Liberal backbencher pushes for HECS changes
The Senator revealed she had pushed for a 'HELP loan inflation guarantee' at the last election, in an effort to one-up the government's 20 per cent student debt reduction.
She will now advocate for an indexation amendment to the bill, despite Liberal Leader Sussan Ley indicating she would be willing to wave through Labor's plan as part of efforts to appeal to young voters.
The HECS indexation rate in the past four years has been above 3 per cent.
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A one-off HECS debt reduction for university students is all but set after the federal opposition confirmed it would back the proposal. Laws to cut 20 per cent off the HECS bill for students passed the House of Representatives on Tuesday, which would slash $5500 from the average debt. The proposal was a major Labor election commitment and the first legislation introduced to the new parliament. Despite the coalition saying during the campaign it would not support the debt cut, new leader Sussan Ley said the opposition would not stand in the way. "We do care about students who are struggling with the cost of living, and I said we'd be positive where we can be and critical where we need to be," she told reporters in Canberra on Tuesday. "Underpinning this student debt relief bill has been a massive cost-of-living crisis for Australia's student so students, so we will be holding (the government) to account on that without any shadow of a doubt." The laws now move to the Senate and are set to pass parliament by the end of the week. Prime Minister Anthony Albanese said the measure would be cost-of-living relief to more than three million university students. "Education is the most powerful weapon we have against disadvantage. It is the best investment that we can make in a stronger, more productive and more skilled economy," he told parliament. "Student debt can hang over young Australians. It can affect how much they can borrow for a home. It impacts decisions they make about family and career." The laws will also raise the income threshold for minimum HECS debt repayments. Education Minister Jason Clare said the reduction will "take a weight off the shoulders of three million Australians".
Sky News AU
an hour ago
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Opposition to back Labor's student debt bill
Millions of Australians are closer to getting thousands wiped off their student debt after MPs passed a major Labor Bill. The Albanese government's signature student debt-slashing Bill has passed through the House of Representatives, bringing touted relief for millions of graduates one step closer. While Labor could have passed the Bill with its massive 94-seat majority, the Coalition also backed it after Sussan Ley confirmed the opposition would not stand in the way. But the Coalition's guarantee is crucial to getting it through the Senate, where Labor does not hold a majority and the Greens have threatened to stall it in a bid to attach amendments. — Australian House of Representatives (@AboutTheHouse) July 29, 2025 Fronting media before the vote, the Opposition Leader said she still had concerns over the Albanese government's broader response to the cost-of-living crisis, but that 'we will not oppose the government's proposal'. 'And I want to say this to students today – remember this moment,' Ms Ley told reporters. 'Because Anthony Albanese says life will be easier under him, costs will come down, everything will get cheaper. 'Remember this moment because, when I have spoken to young people across the country, they have talked about escalating costs, in rent, electricity, any groceries, in everything a student needs to spend money on. 'It has been really tough.' She said added that 'underpinning this student debt relief Bill has been a massive cost-of-living crisis for Australia's students' and vowed to hold the government to account. 'But today, we agreed to not oppose the Bill as it makes its way through the parliament,' Ms Ley said. 'We do care about students who are struggling with the cost of living and said we would be positive where we can be and critical where we need to be.' Labor's Bill was central to its youth-focused re-election pitch. It would cut student debts by 20 per cent for some three million graduates or wipe off about $5500 from the average debt. The changes would also raise the repayment threshold for student loans from $54,000 to $67,000. Earlier, Education Minister Jason Clare told his Labor colleagues that he hoped the Bill would pass before question time. Originally published as MPs pass Labor's student debt relief
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Former Aussie star's relationship with wife suddenly questioned
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