1 00:00:00,520 --> 00:00:03,720 Speaker 1: Already and this this is the Daily This is the 2 00:00:03,800 --> 00:00:05,120 Speaker 1: Daily OS. 3 00:00:05,120 --> 00:00:06,840 Speaker 2: Oh, now it makes sense. 4 00:00:14,760 --> 00:00:17,600 Speaker 1: Good morning and welcome to the Daily OS. It's Friday, 5 00:00:17,640 --> 00:00:21,280 Speaker 1: the first of August. I'm Harry Seculch, I'm Billiefit Simon's. 6 00:00:21,640 --> 00:00:24,880 Speaker 1: Your HEX balance is about to go down by twenty percent. 7 00:00:25,480 --> 00:00:28,520 Speaker 1: In Parliament yesterday the government passed its bill to reduce 8 00:00:28,640 --> 00:00:32,559 Speaker 1: all student debts. So when will this actually apply to 9 00:00:32,600 --> 00:00:35,680 Speaker 1: your HEX account? And what if you already paid off 10 00:00:35,760 --> 00:00:38,239 Speaker 1: your HEX debt. We asked what you wanted to know 11 00:00:38,280 --> 00:00:41,120 Speaker 1: about this new development, and today we're here to answer 12 00:00:41,240 --> 00:00:42,600 Speaker 1: all your questions. 13 00:00:42,960 --> 00:00:45,800 Speaker 2: We'll get to those questions in a moment, but first, 14 00:00:45,840 --> 00:00:54,400 Speaker 2: here is a quick message from today's sponsor. Okay, Harry, 15 00:00:54,440 --> 00:00:57,120 Speaker 2: So we are talking about the Hex's discount. Now, this 16 00:00:57,240 --> 00:01:00,000 Speaker 2: is one of the key promises from the Labor government 17 00:01:00,360 --> 00:01:04,160 Speaker 2: at the last election and it has now gone through Parliament. 18 00:01:04,560 --> 00:01:06,800 Speaker 2: For anyone who miss this, do you want to just 19 00:01:06,840 --> 00:01:10,240 Speaker 2: explain what exactly it is, because my understanding is this 20 00:01:10,400 --> 00:01:13,920 Speaker 2: is just a one off discount. It's not a long 21 00:01:14,000 --> 00:01:17,280 Speaker 2: term overall reduction on the price of Uni degrees. 22 00:01:17,440 --> 00:01:20,399 Speaker 1: Yeah, that's right, Billy. So it's the reduction in the 23 00:01:20,520 --> 00:01:24,760 Speaker 1: value of a debt. It doesn't necessarily translate to anything 24 00:01:24,760 --> 00:01:27,240 Speaker 1: beyond that. So the price of a UNI degree, the 25 00:01:27,280 --> 00:01:31,319 Speaker 1: price of a tape course or private college, that's not 26 00:01:31,680 --> 00:01:35,120 Speaker 1: changing necessarily. But what this does apply to is the 27 00:01:35,240 --> 00:01:38,440 Speaker 1: value of a debt balance at a particular time. And 28 00:01:38,480 --> 00:01:41,240 Speaker 1: as far as we know, there's no plans to discount 29 00:01:41,280 --> 00:01:43,920 Speaker 1: future debts. If you don't already have one, or if 30 00:01:43,920 --> 00:01:46,720 Speaker 1: you paid off a debt last year, that this doesn't 31 00:01:46,760 --> 00:01:49,760 Speaker 1: necessarily apply to you. So I suppose it's important to 32 00:01:49,880 --> 00:01:52,480 Speaker 1: put those guardrails in place. That this is a one 33 00:01:52,520 --> 00:01:55,200 Speaker 1: off twenty percent discount on a debt balance on the 34 00:01:55,240 --> 00:01:56,880 Speaker 1: first of June twenty twenty five. 35 00:01:57,200 --> 00:02:01,000 Speaker 2: So just to be clear there, this apply to the 36 00:02:01,160 --> 00:02:04,520 Speaker 2: dollar figure that was attached to your hex debt as 37 00:02:04,560 --> 00:02:06,360 Speaker 2: of the first of June this year. 38 00:02:06,560 --> 00:02:09,799 Speaker 1: That's right just before the indexation kicked in. Got it. 39 00:02:09,840 --> 00:02:12,840 Speaker 1: So that's when the value of your debt goes up 40 00:02:12,919 --> 00:02:15,560 Speaker 1: to slightly and it's based on one of two measurements. 41 00:02:15,600 --> 00:02:19,079 Speaker 1: It's either the wage price index or the consumer price index. 42 00:02:19,320 --> 00:02:22,400 Speaker 1: Without going too deep into what that means, it's just 43 00:02:22,560 --> 00:02:27,400 Speaker 1: basically increasing in line with the value of money over time. Yes, 44 00:02:27,800 --> 00:02:28,640 Speaker 1: got it? Okay? 45 00:02:28,680 --> 00:02:31,000 Speaker 2: So let's go to the questions that we got from 46 00:02:31,080 --> 00:02:34,000 Speaker 2: the audience yesterday. The first one we got was does 47 00:02:34,040 --> 00:02:37,679 Speaker 2: it apply to private unis and all degrees? 48 00:02:38,200 --> 00:02:42,200 Speaker 1: Yeah, effectively, it does, because the federal government oversees and 49 00:02:42,240 --> 00:02:46,320 Speaker 1: administers all things relating to student debts at a higher 50 00:02:46,480 --> 00:02:49,079 Speaker 1: education level. So when you want to start studying at 51 00:02:49,160 --> 00:02:53,040 Speaker 1: an accredited institution, so at universities or private colleges, you 52 00:02:53,080 --> 00:02:56,600 Speaker 1: can get what's known as a higher education loan program 53 00:02:56,800 --> 00:03:00,040 Speaker 1: or help. And it doesn't really matter which institution and 54 00:03:00,160 --> 00:03:03,280 Speaker 1: you get this hex debt or help debt from. It'll 55 00:03:03,440 --> 00:03:06,560 Speaker 1: all be processed in the exact same way when it 56 00:03:06,560 --> 00:03:09,640 Speaker 1: comes to this discount. So, like I said, this is 57 00:03:09,960 --> 00:03:13,240 Speaker 1: a discount on the value of a debt. That debt 58 00:03:13,840 --> 00:03:16,040 Speaker 1: is pretty much the same across the board in the 59 00:03:16,120 --> 00:03:18,920 Speaker 1: sense that it all comes from the same place, which 60 00:03:18,919 --> 00:03:21,959 Speaker 1: is the federal government. So it will apply to you 61 00:03:22,120 --> 00:03:23,880 Speaker 1: if you have a help debt sitting there. 62 00:03:24,320 --> 00:03:26,680 Speaker 2: I'm one of those people who always gets confused between 63 00:03:26,800 --> 00:03:29,840 Speaker 2: help debt and hex debt, But for the purposes of 64 00:03:29,840 --> 00:03:32,919 Speaker 2: this conversation, it really doesn't matter. It literally just applies 65 00:03:32,919 --> 00:03:34,040 Speaker 2: to all student debts. 66 00:03:34,080 --> 00:03:37,640 Speaker 1: Student debt. I think that's like the more I guess 67 00:03:37,880 --> 00:03:41,360 Speaker 1: inclusive term, but I mean I always just tend to 68 00:03:41,400 --> 00:03:43,240 Speaker 1: say hext I think everyone. 69 00:03:43,680 --> 00:03:47,640 Speaker 2: Yeah, okay, next question that we got, what happens if 70 00:03:47,720 --> 00:03:50,840 Speaker 2: I have already lodged my tax return and paid off 71 00:03:50,880 --> 00:03:54,720 Speaker 2: my hex will I be refunded? And just another one 72 00:03:54,760 --> 00:03:57,080 Speaker 2: that kind of relates to that, someone asked if I 73 00:03:57,120 --> 00:03:59,480 Speaker 2: pay mine off in full, now will I get a 74 00:03:59,520 --> 00:04:01,960 Speaker 2: twenty percent refund when it comes in? 75 00:04:02,560 --> 00:04:05,360 Speaker 1: So these two questions kind of touch on the same thing, 76 00:04:05,400 --> 00:04:08,880 Speaker 1: which is how far back does the discount apply? And 77 00:04:09,280 --> 00:04:10,960 Speaker 1: I will go back to that date of the first 78 00:04:11,000 --> 00:04:13,920 Speaker 1: of June, because that's the all important date for this 79 00:04:14,080 --> 00:04:17,400 Speaker 1: hex stet discount. If you want to pay off your 80 00:04:17,400 --> 00:04:20,400 Speaker 1: full debt, make some further voluntary repayments in the next 81 00:04:20,440 --> 00:04:23,360 Speaker 1: few months, but you haven't seen that hex discount come 82 00:04:23,360 --> 00:04:27,080 Speaker 1: into place, that doesn't matter. And this is why it's 83 00:04:27,120 --> 00:04:29,839 Speaker 1: a little bit technical, So I might just walk you 84 00:04:30,120 --> 00:04:33,320 Speaker 1: through some of these stages. The way it will work 85 00:04:33,520 --> 00:04:36,440 Speaker 1: is if you had a hextet on the first of June, 86 00:04:36,440 --> 00:04:38,479 Speaker 1: but you've since paid it off you plan to pay 87 00:04:38,480 --> 00:04:41,320 Speaker 1: it off before the discount, you'll get a credit to 88 00:04:41,600 --> 00:04:44,400 Speaker 1: what's known as your help account. And then if you've 89 00:04:44,440 --> 00:04:47,760 Speaker 1: got no further debts to the tax office, then that 90 00:04:47,920 --> 00:04:51,760 Speaker 1: will be processed to you as a refund. Right. So 91 00:04:51,800 --> 00:04:55,440 Speaker 1: the government's official advice is, don't wait if you want 92 00:04:55,440 --> 00:04:57,880 Speaker 1: to pay off your full debt, if you've made some 93 00:04:57,960 --> 00:05:01,600 Speaker 1: voluntary repayments. If you you had a debt at the 94 00:05:01,640 --> 00:05:05,440 Speaker 1: first of June, then you will be compensated in one 95 00:05:05,440 --> 00:05:09,960 Speaker 1: way or another, and the actual discount amount only applies 96 00:05:10,000 --> 00:05:13,120 Speaker 1: to that particular date. You will see it flow through 97 00:05:13,120 --> 00:05:15,000 Speaker 1: to you in some form. Got it. 98 00:05:15,360 --> 00:05:18,520 Speaker 2: But let's say that if you paid off your hex 99 00:05:18,560 --> 00:05:20,800 Speaker 2: deet in full, let's say at the start of this year, 100 00:05:21,279 --> 00:05:25,080 Speaker 2: then unfortunately this doesn't apply to you because you didn't 101 00:05:25,120 --> 00:05:27,240 Speaker 2: have a debt as of the first of June this year. 102 00:05:27,360 --> 00:05:31,040 Speaker 1: That's right, So it doesn't backdate beyond the first of June, 103 00:05:31,200 --> 00:05:34,320 Speaker 1: got it. And it also doesn't apply to any future debts. 104 00:05:34,560 --> 00:05:36,840 Speaker 1: Like I said, there's no plans, at least that we 105 00:05:36,920 --> 00:05:40,760 Speaker 1: know about, for the government to make unied degrees cheaper 106 00:05:41,279 --> 00:05:44,800 Speaker 1: or to discount the value of debts over time. It's 107 00:05:45,000 --> 00:05:46,800 Speaker 1: just this one particular date. 108 00:05:46,960 --> 00:05:50,040 Speaker 2: Yeap, All right, Next question, which I think is the 109 00:05:50,120 --> 00:05:52,719 Speaker 2: number one question that we got from our audio. 110 00:05:52,800 --> 00:05:54,320 Speaker 1: Can I take a bit of a guess, Yeah, what 111 00:05:54,360 --> 00:05:58,279 Speaker 1: it is? When will the hex sebt discount actually take place? 112 00:05:58,360 --> 00:06:00,919 Speaker 2: I think that is the question we got maybe thousands 113 00:06:00,960 --> 00:06:04,720 Speaker 2: of times yesterday understandably, and so that is when will 114 00:06:04,720 --> 00:06:07,560 Speaker 2: we actually see this in our hex debt accounts? 115 00:06:07,880 --> 00:06:10,520 Speaker 1: Yeah, so I needed a bit of help in answering 116 00:06:10,520 --> 00:06:14,320 Speaker 1: this as well, because based on some of the messages 117 00:06:14,320 --> 00:06:16,160 Speaker 1: that the government was putting out there, they were saying 118 00:06:16,160 --> 00:06:18,280 Speaker 1: that it will take a little bit of time once 119 00:06:18,360 --> 00:06:21,520 Speaker 1: the legislation becomes law, which it has now, well it 120 00:06:21,600 --> 00:06:23,920 Speaker 1: needs role as sent from the Governor General, but that's 121 00:06:24,000 --> 00:06:26,400 Speaker 1: just a very form procee drill thing, tick of the 122 00:06:26,400 --> 00:06:30,880 Speaker 1: box thing that will happen. But basically what happens now 123 00:06:31,160 --> 00:06:34,400 Speaker 1: is that the Australian Tax Office also known as the ATO, 124 00:06:34,960 --> 00:06:37,440 Speaker 1: they will be the ones processing this hex debt and 125 00:06:37,800 --> 00:06:42,400 Speaker 1: that will apply automatically to hundreds thousands of different accounts. 126 00:06:42,600 --> 00:06:44,680 Speaker 1: The government has said that it can take a bit 127 00:06:44,720 --> 00:06:48,360 Speaker 1: of time based on people's individual circumstances. It's a little 128 00:06:48,360 --> 00:06:51,560 Speaker 1: bit case by case. The twenty percent might seem like 129 00:06:51,920 --> 00:06:55,599 Speaker 1: a really straightforward formula, but it actually does take a 130 00:06:55,600 --> 00:06:58,800 Speaker 1: little bit of working out because of the smaller factors 131 00:06:58,960 --> 00:07:02,800 Speaker 1: like the indexation value that was applied, So it can 132 00:07:02,880 --> 00:07:04,600 Speaker 1: just take a little bit of time. That I asked 133 00:07:04,640 --> 00:07:07,320 Speaker 1: the Prime Minister st when people can actually expect to 134 00:07:07,320 --> 00:07:10,840 Speaker 1: see the value of their student debts reduced. And here's 135 00:07:10,960 --> 00:07:12,680 Speaker 1: a bit of what he had to say. 136 00:07:12,920 --> 00:07:15,160 Speaker 2: Most people should see the benefit by the end of 137 00:07:15,160 --> 00:07:18,800 Speaker 2: the year, and it will be backdated importantly to the 138 00:07:18,840 --> 00:07:19,800 Speaker 2: first of June. 139 00:07:20,000 --> 00:07:23,720 Speaker 1: So I can't say with absolute confidence that overnight on 140 00:07:23,720 --> 00:07:26,119 Speaker 1: this particular date you are going to see your HEX 141 00:07:26,160 --> 00:07:29,400 Speaker 1: debt reduced. But in the Prime Minister's words, it should 142 00:07:29,440 --> 00:07:31,560 Speaker 1: be done by twenty twenty six. 143 00:07:31,560 --> 00:07:34,320 Speaker 2: Got it, So it will happen by the end of 144 00:07:34,360 --> 00:07:37,920 Speaker 2: this year. Now, the other thing that has changed as 145 00:07:37,960 --> 00:07:39,920 Speaker 2: part of this bill, which I think has got a 146 00:07:39,960 --> 00:07:43,600 Speaker 2: little bit less airtime but is still important, is the 147 00:07:43,680 --> 00:07:46,880 Speaker 2: change to the minimum repayment threshold. Now, this is the 148 00:07:46,880 --> 00:07:49,320 Speaker 2: minimum salary you need to have in order to start 149 00:07:49,400 --> 00:07:53,320 Speaker 2: paying off your HEX debt. What is the change there. 150 00:07:54,240 --> 00:07:57,640 Speaker 1: The way that HEX was conceived as an idea when 151 00:07:57,680 --> 00:08:00,760 Speaker 1: it first came into being was you you start paying 152 00:08:00,760 --> 00:08:04,000 Speaker 1: off this debt once you can afford to. So in 153 00:08:04,040 --> 00:08:06,480 Speaker 1: that way, it doesn't really work like other debts, where 154 00:08:06,720 --> 00:08:09,440 Speaker 1: say you take out a loan from the bank, you 155 00:08:09,520 --> 00:08:13,320 Speaker 1: have to start paying it off despite your circumstances that 156 00:08:13,400 --> 00:08:15,760 Speaker 1: you are indebted to the bank, so you have to 157 00:08:15,840 --> 00:08:19,040 Speaker 1: start giving them some money. The way that hex stets 158 00:08:19,080 --> 00:08:21,400 Speaker 1: work is that you need to earn a minimum amount 159 00:08:21,440 --> 00:08:24,600 Speaker 1: before you start paying it off, and the more you earn, 160 00:08:24,720 --> 00:08:28,120 Speaker 1: the more you pay off. Right now, the minimum repayment 161 00:08:28,160 --> 00:08:32,200 Speaker 1: threshold is fifty six, one hundred and fifty six dollars, 162 00:08:32,440 --> 00:08:35,680 Speaker 1: and that minimum threshold is now going to increase to 163 00:08:35,920 --> 00:08:39,520 Speaker 1: sixty seven thousand dollars. And that's all under the same 164 00:08:39,520 --> 00:08:42,839 Speaker 1: piece of legislation that we saw the hex debt discount 165 00:08:42,880 --> 00:08:45,800 Speaker 1: fall under as well, which is just about to become law. 166 00:08:46,080 --> 00:08:48,920 Speaker 1: And what this means is that over the next year 167 00:08:49,040 --> 00:08:51,560 Speaker 1: or so, if you are earning, say between seventy and 168 00:08:51,720 --> 00:08:55,679 Speaker 1: eighty thousand dollars, you'll actually find that over time you're 169 00:08:55,840 --> 00:08:58,839 Speaker 1: paying off a little bit less than you were last 170 00:08:58,880 --> 00:09:04,480 Speaker 1: year because the minimum payment threshold has increased. And basically 171 00:09:04,520 --> 00:09:06,839 Speaker 1: there's a pay as you go system, so there's a 172 00:09:06,880 --> 00:09:10,800 Speaker 1: bit that's withheld from your pay each week, and then 173 00:09:10,920 --> 00:09:12,959 Speaker 1: that all sort of comes together at the end at 174 00:09:12,960 --> 00:09:17,080 Speaker 1: tax time. So July next year, and since the payment 175 00:09:17,240 --> 00:09:20,760 Speaker 1: threshold is higher, you don't end up paying as much. 176 00:09:20,880 --> 00:09:21,760 Speaker 1: Does that make sense? 177 00:09:21,920 --> 00:09:24,440 Speaker 2: That makes sense. So what you're saying is that with 178 00:09:24,600 --> 00:09:28,520 Speaker 2: the minimum repayment threshold changing, so too does all of 179 00:09:28,559 --> 00:09:30,240 Speaker 2: the thresholds change. 180 00:09:30,320 --> 00:09:33,640 Speaker 1: They're all scaling up, if you're so, it's going from 181 00:09:34,240 --> 00:09:37,160 Speaker 1: people at fifty six thousand dollars and above paying it 182 00:09:37,200 --> 00:09:41,520 Speaker 1: off to sixty seven thousand and above paying off. And 183 00:09:42,120 --> 00:09:43,760 Speaker 1: like I said, the more you earn, so if you 184 00:09:43,760 --> 00:09:45,840 Speaker 1: get up to one hundred, one hundred and fifty thousand dollars, 185 00:09:46,120 --> 00:09:49,120 Speaker 1: you end up having more pay with held from your 186 00:09:49,200 --> 00:09:51,720 Speaker 1: pay slip. And then people who are on slightly lower 187 00:09:51,720 --> 00:09:54,760 Speaker 1: incomes but just meeting that threshold won't pay as much 188 00:09:54,880 --> 00:09:56,120 Speaker 1: over the next financial year. 189 00:09:56,360 --> 00:09:58,920 Speaker 2: Got it, Harry. I think that's all of the questions 190 00:09:59,000 --> 00:10:02,000 Speaker 2: that we've got. Thank you so much for taking us through. 191 00:10:01,800 --> 00:10:04,960 Speaker 1: That, No problem, Billy, there were some great questions. 192 00:10:04,520 --> 00:10:07,240 Speaker 2: And thank you so much for listening to this episode 193 00:10:07,360 --> 00:10:09,640 Speaker 2: of the Daily OS. We'll be back this afternoon with 194 00:10:09,720 --> 00:10:16,840 Speaker 2: your evening headlines, but until then, have a great Friday. 195 00:10:17,160 --> 00:10:19,440 Speaker 1: My name is Lily Maddon and I'm a proud Arunda 196 00:10:19,679 --> 00:10:24,479 Speaker 1: Bungelung Kalkutin woman from Gadighl country. The Daily oz acknowledges 197 00:10:24,559 --> 00:10:26,719 Speaker 1: that this podcast is recorded on the lands of the 198 00:10:26,720 --> 00:10:30,280 Speaker 1: Gadighl people and pays respect to all Aboriginal and Torres 199 00:10:30,320 --> 00:10:31,480 Speaker 1: Strait island and nations. 200 00:10:31,800 --> 00:10:34,720 Speaker 2: We pay our respects to the first peoples of these countries, 201 00:10:34,840 --> 00:10:36,040 Speaker 2: both past and present.