
Millions to win from huge change to this debt
Labor is set to introduce legislation as parliament returns this week that will wipe $16bn in student debt for approximately three million Australians.
It will target loans including HELP debt, VET loans and apprenticeship loans. The government said the average debt-holder will have a $5520 reduction. NewsWire / Jeremy Piper Credit: News Corp Australia
According to calculations from the government someone with the average HELP debt of $27,600 will have $5520 wiped from their outstanding loans.
People at the upper end of debt, exceeding $60,000, could see a reduction of more than $12,000.
The legislation, if it passes, will also raised the minimum repayment threshold from $54,000 to $67,000, meaning low-income earners will not have to start paying back their debt.
Following the passage debt-holders will not have to do anything to get the reduction, it will be applied by the Australian Taxation Office automatically.
Education Minister Jason Clare said the change would 'take a lot of weight off the shoulders' for recent graduates
'You don't start paying off your university degree until your degree starts to pay off for you,' he said. Education Minister Jason Clare said the reform will 'take a lot of weight off' young people. Canberra. NewsWire / Martin Ollman Credit: News Corp Australia
The reform was first promised in November 2024, well before the election, after the government changed the way student loans were indexed.
At the time this brought down student debts by about $3bn.
Prime Minister Anthony Albanese announced the 20 per cent reduction following the indexation reform as a pitch for his government to make the education system 'fairer and affordable for every Australian'.
'No matter where you live or how much your parents earn, my Government will work to ensure the doors of opportunity are open for you,' Mr Albanese said in November.
Now, with the new Parliament beginning on Tuesday, the government is promising the 20 per cent cut will be the first thing it does.
'We promised cutting student debt would be the first thing we did back in Parliament,' Mr Albanese said.
'And this week we're introducing the legislation to make it happen.
'Because getting an education shouldn't mean a lifetime of debt.' Prime Minister Anthony Albanese said the reduction would be the first thing his new government does. NewsWire / Martin Ollman Credit: News Corp Australia
The legislation will be introduced on Tuesday, but the government will need the support of either the Greens of the Coalition to get the it through the Senate.
This means it will likely be a few weeks before it actually comes into effect.
Both the Greens and the Coalition have indicated they are unlikely to block the bill, but both have voiced concerns.
Liberal education spokesman Jonno Duniam told the ABC's Insiders program on Sunday that Australians 'spoke pretty clearly at the last election' about this key Labor policy.
'We're not really in business of standing in the way of cost-of-living relief,' Senator Duniam said.
'We'll go through our process but I expect this will pass the parliament.' Senator Jonno Duniam indicated the Coalition would likely help pass the bill. NewsWire / Martin Ollman Credit: News Corp Australia
For their part, the Greens requested the Parliamentary Library analyse how much the debt reforms will reduce balances since 2022.
It found that a student who had a $30,000 debt in 2022 would have a $27,619 debt after the 20 per cent cut, meaning it would only be a 7.9 per cent cut on that 2022 level.
This is because student debt increases each year relative to inflation.
The Greens position is that it wants all student debt to be wiped and free university and TAFE to be reintroduced.
Greens higher education spokeswoman Mehreen Faruqi said that 'one-off debt reduction won't fix the enormous burden' of university fees and outstanding student debt.
'Of course any student debt relief is better than none, but we are demanding all student debt be wiped and a return to free uni and TAFE, funded by taxing big corporations to pay their fair share,' she said. Greens higher education spokeswoman Mehreen Faruqi said the change will not fix 'the enormous burden' of student debt. NewsWire / Luis Enrique Ascui Credit: News Corp Australia
Student debt massively increased since the previous Coalition government introduced its 'Job-Ready Graduates' scheme in 2021 which increased the costs students have to pay for degrees that were purportedly less desirable.
This was designed to incentivise students to study degrees in fields such as science and engineering.
In practice there was only a marginal reduction in the number of students studying arts degrees, but the costs for those courses increased as much as 140 per cent – massively increasing the debt burden for some students.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Perth Now
5 minutes ago
- Perth Now
Minister's brutal sledge to ‘virile' Nats
Energy Minister Chris Bowen has jumped on a home goal kicked by 'virile' Nationals MPs Barnaby Joyce and Michael McCormack, as the Coalition faces a standoff against net zero targets. With the opposition stalled on a recommitment to Australia reaching net zero carbon emissions by 2050 until a policy review, Mr McCormack has issued a warning shot to party leaders, saying he would unite with his unlikely ally Mr Joyce on opposing the goal. Two pair had tussled for the regional party's top job, taking turns at the Nationals leadership before current leader David Littleproud ascended in 2022. The pair's position on net zero has raised questions over Mr Littleproud's leadership. Speaking to Sky News moments before the first question time of the 48th parliament, Mr McCormack hit back at comments put forward by the Coalition's energy spokesman. 'Dan Tehan this morning calling me a steer and Barnaby a steer – we're not gelded, we're not emasculated,' he said. 'We're very much virile and out there.' Chris Bowen took aim at Michael McCormack's comments that he and Barnaby Joyce were 'very much virile and out there'. NewsWire/ Martin Ollman Credit: News Corp Australia A mere few hours later, Mr Bowen took aim from the dispatch box during question time. 'The member for Riverina said on the Kieran Gilbert show, 'We're virile and we're out there,' the member for New England and member for Riverina,' Mr Bowen said. 'That this is not his Tinder profile, this is his dream ticket. He's not looking to swipe right, he's looking to swipe out the member for Maranoa, is what he's trying to do. 'But they're … really betraying people in rural and regional Australia, they are the ones who pay the price of drought and flood which will be more common and severe under climate change.' Mr Bowen's comments was one of the more noteworthy moments from the hour-long display of political theatre, formally known as question time. It was also Sussan Ley first as Opposition Leader, with the Coalition attempting to lob knives poised for Labor's ailing 1.2 million housing target and controversial superannuation tax. Dressed in a powder pink pants suit, Ms Ley stared down the Prime Minister and his army of 94 Labor MPs who spilt onto chamber benches normally reserved for the crossbench. Sussan Ley led the Coalition during Question Time for the first time as Opposition Leader on Wednesday. NewsWire / Martin Ollman Credit: News Corp Australia The National Housing Accords were in her sights, with the promise to build 1.2 million homes by mid-2029 already lagging by about 55,000 following its first year. 'The Liberal Party I lead will always champion policies to help more Australians into a home of their own but under Labor the homeownership dream has never been further out of reach,' she said, asking the first question. 'With leaked Treasury advice confirming this is a broken promise, will the Prime Minister abandon his failing policies and work constructively with the Coalition to address Labor's housing crisis?' Criticism of Labor's plan to hit superannuation balances of more than $3m with a 30 per cent tax was also prosecuted, with the Coalition attacking the government over the proposal to hit unrealised capital gains. However, Mr Albanese, wearing a dark suit and dark blue tie, returned fire saying the tax would rebalance the superannuation system and only affect 0.5 per cent of accounts, while also quipping: 'The time to launch a scare campaign is before an election'. Anthony Albanese enters the chamber for the first question time of the 48th parliament. NewsWire/ Martin Ollman Credit: News Corp Australia Elsewhere, Labor's majority was on full display. In an unsubtle but effective reminder to the Coalition and the Greens' sole lower house stalwart, Ryan MP Elizabeth Watson-Brown, Labor's Dorothy Dixers – the questions asked by government MPs to ministers – were all delivered by the MPs who turfed out a sitting Liberal or Greens MP. In order of appearance, they included Dickson's Ali France, Melbourne's Sarah Witty, Griffith's Renee Coffey, Emma Comer of Petrie, Gabriel Ng in Menzies, Hughes MP David Moncrieff, Jess Teesdale from Bass, Sturt's Claire Clutterham, Banks MP Zhi Soon, Deakin's Matt Greg, and Braddon's Anne Urquhart. And should Labor chose to continue its 'up yours' to the other side on Thursday, it still has another six newbie MPs in the line-up.

Sydney Morning Herald
35 minutes ago
- Sydney Morning Herald
Let's lower the voting age and see some progress
Herald opinion writers Vivienne Skinner and Brad Emery discussed the pros and cons of lowering the voting age to 16 in Australia after England's move to join Wales and Scotland (' Sixteen is sweet to step up to the polls', ' An interest in politics is great, but only adults should be allowed to vote ', July 23). I was delighted to read that independent MP Monique Ryan intends to bring a private member's bill to Parliament on this issue. Initially, I would support the vote for 16 and 17-year-olds to be voluntary, with a view to make it compulsory over time. Democracy worldwide is under pressure with elderly, self-serving leaders mainly concerned with holding on to power. In a world rapidly changing environmentally, socially and geopolitically, we have old men making decisions that will largely affect the young, who have no voice. This change would almost certainly increase the progressive vote, and may be why British PM Keir Starmer is putting it forward. It could work for Anthony Albanese, too. Now is the time to refresh our democracy and make our society as representative as the UK's. Andrew Caro, Greenwich While there are thoughtful arguments each way, my feeling is that 16 is too young. People such as Tanya Plibersek and Monique Ryan move in relatively select society in which politics is of interest and importance, so perhaps have a biased view of how much ability and interest the average 16-year-old has. There is also the maturity factor, which is not necessarily based on chronological age. Let them reach at least 18, while encouraging them to become politically aware and hopefully more able to make reasoned, logical, responsible decisions. Augusta Monro, Dural I must challenge columnist Brad Emery on his assertion that 16 and 17-year-olds are 'considered minors in every other regulatory contexts'. At 16, youths can legally have sex and bring children into the world (in most states) – one of the most important decisions of their lives. At 16, you can register as an organ donor, get an abortion, get married (with permission), get a learner's permit, apply for youth allowance, consent to medical and dental treatment, have your own Medicare card and work full-time. You only have to look at the 'School Strike 4 Climate' protests, in which thousands of youths took part, to see the commitment that young Australian have to civic duty. I believe that the voting age should be lowered to 16 now. Bruce Welch, Marrickville Australia has one of the lowest ages of criminal responsibility in the Western world. If 10-year-olds can be tried as adults for crimes, then surely they should also be allowed to vote. Either they are capable of adult decisions, or they are not. Bart Fielden, Lindfield Marine tragedy The toxic algal bloom on South Australia's coastline should indeed be taken seriously (' Government all at sea on toxic algal bloom ', July 23). The Great Barrier Reef has already suffered several mass bleachings, largely due to ocean warming. Now a widespread algal bloom has put South Australia's Great Southern Reef under threat. It is heartbreaking to see the devastation of coastal treasures like the Coorong, which once had an abundance of thriving birdlife and wetland vegetation. Many readers will remember the iconic film Storm Boy, which was set in this location. Again, a marine heatwave was a major contributor. Environment Minister Murray Watt has finally decided to visit Adelaide with a pledge of $14 million to deal with the algal bloom disaster. But what's the point of Labor spending that money when at the same time it approves fossil fuel projects? The government must account for the effects of global warming when dealing with such disasters. Anne O'Hara, Wanniassa (ACT) Gender writes Correspondent Ryszard Linkiewicz claims fewer boys read books nowadays because male authors have been 'purged from reading lists' (Letters, July 23). But why should boys only be interested in stories written by men? At school, we girls read F. Scott Fitzgerald, Ernest Hemingway, Joseph Conrad and other male authors. We read them despite the fact they were written by men, about men, with only the occasional one-dimensional female character to whom we might relate. It is sad that boys only have what Linkiewicz calls 'poorly written tripe' by the likes of Helen Garner, Kate Grenville, A.S. Byatt, Doris Lessing and other women. What a pity that, according to him, those whose 'literacy skills develop more slowly' can't find anything of interest in the works of such (female) giants of the literary canon. Gerianne Rudd, Toowong (Qld) There are several Australian male authors who are writing and publishing books now, all available to boys. I've just finished Mark Brandi's latest book Eden and have read his Wimmera and Southern Aurora, all of which have boys or men as the main characters, and are easy to read. Then there's also Tim Winton and Trent Dalton, plus Aaron Blabey with his graphic novels Bad Guys. The graphic novels in particular are a good way to encourage reading among boys and young men. Rosemary Wolf, Mount Warrigal Ryszard Linkiewicz notes that NSW schools have replaced distinguished authors with 'poorly written tripe'. I feel this has long been the case. Ryszard is lucky he didn't sit the HSC in 1970, when we studied such literary gems as Jane Eyre and Wuthering Heights. So many hours of boredom. Trevor McCarroll, Gerringong No right to rule Yet more correspondents (Letters, July 23) resorting to disparaging statements such as 'sense of entitlement' and ' their right to rule' to attack Gisele Kapterian for exercising her right, on behalf of those who supported her, to ensure that in an incredibly close election, every voter's true intention is properly accounted for. That is the entitlement of every candidate in our elections, and our system was established to enable that to happen. No one in this country has a right to rule, and even if they thought they did, it would be only to govern, not rule, and face their electors every three years. Peter Thornton, Killara Reality lost The Israeli ambassador to Australia was very quick to admonish the Australian government, along with 27 other countries, for their call to end the Gaza war, saying they were 'disconnected from reality and it sends the wrong message to Hamas' (' Penny Wong: Israel condemnation channels Australians' 'distress' over Gaza ', July 22). He conveniently forgets the reality that this whole catastrophe would not have happened had it not been for the abject failure of the Israeli government, the IDF, the Shin Bet (internal security service) and Mossad to protect Israel citizens from the Hamas attack on October 7, 2023. Perhaps he's the one 'disconnected from reality', and no amount of killing people seeking humanitarian aid is going to change that. Alexis Lander, Kensington Definition dilemma I read closely the piece by Adam Slomin about the definition of antisemitism. (' Defining antisemitism is no threat to free speech. Without a definition, we are adrift ', July 23). Unfortunately, the International Holocaust Remembrance Alliance's working definition of antisemitism would be more easily accepted if Israeli Prime Minister Benjamin Netenyahu and his government also adopted that definition, instead of calling all criticism of Israel's policies and actions 'antisemitic'. If Israel cannot accept that definition as best practice, why should anyone else? Doug Richards, Tamarama I find it extraordinary that Herald correspondents should suggest that the best way to combat antisemitism is for Jews to publicly disassociate themselves from Israel (Letters, July 23). I doubt that these writers would say that Arabs or Muslims must publicly condemn Hamas, or the Syrian, Iranian, Saudi Arabian, Afghani or Indonesian regimes. What about Australians of Chinese, Russian or American origin or connections? Should they have to condemn 'their' regimes? Opposition to particular actions by Israeli settlers or the government is not antisemitic as many Jewish people and Israelis prove. But the ideas that the Jewish state is uniquely evil and that all Jews are implicated in everything it does are, and should be, roundly rejected. John Sexton, Centennial Park Chinese Australians aren't directed to 'unequivocally denounce the actions' of the Chinese government in Tibet or Xinjiang or against Taiwan to stop harassment and firebombing and graffiti of their businesses and cultural centres, Dave Bailey (Letters, July 23). Indonesian Australians aren't told to 'disassociate themselves from the worst things happening in' West Papua to stop doxxing and protests directed at them at universities or art performances, Jennifer Briggs. It's only Jewish Australians who apparently deserve to suffer persecution for the actions of a foreign state. Richard Abram, Bexley Victims of tobacco war On the illegal tobacco debate, I agree with the obvious premise that cigarettes cause harm, and cheap cigarettes keep people using them. But if the plan is simply to close down the illegal tobacco market, I worry for many habitual smokers on low incomes (' Eviction, jail and fines for illegal tobacco sellers', July 23). As a psychologist, I work with a number of people on disability support pensions who live with severe mental illnesses. Cigarettes are a part of their way of life, and they're just not interested in quitting. If they are forced to go back to highly taxed/priced legal cigarettes, they will forego food and other necessities in order to keep smoking. I've seen this happen. Even though they're well aware of the terrible health prospects, cigarettes nevertheless help many people to keep going. Sadly, they're not keen on patches or gum. So, whatever is done about illegal cigarettes, allowances need to be made for many on low incomes who will continue smoking regardless. Otherwise their quality of life and mental health will crash. Jim Filshie, Kingsgrove I hardly think any landlord is going to evict a retailer for selling illegal tobacco. I recall reading that these same sellers are offering landlords above market rates to rent their premises and with today's vacancy rates in strip retail shops, I'd suggest it would be a rarity to see any landlord evict a tenant for anything apart from rent arrears. Barb La Ganza, North Narrabeen I think that tough legislation and penalties is the right approach rather than lowering the tax rate on tobacco products. However, it remains to be seen if the words will be put into action. It has been more than eleven years since smoking was banned in all cafes and restaurants, and I have seen little evidence of enforcement. Reports to Health NSW and local councils achieve nothing. Bob Edgar, Moss Vale HECS anomaly Ross Gittins quite rightly points out the stupidity of the Morrison government's Job Ready program, which resulted in arts degrees costing $50,000 (' Cutting HECS debt is the least Albanese could do for young Australians ', July 23). Why the new Labor government hasn't changed this policy is a mystery. Reducing students' HECS debts by 20 per cent is a good start, but surely preventing future extreme and unfair tertiary debt must be on the agenda. As they say, 'it's a no brainer'. Eric Sekula, Turramurra While the government tinkers with HECS debts in a rather ineffective attempt to reduce financial burdens on the young, it is quite amazing that university education in EU countries like France, Germany and Sweden is almost free. Furthermore, living allowances are provided which reduce the need to work part-time. Governments there heavily subsidise universities and the considerable benefit is little disincentive for university study even for the relatively poor. These policies obviously do much to reduce inequality. The secret is of course higher average taxation and the realisation that university degrees will result in higher salaries and thus more tax being paid during a lifetime of work. Geoff Harding, Chatswood Tax outrage There are certainly valid arguments for a tax on high-value family homes (Letters, July 23), but the government also urgently needs to address the miserable contributions from the oil and gas industry, among others. According to The Australia Institute and despite the industry's insistence that it pays substantial tax, nurses paid $7 billion more tax during the past 10 years than oil and gas companies paid in company tax and Petroleum Resource Rent Tax. In short, nurses paid $52 billion and the oil and gas companies $45 billion. Finally, the oil and gas industry 'exports 80 per cent of Australia's gas, gets most of the gas it exports for free, is a small employer and pays little tax'. It is hoped that Jim Chalmers' economic summit will not be dominated by the usual rent seekers. Alison Stewart, Riverview Super changes The story in the Herald (' Average pay of $240k to be hit by super tax', July 23) outlines a number of scenarios for people who will be hit by Labor's superannuation tax changes. But what the report fails to mention is that both a husband and a wife can have $3 million each in super. It also doesn't ask the question 'why do people running a farm have the farm included in superannuation?' Also, many farming families also have trust accounts, thus decreasing their taxable income. It's all legal but not an option for the average Australian. If everyone wants the Labor government to enact the policies it took to the recent election, then the money has to be found from somewhere, particularly as companies are not reinvesting to create growth in the economy. Peter Nelson, Moss Vale Welfare state It has become all too apparent that Australian society is fast becoming a welfare state following many years of government handouts (' Australia risks becoming a 'welfare state', study warns ', July 23). In many instances, this has been initiated to win elections. While government support is appreciated by those with urgent or specific needs, far too many now see it as an easy alternative to employment and making a contribution to society. With government spending approaching 40 per cent of gross domestic product and the emphasis currently on how to increase productivity, the answer clearly lies within government itself. The issue of debt – private and government – must be addressed if productivity is to be increased, or, accept that peak productivity and economic growth has been reached. Efficiency is just not a private sector issue but also a government issue with ever-increasing public sector employment. Australia's standard of living cannot be totally reliant upon an ever- smaller private sector. Just look at the number of business failures over the past few years. Bruce Clydsdale, Bathurst Moved to tears Your story on Labor MP Ali France has to be one of the most moving pieces of journalism in a long, long time (' How Ali France's late son's words propelled her to parliament ', July 23). Her compassion and courage, which included both the loss of her son, in addition to her disability, are just phenomenal and reduced me to tears. I sincerely hope we hear a lot more from Ali for a long time to come. Rose Lysnar, Sherwood (Qld) Ali France's maiden speech was inspiring. Let's hope that the 48th parliament provides a safe, supportive workplace which embodies her values of service, fairness, kindness and perseverance. Viv Mackenzie, Port Hacking Ali France is a beacon of hope for the many Australians living with grief and/or disability. We now have a strong voice in federal parliament. Sending grateful thanks to the voters of Dickson. Margot Alaba, Balgowlah

Sky News AU
35 minutes ago
- Sky News AU
‘I am Australian': Pauline Hanson defends One Nation turning their backs to Welcome to Country
One Nation leader Pauline Hanson defends claims One Nation senators turning their backs to the Welcome to Country ceremony in parliament was disrespectful. 'It is not a custom of the Aboriginal people, that's rubbish,' Ms Hanson told Sky News host Chris Kenny. Ms Hanson and Mr Kenny clashed on the importance of the Welcome to Country ceremony in the Australian senate.