New data has revealed just how much Aussies are really paying for their university degrees.
Melbourne has the most taxpayers with a HECS debt in the country, but Sydneysiders living in Darlington and Chippendale are paying the highest average HECS balance, new data reveals.
The Higher Education Contribution Scheme (HECS) is an interest-free Australian government loan used to pay for university course fees.
Almost 2.4 million taxpayers have a HECS debt, with the average balance sitting at $28,500, according to new analysis of Australian Taxation Office data by KPMG Australia.
Around half of Australia’s HECS loans are held by people aged under 30, and with HECS being the most common long-term plan university students have to pay for their degree, the stress of having a HECS debt is something many young Australians know all too well.
According to the new analysis, Melbourne had the largest number of taxpayers with a HECS debt at 532,262 people, and the highest total balance - $16.4 billion - just beating Sydney, where 483,606 taxpayers owe $15.2 billion in total.
Across the entire nation, there is $67.6 billion in HECS loans.
Urban economist Terry Rawnsley believes the drastic increase in some Australian suburbs is no coincidence, but rather a reflection of opportunities.
“A large HECS balance is often a signal of advanced qualifications, and these qualifications are typically associated with higher-paying occupations in sectors such as law, medicine, and technology. This is really a story about the geography of opportunity,” he said.
“Residents in suburbs such as Darlington, Chippendale, Collingwood and Carlton North have the biggest HECS debts due to the easy access they provide to major employment hubs, and therefore some of the country’s highest-paying jobs.”
While Sydney and Melbourne are leading the way for HECS debts, with both cities comfortably exceeding the $30,000 threshold, there are several other Australian cities and regions where taxpayers find themselves on a similar benchmark.
Aussies with the highest HECS debt devealed.
In particular, the Gold Coast ($31,000), Western Sydney ($30,100) and Canberra ($29,300) were above the $28,500 national average.
“We’re seeing some of the strongest growth in HECS balances outside the largest capitals in what is further evidence that highly skilled workers are increasingly choosing to build their careers outside Australia’s major cities,” Mr Rawnsley said.
“Darwin recorded an annual growth of 6 per cent, followed by Cairns at 5.3 per cent and Adelaide and Hobart at 5 per cent.
“The Gold Coast stands out with one of the largest average HECS balances outside the major capitals, as the city’s economy becomes more diversified and attracts more highly skilled workers.”
While rising HECS debt has sparked some backlash from university students, and the concept of supposedly everlasting debt remains a lingering fear for young Aussies, experts claim that there is nothing to be worried about.
Across the nation, there is $67.6 billion in HECS loans.
“HECS continues to be one of the most accessible and supportive student loan systems globally,” Mr Rawnsley said.
“While outstanding balances may reflect the rising costs of higher education, HECS empowers graduates to achieve higher wages in the long run, offering significant financial and career benefits over time.”
However, the rising cost of a university degree has been reflected in the choices of young Australians.
The number of Australians holding a HECS debt has declined 3.5 per cent since 2021-22, with statistics showing many are opting for other ways to build future careers, most notably through free TAFE programs.
“Australia’s future workforce is taking shape as young people choose new pathways into work and training,” Mr Rawnsley said.
