Opposition to wave through cut to student debt levels

Perth Now

29-07-2025

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".