Teal MP Kylea Tink says the government must shift the indexation date for HECS payments to November 1 to remedy a “ridiculous” and “egregious” tax office rule that means graduates are copping indexation increases to portions of their study debts they have already repaid.

The Australian Taxation Office applies indexation to loans on June 1 but does not process loan repayments until after workers’ tax returns are processed, even though they are taken out of their salaries in real time.