‘Huge difference’: Andrew Giles defends HECS relief, free TAFE bill amid accusations of ‘vote buying’, inflation concerns

The Federal Government has defended its new student loan discounts amid accusations of the policy being “elitist” and attempting to buy votes amid high inflation levels.

The Federal Government has defended its decision to slash student debt fees and its free TAFE bill, amid charges of the policy being “elitist” and attempting to buy votes.

Speaking at Boxhill TAFE on Saturday, Skills and Trading Minister Andrew Giles told reporters the plan would make a “huge difference” to the 3 million Aussies with student debt.

Critics have said the policy will only add to inflation and help those who are already ahead in life.

But Mr Giles sought to reaffirm the policy by saying it would help younger Australians without adding to cost of living pressures.

“Everything that we have done through prudent fiscal management, led by the Treasurer and the Finance Minister, has been about making sure that we’re putting downward pressure on inflation, including, of course, those two budget surpluses,” Mr Giles said.

Skills and Trading Minister Andrew Giles said the combined efforts to reduce student debt and introduce free TAFE would not add to inflationary pressures. Picture: NewsWire/Tamati Smith.

“These changes will not have an inflationary impact. That’s what the analysis says.”

The doorstop follows an announcement made on Thursday, where Mr Giles introduced a free TAFE bill into parliament.

“And it’s not the only change that we are making,” the minister continued.

“This bill will build on the enormous success of Fee-Free TAFE around the country, a program that in its first 18 months saw 508,000 people enrol to get important skills and to make a contribution to build Australia’s future.”

“These are the people who will benefit from the student debt changes a re-elected Albanese government will introduce, taking 20 per cent off student loans, benefiting all these people with cost of living relief and supporting their decision to do something for themselves and something for our country in gaining qualifications that they want and which we need,” he said.

Under the changes, students will have around $16bn in debt wiped out by the government.

The Federal Government noted in announcing its new policy that the 2 per cent loan relief would apply to all Australian Apprenticeship Support Loan, HECS-HELP, VET Student Loan and other student support loan accounts which exist on June 1, 2025.

The 20 per cent reduction is applied uniformly across all student leave balances. With the government using the $5520 off the typical $27,600 HEC loan. The greater the loan amount the more that would be saved, with Aussies owing $60,000 plus seeing more than $12,000 wiped off their loan.

Both the Liberals and Greens have attacked the policy for varying reasons.

Under the changes, $16bn in student debt will be wiped by the Federal Government, with the 2 per cent loan relief applying to all Australian Apprenticeship Support Loan, HECS-HELP, VET Student Loan and other student support loan accounts from July next year.Picture: NewsWire / Jeremy Piper

The Coalition issued fresh attacks on Labor’s election pitch during Question Time on Tuesday, with both Peter Dutton and Angus Taylor accusing the government of “reckless spending”.

“Despite three budgets, the cost of living crisis worsens,” the Opposition Leader told the House.

“The country is off-track and this Labor government is damaging the economy and hurting everyday Australians.

“Why are Australian families paying the price for the Albanese Labor government’s reckless spending and when will it stop?”

Opposition education spokeswoman Sarah Henderson has criticised the government’s pledge as “grossly unfair to the 24 million Australians who don’t have a student loan, but especially favours graduates who have racked up very large debts, many of whom will also be high-income earners over their lifetimes”.

Greens are accusing the Labor government of holding young Australians saying the government should wipe the debt today.

Senator Mehreen Faruqi deputy leader of the Greens said Labor should do the right thing and bring the bill forward.

“People are hurting right now, they need student debt relief right now, not next year.

“Not only is Labor delaying their promised changes to student debt, they are making them uncertain by tying them to the result of the next election.

“There’s no reason to wait. Student debt relief shouldn’t be dangled like a carrot on a stick and held ransom to the next election results. We have the numbers in the parliament to lock in these changes right now.