HECS and Indexation (1 Viewer)

[Generator]

Who determine[s/d] the rate of indexation applied to your HECS debt each year?

I do not know... Which is not good.

 

[christ_ine]

I see you got your charming letter from the ATO as well.

[Edit:] This should answer your question, Joshua

http://www.ato.gov.au/individuals/content.asp?doc=/content/hecs_indexationrates.htm

 

[Raiks]

It's based on the level of inflation.... thats the simple answer.

 

[Generator]

Thanks.

 

[jase_]

Yeh 2.4% is pretty good. You can't find many loans with interest lower than that!

 

[Raiks]

You shouldn't find any loans with interest lower than that, because any place giving a loan below inflation rates is actually not making any money because real interest levels would actually be negative.

 

[Frigid]

well this isn't right. knowledge is an intangible asset, is it not? and intangibles are subject to amortisation are they not? so amortisation should offset any effects of inflation such that my HECS debt ought to get smaller not bigger. or so accounting 1 has taught me.