The Albanese Labor Government has introduced legislation to slash student debt by 20 per cent, delivering long-awaited cost of living relief to over three million Australians.
Prime Minister Anthony Albanese said in a statement, “We promised cutting student debt would be the first thing we did back in Parliament – and that’s exactly what we’re doing.”
“Getting an education shouldn’t mean a lifetime of debt. No matter where you live or how much your parents earn, my Government will work to ensure the doors of opportunity are open for you.”
This sweeping move will wipe more than $16 billion in outstanding student loans, including HELP, VET Student Loans, Australian Apprenticeship Support Loans, Student Startup Loans, and other student debts — all backdated to 1 June.
Education Minister Jason Clare added, “This is a big deal for 3 million Australians, in particular, a lot of young Australians. Just out of uni, just getting started, this will take a weight off their back.”
“It will also cut their annual repayments. For someone earning $70,000 a year, it will cut the amount they have to repay every year by $1,300. That’s real help with the cost of living. It means more money in your pocket, not the government’s.”
In addition to the 20 per cent cut, the legislation also lifts the minimum income threshold for loan repayments from $54,435 to $67,000, and reduces the minimum repayment amounts. Someone earning $70,000 will see their annual repayments shrink by $1,300.
Minister for Skills and Training Andrew Giles also welcomed the move, “From speaking with students at TAFEs across the country, I know that cost can often be a barrier to Australians pursuing an apprenticeship or qualification.”
“This bill will deliver cost of living relief to almost 280,000 students in the VET sector – cutting half a billion dollars of student debt from this group alone.”
These measures build on previous reforms to the indexation formula, which have already erased over $3 billion in student debt. Altogether, the Albanese Government is set to cut close to $20 billion in student loans.
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