Are you a student or planning on becoming one?

The Big Kahuna policy means that if you’re 18 to 20 years old you would receive an unconditional cash payment from the government (a government ‘transfer’) of $8,500 (with no tax to pay on it) every year, paid fortnightly into your account. This payment is called the “Unconditional Basic Income” or UBI and is not conditional on your studying, or meeting any criteria other than residency.

On our calculations a UBI of $8,500 will be enough for many to live on while studying (but we made no allowance for ‘luxuries’ and assume you have some paid work too).  Under the Big Kahuna there’s no need to get into debt just because you want to learn. If you’re older, the payment would be higher – at $11,000 a year (with no tax to pay).

Secondly, it is likely that the tax you pay on any wages would be higher than you pay now. But this is more than compensated by the UBI so the overall package still means it is possible to study without getting into debt.

If all students received $8,500 net a year, those who currently borrow to meet living costs would no longer need to, and for students who live cost-free during the holidays, the UBI would eliminate the need for a student loan. For independent students who incur living costs all year, a loan would be needed to cover course costs only – roughly half of what they might currently borrow.

Under the current scheme, only those who qualify for an allowance and live cost-free during the holidays can avoid getting into debt.