Sussan Ley downplays Sarah Henderson push on HECS

Sussan Ley has sought to downplay former frontbencher Sarah Henderson’s proposal to cap student debt indexation.

Opposition Leader Sussan Ley during question time. Picture: NewsWire / Martin Ollman

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Sussan Ley has sought to downplay former frontbencher Sarah Henderson’s proposal to cap student debt indexation, as more backbenchers voiced support for the proposal in a growing test for the Opposition Leader.

Multiple backbenchers on Monday voiced support for Senator Henderson’s HELP loan ­inflation guarantee.

The Australian on Sunday ­revealed that Senator Henderson – the former education spokeswoman dumped following the post-election leadership battle – would take the provocative step of canvassing support publicly for an indexation amendment to Labor’s $16bn student debt discount bill.

Ms Ley on Monday sought to downplay Senator Henderson’s move as “one of” the suggestions from the partyroom.

“There’s lots of ideas about new policy,” she told Sky News. “We have new policy processes. We have committees where all ideas can find consideration, ­involvement, discussion, and we can do this really well. And that’s one of those ideas.”

She said the partyroom had not yet decided its position on Labor’s proposal.

Fellow former frontbencher Jane Hume appeared supportive of Senator Henderson’s proposal to cap student debt indexation to “solve the problem at its source” and said it “shouldn’t come at a surprise” that backbenchers were publicly making policy ­arguments. “Sussan Ley herself has said that there is an abundance of talent throughout her partyroom and our job here in opposition is to … make policy outcomes better,” she said.

“That’s exactly what Sarah’s proposing – it shouldn’t come as a surprise and the fact that backbenchers have the opportunity to bring that sort of policy forward to make amendments to legislation is a good thing.”

She said that at the start of a new parliamentary term, “a bit of jostling and readjustment” was to be expected.

Liberal backbencher Ben Small, the member for Forrest in Western Australia, told the House of Representatives he welcomed Senator Henderson’s proposal. “Why should tertiary students pay the price when the Albanese government can’t control inflation?” he said.

“This cap on HELP indexation would apply to all future students, unlike Labor’s bill which leaves them high and dry. Senator Henderson’s proposed HELP loan inflation guarantee provides a crucial safeguard against large increases in student debt driven by high inflation.”

Senator Henderson said she had received some “positive” ­responses from colleagues and that she hoped “this amendment will get the support not just of the Coalition but also of the parliament”. “This is all part of my mission to ensure that every young Australian can achieve his or her best potential,” she said.

Senator Henderson’s proposal marked another suggestion of Coalition backbench discontent after The Australian last week revealed former deputy prime ministers Barnaby Joyce and Michael McCormack were advocating against net-zero emissions.