Calls to advance PM’s plans for student loan relief – Australian Associated Press

Three million Australians will have their annual student loan repayments cut if the government’s plans are successful before the next election. The Prime Minister is being urged not to wait after unveiling the first major pitch to voters following a series of controversies.

The minimum repayment threshold for student loans would increase by about $13,000 per year, so graduates would start paying off debt once they earned $67,000 starting July 1, 2025, instead of $54,000.

The government would also move to a system of marginal repayment, where the amount of debt repaid would be a proportion of income above a certain threshold, as recommended by the Universities Agreement.

The announcement comes as Prime Minister Anthony Albanese looks to turn a new leaf following the controversy over his Qantas flight upgrades and home purchase.

Revelations Albanese received 22 free flight upgrades from Qantas, some during his time as Transport Minister, and denied allegations that he had personal contact with the airline’s former boss, Alan Joyce, and that he gave the Prime Minister a large part of the week has haunted.

Before that, controversy surrounded his decision to buy a clifftop estate on NSW’s central coast for $4.3 million, with questions over whether the purchase “looked good” during a cost-of-living crisis.

Albanese will join South Australian Prime Minister Peter Malinauskas on Sunday for a meeting to detail student loan policy as he begins to set Labor’s agenda ahead of the next election, expected in May .

“This is what Labor governments do: we help people who are under pressure and we build the future,” Albanese said.

“This will be at the heart of the positive and ambitious agenda we put before the Australian people at the next election.”

An average HELP debt holder will save around $680 a year, with graduates earning $70,000 paying $1,300 less and those earning $80,000 getting an $850 rebate.

The changes would affect about a million young Australians and would apply to all graduates earning up to $180,000 a year.

The government aims to enshrine the changes in law in 2025, so that they come into effect in the next budget year.

Greens senator Mehreen Faruqi welcomed the plan but criticized its ambition and timeline.

“Labour wants people to wait (until) July next year when people need help now,” she said.

Indexation should be abolished altogether, as proposed in a Greens bill that Labor blocked, Senator Faruqi said.

“Bring this legislation to Parliament next week so we can pass it this year,” she said.

Universities in Australia hailed the move as a win for students, with the cost of living factored into one’s decision to start and finish university.

“This additional relief will provide much-needed support to those already paying off HELP debt,” the organization said in a statement.

“We also hope it will give more people the confidence to study at university.

“Australia needs a strong pipeline of skilled workers to ensure our future success, which means training more graduates.”