The Australians set to save big on HECS if Anthony Albanese is re-elected in 2025

Analysis of Anthony Albanese’s student loan savings plan has found which cohort of voters will be the biggest winners if he is re-elected as PM. Are you one of them?

The Albanese government has rejected claims its new student loan discount would make the rich even richer, with exclusive government analysis revealing those earning less than $80,000 would be the biggest winners. 

Analysis of tax data revealed the biggest impact will be on Australians earning between $70,000 and $80,000, who had the highest average debt across all income bands — sitting at $31,000 — and will save $6300 under a re-elected Labor government.

Australians earning less than $90,000 will have more than $11bn in debt wiped collectively, compared to $1.6bn collectively for those earning close to six figures or more. 

Last week the government kicked off its first re-election rally with a promise to wipe 20 per cent off student loans. 

The populist policy — criticised by economists for being inflationary — will help the government target younger Australians who are moving towards the Greens over the housing crisis and the war in Gaza. 

Graduates earning between $70,000 and $80,000 will be the biggest winners of Labor’s HECS discount plan.

Almost 82 per cent of those benefiting from the 20 per cent HECS discount are under the age of 40, while one in two is under the age of 30.

Additional analysis from the Parliamentary Library showed the strategy — labelled by critics as a blatant vote-buyer — will have the most impact in Melbourne followed by Sydney and Brisbane based on the number of people with student loans. 

The effect will be more modest in the regions, with 70,000 people owing a HECS debt in the Newcastle and Hunter Region, and just under 31,000 in The Central Coast.

NSW had the biggest share of overall outstanding HECS debt with $25bn, followed by Victoria at a collective $23bn and Queensland at $16bn. 

Education Minister Jason Clare said the government’s plan will support “lower income Australians and younger Australians who are beginning their careers, might be looking to buy a house or start a family”.

Jason Clare and Prime Minister Anthony Albanese during Question Time at Parliament House in Canberra. Picture: Martin Ollman

“This is an important measure that supports aspiration and will take the pressure off 3 million Australians.

“Peter Dutton’s Liberals reckon this is unfair, it just shows how anti-aspiration the Liberal Party has become.”

Prime Minister Anthony Albanese said Labor was “always the party of education” and that would continue if they are re-elected.

“This is about putting money back into your pocket – and putting intergenerational equity back into the system,” he said.

“All our education measures are good for the cost of living, good for this generation and for generations to come, and good for building Australia’s future.”

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