Latest news with #StudentLoans
Yahoo
2 days ago
- Business
- Yahoo
Should SL debt be easier to discharge in bankruptcy?
Key takeaways Bankruptcy discharge of student loans is very difficult, but not impossible, and requires demonstrating undue hardship in an adversarial proceeding. Exceptions exist, such as the possibility of discharging loans that are not qualified education loans. Recent policy changes by the U.S. Departments of Education and Justice permit the bankruptcy discharge of some student loans in specific circumstances. Legislative proposals to make bankruptcy discharge of student loans more accessible are gaining traction, reflecting a growing consensus that current rules are too harsh. Shop Top Mortgage Rates A quicker path to financial freedom Personalized rates in minutes Your Path to Homeownership Discharging student loans in bankruptcy has long been very difficult, earning student loans a reputation as non-dischargeable debt. However, it is still possible to discharge some student loans. The shifting landscape of student loan bankruptcy discharge is making it easier (although still not easy) to obtain a bankruptcy discharge, and proposed legislation brings a glimmer of hope for struggling borrowers. 50 years of restricting student loan bankruptcy discharges Over the last five decades, Congress has made it more difficult to discharge student loans in Amendments of 1976 requires five years of repayment before bankruptcy dischargeU.S. Court of Appeals for the 8th Circuit defines undue hardshipThe Bankruptcy Amendments and Federal Judgeship Act of 1984 adds private student loans backed by nonprofits to the bankruptcy discharge exceptionU.S. Court of Appeals for the 2nd Circuit adds the requirement that borrowers make a good-faith effort to repay their student loan debt before dischargeCrime Control Act of 1990 increases the required repayment period to seven yearsHigher Education Amendments of 1998 eliminates the waiting periodBAPCPA redefines undue hardship and eliminates the need for private loans to be guaranteed by a nonprofit Before 1976, student loans could be discharged in bankruptcy without exception, like other unsecured loans. Then, the Education Amendments of 1976 required a borrower's student loans to have been in repayment for at least five years before they could be discharged, unless the borrower could demonstrate that requiring the loans to be repaid would impose 'undue hardship' on the borrower and the borrower's dependents. The term 'undue hardship' was not initially defined in the U.S. Bankruptcy Code. This exception was restricted to institutional and federal student loans. In 1981, the U.S. Court of Appeals for the 8th Circuit issued a decision in Andrews v. South Dakota Student Loan Assistance Corp that defined 'undue hardship' using the Totality of Circumstances Test. The Totality of Circumstances Test has two prongs: The borrower must be currently unable to repay their student loans while maintaining a minimal standard of living, and The circumstances that prevent the borrower from repaying the debt must be expected to persist for most of the life of the loans. The Totality of Circumstances Test applies in the 8th circuit. The Bankruptcy Amendments and Federal Judgeship Act of 1984 expanded the exception to bankruptcy discharge to include private student loans if they were backed by nonprofit institutions. In 1987, the U.S. Court of Appeals for the 2nd Circuit issued a decision in Brunner v. NY HESC that redefined 'undue hardship.' The Brunner Test adds a third prong to the Totality of Circumstances Test, requiring the borrower to have made a good faith effort to repay the debt. This is a very harsh standard that one bankruptcy judge, Judge Burton R. Lifland, described as requiring 'a certainty of hopelessness.' Keep in mind: The Brunner Test applies in the 2nd, 3rd, 4th, 5th, 6th, 7th, 9th, 10th and 11th circuits. The Crime Control Act of 1990 increased the waiting period from five years to seven years, but then the Higher Education Amendments of 1998 eliminated the waiting period entirely. This left undue hardship as the only option for bankruptcy discharge of student loans. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 added an exception to discharge for qualified education loans. Qualified education loans are federal and private student loans that are eligible for the student loan interest deduction. Private student loans no longer needed to rely on a nonprofit guarantor to protect against bankruptcy discharge. BAPCPA also added a general definition of undue hardship that establishes a presumption of undue hardship if the borrower's monthly income is less than the monthly loan payments. This definition is similar to the first prong of the Totality of Circumstances Test and the Brunner Test. It is not, however, specific to the bankruptcy discharge of student loans. Government, legislators weigh easier path to discharge Recent years have brought a significant shift towards a more pragmatic approach to the bankruptcy discharge of federal student loans. On Nov. 17, 2022, the U.S. Department of Education and the U.S. Department of Justice issued guidance concerning when the DOJ would not oppose a bankruptcy petition for federal student loans. The new policy avoids the expense of fighting a bankruptcy discharge when the cost of litigation exceeds the potential recovery or when the federal government is likely to lose the lawsuit. This new policy represents a significant departure from the previous 'scorched earth' approach that fought every bankruptcy filing, regardless of the cost. A subsequent report by the DOJ presented data showing that this new policy led to an increase in bankruptcy discharge filings. There have also been proposals in Congress to make it easier to discharge student loans in bankruptcy. None of these proposals have made it out of committee. But consensus is building that the current rules are too harsh. Some lenders and policymakers have supported proposals to restore a time-based option for discharging student loans after they have been in repayment for 7 or 10 years. It can be beneficial for lenders to get uncollectable loans off their books. For example, the bipartisan legislation, Fresh START Through Bankruptcy Act of 2021, would have allowed the discharge of student loans after a 10-year waiting period. The Private Student Loan Bankruptcy Fairness Act of 2025 would have removed the exception to discharge for private student loans, but retained it for federal student loans. The Medical Bankruptcy Fairness Act of 2024 would have allowed bankruptcy discharge of student loans when the debtor is a medically distressed debtor, implicitly defining it as an example of undue hardship. The Discharge Student Loans in Bankruptcy Act of 2019 would have repealed the exception to discharge of student loans entirely, as would the HIGHER ED Act. Bankruptcy reform is sorely needed for struggling borrowers Bankruptcy reform for student loans is long overdue. Current bankruptcy law treats defaulted student loan borrowers as though they were criminals, tax cheats and deadbeats. It does not provide them with an opportunity for meaningful financial relief. While federal student loans provide death and disability discharges, half of private student loans do not. Federal student loans offer income-driven repayment plans, though they cancel debt only after very long repayment terms that are akin to indentured servitude. Most private student loans do not even offer income-based repayment. The federal government can seize Social Security benefit payments that recipients need to survive, a morally bankrupt policy. The government gives with one hand while taking back with the other. If Congress were to allow for bankruptcy discharge of student loans, it might encourage lenders to offer more opportunities for compromise with borrowers, lest they lose the loans entirely. There never was any evidence of abuse, but requiring seven years in repayment seems sufficient to prevent discharge of student loans immediately after graduation. Most of the discharges would be by borrowers who dropped out of college, not borrowers who graduated. These borrowers have the debt, but not the degree that can help them repay the debt. Why finishing college could help solve the student loan crisis Policymakers often blame student loan delinquencies and defaults on the amount of debt. But I argue there really isn't a student loan problem, so much as a college completion problem. Learn more The courts already require means-testing before permitting a discharge. Congress should also provide a definition of undue hardship, so that a single standard applies nationwide. How to bankrupt your student loans Only about 0.04% of student loan borrowers who file for bankruptcy succeed in discharging their student loans. Discharging student loans in bankruptcy generally requires demonstrating undue hardship in an adversarial proceeding. In some cases, however, demonstrating undue hardship might not be necessary. If the lender cannot provide proof that the debt is owed, such as a signed promissory note, the courts will sometimes allow the discharge of the debt. If the borrower was ineligible for the student loans at the time they were made, the loans will be discharged. For example, some borrowers have been able to get their federal student loans discharged by demonstrating that they were incarcerated in federal or state prison. Some loans are not qualified education loans — for example, if the loan was made for study at an ineligible college, to an ineligible student (one enrolled less than half-time or while not pursuing a degree or certificate), or for expenses other than qualified educational expenses. Demonstrating undue hardship Demonstrating undue hardship often depends on the borrower's health, age, education and number of dependents, if these factors affect the borrower's expenses or income. Factors a court may consider The disability or medical condition of the borrower or the borrower's dependents can affect the borrower's income and expenses. While federal loans offer a disability discharge, some private student loans do not. The quality of the borrower's education or the borrower's failure to graduate may affect the borrower's ability to get a job sufficient to repay their student loans. Students who drop out of college are four times more likely to default on their student loans. Older borrowers may have a limited remaining work life during which they can earn money to repay their debts. The courts may also consider whether the borrower has the ability to reduce expenses and increase income. Most private student loans do not offer income-driven repayment plans, which base the monthly loan payments on a percentage of the borrower's income, as opposed to the amount they owe. This may lead to loan payments that are out of sync with the borrower's income and ability to repay the debt. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
15-07-2025
- Politics
- Forbes
The Price Of Public Service: Trump-Era PSLF Rollbacks And The Cost To Justice
The Price Of Public Service And The Cost To Justice Following a recent U.S. Supreme Court decision, President Trump is now cleared to proceed with sweeping layoffs and structural changes at the Department of Education. In McMahon v. New York, the Court lifted a lower court's injunction, allowing nearly 1,400 terminations to move forward as litigation continues. The decision has raised concerns across multiple sectors of the Department, from civil rights enforcement to student aid processing. It has also intensified scrutiny of the Public Service Loan Forgiveness (PSLF) program. The PSLF program forgives student loans for people who work full-time in government or nonprofit jobs and make monthly payments for 10 years. Under the authority of a March executive order, the Department's new rulemaking is reportedly narrowing PSLF eligibility, prompting deeper questions about who can afford to pursue public service careers and what that means for access to justice. This is not the first time federal budget strategy has reshaped the public interest landscape. In 1982, Reagan's administration slashed LSC funding by 25%, forcing the closure of 285 legal aid offices across the country. In a report published by the Center for Law and Social Policy (CLASP), researchers detail how, in 1996, Congress—through the 'Contract with America' agenda—cut the LSC budget by 31%, reducing it from $400 million to $278 million. Along with these cuts came sweeping restrictions: LSC grantees were barred from filing class-action lawsuits, representing undocumented immigrants, engaging in welfare reform advocacy, or participating in redistricting cases. These measures did not just limit budget lines—they redefined the legal rights landscape for millions of Americans. By 1996, national and state-level support and training centers were eliminated, weakening institutional memory and advocacy capacity. Through funding restrictions, staffing cuts, and targeted limitations on the types of cases LSC-funded lawyers could take, the federal government quietly narrowed legal representation for low-income Americans. Justified as fiscal discipline, the result was fewer tenant protections, reduced civil rights enforcement, and a shrinking legal footprint in underserved communities. These were not loud policy battles, they were quiet recalibrations. But their structural impacts endured. Today, similar questions are emerging in a different arena: student loan forgiveness. Specifically, the Public Service Loan Forgiveness (PSLF) program, designed to support professionals, particularly those in law, healthcare, and education, who commit to careers in the public interest. According to a July 2025, Forbes analysis by attorney and student loan expert Adam S. Minsky, under the rule changes introduced by the Trump administration, eligibility for PSLF has reportedly been narrowed for workers at certain nonprofit organizations, including legal aid and advocacy groups. The shift does not eliminate PSLF, just as the Reagan-era moves did not eliminate legal services. But in both cases, policy changes redefine the boundary lines—what counts as public service, and who counts as a public servant. Could administrative rulemaking around student debt have long-term consequences similar to those triggered by legal aid restrictions in the 1980s? If PSLF exclusions shrink the incentive for graduates to pursue lower-paying public service roles, what might the downstream effects be on public access to legal and social support systems? It is worth considering the mechanics of PSLF in broader economic terms. The program was crafted to address a structural market failure. Many essential public service roles, such as defending tenants, advocating for the wrongly convicted, or counseling trauma survivors, offer deep social value but relatively low compensation. PSLF helps close that gap. It replaces financial penalty with long-term reward. It allows mission to matter. But if forgiveness is no longer reliable, or if it is reinterpreted so narrowly that only certain nonprofit roles qualify, how might that influence the career calculus of new graduates? Already, the average law school graduate carries over $160,000 in debt, according to the American Bar Association. That figure can make civil rights law or post-conviction representation feel economically unsustainable, even for those deeply committed to justice. And it is not just about individual decisions. It is about systemic infrastructure. Nonprofits engaged in housing litigation, parole advocacy, or immigrant legal defense often rely on early-career professionals whose participation is enabled by PSLF. When that eligibility is revoked or challenged, the recruiting pipeline constricts. The result: fewer staff, fewer cases, and fewer checks on inequality. We have seen this story before. In 2012, Congress proposed slashing LSC funding again—this time by 26%, which would have denied legal aid to more than 235,000 low-income Americans. In 2015, a House bill cut $75 million from LSC's budget—nearly 20%—bringing it down to $300 million, the lowest since 1999. The 2025 House proposal once again aimed to reduce LSC funding by $71 million, which would have meant 272,248 fewer clients served, including 117,883 children, 24,503 domestic violence survivors, and 4,924 veterans. This raises broader questions. What happens when mission-driven work becomes unaffordable? Who gets to serve, and who gets served, when policy shifts make certain forms of justice work economically unviable? Public interest work is, in many ways, a public good. But when support for it is quietly eroded, the cost is absorbed elsewhere, often by communities already marginalized, by courtrooms already overburdened, and by rights already precarious. It is the same structural logic we saw with Reagan's approach to legal aid. Change the incentives, and the ecosystem will change with it. Not through loud reversals, but through slow attrition. And this time, the stakes are not just about access to a lawyer. They are about the future of the public service labor force itself: who enters it, who stays in it, and whether its existence remains viable at scale. These policy choices—how we fund legal aid and how we forgive student debt—are also signals. They tell a generation of graduates whether the system values justice as a career path or merely as a rhetorical ideal. They suggest whether public service is seen as investment-worthy or expendable. History suggests that when incentives shift, access often shifts with them. And as federal priorities evolve, so too does the architecture of justice and equity—quietly, structurally, and often without much debate.
News.com.au
04-05-2025
- Business
- News.com.au
Debt for millions to soon be wiped under Anthony Albanese's promise
On Sunday, newly re-elected Prime Minister Anthony Albanese was pictured absolutely beaming on the streets of Sydney as he popped into a St Peters brewery before sipping a coffee and serving ice cream at Leichhardt and topping it all off by petting some fluffy pooches on his way out. What a blissful Sunday, well deserved following an intense few weeks. After securing a landslide – and historic – victory against Peter Dutton, Mr Albanese has much to smile about. However, he has a lot of work ahead of him to please Australians. Along with modest tax cuts, cheaper doctor visits, more subsidised childcare, electricity bill rebates and thousands of new homes just for first-time buyers, Mr Albanese also promised a 20 per cent reduction in student debt. Now it's time to deliver on those key promises. $16 billion slashed for 3 million Aussies Effective from June 1, 2025, the government will implement a 20 per cent reduction on all student loan debts, including HELP, VET Student Loans, and Australian Apprenticeship Support Loans. It is expected to eliminate approximately $16bn in student debt, benefiting around 3 million Australians. A graduate with an average HELP debt of $27,600 will see about $5520 wiped from their outstanding loan. This builds on the Government's announcement that from 1 July next year it will reduce the amount Australians with a student debt have to repay per year and raise the threshold when people need to start repaying. Starting in the 2025-26 financial year, the minimum income threshold for compulsory student loan repayments will rise from approximately $54,000 to $67,000. Additionally, repayments will be calculated based on the portion of income above this new threshold. For example, an individual earning $70,000 will pay around $1,300 less per year in repayments under this new system. 'I will always fight for every young Australian to have access to a good education,' Anthony Albanese said of the debt cuts when they were announced in November. 'My Government will make sure our education system is fairer and affordable for every Australian and we won't delay unwinding the damage caused by the former Coalition Government. 'We're already fixing indexation and today, we are going further by taking 20 per cent off student debt – for everyone with a student debt. 'This will help everyone with a student debt right now, whilst we work hard to deliver a better deal for every student in the years ahead.'
Perth Now
03-05-2025
- Business
- Perth Now
What life looks like under Albo
Anthony Albanese will lead a majority Labor government in a second term after securing a convincing majority in the federal election. The campaign was hard fought, with both parties making a slew of promises on cost of living, energy, health, housing and national security in a bid to woo voters. Now Australia has decided, here's what we can expect to change. COST OF LIVING Beer tax freeze: Labor will freeze the alcohol excise on draught beer for two years, starting from August 1, 2025. While the much-hated tax adds about 1-2 cents per pint bought at the pub, it will aid brewers and publicans. $150 energy rebate: The energy bill rebate will be extended for all households until the end of 2025, saving $150 per household at a cost of $1.8bn. Prime Minister Anthony Albanese pledged to freeze the alcohol excise on draught beers for two years. Mark Stewart / NewsWire Credit: News Corp Australia HECS cuts: Effective from June 1, 2025, the government will implement a 20 per cent reduction on all student loan debts, including HELP, VET Student Loans, and Australian Apprenticeship Support Loans. It is expected to eliminate approximately $16bn in student debt, benefiting around 3 million Australians. A graduate with an average HELP debt of $27,600 will see about $5,520 wiped from their outstanding loan. Increased HELP repayment thresholds: Starting in the 2025-26 financial year, the minimum income threshold for compulsory student loan repayments will rise from approximately $54,000 to $67,000. Additionally, repayments will be calculated based on the portion of income above this new threshold. For example, an individual earning $70,000 will pay around $1,300 less per year in repayments under this new system. Tax Cuts: In the 2025 federal budget, Treasurer Jim Chalmers announced two new tax cuts to the lowest bracket, with the rate to drop from 16 per cent to 15 per cent from July 1, 2026, and to 14 per cent in 2027-28. The cut, legislated one day after the budget was handed down, would be permanent and equate to a saving of about $10 a week for the average earner once both cuts have flowed through. These cuts aim to help with cost-of-living pressures while helping to avoid bracket creep. Instant tax deduction: A re-elected Labor government would introduce an instant $1000 tax deduction for work-related expenses. Medicare levy: Changes to the Medicare levy would ensure one million low earners will remain exempt from or pay a reduced rate of the tax. Cheaper childcare, slashed HECS debts and more bulk-billing clinics have made up the cornerstone of Labor's cost-of-living election policy. Jason Edwards / NewsWire Credit: News Corp Australia Cheaper Childcare: Labor has already passed legislation to guarantee all households with a combined income of up to $533,280 will receive a minimum three days of subsidised childcare. The party is also promising a $1bn fund to build more than 160 new centres in underserviced areas if elected. Fee-Free TAFE: Labor will make fee-free TAFE courses permanent, with 100,000 places to be offered per year from 2027. Food Security Measures: The government announced a $3.5m plan to enhance food security and supply chains, aiming to reduce the costs of 30 essential products in 21 remote communities and 10 regional forums across Australia. Boost to urgent care clinics: A re-elected Labor government has pledged $644m to increase the number of Medicare urgent care clinics from 87 to 137. The new clinics have been slated to every state and territory. Help to Buy: The government committed another $800m in the 2025 federal budget to lift property price and income caps on its Help to Buy scheme, which contributes equity of up to 40 per cent to support eligible homebuyers. Home Guarantee Scheme: All first homebuyers to be eligible for 5 per cent deposits, without needing to pay mortgage insurance. Power bills: $75 rebate for household and small business electricity bills to be extended for another six months. Solar batteries: Labor will provide up to $4000 in savings per household on solar battery installations. This program will not be means tested. Pay rises: Labor has earmarked $2.6 billion for a pay rise for 60,000 aged care nurses, and made a submission to the Fair Work Commission recommending a real wage increase for three-million minimum wage and award workers. Mr Albanese has pledged $1 billion to build more than 160 new childcare centres in underserviced areas. NewsWire / Gary Ramage Credit: News Corp Australia HEALTH $8.5bn to boost bulk-billing: Labor has made an $8.5bn Medicare pledge aimed at supercharging bulk-billing rates at GPs. PBS boost: Medicines listed on the pharmaceutical benefits scheme will be capped at no more than $25 per script. Telehealth expansion: Labor will spend $200m to create a 24-hour telehealth service, dubbed '1800MEDICARE'. Women's health bump: A $575m plan to add oral contraceptives, menopause hormone therapies, endometriosis and IVF drugs to the PBS, raise the Medicare rebate for getting an IUD from $91 to $215 and build 11 new endometriosis and pelvic pain clinics across the country, raising the number of clinics from 22 to 33. Men's mental health: Labor has pledged $32m toward Movember, Men's Sheds and male-specific mental health services. Healthcare hubs: Funding will be provided for healthcare hubs in Burnie, Tasmania and at Adelaide's Flinders University. Mental health: $1bn boost for headspace clinics and specialist centres for youth. Mr Albanese made women's health a focus of his campaign. Mark Stewart / NewsWire Credit: News Corp Australia Online mental health: $135.2m for online mental health support. Peri-natal mental health: $16.7m to bolster mental health support services for new parents. Fairfield Hospital: $80m to expand the emergency department at Fairfield Hospital in Sydney's southwest. Rouse Hill Hospital: $120m toward a maternity ward at Rouse Hill Hospital being constructed in Sydney's northwest. Perth hospital: $200m to revamp St John of God Midland Public Hospital in Perth. Urgent care clinics: $644m for 50 Medicare Urgent Care Clinics. NT aged care: A new aged care home in Darwin as part of a $60m boost to Northern Territory health and aged care. Aged care pay: A payrise for 60,000 aged care workers at $2.6bn. LGBTQ+ care training: A $10m program to train primary healthcare for treating LGBTQ+ patients. ENERGY Cheap solar batteries: Labor will slash the cost of solar battery installations by up to $4000 per household from July 1, as part of its $2.3 billion Cheaper Home Batteries program. Bill relief: The government announced in the federal budget it would extend the current energy bill rebate until the end of the year, saving households $150. Community energy upgrades: Labor has pledged $100 million for energy upgrades to community facilities, including more efficient lighting and battery storage at sporting fields, community halls and libraries. Green social housing: Labor will add another $500 million to its Social Housing Energy Performance Initiative, worth a total $800 million, to cut energy bills and reduce emissions for social housing tenants. Vehicle emission standards: Legislation has been enacted to establish vehicle emission standards for new vehicles sold in Australia, effective from July 1, 2025, to reduce transportation-related emissions. This will include penalties for manufacturers breaching the standard. Labor will aim to source 82 per cent of Australia's electricity grid from renewable energy. It's currently at about 35 per cent. NewsWire/ Brenton Edwards Credit: News Corp Australia Renewable energyfocus: Labor will aim to source 82 per cent of the electricity grid from renewables by 2030, which will be firmed by battery storage and gas. It's currently at about 35 per cent. Critical minerals reserve: Announced in response to Donald Trump's blanket 'Liberation Day' tariffs, an elected Labor government would pledge $1.2 billion for a National Reserve of Critical Minerals, including lithium and nickel. National emission reduction target: The government has committed to reducing carbon emissions by 43 per cent from 2005 levels by 2030, a target that has been legislated to ensure accountability and progress. Labor has also continue to back Australia as a signature to the Paris Climate Agreement which requires participating countries to reach net zero by 2050. Expansion of the Clean Energy Finance Corporation (CEFC): An additional $2bn has been allocated to the CEFC to support households, workers, and businesses in adopting renewable energy solutions, making clean energy more accessible and affordable. Weather radar: Labor has committed to a $10 million investment in a new BOM weather radar for regional Queensland. HOUSING Foreign buyer ban: Labor will ban foreign investors and temporary residents from buying existing homes for two years. The policy does not stop this cohort investing in newly built homes. New home builds: Labor will expand its Homes for Australia plan to build an extra 100,000 homes specifically for first-time buyers. The party has also vowed $54 million to boost construction of prefabricated and modular homes. Labor will ban foreign investors from purchasing existing homes for the next two years. NewsWire / Daniel Pockett Credit: News Corp Australia Help to Buy: The government committed another $800m in the 2025 federal budget to lift property price and income caps on its Help to Buy scheme, which contributes equity of up to 40 per cent to support eligible homebuyers. Home Guarantee Scheme: All first homebuyers to be eligible for 5 per cent deposits, without needing to pay mortgage insurance. Tradies: In a bid to boost supply, the government is offering construction apprentices a $10,000 cash bonus, while employers of various key trades can get $5000 under the Priority Hiring Incentive. Tradies can also get means-tested concessional loans to help with living expenses, learning a trade and doing an apprenticeship. Infrastructure boost: Labor has committed $1.5 billion to fast-track roads, sewage and water connections, aimed to speed up construction of new housing. Rental investment: Investors will receive tax breaks as part of the build-to-rent program, which is estimated to deliver an extra 80,000 units over the next 10 years. NATIONAL SECURITY Port of Darwin: Labor has flagged it would seek a superfund to buy the Port of Darwin back from Chinese-owned Landbridge Holdings, but not ruled out forcing a sale. The 99-lease to Landbridge was greenlit by the former Turnbull-Coalition government in 2015. Defence spending: Labor has pledged to pump at least $50.3bn into defence over the next decade, with the Prime Minister leaving the door open to further increases. The PM has pledged more than $50 billion in defence spending over the next decade. NewsWire/Tertius Pickard Credit: News Corp Australia Peacekeeping in Ukraine: Mr Albanese has said he is open to discussing Australian troops in Ukraine as part of a European-led peacekeeping mission. DeepSeek AI ban: In February 2025, the government banned DeepSeek – a Chinese artificial intelligence model – from all government systems and devices. This decision aligns with actions taken by other nations and is based on intelligence assessments on potential risks. Defence technologies: The Albanese government has allocated funds to expedite the development of technologies aimed at countering integrated air and missile defence systems of potential adversaries. Development of a National Food Security Strategy: Recognising the importance of safeguarding food supply chains, the government announced a $3.5m investment to create the 'Feeding Australia' plan. This strategy aims to enhance the security and resilience of Australia's agriculture and food production systems, ensuring stability in the face of potential disruptions. Advanced defence technologies: The government is accelerating the development of technologies to counter integrated air and missile defence systems of potential adversaries. Through the Advanced Strategic Capabilities Accelerator, two Australian companies have been contracted to develop these capabilities, aligning with the ADF's strategic priorities. AUKUS supply chains: An additional $262m has been allocated to bolster local defence industries and develop Australia's nuclear-powered submarine supply chain under the AUKUS partnership. This investment underscores the government's commitment to enhancing the nation's defence industrial base and contributing to collective security efforts with allies. Electronic warfare: The government is funding Canberra-based companies to advance electronic warfare technologies. This initiative is part of the AUKUS Innovation Challenge and aims to produce critical capabilities for the defence forces of Australia, the UK, and the US, in a bid to deepen collaborative defence innovation.
West Australian
03-05-2025
- Business
- West Australian
What changes in Australia under an Albanese Labor government after election wipe-out
Anthony Albanese will lead a majority Labor government in a second term after securing a convincing majority in the federal election. The campaign was hard fought, with both parties making a slew of promises on cost of living, energy, health, housing and national security in a bid to woo voters. Now Australia has decided, here's what we can expect to change. COST OF LIVING Beer tax freeze : Labor will freeze the alcohol excise on draught beer for two years, starting from August 1, 2025. While the much-hated tax adds about 1-2 cents per pint bought at the pub, it will aid brewers and publicans. $150 energy rebate : The energy bill rebate will be extended for all households until the end of 2025, saving $150 per household at a cost of $1.8bn. HEC S cuts: Effective from June 1, 2025, the government will implement a 20 per cent reduction on all student loan debts, including HELP, VET Student Loans, and Australian Apprenticeship Support Loans . It is expected to eliminate approximately $16bn in student debt, benefiting around 3 million Australians. A graduate with an average HELP debt of $27,600 will see about $5,520 wiped from their outstanding loan. Increased HELP repayment thresholds : Starting in the 2025-26 financial year, the minimum income threshold for compulsory student loan repayments will rise from approximately $54,000 to $67,000. Additionally, repayments will be calculated based on the portion of income above this new threshold. For example, an individual earning $70,000 will pay around $1,300 less per year in repayments under this new system. T ax Cuts : In the 2025 federal budget, Treasurer Jim Chalmers announced two new tax cuts to the lowest bracket, with the rate to drop from 16 per cent to 15 per cent from July 1, 2026, and to 14 per cent in 2027-28. The cut, legislated one day after the budget was handed down, would be permanent and equate to a saving of about $10 a week for the average earner once both cuts have flowed through. These cuts aim to help with cost-of-living pressures while helping to avoid bracket creep. Instant tax deduction: A re-elected Labor government would introduce an instant $1000 tax deduction for work-related expenses. Medicare levy : Changes to the Medicare levy would ensure one million low earners will remain exempt from or pay a reduced rate of the tax. Cheaper Childcare : Labor has already passed legislation to guarantee all households with a combined income of up to $533,280 will receive a minimum three days of subsidised childcare. The party is also promising a $1bn fund to build more than 160 new centres in underserviced areas if elected. Fee-Free TAFE : Labor will make fee-free TAFE courses permanent, with 100,000 places to be offered per year from 2027. Food Security Measures: The government announced a $3.5m plan to enhance food security and supply chains, aiming to reduce the costs of 30 essential products in 21 remote communities and 10 regional forums across Australia. Boost to urgent care clinics: A re-elected Labor government has pledged $644m to increase the number of Medicare urgent care clinics from 87 to 137. The new clinics have been slated to every state and territory. Help to Buy : The government committed another $800m in the 2025 federal budget to lift property price and income caps on its Help to Buy scheme, which contributes equity of up to 40 per cent to support eligible homebuyers. Home Guarantee Scheme : All first homebuyers to be eligible for 5 per cent deposits, without needing to pay mortgage insurance. Power bills : $75 rebate for household and small business electricity bills to be extended for another six months. Solar batteries : Labor will provide up to $4000 in savings per household on solar battery installations. This program will not be means tested. Pay rises: Labor has earmarked $2.6 billion for a pay rise for 60,000 aged care nurses, and made a submission to the Fair Work Commission recommending a real wage increase for three-million minimum wage and award workers. HEALTH $8.5bn to boost bulk-billing : Labor has made an $8.5bn Medicare pledge aimed at supercharging bulk-billing rates at GPs. PBS boost : Medicines listed on the pharmaceutical benefits scheme will be capped at no more than $25 per script. Telehealth expansion: Labor will spend $200m to create a 24-hour telehealth service, dubbed '1800MEDICARE'. Women's health bump: A $575m plan to add oral contraceptives, menopause hormone therapies, endometriosis and IVF drugs to the PBS, raise the Medicare rebate for getting an IUD from $91 to $215 and build 11 new endometriosis and pelvic pain clinics across the country, raising the number of clinics from 22 to 33. Men's mental health: Labor has pledged $32m toward Movember, Men's Sheds and male-specific mental health services. Healthcare hubs: Funding will be provided for healthcare hubs in Burnie, Tasmania and at Adelaide's Flinders University. Mental health: $1bn boost for headspace clinics and specialist centres for youth. Online mental health: $135.2m for online mental health support. Peri-natal mental health: $16.7m to bolster mental health support services for new parents. Fairfield Hospital: $80m to expand the emergency department at Fairfield Hospital in Sydney's southwest. Rouse Hill Hospital: $120m toward a maternity ward at Rouse Hill Hospital being constructed in Sydney's northwest. Perth hospital: $200m to revamp St John of God Midland Public Hospital in Perth. Urgent care clinics: $644m for 50 Medicare Urgent Care Clinics. NT aged care: A new aged care home in Darwin as part of a $60m boost to Northern Territory health and aged care. Aged care pay: A payrise for 60,000 aged care workers at $2.6bn. LGBTQ+ care training: A $10m program to train primary healthcare for treating LGBTQ+ patients. ENERGY Cheap solar batteries: Labor will slash the cost of solar battery installations by up to $4000 per household from July 1, as part of its $2.3 billion Cheaper Home Batteries program. Bill relief: The government announced in the federal budget it would extend the current energy bill rebate until the end of the year, saving households $150. Community energy upgrades: Labor has pledged $100 million for energy upgrades to community facilities, including more efficient lighting and battery storage at sporting fields, community halls and libraries. Green social housing : Labor will add another $500 million to its Social Housing Energy Performance Initiative, worth a total $800 million, to cut energy bills and reduce emissions for social housing tenants. Vehicle emission standards : Legislation has been enacted to establish vehicle emission standards for new vehicles sold in Australia, effective from July 1, 2025, to reduce transportation-related emissions. This will include penalties for manufacturers breaching the standard. Renewable energy focus : Labor will aim to source 82 per cent of the electricity grid from renewables by 2030, which will be firmed by battery storage and gas. It's currently at about 35 per cent. Critical minerals reserve : Announced in response to Donald Trump's blanket 'Liberation Day' tariffs, an elected Labor government would pledge $1.2 billion for a National Reserve of Critical Minerals, including lithium and nickel. National emission reduction target : The government has committed to reducing carbon emissions by 43 per cent from 2005 levels by 2030, a target that has been legislated to ensure accountability and progress. Labor has also continue to back Australia as a signature to the Paris Climate Agreement which requires participating countries to reach net zero by 2050. Expansion of the Clean Energy Finance Corporation (CEFC) : An additional $2bn has been allocated to the CEFC to support households, workers, and businesses in adopting renewable energy solutions, making clean energy more accessible and affordable. Weather radar : Labor has committed to a $10 million investment in a new BOM weather radar for regional Queensland. HOUSING Foreign buyer ban: Labor will ban foreign investors and temporary residents from buying existing homes for two years. The policy does not stop this cohort investing in newly built homes. New home builds: Labor will expand its Homes for Australia plan to build an extra 100,000 homes specifically for first-time buyers. The party has also vowed $54 million to boost construction of prefabricated and modular homes. Help to Buy : The government committed another $800m in the 2025 federal budget to lift property price and income caps on its Help to Buy scheme, which contributes equity of up to 40 per cent to support eligible homebuyers. Home Guarantee Scheme : All first homebuyers to be eligible for 5 per cent deposits, without needing to pay mortgage insurance. Tradies: In a bid to boost supply, the government is offering construction apprentices a $10,000 cash bonus, while employers of various key trades can get $5000 under the Priority Hiring Incentive. Tradies can also get means-tested concessional loans to help with living expenses, learning a trade and doing an apprenticeship. Infrastructure boost: Labor has committed $1.5 billion to fast-track roads, sewage and water connections, aimed to speed up construction of new housing. Rental investment: Investors will receive tax breaks as part of the build-to-rent program, which is estimated to deliver an extra 80,000 units over the next 10 years. NATIONAL SECURITY Port of Darwin: Labor has flagged it would seek a superfund to buy the Port of Darwin back from Chinese-owned Landbridge Holdings, but not ruled out forcing a sale. The 99-lease to Landbridge was greenlit by the former Turnbull-Coalition government in 2015. Defence spending: Labor has pledged to pump at least $50.3bn into defence over the next decade, with the Prime Minister leaving the door open to further increases. Peacekeeping in Ukraine: Mr Albanese has said he is open to discussing Australian troops in Ukraine as part of a European-led peacekeeping mission. DeepSeek AI ban : In February 2025, the government banned DeepSeek – a Chinese artificial intelligence model – from all government systems and devices. This decision aligns with actions taken by other nations and is based on intelligence assessments on potential risks. Defence technologies: The Albanese government has allocated funds to expedite the development of technologies aimed at countering integrated air and missile defence systems of potential adversaries. Development of a National Food Security Strategy: Recognising the importance of safeguarding food supply chains, the government announced a $3.5m investment to create the 'Feeding Australia' plan. This strategy aims to enhance the security and resilience of Australia's agriculture and food production systems, ensuring stability in the face of potential disruptions. Advanced defence technologies : The government is accelerating the development of technologies to counter integrated air and missile defence systems of potential adversaries. Through the Advanced Strategic Capabilities Accelerator, two Australian companies have been contracted to develop these capabilities, aligning with the ADF's strategic priorities. AUKUS supply chains : An additional $262m has been allocated to bolster local defence industries and develop Australia's nuclear-powered submarine supply chain under the AUKUS partnership. This investment underscores the government's commitment to enhancing the nation's defence industrial base and contributing to collective security efforts with allies. Electronic warfare : The government is funding Canberra-based companies to advance electronic warfare technologies. This initiative is part of the AUKUS Innovation Challenge and aims to produce critical capabilities for the defence forces of Australia, the UK, and the US, in a bid to deepen collaborative defence innovation.
