YP has been the leading advocacy and networking group on the coast since 2010! YP Gold Coast aims to motivate, inspire and connect future city leaders.
At Young Professionals (YP) Gold Coast, we’re dedicated to empowering young professionals with the insights they need to navigate complex financial decisions, including those related to higher education. Recently, the YP Gold Coast Committee sat down with two of our Platinum Partners, Southern Cross University and Community Bank Paradise Point, Bendigo Bank to explore the realities of the Higher Education Loan Program (HELP) debt and its implications for young Australians in today’s economic landscape.
HELP, formerly known as HECS, has long been celebrated for democratising higher education in Australia, allowing students to pursue degrees without the immediate financial burden of upfront fees. Without HELP, there are many professionals in Australia that may never have had the opportunity to obtain a degree and excel in their career in their chosen profession.
Yet, with the average HELP debt reaching $26,494, it’s essential to consider how this debt impacts young Australians’ ability to achieve critical financial milestones, like buying a first home or investing in their future.
The Growing Debt Dilemma
Since 2006, the average HELP debt has climbed from $12,500 to around $31,000. For young professionals with aspirations of homeownership, this figure isn’t just a number—it represents a potential roadblock to financial stability. According to insights from Community Bank Paradise Point, Bendigo Bank, a HELP debt could reduce a person’s borrowing capacity by as much as $48,000 for a home loan, assuming an income of $90,000 and no other liabilities. This is further backed by data from Finspo, which states that a person with a HELP debt can expect their maximum borrowing power to be reduced by around 10x the value of their annual HELP repayments.
This reduced borrowing capacity underscores the importance of evaluating the long-term financial impact of HELP debt. Although degrees have traditionally been seen as investments that open doors to well-paying jobs, today’s job market presents a different reality. Banks consider HELP debt a part of an individual’s liabilities, which directly influences one’s ability to secure financing for a home—a fundamental step in building personal wealth and stability, particularly from a young age.
Inflation, Indexation, and HELP Debt
One critical factor influencing HELP debt is the process of indexation, which adjusts the balance annually based on inflation. Indexation ensures that the debt retains its real value over time, but during periods of high inflation, it can lead to significant increases in HELP debt. This is particularly relevant given Australia’s recent inflationary trends since the COVID-19 pandemic.
Below is a table illustrating the correlation between inflation rates, indexation rates, and the effect on HELP debt over recent years:
| Year | Inflation Rate (%) | HELP Indexation Rate (%) |
| 2018 | 1.9 | 1.8 |
| 2019 | 1.8 | 1.8 |
| 2020 | 0.9 | 0.6 |
| 2021 | 3.5 | 3.5 |
| 2022 | 6.1 | 3.9 |
| 2023 | 7.8 | 7.1 |
| 2024 (est.) | 5.5 | 5.2 |
As inflation increases, so too does the indexation rate applied to HELP debt, which can sometimes result in the total balance of the HELP debt increasing over time, despite repayments being made.
High inflation has a significant impact on the purchasing power of income earned through employment, meaning that young professionals are increasingly finding their earnings do not stretch as far. Despite this, the payment income thresholds for the 2022-23 income year were $48,361.00 and phased to a 10% repayment rate at $141,848 and increased for the 2023-24 income year to be $51,550 and phased to a 10% repayment rate at $151,201 (a 6.5% increase). Even if you work hard to earn more, you face having to repay more of your income towards your HELP Debt.
It is essential for young professionals to be aware of the larger financial picture and how it may impact their repayment journey.
A Welcome Relief: Government Freeze on HELP Indexation
In response to growing concerns around rising HELP debt, the Australian government recently introduced an initiative to freeze HELP indexation temporarily. This measure was backdated to 1 June 2023 to cover these high inflation years, providing much-needed relief to young Australians. For many, this means their HELP balances will be protected from further inflation-driven increases, helping them maintain a more manageable debt load and offering more financial predictability as they plan for the future. For a student with an average HELP debt of $26,000, this will reduce their student debt by approximately $1,200. To accurately estimate the credit that this indexation freeze will have on an individual’s HELP debt, use the federal government’s HELP Indexation Credit Estimator found here.
This decision represents a significant step forward in supporting young professionals and students, offering immediate relief and addressing some of the financial pressures associated with HELP debt. The freeze on indexation allows those with HELP loans to focus on other critical financial goals, like saving for a home deposit or pursuing further education, without the added concern of compounding debt due to inflation.
The Evolution of Education: From Traditional to Hybrid Models
With the shift toward online and hybrid learning, universities are responding to a changing world by creating new, flexible learning models. Southern Cross University has been a leader in this area, pioneering remote and online education well before the pandemic made it a necessity. The university’s forward-thinking approach has not only provided students with greater accessibility but has also set a benchmark for high-quality online education in Australia.
Student feedback from Southern Cross University highlights that hybrid learning models offer significant benefits, from flexibility to increased engagement. Today, universities are blending online and in-person elements to create a rich, adaptive educational experience that suits the evolving needs of students.
Degrees vs. Industry Certifications: What’s the Best Investment?
As the financial cost of a degree rises, many young professionals are questioning whether a traditional degree provides the best return on investment. In recent years, industry-specific certifications and shorter, targeted courses have gained traction, offering quicker, more affordable paths to career advancement.
Southern Cross University and other institutions have responded by incorporating industry-recognised certifications within degree programs. This approach bridges academic knowledge with practical, career-focused skills, helping students graduate with both a degree and a credential that is highly valued by employers. These evolving pathways demonstrate how universities are adapting to meet the demands of a rapidly changing job market while enhancing the value of a traditional degree.
Addressing the Cost Barrier
As the costs of education and HELP debt rise, ensuring equitable access to higher education becomes increasingly important. Initiatives such as targeted scholarships and government grants aim to ease this financial burden, especially for underrepresented groups.
Additionally, collaboration between TAFEs and universities is making higher education more flexible and affordable, creating pathways that enable students to pursue higher education without excessive financial strain.
The Australian Universities Accord also seeks to reform higher education by making it more accessible and equitable, reflecting the need for a balanced approach to education funding that benefits students and society as a whole.
Finding the Right Balance: Traditional Education and Practical Experience
In an era where industries are rapidly evolving and AI is reshaping the workforce, universities are challenged to balance traditional education with practical, industry-focused experiences. Many young professionals are opting for a blend of university education and certifications to maximise the value of their investment. For some, this combination provides the best of both worlds: the theoretical knowledge gained from a degree, paired with the hands-on skills offered by certifications and work-integrated learning.
Conclusion: HELP Debt and the Path Forward
While HELP has been instrumental in providing accessible education, rising debt levels and a competitive job market necessitate a thoughtful reassessment of its impact. The government’s recent freeze on HELP indexation is a welcome step in addressing the financial burden on young Australians, offering relief and greater financial stability in the face of rising inflation. A further initiative which may be viable could be increasing the minimum repayment income threshold significantly, to further ease the financial burden of a HELP debt.
As the landscape of higher education continues to evolve, it’s crucial for young Australians to weigh the financial implications of HELP debt and explore diverse educational pathways.
With universities now embracing flexible learning models and integrating certifications into degree programs, students have more options than ever to pursue an education that aligns with their career goals and financial well-being. Local universities such as Southern Cross University are providing these flexible tertiary education models, ensuring a diverse range of career opportunities and making the investment in a university education worthwhile.
At YP Gold Coast, we advocate for young professionals to consider all aspects of their educational investments carefully and we strive to provide invaluable information, where possible. By staying informed and exploring innovative pathways, we believe young Australians can make empowered choices that open doors to a successful, financially stable future.
Sources:
Community Bank Paradise Point, Bendigo Bank
https://www.finspo.com.au/learn/how-hecs-affects-borrowing-power
https://www.pm.gov.au/media/why-3-billion-hecs-wipe-will-make-real-difference
https://www.education.gov.au/helpestimator
Notification of the repayment incomes and the repayment rates for the Higher Education Loan Program for the 2022-2023 income year
Notification of the repayment incomes and the repayment rates for the Higher Education Loan Program for the 2023-2024 income year
Time is slipping away, and we don’t want you to miss out on YP’s most monumental event of the year – the 2023 City Leaders Forum, proudly presented by Morgans Gold Coast.
This is your final opportunity to secure your spot among our city’s brightest minds and boldest thinkers. With just over 48 hours left and limited tickets remaining, ticket sales will wrap up at 5pm this Wednesday.
What are you waiting for? Prepare to be inspired as we bring you a stellar line-up of speakers, making this year’s City Leaders Forum bigger, brighter, and bolder than ever before.
Picture this: Mark Bouris, Andrew Tang, Adrienne Readings, and the Leader of the Opposition, David Crisafulli – all gathered under a single roof, poised to share insights that will leave your mind buzzing with inspiration.
So, join us this Friday, October 20th, at the Gold Coast Convention and Exhibition Centre, where these innovative leaders will discuss the current landscape, future challenges, and the opportunities that lie ahead for the Gold Coast.
Remember, this isn’t just an event; it’s an experience designed to motivate, inspire, and connect future city leaders. It’s a platform for meaningful conversations where debate, insights, and genuine wisdom take centre stage.
Cheers to big dreams, bright ideas, and bold moves! We look forward to seeing you there.
Author: Joshua Lumley
Now, we don’t mean to brag (well, maybe just a little), but David is kind of a big deal. He’s the Leader of the Opposition, the Shadow Minister for Tourism and the Shadow Minister for the Olympics and Paralympics. Talk about an impressive portfolio!
He’s not your typical suit-and-tie politician. David Crisafulli is the kind of city leader who rolls up his sleeves and gets things done.
Serving as the Queensland Minister for Local Government, Community Recovery, and Resilience until 2015 – David undertook the biggest reform to local government in a generation by empowering local leaders, as well as overhauling the way Queenslanders rebuild their communities after natural disasters.
After the 2020 State Election, David stepped up to become Leader of the Opposition and continued his previous role as the Shadow Minister for Tourism. He’s a proud member of the LNP and a formidable critic of the State Labour government.
David sure knows how to make a difference to our city, and we can’t wait to hear what he has to say next Friday October 20th at our 2023 City Leaders Forum, presented by Morgans Gold Coast.
Oh, and did we mention the cherry on top? The official afterparty will be hosted at Nineteen at The Star from 3:30pm onward. Because let’s face it, great minds think better when they’re enjoying good company and perhaps a refreshing beverage or two.
Secure your tickets ASAP to join David Crisafulli, along with our other amazing speakers – Mark Bouris, Andrew Tang, and Adrienne Readings – for an afternoon that promises to be as entertaining as it is enlightening.
So, what are you waiting for? Get your tickets, mark your calendar, and prepare for a day of inspiring talks, and game-changing ideas. We’ll see you there!
Author: Joshua Lumley
Adrienne isn’t just the General Manager of the Gold Coast Convention and Exhibition Centre; she’s a bona fide game-changer! Breaking glass ceilings with style, she’s the first woman to reign supreme in an Australian convention centre. Talk about a girl boss on a mission!
Under her leadership, the Gold Coast Convention and Exhibition Centre has pumped billions into our local economy, attracted A-list events, and stacked up awards like they’re going out of style.
We’re not the only ones impressed—Adrienne even snagged the 2023 Gold Coast Bulletin Woman of the Year title by Harvey Norman and took home the Stars of Tourism crown. Her love for the Gold Coast is so strong; it’s practically its own gravitational force! If that doesn’t scream “City Leader,” we don’t know what does!
Adrienne has spent three decades shaping our city’s future, sitting on committees, councils, and boards, and joining forces with industry titans to create a Gold Coast that’s Big, Bright and Bold.
So, if you’re still ticket-less, we’ve got just one question for you: What are you waiting for?
The clock is ticking, and we will be announcing our final speaker very soon! Don’t miss your chance to hear from Adrienne Readings, Andrew Tang and Mark Bouris at the 2023 City Leaders Forum!
Author: Joshua Lumley
Introducing Andrew Tang, Head of Investment Strategy at Morgans Financial Limited, who are not only our platinum and event partners, but the heavyweight champions of full-service stockbroking and wealth management in Australia.
Let’s talk about Andrew – he’s not just impressive; he’s a financial powerhouse.
As the Head of Investment Strategy and an Equity Strategist, he’s the mastermind behind delivering invaluable macro research and investment guidance.
Supporting a team of over 500 advisors in the Morgans Network, Andrew is the financial guru from whom we could all pick up a trick or two.
Andrew’s leadership also extends into his role as the Secretary of the Morgans Investment Committee, where his expertise truly shines.
Now the big question remains: who will be our final two speakers? The suspense is building, and we can’t wait to reveal their identities soon.
As the buzz around this year’s City Leaders Forum grows, so does the demand for tickets.
Don’t miss your chance to learn from the absolute cream of the crop in the world of finance! Make sure you secure your spot now.
So, will we see you there?
Author: Matthew Dodds
With just a month to go until the annual City Leaders Forum, presented by Morgans Gold Coast, we’re extremely excited to announce our keynote speaker!
Best known as founder of Wizard Home Loans, and now the Executive Chairman of Yellow Brick Road, our keynote is one of Australia’s most influential business figures!
Meet Mark Bouris! If you don’t recognize the name, you will absolutely be familiar with his “tell it straight” attitude as the former host of The Celebrity Apprentice Australia.
Having built his reputation as a finance specialist taking on Australia’s banks, his unique brand of charisma & curiosity sees his influence cut across multiple worlds.
From businesses large and small, to politics and sport, Mark pays forward his knowledge and experience through his top-rating podcasts ‘Straight Talk’ and ‘The Mentor’.
He’s not just a success story himself; he’s the mentor sculpting the next generation of Australian leaders!
Can’t contain your excitement? Neither can we!
Limited tickets remain.
Author: Matthew Dodds
YP Gold Coast supports major events on the Gold Coast!
Just recently the Gold Coast hosted the Pacific Airshow Major Event, which originally began in 2016 at Huntington Beach California USA. Bringing this event to the Gold Coast Australia, was a huge success, with talks already being had for a 2024 event. It is Major events like these that play a pivotal role in driving the growth and prosperity of the Gold Coast, especially in the context of young professionals. These events offer a multitude of benefits that contribute to the development of the region and the advancement of its young workforce.
At YP we want to continue to encourage the investment in major events as they bring a surge of economic activity to the Gold Coast. They attract tourists and visitors from around the world, leading to increased demand for accommodations, dining, transportation, and entertainment. This surge in economic activity creates a wealth of opportunities for young professionals, whether they are working directly in the event industry or in related sectors such as hospitality, marketing, and event management. These opportunities not only provide immediate employment prospects but also help to diversify the local economy, making it more resilient in the long term.
Secondly, major events bolster the Gold Coast’s reputation on a global scale. As the city hosts renowned events, it gains visibility and recognition, attracting attention from investors, businesses, and individuals alike. This heightened profile can lead to increased business investments, career opportunities, and the establishment of new enterprises, all of which provide young professionals with a broader spectrum of career options.
Major events also contribute to the overall lifestyle and cultural enrichment of the Gold Coast. While they can sometimes be seen as detracting from the locality, at YP we believe if the Gold Coast does them well; these events have the opportunity to infuse the city with a sense of vibrancy and dynamism, offering young professionals a diverse range of experiences that go beyond their professional lives. It is for this reason that we should continue advocating for major events on the Gold Coast and encouraging the opportunities that these bring into the future.
In conclusion, major events serve as catalysts for growth, innovation, global recognition, and cultural enrichment on the Gold Coast. For young professionals, these events offer a myriad of opportunities to thrive both personally and professionally. By fostering economic development, promoting creativity, enhancing the city’s reputation, and enriching the cultural fabric, major events create an ecosystem where young professionals can flourish and contribute to the ongoing success of the Gold Coast.
Author: Liam Morris, YP Gold Coast
We are thrilled to unveil the highly anticipated 9th Annual City Leaders Forum, proudly presented by Morgans Gold Coast.
This year, we’re dialing up the energy, the ideas, and the inspiration with a theme that encapsulates the very essence of our dynamic city: Big, Bright, and Bold.
As Australia’s fastest-growing city, we’re not just a dot on the map – we’re big on dreams, bright with endless possibilities, and bold enough to make our wildest visions a reality.
Join us on Friday 20th October at the Gold Coast Convention and Exhibition Centre as we sit down with the innovative leaders that shape and shake our City’s business community to discuss the current landscape, future challenges, and opportunities that lie ahead for the Gold Coast.
Prepare for an experience that’s less about business cards and handshakes, and more about laughter, insights, and unfiltered wisdom. It’s a mix that’ll tickle your intellect, bring a smile to your face and a spark to your thoughts.
We’re not just talking about an event; we’re talking about an experience that aims to motivate, inspire, and connect future city leaders and encapsulates the very essence of what makes the Gold Coast shine.
Early bird tickets are now available to purchase for $160pp and include a 2-course lunch and three hour beverage package, along with live entertainment and networking with fellow forward-thinking professionals.
As the countdown begins, the line-up of speakers and the after-party details will be announced in the coming weeks.
So, are you ready to join us in embracing the Big, Bright, and Bold future of the Gold Coast? Then don’t wait – secure your spot now.
Author: Matthew Dodds
It’s that time of the year when we dust off our fancy hats and get ready to hit the turf in style.
We’re absolutely buzzing with excitement to announce a brand new concept —the annual Gold Coast Community Fund, YP Gold Coast Race Day!
Mark your calendars for Saturday, the 23rd of September, and get ready to gallop your way to the Gold Coast Turf Club for a day jam-packed with heart-thumping races and good vibes to raise much-needed funds to support those in our city who need it the most.
At YP Gold Coast, we’re all about keeping it real, and this race day is no exception. We’re not just here for the glitz and glamour (though we’ll rock it, of course), but for the thrill of giving back to the community we love.
The Gold Coast Community Fund (GCCF) aims to relieve financial hardship for those in the community doing it tough. Through its ongoing fundraising events, GCCF creates a central pool of money for distribution to charities, community organisations and individuals in emergency need.
But hey, don’t think for a second that we’re all business and no play. This is the Gold Coast, after all! So, while we’re serious about making a difference, we’re also serious about having a rip-roaring good time!
Get ready for an extraordinary evening of insights, networking, and a touch of budget banter at YP Gold Coast’s next event – The State Budget Night!
Save the date for Friday 30th June, because we’ll be taking over the hottest spot in Nobby’s – Tropic Vice – right in the heart of the Gold Coast.
We’re here to make finance fun (trust us) as we welcome Queensland Treasurer, Hon Cameron Dick, and Minister Meaghan Scanlon to the stage. He’ll be unveiling all the intricate details of the recently released state budget!
We won’t let you go thirsty either! Your ticket includes a complimentary drink upon arrival and to satisfy your cravings, we’ve lined up an array of delicious roving canapés. It’s a feast for your mind and your palate.
Don’t let FOMO get the best of you. This event is your golden ticket to gain valuable insights, expand your professional network, and rub shoulders with fellow young professionals. With limited tickets available, you better grab yours faster than the speed of compound interest!
So get ready for a night of fiscal fascination, unforgettable connections, and perhaps a few budget jokes!
Event Details:
- Date: Friday 30 June
- Time: From 5pm, with formalities from 6:00pm
- Location: Tropic Vice, 2215 Gold Coast Hwy, Mermaid Beach
- Tickets: $45 – includes a beverage on arrival and roving canapés.
- Dress code: Smart/Business Casual
Author: Matthew Dodds
