“Often politicians look at that and say,‘Oh well,we will help them with HECS’. That doesn’t help much at all,” Gonski said.
“The real problem for people who don’t have a lot of assets behind them is not the future payment of student debt,but rather the payment of the expenses of living,of IT expenses,of transport and even eating while they’re at university.
“Any plan that is designed to provide savings,which is focused on improving one’s education,is a good thing.”
UnderDominic Perrottet’s flagship election commitment,the government would pay parents an initial $400 for children aged 10 and under,and match their future contributions up to $400 every year until they turn 18. Parents could contribute as much as $1000 a year.
For families receiving Commonwealth Family Tax Benefit A,the government will automatically contribute $200 a year without requiring a matched contribution from parents.
The money can be accessed when the child turns 18 and only used to buy a home or for education,including tuition (and HECS debt),tools or supplies. The policy is estimated to cost $850 million over its first four years.