Lib Senator goes rogue on key Labor Bill
Central to Labor's re-election pitch, it was the first piece of legislation the Albanese government introduced when parliament resumed last week.
NewsWire understands it did so confident the Coalition would back it in, despite opposition posturing that it was not guaranteed.
Sussan Ley and her education spokesman Jonno Duniam have since publicly signalled they would pass it as is, making Senator Henderson yet another Coalition backbencher to break from the party line on a key issue. Former opposition education spokeswoman Sarah Henderson is pushing for major changes to Labor's student debt-slashing bill. Martin Ollman / NewsWire Credit: News Corp Australia
'This is a proposal for a HECS loan inflation guarantee, so effectively saying that HECS should not be above 3 per cent indexation,' Senator Henderson told Sky News on Monday.
'We've seen student debt completely run out of control under Labor.
'It's been an absolute fiasco, which is why they brought forward their student debt discount.
'At one stage, it was close to 16 per cent increase, and even after the change in indexation, it's still 14.3 per cent up since Labor was elected.'
Senator Henderson was opposition education spokeswoman under Peter Dutton but banished to the back bench in the new Coalition front bench under Ms Ley.
She said she put her indexation policy forward before the May 3 election but it ended up on the 'cutting room floor' – a decision she labelled 'regrettable'.
'I did actually propose this in the lead up to the last election,' Senator Henderson said.
'I've been talking to my colleagues, I've received a very positive response.
'So I'm hoping that we'll go through our ordinary party room processes, but I'm very much hoping that this amendment will get the support not just of the Coalition, but also of the parliament.' Opposition Leader Sussan Ley has signalled the Coalition will back Labor's student debt-slashing Bill as is. Martin Ollman / NewsWire Credit: News Corp Australia
However, she said the opposition should not vote against Labor's Bill.
The Bill would cut student debts by 20 per cent for some 3 million graduates, or wipe off $5500 from the average debt.
The changes would also raise the repayment threshold for student loans from $54,000 to $67,000.
Unless members of the Coalition back her amendments, Senator Henderson will have a hard time getting her changes off the ground.
The Greens have ruled out working with her, with the minor party's education spokeswoman Mehreen Faruqi saying on Monday that the 'Coalition and Sarah Henderson are no friends of higher education'.
Senator Faruqi has blasted the Bill for not going far enough.
But with support from the Coalition, whether the Greens back it matters little to getting through the Upper House.
Education Minister Jason Clare introduced the legislation in the House of Representatives last week.
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Defence, economic partnerships and security will be on the agenda for Prime Minister Anthony Albanese when he meets his New Zealand counterpart. Mr Albanese will spend the weekend in Queenstown for the annual Australia-New Zealand leaders meeting with Prime Minister Christopher Luxon. It will be the second time across the Tasman for Mr Albanese, who last visited in 2023 to meet with then-Labour prime minister Chris Hipkins. Mr Albanese and Mr Luxon represent opposite ends of the political spectrum, but both have affirmed their nations share a "deep and enduring bond" as friends, neighbours and allies. "I look forward to discussing how we can work together to build on our single economic market, modernise the rules-based trading system, deepen our alliance, and back our Pacific partners," Mr Albanese said. The single economic market was established in 2009 to grow trade and deepen investment links between the two countries, making it easier for trans-Tasman business. 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