The Albanese Labor Government is today introducing legislation to cut 20 per cent off all student debts.
This will wipe 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 around $5,520 wiped from their outstanding Higher Education Loan Program (HELP) loans.
Backdated to 1 June, it will reduce 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, the legislation raises 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.
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’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.”
Quotes attributable to Minister for Education Jason Clare:
“We promised we would cut your student debt by 20 per cent and we are delivering.
“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.”
Quotes attributable to Minister for Skills and Training Andrew Giles:
“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.
“Our Government is focused on reducing the barriers to further study and training, so that every Australian can get the skills they need for secure, well-paid jobs.”