What's The Best Way to Pay off HECS and Earn Qantas Points?

Lrandom user on 28/02/2024 - 23:21
Last edited 29/02/2024 - 09:21 by 1 other user

Hey all, coming to that time of year where some of must decide to either pay off some or all of our HECS debt before the indexation hits.

I've done some research but end up getting lost with all that's on the internet and what is still accurate. My goal is of course to score some Qantas points by paying off some of my debt, but by the looks of it, the only option to pay off is using an app called Sniip and that comes with 1%+ of surcharge fees and also seems like it doesn't support all credit cards (not sure if fact but from what i've seen online they only support certain cards, if this is untrue please feel free to correct me). Beemit used to be an option but they stopped supporting Credit cards some time back according to this thread. Not much else left but again would like to hear from other bargain savvy people.

TLDR: Whats the best way to pay off HECS and earn Qantas points?

Thanks all.

Financial Frequent Flyer HECS-HELP Qantas Frequent Flyer Reward Points

Comments

  • avoidfullprice on 28/02/2024 - 23:31

    Coming to that time of year where some of must decide to either pay off some or all of our HECS debt before the indexation hits.

    Thought that is on 1 June. Has that changed?

    The indexation is based on March year on year CPI which gets published in April. You have time until May to decide and act

    TLDR: Whats the best way to pay off HECS and earn Qantas points?

    Depending on your balance, sign up offer would be a better avenue than Sniip or Beemit as you mentioned. The return might just cover the CC surcharge. Mastercard attracts 0.72% surcharge according to ATO

    • johninmelb on 29/02/2024 - 07:54
      +2

      Many credit cards do not give QF points for Government spend. So this transaction may not earn points. I use Sniip for all my government spending, e.g, water rates, council rates, car rego etc. My Amex Ultimate QF card only gives half a point for Government spend, so for me the small surcharge is worth it to get the full 1.25 points per dollar on these large transactions. YMMV.

    • avoidfullprice on 29/02/2024 - 08:37

      The indexation is based on March year on year CPI which gets published in April. You have time until May to decide and act

      Just punched in the numbers while on break: if March quarter CPI is under 1.2%, we are looking at around 4.5-4.8% indexation this year.

    • random user on 29/02/2024 - 23:16

      hasn't changed but i thought planning earlier the better.

  • SmiTTy on 28/02/2024 - 23:48
    +6

    I use zippay for payments to ato
    No fees as long as you pay off by end of month, use cc for points
    Limit to 1k transactions but that's fine - pay 1k, instantly pay off with the cc then rinse and repeat

    You could give that a go with hecs

    • Gdsamp on 29/02/2024 - 10:41

      Insane manoeuvre

    • bargaingalor3 on 13/03/2024 - 17:49

      I paid part of my strata at the beginning of this month and I was trying to pay the rest but I got an error. Spoke with customer support and they said strata payment is considered as "money transfer" so it is a restricted transaction. Have you had any issues with your ATO payments or have you tried strata payment lately?

      • SmiTTy on 13/03/2024 - 18:47

        I haven't done strata. But never had issues with ATO or school fees which are paid via bpay to them (using my cc)

  • Adredocto on 29/02/2024 - 06:22
    +2

    Cheapest loan you will ever have. Why pay off early when you can make your money work for you elsewhere?

    • AustriaBargain on 29/02/2024 - 06:52
      -1

      Well CPI is raising pretty fast at the moment. But yeah you'd think there would be fairly safe investments that can beat CPI.

      • avoidfullprice on 29/02/2024 - 07:41
        +2

        Well CPI is raising pretty fast at the moment.

        CPI is high but actually been slowing down for past couple quarters. Here are the quarterly CPI changes from ABS relevant to this year’s indexation

        Jun-22 1.8%
        Sep-22 1.8%
        Dec-22 1.9%
        Mar-23 1.4%
        Jun-23 0.8%
        Sep-23 1.2%
        Dec-23 0.6%

        HECS is cheaper than monthly compounded personal loan and some mortgages. What stinks is the repayment timeframe is much shorter if your income is high above the threshold

        • brendanm on 29/02/2024 - 08:28
          +5

          What stinks is the repayment timeframe is much shorter if your income is high above the threshold

          Yeah having to pay back an interest free loan that allowed you to go on to higher education really sucks.

          • avoidfullprice on 29/02/2024 - 08:31

            @brendanm: Yeah that’s not what I said

            • brendanm on 29/02/2024 - 08:34
              +4

              @avoidfullprice: What stinks then? Having to pay back 10% of your income for your interest free loan when you are making over $150k a year, due solely to having access to that interest free loan?

              • avoidfullprice on 29/02/2024 - 18:43

                @brendanm:

                What stinks then?

                Exactly what you quoted me: you have shorter timeframe to pay back. If you sign up a 10 year loan, you get 10 years to pay back. With HECS, higher the income, the earlier you required to payback.

                I never said it stinks because you have to pay back.

                • brendanm on 29/02/2024 - 19:21

                  @avoidfullprice:

                  With HECS, higher the income, the earlier you required to payback.

                  Oh the humanity! Someone that's able to make over $150k a year had to pay the taxpayer back at a higher rate, after using the taxpayer funded HECS scheme to get to that $150k+ pay level.

                  Just pay the lot off, then you don't have anything taken out of your pay, simples.

        • RockyRaccoon on 29/02/2024 - 08:50
          +1

          A few points to those above

          Some here have high paying jobs that dont require a HECS debt.

          @avoidfullpriceInflation.
          dont forget that while its slowing, its STILL high. Something travelling 60KPH slowing by 10% is still more dangerous than one travelling 10KPH increasing by 10%. But Stats dont lie do they!

          @AustriaBargain and DingoBilly
          Safe investments are also taxed

          • brendanm on 29/02/2024 - 09:37

            @RockyRaccoon:

            Some here have high paying jobs that dont require a HECS debt.

            What does that have to do with anything?

          • avoidfullprice on 29/02/2024 - 18:41

            @RockyRaccoon:

            dont forget that while its slowing, its STILL high.

            So what I said:

            CPI is high but actually been slowing down for past couple quarters.

    • DingoBilly on 29/02/2024 - 07:48
      +1

      You're being downvoted but it is true.

      You'll pretty much always make more investing it than paying off your hecs debt.

    • SnowDragon on 29/02/2024 - 09:21
      +1

      I paid the remaining $5k off mine early last year because the indexation rate was 7.1% in 2023.

      What safe bets could I have made to make more than the $355 I saved paying it early?

      • sumyungguy on 29/02/2024 - 09:59

        Concessional super contribution

  • payless69 on 29/02/2024 - 10:56
    -1

    Hang around the lounges just in case there is free caviar!

  • avoidfullprice on 29/02/2024 - 18:53

    So OP, to clarify, do you want:

    1. Max points per $1 of surcharge you pay, or
    2. Max points regardless of surcharge you pay?

    What is your goal in terms of “best”?

    • random user on 29/02/2024 - 23:15

      if there was an option without surcharge that would be ideal, but i realize i'd be asking too much. so i'd be looking for no.2 max points regardless

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