The Albanese Labor Government has today cut all student debts by 20 per cent.
We are wiping more than $16 billion in debt for more than three million Australians.
Our number one focus is continuing to deliver cost of living relief for the Australian people.
Cutting student debt by 20 per cent will ease pressure on workers and students across the country.
For someone with the average debt of $27,600, this will see $5,520 wiped from their outstanding Higher Education Loan Program (HELP) loans.
Backdated to 1 June, this is lifting the burden for Australians with a student debt – including all HELP, Vocational Education and Training (VET) Student Loans, Australian Apprenticeship Support Loans, Student Startup Loans, and other student loans.
In addition to cutting student debt by 20 per cent, we are raising the minimum amount before people have to start making repayments from $54,435 to $67,000 and reduces minimum repayments.
For someone earning $70,000 it will reduce the minimum repayments they have to make by $1,300 a year.
This builds on our reforms to fix the indexation formula, which has already cut more than $3 billion in student debt.
This means, all up, the Albanese Labor Government will cut close to $20 billion in student debt for more than three million Australians.
The ATO will now begin the work of processing the cut.
This will take a little while but the 20 per cent cut to student debt is guaranteed.
Most people will see their balance reduced before the end of the year, backdated to June.
Quotes attributable to Prime Minister Anthony Albanese
“This is another way my Government is continuing to deliver cost of living relief to Australians.
“We promised cutting student debt would be the first thing we did back in Parliament – and that’s exactly what we've done.
“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.”
Quotes attributable to Minister for Education Jason Clare
“We promised we would cut your student debt by 20 per cent and we have delivered.
“This is a big deal for 3 million Australians.
“This will save millions of Australians thousands of dollars.
“The average student debt today is $27,600, this will cut that debt by $5,520.
“Just out of uni, just getting started, this will take a weight off their back.
“We are also cutting 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.”
Quotes attributable to Minister for Skills and Training Andrew Giles
“At the election, students and apprentices sent a resounding message of support for our Government’s plan to cut student debt by 20 per cent.
“Now, we’ve delivered on this commitment, making a real difference to the lives of students and apprentices – including nearly 300,000 TAFE students and apprentices.
“The Albanese Government is backing Australians with cost of living relief, and backing them to pursue an apprenticeship or qualification that sets them up for their future.”