Tertiary student and apprentice debts will be reduced under new government plans as the prime minister attempts a reset following controversies over a home purchase and historic flight upgrades.
The plan to reduce debts by 20 per cent would apply to about $16 billion worth of student loans.
“This is about opening the doors of opportunity — and widening them,” Prime Minister Anthony Albanese said.
Albanese will be in South Australia on Sunday for a rally with Premier Peter Malinauskas, where he will deliver a speech centred on “building Australia’s future”.
The announcement comes as the prime minister tries to leave a few things behind him.
Albanese was forced to deny allegations he sought upgrades on Qantas flights from former chief executive Alan Joyce after revelations he had received 22 upgrades, including while he was transport minister in the Rudd-Gillard-Rudd governments.
The initial focus on Albanese has widened,
The latest plans to further lower the burden of student debt come after .
Both changes will require legislation which the government plans to introduce early in 2025.
Greens senator Mehreen Faruqi said student debt holders would have already benefited under a bill proposed by her party to scrap indexation and increase repayment thresholds.
She called for the government’s proposed change to come before parliament sooner.
“After years of blocking us, Labor is finally starting to listen to the Greens about the need to address soaring student debt, but it’s a small step well below what is needed,” she said on Saturday.
Opposition education spokeswoman Sarah Henderson said students would take longer to repay debts under the proposed threshold changes.
The government’s previous modifications fixed the rate of debt indexation to inflation or wage growth, whichever was lower.
Aspiring teachers, nurses and social workers have also been offered commonwealth support to complete practical training.
A new cohort of voters who have turned 18 — and started accruing higher-education debts — will vote at the next federal election expected by May.
They join debt-laden recent graduates trying to keep up with bills in a cost-of-living crisis and save for mortgage deposits for housing.
Student loans and other debts can also reduce the amount aspiring first-home buyers can borrow.
