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.

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