HECS debts to be slashed by $5k under Labor election promise

Queensland university students will have an average of $5350 wiped from their HECS debts under a proposal from the federal Labor government if it is re-elected this year.

Queensland university students will have an average of $5350 wiped from their HECS debts under a proposal from the federal Labor government if it is re-elected this year.

The federal government plans to cut 20 per cent of all Australian student loan debts if they win the election.

In the 2023-24 financial year, there were more than 600,000 higher education debtors in Queensland, owing a total of about $20bn.

The 20 per cent reduction in HECS will remove $3.2bn in debt from Queensland students and graduates, and $20bn across the country.

Federal Education Minister Jason Clare said this was a “game-changer” for Queens­land students and graduates.

“All up, it means we are wiping close to $20bn in student debt,” Mr Clare said.

Labor also plans to lift the minimum threshold for HECS repayments by more than $10,000 a year from $54,000 to $67,000 in a move to ease the cost of living, particularly for young people laden down by ballooning bills.

It would mean that a graduate with an income of $70,000 would pay about $1300 less per year in debt repayments.

The changes apply to HELP, VET Student Loan, Australian Apprenticeship Support Loan and other student loans.