‘20 per cent reduction’ of student debts if Labor elected in Federal Election

The Albanese Government say their plan to cut Aussies student debts by 20 per cent will help more than 20,000 residents in the electorate of Herbert, but Federal Member Phillip Thompson is calling the plan “beyond reckless.”

Prime Minister Anthony Albanese with Labor candidate for Herbert Edwina Andrew at Townsville Port. Picture: Evan Morgan

The Albanese Government say their plan, if they win a second term at the next federal election, to cut Aussies student debts by 20 per cent will help more than 20,000 residents in the electorate of Herbert, but Federal Member Phillip Thompson says the plan is “beyond reckless.”

A breakdown of the HECS debt statistics shows 13,443 residents in the neighbouring electorate of Dawson would have their debts cut also.

The 20 per cent in cuts would mean a person who has the average student HECS debt amount of $27,600 will see roughly $5,520 cut from their loan.

With the country’s amount of outstanding HECS debt totalling more than $81 billion, Labor candidate for Herbert Edwina Andrew said she was excited to tell 20,414 people in Townsville they have a chance to see a cut in their student debt.

Herbert Labor candidate Edwina Andrew.

“I’ll be campaigning every day to ask for their vote to ensure the Government is returned and this relief can be delivered for them and for people all over Australia,” she said.

“It would be an absolute honour to be a member of a Government that values education, values students and wants to ease cost of living pressures for people in North Queensland.”

Minister for Skills and Training Andrew Giles said there is a “clear choice” for the next federal election.

“If the Albanese Government is returned for a second term every single person with a student debt will have it cut by 20 per cent. That means, nurses, tradies, carers, apprentices and teachers all seeing cost of living relief,” he said.

“The Liberals are focused on slamming shut the doors of opportunity for Australians – we are focused on building Australia’s future.”

The Albanese Government would also introduce legislation to establish fee-free TAFE as a longstanding fixture of the national vocation and training system, saying they will fund 100,000 fee-free TAFE places a year in critical areas from 2027.

QLDVOTES24 LNP function at The Ville in Townsville. MP Phillip Thompson talks to the crowd.

In response to this Federal Member for Herbert Phillip Thompson said the Albanese Government is being reckless with its planned spending.

“As someone who worked as a full-time labourer to put myself through night school as a teenager, I understand the importance of education,” he said.

“However, the Albanese Government is beyond reckless in its spending where everybody gets a prize except the future generations who’ll be paying down our enormous debt.”

Mr Thompson said he urged Ms Andrew to “investigate” how many of those who began a free TAFE course have completed them in Townsville.

“We know from the Government’s own documents that only 13 per cent of trainees nationally who enrolled in fee-free TAFE courses after January 2023 had completed their training by March 2024,” he said.

QLDVOTES24 Federal member Phillip Thompson speaking to party faithful at the 2024 Queensland State Election in October.

Mr Thompson said more information was needed on completion figures in Townsville before committing permanent funding to “further cash splashes”.

“Taxpayer funds need to be spent responsibly and backed by evidence,” he said.

“As we saw in last month Queensland election that wiped the floor with former Premier Steven Miles, voters aren’t stupid. If something sounds too good to be true, it is because it likely is.”

This comes after Opposition Leader Peter Dutton rejected Labor’s plan to cut HECS debt, calling it inflationary.

Originally published as ‘20 per cent reduction’ of student debts if Labor elected in Federal Election