Why it's trending
The trend is driven by the release of KPMG's analysis of 2023-24 tax return data, reported by multiple Australian news outlets on July 23, 2026. The findings highlight the concentration of student debt in wealthy areas and the growing burden on graduates, sparking public debate about education policy and the government's failure to repeal the Job-ready Graduates Package.
New analysis of tax return data by consultancy firm KPMG has revealed that Australia's highest student debts are concentrated in affluent inner-city suburbs, particularly near major university campuses in Sydney and Melbourne. According to the data, the average HECS balance in postcode 2008 (Chippendale and Darlington) is $38,944, the highest in the country. Other wealthy suburbs such as Point Piper, Edgecliff and Darling Point also show averages above $38,000.
The data, obtained by the Sydney Morning Herald and reported by multiple outlets, shows that nearly half of the nation's $15.2 billion in HECS debt is held by taxpayers in Sydney and Melbourne. Across Sydney alone, 483,606 taxpayers owe a combined $15.2 billion. Nationally, the average HECS balance is $28,000, according to Australian Tax Office data analysis.
The KPMG analysis comes amid ongoing concerns about the rising cost of university education. The number of Australians graduating with debt exceeding $50,000 has grown by 55% in the past five years, following the Morrison government's Job-ready Graduates Package, which raised the cost of arts and business degrees to $50,000 and double degrees to $90,000. Education Minister Jason Clare has not repealed the legislation, and a new advisory body is only expected to provide advice by mid-2027.
An education expert warned this week that a "significant minority" of arts graduates will likely carry their student loans until death. The indexation of HECS debts to inflation, while not attracting interest, has added to the burden. The data highlights a paradox: wealthy suburbs with high property values also host the largest student debts, reflecting the location of universities and the demographics of graduates.
The revelations have reignited debate over the fairness of the HECS system and the affordability of higher education. With the government yet to act on the Job-ready Graduates Package, the issue is expected to remain a political flashpoint ahead of the next election.
Timeline
- Job-ready Graduates Package introduced
The Morrison government introduced legislation raising the cost of arts and business degrees to $50,000, and double degrees to $90,000. This has been cited as a key factor in rising student debt levels.
- Albanese government elected
Labor wins government, but Education Minister Jason Clare has not repealed the Job-ready Graduates Package. He has promised a review with advice due by mid-2027.
- Report on growing debts
The Sydney Morning Herald reported that the number of Australians with HECS debt over $50,000 had grown 55% in five years.
- KPMG analysis released
KPMG analysis of 2023-24 tax return data is published by AFR, SMH, and other outlets, showing concentration of high debts in wealthy Sydney and Melbourne suburbs.
Questions people ask
What is HECS?
HECS (Higher Education Contribution Scheme) is a government loan program that allows eligible Australian university students to defer their tuition fees. Repayments are made through the taxation system once income exceeds a threshold. Debts are indexed annually to inflation.
Why are wealthy suburbs showing high HECS debts?
The high debts in affluent suburbs like Point Piper and Chippendale are largely due to their proximity to major universities (University of Sydney, UNSW, University of Melbourne). Graduates living in these areas often have higher degrees and correspondingly larger debts, while their high incomes allow them to afford expensive housing.
How is HECS debt indexed?
HECS does not attract interest but is indexed each June to the Consumer Price Index (CPI). This means the debt grows with inflation. Recent high inflation has led to significant increases in outstanding balances.
Has the government addressed rising HECS debt?
The Albanese government has not repealed the Job-ready Graduates Package that increased fees for some degrees. Education Minister Jason Clare has announced a review, but advice is not expected until mid-2027.
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