How Much Hecs Do I Pay

22.08.2023 0 Comments

How Much Hecs Do I Pay

How much have I paid off my HECS?

How do I find out my HECS-HELP Balance/Debt? – Updated 22/06/2023 01.04 AM The University of Newcastle does not record the balance of your HECS-HELP debt. Once your fees have been deferred you will need to make further enquiries with the Australian Taxation Office,

Contact the ATO on 1300 650 225. You will have to advise the ATO of your tax file number (TFN) before they will disclose any personal information to you; or View your HELP debt online via the myGov website, To access this online service you will need to link your account to the ATO – to do this, please refer to the video instructions on the ATO website, Once linked, you can view your HELP debt balance by selecting ‘Loan Accounts’.

You can also track how much Commonwealth Assistance you have used with the Australian Government’s myUniAssist, You will require your CHESSN (Commonwealth Higher Education Student Support Number) to access myUniAssist. Your CHESSN can be found on your Commonwealth Assistance Notice (CAN) available in myHub,

  • If you can no longer access myHub, please contact UON Enquiries,
  • Please note, myUniAssist gives you the total amount of Commonwealth Assistance used, and does not update as your HELP debt is paid off, either through voluntary repayments or automatic repayments.
  • For more information about HELP and Financial Supplement debts visit Study and Training Support Loans,

For general information on HECS-HELP please visit Study Assist – HECS-HELP, Find further information on how to make a payment – How are Higher Education Loan Programs (HELP) debts repaid?

Do I pay off my HECS?

Once your income reaches a certain threshold, you will be required to repay all or part of the loan. A HECS-HELP debt starts immediately after the elected census date for any University course you’ve nominated for HELP assistance.

How long will it take to pay off my HECS?

How much HECS-HELP debt do Australians have? – The 2023/24 budget papers reported a number of things about the current state of student loans in Australia, including:

  • As of 2023, the fair value of HELP debt is at $48.5 billion
  • Over 3 million Australians have some form of HELP debt as of June 2022
  • As at the end of June 2022, the average time taken to repay HELP debts was 9.6 years.
  • The government expects $55,444,000 in HELP debt to be payed in the 23/24 financial year

What is the HECS indexation rate for 2023?

HECS/HELP indexation of 7.1% commences from Thursday 1 June 2023, meaning students or graduates will be required to pay an additional 7.1% ontop of existing debts. HECS/HELP indexation rate was 3.9% in 2022 and 0.6% in 2021.

Should I pay off my HECS 2023?

What is indexation? – While Australia’s student loans are interest-free, the system is tied to inflation — meaning loans increase each year in line with the consumer price index in a process called indexation. The standard indexation rate is about 2 per cent, but this year HECS-HELP loans will increase by 7.1 per cent.

How do I pay my HECS debt early?

To do this, you can either pay the ATO directly via BPAY, credit card or direct credit, or you can make a salary packaging arrangement with your employer Making voluntary repayments can help avoid bill shock at tax time, if these amounts haven’t been taken out throughout the year.

How to calculate indexation?

| Income Tax – Articles – Featured | 11 Mar 2023 2,068,853 Views

Article discusses Meaning of Cost Inflation Index (CII) which is used for Computation of Long Term Capital Gain. Cost Inflation index are Notified by CBDT every year and till date CBDT has notified Cost Inflation Index for the Financial Year 1981-82 to Financial year 2023-24,

  1. Cost Inflation index are used for computing indexed cost of acquisition.
  2. What is Cost Inflation Index (CII)? It is a measure of inflation that finds application in tax law, when computing long-term capital gains on sale of assets.
  3. Section 48 of the Income-Tax Act defines the index as what is notified by the Central Government every year, having regard to 75 per cent of average rise in the consumer price index (CPI) for urban non-manual employees for the immediately preceding previous year.

Therefore, if we consider that price of a capital asset has risen in tandem with base price rise, then if one want to sell an asset and replace it, the cost allowed even after indexation will be lesser than the price payable for new asset. However, in case of many capital asset the price rise is lesser than market price and in many cases it is higher.

  • How does Cost Inflation Index (CII) help in capital gains computation? Capital gain, as you know, arises when the net sale consideration of a capital asset is more than the cost.
  • Since “cost of acquisition” is historical, the concept of indexed cost allows the taxpayer to factor in the impact of inflation on cost.

Consequently, a lower amount of capital gains gets to be taxed than if historical cost had been considered in the computations. Formula for computing indexed cost is (Index for the year of sale/ Index in the year of acquisition) x cost. For example, if a property purchased in 1991-92 for Rs 20 lakh were to be sold in A.Y.2009 -10 for Rs 80 lakh, indexed cost = (582/199) x 20 = Rs 58.49 lakh.

Are student loans a problem in Australia?

Posted 09/06/2023 by Carol Ey On 1 June 2023 some 3 million Australians, owing over $74 billion, had their outstanding student loan debt increased by 7.1%. It comes as average loan debts have increased over the decade to 2021–22 from $15,200 to $24,800 (derived from Table 6 ).

  1. Higher loan debt generally increases the period over which repayments will be required, thus reducing disposable incomes in future years.
  2. The average time to repay debts in full has already increased from 8.2 years in 2011–12 to 9.5 years in 2021–22 ( Table 3 ).
  3. In addition, this debt is treated as equivalent to credit card or personal loan debt in considering borrowing limits, reducing the capacity of debtors to obtain other loans, such as for housing.

The high rate of indexation this year has led to calls for change by the Greens and the crossbench, while the Opposition has called for ‘urgent action’ to address the issue. So how did we get here? Background Student loans were first introduced in 1989, when the Higher Education Contribution Scheme (HECS), now HECS-HELP, was created.

  • As described by then Minister John Dawkins, HECS would require those who benefitted from participating in higher education to make a small contribution towards the cost of their study, to finance a substantial increase in higher education funding.
  • These contributions could be paid up-front, or via an income-contingent government loan.

Since 1989 there have been numerous changes to the loan scheme, including the introduction of several other income-contingent student loans with the same repayment arrangements (for more information on the range of student loans see Higher Education Loan Program (HELP) and other student loans: a quick guide ).

Student contributions and repayment thresholds have also changed significantly. The initial contribution rate was a flat $1,800 per annum, while in 2023, student contributions under HECS-HELP range between $4,124 and $15,142 per year, depending on the field of study. Under the initial HECS, compulsory repayments were made through the taxation system once taxable income reached $22,000, some 85% of the annualised full-time Adult Weekly Ordinary Time Earnings ( AWOTE ).

The maximum repayment of 3% of income was payable for incomes over $35,000 (134% of AWOTE). By 2021–22, compulsory repayment of loans commenced when repayment income reached $47,014 (just over 51% of AWOTE), while those with income over $137,898 (just over 150% of AWOTE) had a repayment rate of 10%.

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Indexation In introducing the scheme, Minister Dawkins noted that ‘the annual course charge, the outstanding debt and the personal taxable income levels above which payment is required will be indexed to keep pace with inflation’. The indexation arrangements for contribution rates, outstanding debt and repayment incomes are all specified in the Higher Education Support Act 2003 (HESA).

While they are all linked to the All Groups Consumer Price Index (CPI), the calculation for each differs. The student contribution rates are set for a calendar year, based on the annual CPI increase at December of the previous year (section 198-15 of HESA).

Thus the contributions for 2024 will be the 2023 rates indexed by the December 2022 CPI annual increase of 7.8%. Outstanding debt is indexed each year on 1 June by the sum of the CPI index for each of the 4 quarters to March, over the sum of the 4 quarters to March the previous year (section 140-10 of HESA).

The calculation for the June 2023 indexation is set out in Table 1 below. Table 1: CPI index numbers for HELP debt indexation factor

Current year March 2023 Dec 2022 Sept 2022 June 2022 Total
132.6 130.8 128.4 126.1 517.9
Previous year March 2022 Dec 2021 Sept 2021 June 2021 Total
123.9 121.3 119.7 118.8 483.7

Source: Australian Bureau of Statistics (ABS), Consumer Price Index, Table 1. Therefore, the indexation factor for 1 June 2023 is 517.9/483.7 which equals 7.1%. This is slightly different to the annual rise in the CPI, which compares the index at March 2023 to March 2022, and results in an increase of 7.0%.

  1. However, in 2022 student loan debt was only increased by 3.9%, while the March quarter 2022 CPI annual increase was 5.1%.
  2. The repayment income thresholds are indexed for the following tax year based on the 2019–20 figures included in the legislation (section 154-25 of HESA).
  3. This uses the sum of the CPI index in each of the 4 quarters to December of the previous year over the sum of the index for the 4 quarters to December 2018.

This reflects changes introduced in the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 which changed the basis of indexation from Average Weekly Earnings to the CPI (p.18). See Table 2 below for calculation for the 2023–24 income year.

Current year Dec 2022 Sept 2022 June 2022 March 2022 Total
130.8 128.4 126.1 123.9 509.2
2018 Dec 2018 Sept 2018 June 2018 March 2018
112.6 113.0 113.5 114.1 453.2

Source: Australian Bureau of Statistics (ABS), Consumer Price Index, Table 1. Therefore, the indexation factor for 2023–24 is 509.2/453.2 which equals approximately 1.124. This means the repayment thresholds have increased by 12.4% from the 2019–20 figures, resulting in an increase of 6.6% over the 2022–­23 repayment incomes.

  • Repayment of loans If debtors voluntarily repay some of their loan prior to 1 June, this amount is deducted from their outstanding balance prior to indexation.
  • Compulsory repayments are calculated through the tax system.
  • Those debtors working in Australia will have regular deductions from their salary or wages though the Pay As You Go (PAYG) system to cover the compulsory repayment.

However, the amount paid via PAYG is not credited against the loan debt until after that year’s tax return is processed. This means that while an estimated 90% of the repayment due for the financial year is likely to have been made prior to 1 June, none of that is credited until after the indexation.

  • This has led one commentator to argue for changes to the calculation and timing of the indexation of outstanding debt, with Minister for Education Jason Clare acknowledging that the timing ‘doesn’t make sense’.
  • Conclusion Perhaps strange, given it was initiated over 30 years ago, and effects the lives of so many Australians, student loan arrangements have not previously been comprehensively reviewed or evaluated (p.4).

The terms of reference for the Review of Australia’s Higher Education System, due to report by December 2023, include consideration of ‘contribution arrangements’, but it is unclear how much focus it will give to loan arrangements, Millions of Australians are likely to watch with interest.

Are student loans interest free in Australia?

Will rising interest rates cause my HECS-HELP repayments to increase? – No. A HECS-HELP debt doesn’t accrue interest, and therefore rising interest rates have no impact on the size of your loan, unlike mortgage or car loan repayments. However, the total loan amount changes over the life of the debt in line with inflation.

How much does a degree cost in Australia?

Benchmark

Education Type Average Tuition
Bachelor Degree AUD $15,000 – $33,000 per year
Master’s Degree AUD $14,000 – $37,000 per year
Doctoral Degree AUD $14,000 – $37,000 per year
MBA AUD $11,000 – $121,000 per year

Does HECS debt affect credit rating?

Will my HECS debt affect my home loan application? – The simple answer to this question is yes, your HECS debt will affect your home loan application. Unfortunately, most lenders regard HECS the same as any other kind of liability. When applying for a home loan, lenders run what’s known as a “serviceability” test to determine your capacity to service your liabilities and expenses.

  1. Through this process, the lender will ask you to disclose your credit score, liabilities and other important financial information.
  2. This is when you will need to inform the lender of your HECS loan.
  3. The bank is ultimately interested in how much surplus income you have each month.
  4. Although most lenders won’t factor HECS into your total debt exposure, they will consider the deduction from your income.

Under HECS’ repayment structure, high income earners can be paying upwards of $1000 towards their student loan each month. This can be a deciding factor when calculating whether you will still be reaching a surplus on the loan that you are after. It is important to note; HECS debt shouldn’t affect your credit score and doesn’t mean you won’t be able to get a home loan.

How to use debt to get rich in Australia?

4. Borrowing to Create Wealth – Once you’ve minimised the bad debt, it’s time to start creating some good debt. This is called “gearing.” Providing you invest wisely and your assets increase in value, gearing helps you create wealth, as the income (and capital growth) from the investment pays off the debt and exceeds the costs of servicing that debt.

What is indexation on my HECS?

HELP debt indexation – On 1 June each year, indexation is applied to the part of an accumulated study and training debt that has remained unpaid for more than 11 months. HELP debt indexation maintains the real value of your debt by adjusting it in line with changes in the cost of living as measured by the Consumer Price Index (CPI).

What is the indexation rate?

Key Takeaways –

An interest rate that is tied to a specific benchmark is known as an indexed interest rate.Indexed interest rates are variable rates that adjust as the benchmark moves.Common benchmarks for indexed interest rates include the prime rate, LIBOR, and U.S. Treasury securities.A mortgage with an indexed rate is known as an adjustable-rate mortgage.The fully indexed rate is the indexed rate plus a premium charged to borrowers with less than the highest credit quality.

How does indexation work?

What Is Indexation? – Indexation is a system or technique used by organizations or governments to connect prices and asset values. This is done by linking adjustments made to the value of a good, price of a service, or another specified value to a predetermined price or composite index.

What is the inflation rate in Australia?

Consumer Price Index, Australia, June Quarter 2023 The Consumer Price Index (CPI) measures household inflation and includes statistics about price change for categories of household expenditure.

The Consumer Price Index (CPI) rose 0.8% this quarter. Over the twelve months to the June 2023 quarter, the CPI rose 6.0%. The most significant price rises were Rents (+2.5%), International holiday travel and accommodation (+6.2%), Other financial services (+2.5%), and New dwelling purchase by owner-occupiers (+1.0%).

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A review of the seasonally adjusted series was conducted in the June quarter. The findings from the latest review resulted in no changes to existing seasonal adjustment settings, with 55 out of 87 series remaining seasonally adjusted.In May the ABS published the article, which provides analysis of inflation in Australia compared to selected countries and explains how measurement of the CPI differs between countries.Monthly inflation data can be found in the,

The CPI weights are typically updated each year in the December quarter. This is to ensure the weights used in the CPI basket reflect contemporary household spending patterns. With the continued increase in Australians holidaying overseas, a partial update of the CPI weights will be implemented in the September 2023 quarter.

  • The partial update will see the weight for International holiday travel increase, with the weight for the other components in the basket adjusted to offset the increase in the weight of International holiday travel.
  • The updated weights will be published as part of the July Monthly CPI indicator release on 30 August 2023.

The comprehensive update to the CPI weights usually done in December quarter each year will be implemented in March quarter 2024 instead. The weights for the quarterly CPI will continue to be updated in March quarters in future years. Annual CPI inflation was 6.0 per cent in the June 2023 quarter, lower than the 7.0 per cent annual rise in the March 2023 quarter.

This marks the second consecutive quarter of lower annual inflation, also known as ‘disinflation’, from the peak of 7.8 per cent in the December 2022 quarter. Trimmed mean annual inflation of 5.9 per cent was also lower in the June quarter, compared to March 2023 quarter inflation of 6.6 per cent, and the peak in December 2022 quarter of 6.9 per cent.

Services annual inflation recorded its largest annual rise since 2001, driven by higher prices in a range of services categories including rents, restaurant meals, holiday travel and insurance. Goods annual inflation continued to ease from 7.6 per cent in the March quarter to 5.8 per cent in the June quarter after two years of strong price increases.

Price rises for food, furniture, appliances and clothes slowed in the June quarter, while automotive fuel prices were 3.6 per cent lower compared to 12 months ago. Prices continued to rise across a range of services, with annual price growth for services the highest since the introduction of the GST over 20 years ago.

Contributing to the prices rises are stronger wages growth and increased costs for utilities and rents, while insurance premiums rose across house, house contents and motor vehicle insurance. The rate of growth in new dwelling prices continued to slow down.

  1. Having peaked in the September 2022 quarter at 20.7 per cent, annual inflation has fallen for the past three quarters to 7.8 per cent in the June 2023 quarter.
  2. The recent moderation in price growth reflects lower new demand, improvements in the supply of materials and material costs easing.
  3. Rental prices rose 6.7 per cent annually.

This is the largest annual rise since 2009, reflecting low vacancy rates amid a tight rental market across the country. Annual food inflation eased to 7.5 per cent in the June quarter, down from 8.0 per cent in the March quarter and the peak of 9.2 per cent in the December quarter.

Annual price increases were highest for dairy products (15.2 per cent), bread and cereal products (11.6 per cent) and food products n.e.c (not elsewhere classified) (11.3 per cent). Price rises were softer for fresh food categories like meat and seafood (3.5 per cent) and fruit and vegetables (1.6 per cent).

Automotive fuel prices fell 0.7 per cent for the quarter. The main contributor was the fall in diesel prices of 6.5 per cent, while prices for unleaded petrol rose slightly by 0.3 per cent. Compared to the June 2022 quarter, unleaded petrol prices are 3.2 per cent lower and diesel prices are 10.1 per cent lower.

Meals out and take away foods rose 1.7%, due to higher input costs including ingredients, energy, rents and wages.Fruit and vegetables rose 2.4%, due to cooler weather reducing supply of tomatoes and cucumbers, and further price rises for frozen vegetables.Bread and cereal products rose 2.9%, in response to higher production costs.

In seasonally adjusted terms, the group rose 1.6% this quarter. Meals out and take away foods (+1.7%) was the main contributor. Over the past twelve months, the group rose 7.5%. Meals out and take away foods (+7.7%) was the main contributor.

Price rises for Beer (+1.5%), Spirits (+1.6%) and Tobacco (+1.1%) all contributed to the rise this quarter.

In seasonally adjusted terms, the group rose 1.1%. Over the past twelve months, the group rose 4.7%. The main contributors were Beer (+6.3%) and Tobacco (+4.2%).

Garments (+1.6%) and Footwear (+1.4%) rose due to the introduction of new season winter stock.

In seasonally adjusted terms, the group fell 0.9%. The main contributor was Garments for women (-2.4%). Over the past twelve months, the group rose 0.3%. Garments for infants and children (+7.0%) and Garments for men (+3.9) were the main contributors. The Housing group rose 0.8% driven by increases in Rents (+2.5%) and New dwelling purchase by owner-occupiers (+1.0%).

Rents rose 2.5% this quarter. Rents continue to rise across all capital cities reflecting strong demand amid low vacancy rates. Rental prices rose 6.7% annually, the largest annual rise since 2009. Rental price growth for flats continues to outpace growth for houses across the capital cities.

New dwelling purchase by owner-occupiers rose 1.0%. The rate of price growth for New dwellings has continued to ease this quarter due to softening new demand and material costs easing.

Utilities fell 1.1%, driven by Electricity (-1.8%) and Gas and other household fuels (-1.2%).Electricity fell due to falls in some market offer plans.Gas fell due to winter concession pricing starting in May in Melbourne, and falls in some market offer plans.

In seasonally adjusted terms, the group rose 1.2%. Over the past twelve months the group rose 8.1%. The main contributor to the annual rise was Utilities (+13.8%), followed by New dwelling purchase by owner occupiers (+7.8%).

Furniture and furnishings (+4.2%) and Household textiles (+9.5%) rose due to prices returning from post-Christmas discounting in the previous quarter.Child-care (+1.5%) and Hairdressing and personal grooming services (+2.2%) rose due to higher wages, utilities and supply costs for businesses.

In seasonally adjusted terms the group rose 1.2%. The main contributor was Household textiles (+6.4%). Over the past twelve months, the group rose 6.3%. Domestic and household services (+7.8%), Non-durable household products (+7.3%), and Furniture and furnishings (+7.6%) were the main contributors.

Pharmaceutical products fell 1.0% due to an increase in the proportion of consumers who qualify for subsidies under the Pharmaceutical Benefits Scheme (PBS).Medical and hospital services was flat (0.0%). Typically private health insurance providers increase premiums in April but the majority did not do so this year.

In seasonally adjusted terms the group fell 0.9%. The main contributor was Medical and hospital services (-1.4%). Over the past twelve months the group rose 4.9%. Medical and hospital services (+5.9%) was the main contributor.

Automotive fuel fell 0.7% due to falling diesel wholesale prices. Automotive fuel prices rose 2.9% in April, fell 6.7% in May and rose 3.8% in June.Motor vehicles fell 0.6%, the first quarterly fall since March quarter 2020. Easing demand and improvement in supply of parts for manufacturing saw small discounts in some prestige and low-emission vehicles.

In seasonally adjusted terms, the group fell 0.1%. The main contributor was Automotive fuel (-0.7%). Over the past 12 months, the group rose 1.9%. Motor vehicles (+3.9%), Spare parts and accessories (+11.7%) and Maintenance and repair of motor vehicle (+4.1%) were the main contributors. Offsetting the rise was Automotive fuel, which fell 3.6%, the first annual fall since the March 2021 quarter.

A fall of 0.7% in telecommunication equipment and services was the main contributor.

In seasonally adjusted terms, the group was flat at 0.0% this quarter. Over the past twelve months, the group rose 0.7%.

Domestic holiday travel and accommodation fell 7.2% due to discounting in airfares, with accommodation also falling after the end of the summer school holiday period.International holiday travel and accommodation rose 6.2% as many European destinations entered their peak season.

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In seasonally adjusted terms, the group rose 0.3%. International holiday travel and accommodation (6.4%) was the main contributor. Over the past twelve months the group rose 6.8%. Holiday travel and accommodation (+12.2%) was the main contributor.

Preschool and primary education fell 1.2% as the NSW and Victorian Governments ‘Start Strong’ and ‘Free Kinder’ programs continued to provide fee relief for families with children in preschool in 2023 which resulted in reduced out-of-pocket expenses.

In seasonally adjusted terms, the group rose 0.4% this quarter. Over the past twelve months, the group rose 5.2%. Tertiary education (+9.6%) was the main contributor.

The Insurance and financial services group recorded the strongest quarterly rise since 2008.Other financial services (+2.5%) was the main contributor to the rise due to stamp duty and higher real estate agent fees.Insurance (+5.3%) rose across house, house contents and motor vehicle insurance. This was the strongest quarterly rise since 2000.

In seasonally adjusted terms, the group rose 3.1%. Over the past twelve months the group rose 8.5%. Other financial services (+7.7%) was the main contributor to the rise, with the strongest annual rise on record. The Tradables and Non–tradables series measure the contribution of goods and services that are highly exposed to international trade influences (tradables), and those that are mostly influenced by domestic factors (non–tradables), to overall household inflation.

Tradables rose 1.1% due to International holiday travel and accommodation (+6.2%), Furniture (+4.9%) and Household textiles (+9.5%). Non-tradables rose 0.8% due to Rents (+2.5%), Other financial services (+2.5%) and New dwelling purchase by owner-occupiers (+1.0%).

In seasonally adjusted terms, the Tradables component of the All groups CPI rose 0.8% and the Non–tradables component rose 1.0%. Non-discretionary inflation includes goods and services that households are less likely to reduce their consumption of, such as food, automotive fuel, housing and health costs. Discretionary goods and services may be considered ‘optional’ purchases.

Non-discretionary goods and services rose 0.8% through the quarter, and 6.1% through the year. The rise this quarter was driven by Rents (+2.5%), Other financial services (+2.5%) and New dwelling purchase by owner-occupiers (+1.0%).Discretionary goods and services rose 0.8% through the quarter, and 5.9% through the year. The rise this quarter was driven by International holiday travel and accommodation (+6.2%), Takeaway and fast foods (+2.7%), and Restaurant meals (+1.0%)

The Trimmed mean and the Weighted median provide measures of underlying inflation. These measures reduce the impact of irregular or temporary price changes in the CPI. For more information see Underlying Inflation Measures: Explaining the Trimmed Mean and Weighted Median. In the June 2023 quarter:

The trimmed mean rose 0.9%, following a rise of 1.3% in the March 2023 quarter.Over the past twelve months, the trimmed mean rose 5.9%, following a rise of 6.6% over the twelve months to the March 2023 quarter.The weighted median rose 1.0%, following a rise of 1.3% in the March 2023 quarter.Over the past twelve months, the weighted median rose 5.5%, following a rise of 5.9% over the twelve months to the March 2023 quarter.

Seasonal adjustment is the process by which regular, calendar related effects are removed from the original series.

All groups CPI seasonally adjusted rose 0.9% for the quarter.

At the All groups level, the CPI rose in all eight capital cities, ranging from 0.4% in Hobart to 1.2% in Darwin.

Rents (+2.8%).Other financial services (+2.9%).Furniture (+7.6%).International holiday travel and accommodation (+5.1%). Domestic holiday travel and accommodation (-7.5%).

Sydney recorded an annual rise of 6.6%.

Other financial services (+2.4%).Rents (+2.0%).International holiday travel and accommodation (+5.8%).New dwelling purchase by owner occupiers (+1.3%).Domestic holiday travel and accommodation (-8.8%).

Melbourne recorded an annual rise of 5.6%.

Rents (+2.8%).International holiday travel and accommodation (+7.2%).Furniture (+7.6%).Other financial services (+2.9%).Domestic holiday travel and accommodation (-5.9%).

Brisbane recorded an annual rise of 6.3%.

New dwelling purchase by owner occupiers (+2.4%).Rents (+2.5%).International holiday travel and accommodation (+6.6%).Takeaway and fast foods (+2.9%).Domestic holiday travel and accommodation (-5.7%).

Adelaide recorded an annual rise of 6.9%, the largest rise of all capital cities.

International holiday travel and accommodation (+8.4%).Takeaway and fast foods (+3.6%).Rents (+2.7%).Other financial services (+1.9%).Domestic holiday travel and accommodation (-5.8%).

Perth recorded an annual rise of 4.9%. Hobart recorded the smallest rise of all capital cities.

International holiday travel and accommodation (+7.6%).Takeaway and fast foods (+2.2%).Furniture (+4.5%).Vegetables (+3.9%).Domestic holiday travel and accommodation (-9.6%).

Hobart recorded an annual rise of 5.5%.

International holiday travel and accommodation (+6.4%).Other financial services (+3.2%).Spare parts and accessories (+4.4%).Rents (+1.4%).Accessories (-5.2%).

Darwin recorded an annual rise of 5.3%.

New dwelling purchase by owner occupiers (+2.2%).Restaurant meals (+3.3%).Other financial services (+2.6%).International holiday travel and accommodation (+4.2%).Domestic holiday travel and accommodation (-4.5%).

Canberra recorded an annual rise of 5.7%.

, May 2023, April 2023, October 2021, May 2021, March 2021, November 2020, March quarter 2020, December 2019, April 2019 (Chief Economist Series), October 2018 (Chief Economist Series), September quarter 2018, September quarter 2017, September quarter 2017, March quarter 2017, March quarter 2017, March quarter 2017, December quarter 2016, September quarter 2016, December quarter 2015

New data source:

As outlined in the ABS’ information paper, from July 2022 the ABS has incorporated a new data source to measure the Rents series in the monthly CPI indicator and the quarterly CPI.The Rents series prior to July 2022 was measured on a quarterly basis using a survey of approximately 4,000 rental properties collected directly from real estate agents.The new dataset obtained by the ABS is updated monthly and includes approximately 480,000 rental properties that are used to produce the CPI Rents series across all capital cities.

What the CPI Rents series measures:

The CPI measures the prices being paid by households for the goods and services that they consume during a particular measurement period (e.g. month or quarter). In the case of rents, this means that the CPI measures the current ‘price’ being paid by all types of households that rent including new and existing renters who are renting privately or from the government. Measures of rental inflation that are based on newly advertised rental properties only measure changes in the asking or advertised price of rental properties for new tenancies. At any given time, newly advertised tenancies represent a relatively small proportion of properties being rented in Australia. The Rents series used for the CPI measures actual rents paid rather than advertised prices.Advertised rents tend to reflect the dynamic end of the rental market where the price change for new tenancies can be more volatile than that being experienced by renters with existing tenancy agreements.Price changes observed in advertised rents series are expected to eventually flow through to the CPI Rents series. However, the small share of rental properties leased to new tenants each quarter means that it takes some time for changes in advertised rents to impact price change observed in the CPI Rents series.A useful analogy is to think about a bathtub of water. The water in the tub represents all rents being paid by households, while the water entering the tub from the tap represents new rental agreements. The CPI series is measuring the overall temperature of the bathtub whereas an advertised rents series measures the temperature of the water flowing into the tub. It will take some time for the flow of water to change the overall temperature of the water in the bathtub.

Price indexes published by the Australian Bureau of Statistics (ABS) provide summary measures of the movements in various categories of prices over time. They are published primarily for use in Government economic analysis. Price indexes are also often used in contracts by businesses and government to adjust payments and/or charges to take account of changes in categories of prices (Indexation Clauses).

  • Sets out a range of issues that should be taken into account by parties considering including an Indexation Clause in a contract using an ABS published price index.
  • The page has answers to a number of common questions to do with price indexes and the Consumer Price Index in particular.
  • This release previously used catalogue number 6401.0.

: Consumer Price Index, Australia, June Quarter 2023