The Albanese government is proposing that HECS debts be excluded from loan serviceability assessments if the debt will be paid off soon.

Perth Today host Oliver Peterson was baffled by this decision, questioning, 

“Surely this is something that is ultimately going to drive up house prices.”

Oli invited Scott Phillips, The Motley Fool’s Chief Investment Officer, to weigh in on the proposal, and he agreed that nothing would be achieved by the plan.

“The reality is, if the only way you can get that loan is by pretending the debt doesn’t exist, as soon as you get the loan, you’ve still got to pay the debt back. We’re actually setting young people up for a massive fail here.”

Click PLAY to hear the issue.