Debt for millions to soon be wiped under Anthony Albanese’s promise

It’s one of Labor’s biggest promises to Australians, so when will Anthony Albanese deliver on his ambitious $16 billion plan to slash debt?

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.

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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.

Prime Minister Anthony Albanese pictured serving ice cream at Bar Italia, Norton Street, Leichhardt after having coffee with supporters. Picture: PMO via NewsWire

Mr Albanese visits a local brewery for a beer with party workers. Picture: David Gray/AFP

$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.

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The debt cuts promised by Anthony Albanese.

“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.”

Originally published as Debt for millions to soon be wiped under Anthony Albanese’s promise