Labor to Introduce Bill to Cut Student Debt by 20 Percent in 2nd Term

‘The prime minister’s already said the first legislation will be about dropping that HECS debt on students,’ Tanya Plibersek.

Minister for Environment Tanya Plibersek and government members and senators arrive at a press conference at Parliament House in Canberra, Australia, on Nov. 30, 2023. AAP Image/Mick Tsikas

The first thing on the agenda for the Albanese government as it begins its second term is to cut student debt by 20 percent.

Senior Labor frontbencher Tanya Plibersek said it will be “straight back to work” for ministers, with the top priority being a bill to reduce HECS loans with taxpayer funds.

“The prime minister’s already said the first legislation will be about dropping that HECS debt on students. And longer term, we really want to make sure we return people’s faith in us,” Plibersek told Seven’s Sunrise this morning.

“We’ll continue to work to make sure that we’ve got great services that people can rely on, that we deal with the international challenges that we’ve got.”

Reducing student loan debt was one of Labor’s key election promises. Now with an increased majority and a weakened opposition in parliament, Labor will face fewer hurdles.

According to official AEC results, Labor has secured 81 seats so far, while the Coalition is trailing with just 39, its weakest performance to date.

Boost for Young Australians

Slashing the HECS debts of millions of students was framed as a key reset strategy for Labor to garner support from younger voters.

Under the plan, the government has proposed a 20 percent reduction in student debts, a measure expected to apply to $16 billion worth of loans if Labor wins the next election.

That means an average HECS debt of $27,600 would be reduced by about $5,500, affecting 3 million people.

There were also plans to lift the minimum salary threshold for loan repayments from about $54,000 to $67,000.

“This is a game-changer for the more than 3 million Australians,” Minister for Education Jason Clare said at the time.

He added that someone earning $70,000 a year would save around $1,300 annually in repayments.

Opposition Had Labelled The Plan ‘Elitist’

However, the proposal drew criticism from the opposition, which had committed to slashing it as an election promise.

Shadow Minister for Education Sarah Henderson called the measure economically reckless and unfair.

She said the discount was a one-off and would mostly benefit those with multiple degrees, while providing no support for new students or those who had already paid off their loans.

Henderson told The Epoch Times earlier in an email that the policy was “elitist” and failed to address the root causes of rising education costs.

Lily Kelly contributed to this article.