A re-elected Federal 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
|
|
2023-24 |
|||
|
State/territory |
Higher education debtors |
Outstanding debt |
20% reduction by state / territory |
Avg. cut per person |
|
NSW |
883,801 |
$25,201,341,004 |
$5,040,268,201 |
$5,703 |
|
VIC |
805,264 |
$23,169,580,985 |
$4,633,916,197 |
$5,755 |
|
QLD |
607,623 |
$16,273,710,845 |
$3,254,742,169 |
$5,357 |
|
WA |
264,702 |
$6,781,516,624 |
$1,356,303,325 |
$5,124 |
|
SA |
201,336 |
$5,199,012,785 |
$1,039,802,557 |
$5,165 |
|
ACT |
55,106 |
$1,564,987,161 |
$312,997,432 |
$5,680 |
|
TAS |
52,538 |
$1,198,083,265 |
$239,616,653 |
$4,561 |
|
NT |
17,914 |
$409,558,827 |
$81,911,765 |
$4,573 |
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 Federal 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 Federal Member for Robertson, Dr Gordon Reid MP:
“When I am talking with people in our community, they would often tell me the pressure they are under because of student debt repayments.
“I am pleased to be a part of a Federal Labor Government that is taking decisive action to help ease this pressure on Australians with a student debt”, Dr Reid said.
ENDS
