Labor HECS plan opposed by the Coalition

The coalition has blasted Labor’s pledge to cancel a fifth of 3 million Australians’ student debt as unfair to those without student loans, opening an electoral battlefield for a fight against the $16 billion policy.

Prime Minister Anthony Albanese announced Sunday that if re-elected, his government would shave $5,500 off the average higher education loan debt of just over $27,000, in an effort to inspire young voters struggling with the cost of living.

Opposition Leader Paul Fletcher branded the proposal a desperate giveaway reminiscent of former Queensland Premier Steven Miles, who went into the election promising free school lunches and 50 cent bus fares but still lost last month.

“The coalition believes this is a deeply unfair policy,” Fletcher told Radio National on Monday. He said it would cost all 27 million Australians but benefit only 3 million.

“People who have the benefit of a tertiary education will have a much higher income than the average in the community and it is therefore appropriate that they bear some of the costs of their education,” Fletcher said.

Nationals leader David Littleproud also questioned the funding of the policy, saying on the ABC that the government would “struggle” to pay for it.

The government will introduce a bill next year on the policy, which will also cover people on TAFE and apprenticeship loans, but it is unlikely to be passed before the election, which takes place in May, making it a pre-election battle become. The opposition has not explicitly said how they will vote on it.

Student loans do not directly affect the outcome of the federal budget because the government repays the debt. But the debt level is accounted for in every budget and affects the government’s overall net debt level.

Prime Minister Anthony Albanese said the policy was not being hidden, even though it was calculated outside the main body of the budget.