Australia wipes $10 billion off student loans, targeting cost of living relief
SYDNEY (Reuters) -Australia's parliament on Thursday passed a law to cut student loans by 20%, wiping more than A$16 billion ($10.31 billion) in debt for 3 million people, and fulfilling a key election promise to help mitigate the rising cost of living.
The law is the first passed by Prime Minister Anthony Albanese's centre-left Labor Party since being re-elected in May with one of the country's largest-ever majorities.
'We promised cutting student debt would be the first thing we did back in parliament – and that's exactly what we've done,' Albanese said in a statement.
'Getting an education shouldn't mean a lifetime of debt.'
Education Minister Jason Clare said the measure would help 'take a weight' off the backs of young people.
'Young Australians don't always see something for them on the ballot paper, but they did this year and they voted for it in their millions,' he said at a press conference.
'And we're repaying now the trust that these young Australians have placed in us.'
Millennials and Generation Z made up 43% of the 18 million people enrolled to vote in Australia's May general election, outnumbering Baby Boomers.
Seizing on the generational shift, Labor made cutting student debt a key election promise, framing it as a measure to ease living costs and tackle intergenerational inequality.
The government said reducing student loans by one-fifth was equivalent to more than A$16 billion in debt relief for three million Australians.
It would mean a university graduate with an average loan of A$27,600 would have A$5,520 wiped, the government said, adding the changes would be backdated from June 1, 2025, before the loans were indexed 3.2% for inflation.
The law would also raise the minimum repayment threshold from an income of A$54,435 to A$67,000, reducing the amount low-income earners would have to pay.
($1 = 1.5516 Australian dollars)
(Reporting by Christine Chen in Sydney; Editing by Kate Mayberry)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 minutes ago
- The Star
Datadog forecasts upbeat third-quarter results on increased cloud security adoption
(Reuters) -Cloud security firm Datadog forecast third-quarter revenue above Wall Street estimates on Thursday, signaling growing demand for its services as enterprises ramp up investment in artificial intelligence. Shares of the New York City-based company surged more than 10% in premarket trading. Businesses are accelerating the adoption of AI and cloud technologies, driving increased demand for Datadog's suite of products that monitor and secure cloud-based applications to ensure performance, reliability, and security of these systems. The company benefits from the broader migration to cloud infrastructure, which has created new requirements for real-time monitoring and analytics. Datadog's platform, used by clients including Samsung, NASDAQ and Comcast, enables organizations to monitor and analyze their digital operations, helping them to identify and resolve technical issues. The company said it showcased 125 new innovations to "help customers observe, secure, and act on their complex cloud environments and AI tech stacks." Datadog expects third-quarter revenue between $847 million and $851 million, above analysts' estimates of $819.9 million, according to data compiled by LSEG. The company expects adjusted profit per share between 44 cents and 46 cents, above estimates of 42 cents. For the second quarter, it posted revenue of $827 million, beating estimates of $791.1 million. On an adjusted basis, the company earned 46 cents per share compared with the estimates of 42 cents per share. (Reporting by Kritika Lamba in Bengaluru; Editing by Shailesh Kuber and Harikrishnan Nair)
The Star
3 minutes ago
- The Star
Software provider EPAM lifts annual forecasts on AI-driven demand
Figurines with computers and smartphones are seen in front of EPAM logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration (Reuters) -EPAM Systems raised its annual revenue and profit forecasts on Thursday, encouraged by strong demand for its software services as enterprises continue to invest heavily in artificial intelligence technologies. Shares of the company, which provides a wide range of IT services including consulting, cloud and AI transformation and software engineering, rose more than 5% in premarket trading after it also topped estimates for second-quarter results. Despite global economic tensions companies are still spending on software services to ramp up their AI offerings and integrate AI within their operations, driving demand at EPAM. EPAM saw strong demand from clients in industries such as financial services, software, healthcare and consumer goods in the quarter, posting revenue increases across major industry verticals, as well as across geographies. "As our clients prioritize their AI-readiness and preparatory actions, they are increasingly turning to us to build out their data and AI foundation," said Chief Revenue Officer Balazs Fejes, who is taking over as CEO from September. Newtown, Pennsylvania-based EPAM now expects annual revenue growth at between 13% and 15%, up from its previous forecast of 11.5% to 14.5%. Analysts on average were expecting 2025 revenue to increase 13.4%, according to data compiled by LSEG. EPAM projected adjusted earnings per share in the range of $10.96 to $11.12 for the year, compared with its prior forecast of $10.70 to $10.95. Analysts were estimating $10.85 per share. The company's third-quarter revenue forecast of $1.37 billion to $1.38 billion also came in above estimates. Adjusted profit is expected to be in the range of $2.98 to $3.06 per share, also ahead of market expectations. For the second quarter ended June 30, EPAM's revenue jumped 18% to $1.35 billion, beating estimates of $1.33 billion. Excluding one-off items, per-share profit was $2.77, above estimates of $2.61. (Reporting by Deborah Sophia in Bengaluru; Editing by Maju Samuel)
The Star
29 minutes ago
- The Star
Brazil's fish industry, hit with a 50% US tariff, seeks a lifeline
SAO PAULO (Reuters) -Brazil's seafood industry is sounding the alarm to pressure the federal government for immediate relief as it grapples with mounting fears of job losses and bankruptcies as a result of the 50% tariffs the U.S. imposed on most Brazilian exports on Wednesday. The new levies made the future highly uncertain for Brazilian fishing companies, which sell close to $400 million worth of seafood to the U.S. a year, or about 70% of the sector'sannual exports. "This situation renders our business unviable," said Arimar França Filho, the head of a fishing union in Brazil's northeastern state of Rio Grande do Norte. "While the domestic market can absorb some of our production, it cannot take it all, and we cannot have all our boats fishing solely for Brazil. "The fish industry is calling for an emergency credit line of 900 million reais ($165 million) to navigate the new economic climate. It is also pushing the government to deepen negotiations aimed at reopening the European market, which has been closed to Brazilian fish exports since 2017. Even as producers scrambled to get their goods to the U.S. ahead of the tariffs that hit on Wednesday, some fishing boats had already been sidelined to prevent excess production, the union leader said. Eduardo Lobo, president of the lobby group Abipesca, said that the sector has no other short-term alternative. "Without credit, it's impossible to maintain inventories, honor commitments, and preserve jobs," he warned in a statement, estimating that the tariffs could affect some 20,000 jobsif authorities fail to respond quickly. "There could be giant unemployment, not tomorrow," said Attilio Sergio Leardini, founding partner at Leardini Pescados, one of Brazil´s largest suppliers, which exports to several countries, including the U.S. "But maybe in six months, in a year, some segments may be halting production." Leardini is most worried about premium products – such as lobster, tuna, and croaker fish – which are highly sought after by the U.S. market but are unlikely to find enough buyers in Brazil, particularly at the prices American consumers pay. Many fishermen are desperate, believing they won't find consumers to pay prices that support a reasonable standard of living for their families. "But as we know, it's not in our control," said França Filho, the union leader. Fishermen, he predicted, will see reduced prices starting this week, while Brazilian consumers are likely to find cheaper fish in the supermarket aisle within a month. That much was happy news to Michel de Oliveira França, the owner of a fish shop in the city of Niteroi, in Rio de Janeiro. "The cheaper, the better," he said. "The tendency is to sell more and more." (Reporting by Luciana Magalhaes; Additional reporting by Janaina Quinet in Niteroi; Editing by Sandra Maler)
