A re-elected Albanese Labor Government will cut a further 20 per cent off all student loan debts, wiping around $16 billion in student debt for around three million Australians.
University students and graduates will see an average of $5,520 wiped from their HECS debt and new data has revealed how each state and territory is expected to benefit.
Labor has also promised students cost-of-living relief under changes to repayment arrangements.
The minimum threshold for repayments would be lifted by more than $10,000 a year, from about $54,000 to $67,000.
For someone on an income of $70,000 this will mean they will pay around $1,300 less per year in repayments.
These changes will provide significant relief to Australian students and workers with a student loan debt.
20 PER CENT STUDENT DEBT CUT BY STATE AND TERRITORY
Source: https://data.gov.au/dataset/ds-dga-ce4c58ec-c930-4a05-8a37-f244d960e5f8/details?q=
This builds on our reforms to fix the student loan indexation formula, which has cut around $3 billion in student debt.
Labor has already delivered this change with the majority of those with a student debt receiving their credit or refund from the ATO in December last year.
This means, all up, the Albanese Labor Government will cut close to $20 billion in student loan debt for more than three million Australians.
These changes apply to HELP, VET Student Loan, Australian Apprenticeship Support Loan and other student support loans.
We're helping with the cost of degrees and the cost of living.
Australians can calculate how much their student debt could be cut here.
Quotes attributable to Minister for Education, Jason Clare:
"This is a game-changer for the more than three million Australians. If Labor wins the next election, we will wipe around a further $16 billion from all Australians with a student debt.
"Last year we wiped $3 billion in student debt and this is the next step. All up, it means we are wiping close to $20 billion in student debt.
"The Liberals called these changes 'terrible'. Peter Dutton wants Australians to struggle with more debt, we want to cut it.
"The next election is a choice between building Australia's future or taking Australia backwards.
"Only a Labor Government will make these changes to help us build a better and fairer education system."
Quotes attributable to Assistant Minister for Education, Anthony Chisholm:
"While Peter Dutton offers no plan to help students and workers with the cost of living, Labor isn't just offering relief now, we've put forward a plan to go further.
"We said we'd create a better and fairer education system, our HECS debt relief and changes to how indexation is calculated are a major part of this plan.
"Wiping a further $16 billion in student debt will bring millions of current and former students a bit closer to paying off their student loans.
"But we're not just cutting HECS debts, we've cut taxes, we've cut the cost of childcare and we've cut the cost of medicines too.
"When it comes to the cost of living, the Albanese Labor Government has proven that we'll do all we can to take the pressure off those doing it tough."
