MPs pass Labor’s student debt relief

Millions of Australians are closer to getting thousands wiped off their student debt after MPs passed a major Labor Bill.

The Albanese government’s signature student debt-slashing Bill has passed through the House of Representatives, bringing touted relief for millions of graduates one step closer.

While Labor could have passed the Bill with its massive 94-seat majority, the Coalition also backed it after Sussan Ley confirmed the opposition would not stand in the way.

But the Coalition’s guarantee is crucial to getting it through the Senate, where Labor does not hold a majority and the Greens have threatened to stall it in a bid to attach amendments.

🚨*Bill Alert*🚨

The House has passed the Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025.

The bill will now be transmitted to the Senate.

ℹ️ To find out more, visit: https://t.co/M2DJsTxxay. pic.twitter.com/ECMAuuLLMo

— Australian House of Representatives (@AboutTheHouse) July 29, 2025

Fronting media before the vote, the Opposition Leader said she still had concerns over the Albanese government’s broader response to the cost-of-living crisis, but that “we will not oppose the government’s proposal”.

“And I want to say this to students today – remember this moment,” Ms Ley told reporters.

“Because Anthony Albanese says life will be easier under him, costs will come down, everything will get cheaper.

“Remember this moment because, when I have spoken to young people across the country, they have talked about escalating costs, in rent, electricity, any groceries, in everything a student needs to spend money on.

“It has been really tough.”

Opposition Leader Sussan Ley says the Coalition will back Labor’s signature student debt-slashing Bill. Picture: Martin Ollman / NewsWire

She said added that “underpinning this student debt relief Bill has been a massive cost-of-living crisis for Australia’s students” and vowed to hold the government to account.

“But today, we agreed to not oppose the Bill as it makes its way through the parliament,” Ms Ley said.

“We do care about students who are struggling with the cost of living and said we would be positive where we can be and critical where we need to be.”

Labor’s Bill was central to its youth-focused re-election pitch.

It would cut student debts by 20 per cent for some three million graduates or wipe off about $5500 from the average debt.

The changes would also raise the repayment threshold for student loans from $54,000 to $67,000.

Earlier, Education Minister Jason Clare told his Labor colleagues that he hoped the Bill would pass before question time.