Coalition split emerges over Labor's university debt legislation
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.
'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.'
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'. Big issue looming on HECS debt vow
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.
Originally published as Demoted Liberal senator pushes indexation cap on Labor's HECS Bill
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