke about that publicly, 0:06:58.120 --> 0:07:00.360 everyone was like, they are fifty cents. Was going to 0:07:00.480 --> 0:07:03.080 call it fifty cents, right, So I do remember, probably 0:07:03.160 --> 0:07:05.600 late primary school I was paying fifty cents for a 0:07:05.640 --> 0:07:08.800 Maca's cone. After school, we go to swimming lessons and 0:07:08.800 --> 0:07:11.360 then we get a Maca's cone. Is like our treat, 0:07:11.400 --> 0:07:14.040 little treaty treat for you know, going to swimming lessons, 0:07:14.080 --> 0:07:16.280 as though it's not already a privilege to go to 0:07:16.360 --> 0:07:20.000 swimming lessons, like Victoria Devine anyway, you're right. I feel 0:07:20.000 --> 0:07:21.600 like it used to be twenty cents at some point, 0:07:21.600 --> 0:07:23.600 but this is beyond the point. It is now what 0:07:23.680 --> 0:07:25.800 like a dollar fifty? A dollar fifty, I think it's 0:07:25.800 --> 0:07:26.640 like more than a dollar. 0:07:26.760 --> 0:07:27.760 Oh, blow me down. 0:07:27.800 --> 0:07:31.200 I feel like in different locations around Australia, somewhere you're 0:07:31.200 --> 0:07:33.280 gonna say, oh, they're a dollar, somewhere else they're like 0:07:33.280 --> 0:07:36.400 a dollar fifty. Right, Okay, so that has increased in 0:07:36.880 --> 0:07:39.840 price over time. But are you getting the same product, beck, 0:07:40.360 --> 0:07:44.320 I would say, identical product identity, It's just nowadays it 0:07:44.440 --> 0:07:45.600 costs more to produce. 0:07:45.640 --> 0:07:47.360 It's going to be more expensive. 0:07:47.680 --> 0:07:49.880 So the dollar that you used to have back in 0:07:49.960 --> 0:07:51.560 nineteen ninety eight, when I was seven years old and 0:07:51.600 --> 0:07:54.120 going to swimming lessons and paying twenty cents for a cone, 0:07:54.200 --> 0:07:57.040 I could have bought five of those ice cream cones 0:07:57.040 --> 0:07:59.960 for a dollar. But today, if I gave you a dollar, 0:08:00.080 --> 0:08:01.960 you could only buy one, and in some locations you 0:08:01.960 --> 0:08:04.200 wouldn't even be able to buy one. You need another 0:08:04.240 --> 0:08:07.040 fifty cents to get there. Right, So a dollar today 0:08:07.520 --> 0:08:10.080 is not worth what a dollar tomorrow is worth. And 0:08:10.120 --> 0:08:13.800 that's what that saying means. So indexation is that increase 0:08:13.840 --> 0:08:16.560 in price. So it's the difference of going from twenty 0:08:16.640 --> 0:08:19.880 cents to a dollar and you kind of don't get 0:08:19.920 --> 0:08:22.280 any more value out of that product. You're still getting 0:08:22.280 --> 0:08:24.760 the Maca's cone. There's actually no more value. It's not 0:08:24.800 --> 0:08:27.080 any better today than it was back then because it's 0:08:27.080 --> 0:08:29.880 probably the same recipe. So like nothing has changed about 0:08:29.920 --> 0:08:32.280 it except the price. And that's what inflation is. It 0:08:32.400 --> 0:08:35.720 just means that a dollar back then was actually quote 0:08:35.720 --> 0:08:38.320 worth more because you could buy more with that dollar 0:08:38.600 --> 0:08:39.560 than it is today. 0:08:39.880 --> 0:08:43.920 So at the end of every financial year, the government 0:08:44.080 --> 0:08:48.480 will tally up how much inflation goes inflation goes up, 0:08:48.520 --> 0:08:51.360 and then add that to your texted Yeah, okay, So 0:08:51.360 --> 0:08:54.800 it's kind of like across the board as well. I mean, milk, eggs, bread, 0:08:54.920 --> 0:08:58.120 everything goes up. But the reason it goes up is 0:08:58.120 --> 0:09:01.080 because things start to cost more. The world starts to 0:09:01.080 --> 0:09:03.520 cost more, beck you start to earn more, like the 0:09:03.559 --> 0:09:06.920 world does increase over time. And when we look at it, 0:09:06.960 --> 0:09:09.560 the RBA, which is the Reserve Bank of Australia, they're 0:09:09.600 --> 0:09:12.560 kind of in charge of making sure that's consistent for us. 0:09:12.880 --> 0:09:14.960 And the reason we want it to be consistent is 0:09:15.000 --> 0:09:19.160 so we can consistently afford to grow as an economy. 0:09:19.440 --> 0:09:22.360 Inflation on average increases about two or three percent each 0:09:22.360 --> 0:09:24.320 and every single year, which is good. 0:09:24.720 --> 0:09:25.360 That's nice. 0:09:25.400 --> 0:09:27.760 It's actually a sign of a growing economy like that 0:09:27.840 --> 0:09:30.000 means that we're healthy as a country, right, So that's 0:09:30.040 --> 0:09:32.559 good to see. This year it's seven percent, and it's 0:09:32.600 --> 0:09:35.720 because we've gone through so much turmoil in the last 0:09:35.760 --> 0:09:38.440 couple of years. That's kind of like now hitting us 0:09:38.480 --> 0:09:40.959 like a ton of bricks, and so we're feeling the 0:09:41.040 --> 0:09:45.040 wrath of what has happened previously, and the RBA historically 0:09:45.120 --> 0:09:47.400 has tried to like protect us from that. So the 0:09:47.440 --> 0:09:49.320 way that they're trying to protect us from that is 0:09:49.360 --> 0:09:50.840 by increasing the cash rate. 0:09:51.120 --> 0:09:52.280 So the cash rate is. 0:09:52.200 --> 0:09:55.880 How much they're lending the let's call it the government's money, 0:09:55.960 --> 0:09:57.880 how much they're lending the government's money out to the 0:09:57.880 --> 0:10:00.559 big banks. So by increasing the ca hash rate, it 0:10:00.640 --> 0:10:03.120 costs the banks more to borrow the money from the 0:10:03.320 --> 0:10:05.319 RBA to give people mortgages and. 0:10:05.280 --> 0:10:08.280 Business loans and personal loans and home loans. And when 0:10:08.559 --> 0:10:11.400 home loans and business loans and personal loans increase in 0:10:11.440 --> 0:10:14.520 the amount of interest you're paying, that means you're less 0:10:14.559 --> 0:10:15.400 likely to take it out. 0:10:15.520 --> 0:10:17.520 Right, So if I said, Beck, you can buy a 0:10:17.520 --> 0:10:19.800 house today, it's going to be like one point five 0:10:19.840 --> 0:10:22.360 percent finance Like, you're going to get an interest rate 0:10:22.400 --> 0:10:25.400 that's really low. You go some money in, that's a 0:10:25.400 --> 0:10:28.480 good deal. I can afford that. That's only one point 0:10:28.520 --> 0:10:32.760 five percent. But now today it's much higher than that, 0:10:32.920 --> 0:10:35.000 and a lot of interest rates are at five percent. 0:10:35.040 --> 0:10:37.080 You start to go, oh, I don't know if I 0:10:37.080 --> 0:10:39.120 could afford those repayments. I don't know if that's going 0:10:39.160 --> 0:10:41.520 to work for me. So you as the consumer, the 0:10:41.520 --> 0:10:43.680 person that gets the mortgage or gets the personal loan 0:10:43.720 --> 0:10:46.040 or gets the business loan, you're less likely to take 0:10:46.080 --> 0:10:48.400 it out. And if you're less likely to take it out, 0:10:48.440 --> 0:10:50.760 what that means is the economy starts to slow down 0:10:50.840 --> 0:10:54.400 because there's less people like you making big purchases and 0:10:54.480 --> 0:10:57.559 throwing money around, so that the economy starts to go 0:10:57.640 --> 0:10:59.920 down a little bit. And that's what they're trying to do, 0:11:00.200 --> 0:11:02.679 so that we can curb that growth or the inflation 0:11:03.000 --> 0:11:05.600 over time. So if you're doing less in the economy, 0:11:05.640 --> 0:11:07.320 like you're not buying as much, things are a bit 0:11:07.360 --> 0:11:09.520 more expensive. You're kind of like holding your purse a 0:11:09.559 --> 0:11:11.480 little bit closer to your chest, going like, I don't 0:11:11.480 --> 0:11:13.160 know if I want to, you know, pay for that 0:11:13.240 --> 0:11:16.440 this month. It means that there's less business going on 0:11:16.480 --> 0:11:18.760 in the community and less business going on in the country, 0:11:18.800 --> 0:11:22.640 which means ultimately the economy isn't doing as well, and 0:11:22.640 --> 0:11:23.800 that's what they're trying to create. 0:11:23.840 --> 0:11:25.960 Does that make sense, Yeah, that does make sense. 0:11:26.000 --> 0:11:27.840 So like things are just kind of like slowing down, 0:11:27.840 --> 0:11:29.800 and they're doing it on purpose because they want people 0:11:29.880 --> 0:11:31.760 like you to be boring less money. 0:11:31.920 --> 0:11:35.880 Yeah, okay, So I guess for me, and I've said 0:11:35.880 --> 0:11:39.200 this before, I do have a help debt. I've ever 0:11:39.520 --> 0:11:42.120 finished a course, so I've just that's. 0:11:41.760 --> 0:11:44.280 Literally the worst, Like I mean, not the worst that 0:11:44.320 --> 0:11:45.920 you've done. I'm sure you've got a lot out of it, 0:11:45.960 --> 0:11:48.000 but the amount of people in our community I've spoken 0:11:48.000 --> 0:11:49.520 to you, like I have a help debt, I don't 0:11:49.600 --> 0:11:51.720 use it. Yeah, Like I went to union and I 0:11:51.760 --> 0:11:54.160 did this and now don't even work in the area. 0:11:54.520 --> 0:11:57.120 Or my friend did this course. I thought I'd do 0:11:57.280 --> 0:11:59.160 that course and then it was a terrible course and 0:11:59.200 --> 0:12:01.160 I didn't enjoy it, or now I have thirty thousand 0:12:01.200 --> 0:12:04.040 dollars absolutely. I feel like I've started like five or 0:12:04.080 --> 0:12:05.960 six subjects and never finished any of them. 0:12:06.000 --> 0:12:08.319 So I just have all this money and no qualifications. 0:12:08.320 --> 0:12:11.319 But that's okay because we're still here to tell the story. 0:12:11.440 --> 0:12:13.480 We're happy about it. We're making content because that. 0:12:13.520 --> 0:12:14.040 Was worth it. 0:12:14.040 --> 0:12:14.960 It was worth it. 0:12:14.960 --> 0:12:17.000 It was worth it, and you know, I learned that 0:12:17.080 --> 0:12:19.640 if you learn something, it's not a waste, no matter 0:12:20.000 --> 0:12:21.800 how you did it all week whatever. You know what 0:12:21.800 --> 0:12:22.440 I'm trying to say. 0:12:22.480 --> 0:12:24.440 I think it was my mum. I'm not sure who 0:12:24.480 --> 0:12:25.920 it was. I want to give her credit for it, 0:12:25.960 --> 0:12:28.960 though she always says it was either a blessing or 0:12:28.960 --> 0:12:31.360 a lesson. I love that, and I feel like that's 0:12:31.400 --> 0:12:35.040 good because it always reframes something as if it was 0:12:35.120 --> 0:12:35.880 kind of terrible. 0:12:36.120 --> 0:12:37.040 Let's just call it a. 0:12:37.000 --> 0:12:40.080 Lesson, exactly, exactly, just call it a lesson. It makes 0:12:40.080 --> 0:12:42.079 me feel so much better about it. 0:12:42.120 --> 0:12:46.440 Perfect. So I mentioned this is the start of the episode. 0:12:46.559 --> 0:12:50.120 I kind of am not stressing about the I suppose 0:12:50.120 --> 0:12:52.400 like the indexation on hextet or helped it. 0:12:52.520 --> 0:12:53.880 I want to stop you there because I want to 0:12:53.920 --> 0:12:57.160 hear why, like, why do you not feel that pressure 0:12:57.280 --> 0:13:00.480 when obviously a lot of people in the media jumping 0:13:00.520 --> 0:13:02.600 up and down the exacting Oh my gosh, what's going on? Why? 0:13:02.880 --> 0:13:07.160 So this is the thing. I don't know what that 0:13:07.200 --> 0:13:10.040 looks like. So for me, helped, it remains the same. 0:13:10.280 --> 0:13:12.760 And I'm so ignorant because I have no idea. But 0:13:12.800 --> 0:13:15.600 for me, I think that, you know, I'm just going 0:13:15.640 --> 0:13:18.480 about my business. I'm paying like two bucks a week 0:13:18.520 --> 0:13:22.679 in hextet. When my employee takes out of my pay slip, 0:13:23.000 --> 0:13:25.320 and then this is going to happen. My hex debt 0:13:25.360 --> 0:13:28.080 is going to go up and my pay slip will 0:13:28.080 --> 0:13:31.720 be exactly the same. So I don't know where the 0:13:31.760 --> 0:13:34.200 fear is. But I could be completely wrong. I could 0:13:34.240 --> 0:13:38.160 it could be changing my take home income. 0:13:38.240 --> 0:13:41.040 I don't know, all right, Beck, So we just took 0:13:41.080 --> 0:13:44.480 a really quick minute away from the podcast so I 0:13:44.520 --> 0:13:48.400 could get out a few calculators for you and organize 0:13:48.520 --> 0:13:49.280 what this looks like. 0:13:49.440 --> 0:13:50.280 And now I'm scared. 0:13:50.440 --> 0:13:51.440 No, don't be scared. 0:13:51.480 --> 0:13:53.880 But I do think it's really important to understand where 0:13:53.920 --> 0:13:56.560 you stand and how that works for you. So my 0:13:56.600 --> 0:13:58.840 favorite website, and I have, you know, put it in 0:13:58.880 --> 0:14:02.320 the show notes before. It's paycalculator dot com dot au. 0:14:02.640 --> 0:14:05.160 And the reason I like this is because it's up 0:14:05.160 --> 0:14:08.000 to date with what's going on on the ATO website. 0:14:08.720 --> 0:14:11.680 But in all honesty, it's better than the ATO website. 0:14:11.679 --> 0:14:14.319 It's a privately owned website. I mean, this guy whoever 0:14:14.360 --> 0:14:17.520 owns paycalculator dot com dot u is a wizard, because 0:14:18.040 --> 0:14:21.240 everybody in the industry or in my industry uses this 0:14:21.280 --> 0:14:23.360 website as kind of like a really good base level 0:14:23.360 --> 0:14:25.520 calculator to just like go, oh, I'll whip it out, 0:14:25.600 --> 0:14:27.840 see what's going on. You know, pop in your income, 0:14:28.200 --> 0:14:31.520 see what that looks like. Anyway, everybody uses it, but 0:14:31.560 --> 0:14:34.400 it's covered in ads, and you just know he's breaking 0:14:34.440 --> 0:14:37.120 it in because every single time someone in our industry 0:14:37.200 --> 0:14:39.720 goes there or you go there, he's making money. So 0:14:39.760 --> 0:14:41.840 I just feel like that was a genius thing from him. 0:14:42.080 --> 0:14:44.600 That is genius exactly. So if you go to this website, 0:14:44.640 --> 0:14:48.760 you can basically put in your salary and then click options, 0:14:48.800 --> 0:14:52.600 So you could click your salary includes superannuation or it doesn't, 0:14:52.840 --> 0:14:55.560 or you could click student loan, which is what we're 0:14:55.560 --> 0:14:58.160 talking about here. Yes, so many people, just like you, 0:14:58.200 --> 0:15:00.880 they don't know what they're paying. All they see is 0:15:00.920 --> 0:15:03.360 these headlines and get really stressed. Out about like, oh 0:15:03.400 --> 0:15:05.920 my gosh, I'm going to be paying seven percent indexation, 0:15:06.160 --> 0:15:08.240 Like I already can't afford a house. I already, you know, 0:15:08.360 --> 0:15:11.480 struggle to buy a good coffee every friggin day, Like 0:15:11.560 --> 0:15:16.000 what's going on. So, when it comes to calculating your repayments, 0:15:16.240 --> 0:15:19.240 it's actually based on income thresholds, and those are different 0:15:19.680 --> 0:15:23.080 from your marginal tax bracket. So your marginal tax bracket 0:15:23.120 --> 0:15:25.600 is kind of the most normal one, which sits in 0:15:25.640 --> 0:15:28.320 that thirty two point five cents per dollar, which most 0:15:28.320 --> 0:15:30.840 people are in in our community, because it sits between 0:15:30.880 --> 0:15:34.000 forty five than one twenty, Like, that's a really wide bracket. 0:15:34.360 --> 0:15:37.360 People often think that that bracket then applies to your HEX, 0:15:37.440 --> 0:15:38.120 but it doesn't. 0:15:38.200 --> 0:15:39.160 It's different from that. 0:15:39.360 --> 0:15:41.720 So if you earn under forty eight thousand, three hundred 0:15:41.720 --> 0:15:43.720 and sixty one dollars, you don't pay any of your 0:15:43.760 --> 0:15:47.160 HEX back. After that point, it starts to increase, and 0:15:47.200 --> 0:15:49.280 the first amount that you pay back is one percent, 0:15:49.320 --> 0:15:52.040 then two percent, then two point five percent, and that 0:15:52.240 --> 0:15:55.200 is the repayment of your income. It's a percentage of 0:15:55.240 --> 0:15:58.480 your income, not a percentage of the debt that you owe. Right, 0:15:58.880 --> 0:16:02.160 So if you earn forty eight thousand to fifty five thousand, 0:16:02.240 --> 0:16:04.760 eight hundred and thirty six dollars, you pay back one percent. 0:16:05.080 --> 0:16:07.200 If you're between fifty five and I'm just going to 0:16:07.280 --> 0:16:09.440 round these down, but fifty five and fifty nine it's 0:16:09.480 --> 0:16:12.400 two percent, fifty nine and sixty two it's two point five. 0:16:12.560 --> 0:16:14.880 Sixty two to sixty six it's three, and so on 0:16:14.880 --> 0:16:17.400 and so forth. Let's pretend for a hot second that 0:16:17.440 --> 0:16:20.320 you earn an income between seventy four hundred and ninety 0:16:20.320 --> 0:16:23.640 three dollars and seventy four thousand, seven hundred and twenty 0:16:23.680 --> 0:16:27.280 two dollars. That means that your repayment rate is four percent. 0:16:27.520 --> 0:16:30.280 So if we calculated that out, and I've just popped 0:16:30.280 --> 0:16:31.920 in a random number, and I can do this for 0:16:31.960 --> 0:16:34.800 you offline, so it's your specific income back. But I've 0:16:34.840 --> 0:16:37.720 pretended that you're on seventy three thousand dollars, right, which 0:16:37.720 --> 0:16:40.280 I feel like is a pretty normal income for our community. 0:16:40.640 --> 0:16:43.560 That means that every single week from your paycheck, you 0:16:43.600 --> 0:16:46.800 would have a student loan amount of fifty six dollars 0:16:46.880 --> 0:16:47.560 coming out. 0:16:47.760 --> 0:16:48.800 That's fifty six. 0:16:48.640 --> 0:16:51.360 Dollars that you're paying towards your help or hex debt. 0:16:51.680 --> 0:16:54.680 That's not going into your back pocket. The second that 0:16:54.760 --> 0:16:57.800 your hex or help debt doesn't exist, that fifty six 0:16:57.880 --> 0:17:00.800 dollars goes back into your personal account. You start being 0:17:00.840 --> 0:17:04.000 paid it right right, So that to me is a 0:17:04.040 --> 0:17:06.240 fair whack of money, because like fifty six bucks that 0:17:06.520 --> 0:17:08.639 you know, it's half my grocery bill, Like, that's a 0:17:08.640 --> 0:17:09.240 lot of money. 0:17:09.640 --> 0:17:10.360 I think it's a lot. 0:17:10.480 --> 0:17:13.280 Fortunately, that's one hundred and twelve dollars. Every single month, 0:17:13.320 --> 0:17:15.960 that's two hundred and forty three dollars, and then every 0:17:16.000 --> 0:17:18.720 single year, beck that adds up to twenty nine hundred 0:17:18.760 --> 0:17:19.639 and twenty dollars. 0:17:19.920 --> 0:17:20.960 Like, that's a lot of money. 0:17:21.119 --> 0:17:24.080 I see, nine hundred and twenty bucks. I could go 0:17:24.080 --> 0:17:27.600 on a holiday to Bali. I reckon, in this economy, 0:17:27.640 --> 0:17:29.880 the flight's probably going to cost two nine hundred dollars. 0:17:29.880 --> 0:17:32.320 But we don't want to stretch that out right, I reckon, 0:17:32.359 --> 0:17:34.760 we jet Star. We could get there. But moving on 0:17:34.840 --> 0:17:37.239 from that, I think it's important to understand what that 0:17:37.320 --> 0:17:40.919 means because if you actually increased your salary back and 0:17:40.960 --> 0:17:43.440 you were between a different tax bracket, like let's say 0:17:43.480 --> 0:17:46.919