[Emmet]

Any Aussies in here!? What are some options for a 529 or college fund equivalent down there? Have a friend living in Brisbane

I’m looking for guidance on education savings plans in Australia. I know that the 529 plan is popular in the U.S. for saving for college, but what similar options exist in Australia?

I’d love to hear about any tax-advantaged accounts, investment strategies, or government-backed programs that help families save for university expenses.

If you’ve had experience with specific plans or know of the best way to go about setting one up, please share!

Any advice on fees, flexibility, or potential growth would be really helpful.

Thanks in advance for your insights!

[Jasmine]

I don’t think there is an equivalent. My memory from university is that people cash flow what they can, and then use HECS-HELP for the rest (as others have commented).

We don’t have the predatory student loan debt issue like in the US (or rather it seems predatory sometimes from the way it gets described?).

The Australian Federal Govt’s HECS-HELP is pretty reasonable in comparison.

[Tanya]

The education costs aren’t crazy here. We don’t have anything set aside specifically, just pay as you go

Or the kids can have a HECS debt.

[Amy]

We don’t have any such plan, our tertiary costs have increased but not like yours have. We get access to a HECS/HELP and the balance just gets indexed at CPI each year.

And some government subsidies depending on what you study.

Encourage your friend to cashflow as much as possible and avoid hecs/help debt as it does impact borrowing capacity for a mortgage if that’s of concern.

[Brendan]

Your friend could consider a product called an Investment bond. I only know of one provider – Generation Life (there might be others, I’m just not familiar with them).

It’s a tax effective long-term vehicle to save money for a child.

He/she can invest and pay no tax on withdrawals after 10 years. Investment options include low cost index funds like Vanguard.

There are other requirements but that’s it in a nutshell

[Author]

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