Labor to introduce student debt-slashing bill into parliament
Education Minister Jason Clare introduced the bill on Wednesday - the first of the new parliament.
The proposed relief would cut HECS by 20 per cent for some 3 million graduates, or wipe off $5500 from the average student debt.
The changes would also raise the repayment threshold for student loans from $54,000 to $67,000.
It was central to the Albanese government's youth-focused re-election pitch.
But asked if the Coalition would back it given Labor's federal election landslide, the Opposition Leader on Wednesday would not confirm.
Opposition Leader Sussan Ley has not confirmed if the Coalition will back Labor's signature student debt-slashing bill. Picture: NewsWire / Martin Ollman
'It's an area where we can be constructive,' Ms Ley told Sky News.
'And I've said we will be constructive where we can.
'That doesn't mean a blank cheque of goodwill for everything that comes across the table from the Labor Party.'
She went on to say it is important not to 'forget that this reduction in HECS debt came for students and young people who are really struggling with rising cost of living'.
'And when I talk to young people now, the first thing they tell me is how they are losing hope of ever getting into a home, and how their rents are skyrocketing,' Ms Ley said.
'I'm really hearing that pain in terms of their escalating bills.
'What we know is that when young people are struggling, that's bad for society, and it's really tough.
'Now the HECS debt, as I said, was a point in time to provide some of that relief, but what we want to do is help young Australians.'
Ms Ley's comments seemed at odds with what her education spokesman Jonno Duniam said just a day earlier.
He said it was 'one of the centrepieces of the government's agenda at the last election and obviously we had a view that was not supported by Australians, so we'll work with them'.
'We have our concerns, they remain,' Senator Duniam said on Tuesday, also speaking to Sky.
'We'll talk about those, but I expect them to pass parliament.'
NewsWire understands the government is confident the opposition will support it.
Labor is about to introduce its signature student debt-slashing bill. Picture: Martin Ollman / NewsWire
Mr Clare introduced the legislation in the House of Representatives, where Labor commands a massive 94-seat majority.
But the Senate is another matter.
With the Greens holding the balance of power, they can effectively pump the brakes on key legislation – something members of the minor party have already said they would do to negotiate their own agenda.
The Greens have said the changes do not go far enough.
'While every bit of student debt relief is good, what the government is doing by wiping some student debt doesn't even touch the sides of the issue,' Greens education spokeswoman Mehreen Faruqi said on Tuesday.
'The core of the problem is indexation.
'Unless indexation is removed, students will be in this hamster wheel always chasing their debts, which keep getting bigger and bigger.'
Greens education spokeswoman Mehreen Faruqi says her party will push for amendments. Picture: Martin Ollman / NewsWire
Before introducing the bill, Mr Clare said on Wednesday there was 'a lot at stake'.
'This was one of the big promises that we made in the election campaign that we would cut the student debt of 3 million Australians by 20 per cent,' he told the ABC.
'This will take the weight off the shoulders of a lot of young people right across the country in particular – at elections young people don't often see themselves on the ballot paper, but they did at this election.
'And they voted for it, in the millions.
'For the average person with a student debt today, this will cut their debt with about ($5500) and so there is a lot at stake there, and I'm hoping that politicians across the parliament will vote for this.'
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