ANTHONY ALBANESE MP
PRIME MINISTER OF AUSTRALIA

JASON CLARE MP
MINISTER FOR EDUCATION

ANDREW GILES MP
MINISTER FOR SKILLS AND TRAINING

 The Albanese Labor Government has today cut all student debts by 20 per cent.

We are wiping more than $16 billion in debt for more than three million Australians. 

Our number one focus is continuing to deliver cost of living relief for the Australian people. 

Cutting student debt by 20 per cent will ease pressure on workers and students across the country. 

For someone with the average debt of $27,600, this will see $5,520 wiped from their outstanding Higher Education Loan Program (HELP) loans. 

Backdated to 1 June, this is lifting the burden for Australians with a student debt – including all HELP, Vocational Education and Training (VET) Student Loans, Australian Apprenticeship Support Loans, Student Startup Loans, and other student loans. 

In addition to cutting student debt by 20 per cent, we are raising the minimum amount before people have to start making repayments from $54,435 to $67,000 and reduces minimum repayments. 

For someone earning $70,000 it will reduce the minimum repayments they have to make by $1,300 a year. 

This builds on our reforms to fix the indexation formula, which has already cut more than $3 billion in student debt. 

This means, all up, the Albanese Labor Government will cut close to $20 billion in student debt for more than three million Australians. 

The ATO will now begin the work of processing the cut.

This will take a little while but the 20 per cent cut to student debt is guaranteed.

Most people will see their balance reduced before the end of the year, backdated to June.