Government facing pressure from all sides on student debt election pledge

Labor’s election pledge for sweeping student debt reforms is under fire from all sides.

The Albanese government’s pledge to push through sweeping student debt reforms if re-elected is under fire from all sides, with the opposition calling it an inflationary cash splash and the Greens accusing Labor of holding young Australians “ransom”.

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 Leader Peter Dutton is accusing the Albanese government of ‘reckless spending’. Picture: NewsWire / Martin Ollman

Prime Minister Anthony Albanese says his government is ‘investing in Australia’s future’. Picture: NewsWire / Martin Ollman

But Anthony Albanese shot back, pointing to spending blusters of the former Coalition government in which Mr Dutton held several senior portfolios.

“I am asked a question about spending by the leader of the opposition who is a cabinet minister and before that was of course assistant treasurer, and in the entire time they were in office, they did not deliver a single surplus,” the Prime Minister said.

“What we’re investing in is education and training, we are investing in Australia’s future, while we are delivering responsible economic management, which is why we have cut inflation in half.”

The Greens, who claim the reforms as their own, earlier called on Mr Albanese to introduce the legislation “as quickly as possible”.

“We don’t consider it fair to make this change dependent on the next election result,” Greens leader Adam Bandt and tertiary education spokeswoman Mehreen Faruqi wrote in a letter.

“Student debt should not be held ransom to an election campaign that may or may not deliver action to those with student debt right now.

“There is no reason for the government to delay this important change.

“We request that you introduce legislation as soon as possible so that it can pass the Senate with the Greens’ support in the final sitting fortnight in November.”

People with student debt are hurting. This down payment on wiping all student debt can't be held to ransom until after the next election.

The PM says he wants the next government to cut debts, but he could do it now.

Today I wrote to the PM, offering to pass the cuts this year. pic.twitter.com/xtWyMtTB0q

— Adam Bandt (@AdamBandt) November 5, 2024

A university vice-chancellor has previously said the plan to reduce student debt did not go far enough in tackling the “broken” and “deeply unfair” system.

About $16bn in student debt would be cut from existing student loan accounts as of June next year, meaning average HELP debts of $27,600 would be slashed by about $5,520.

The reforms would also raise the threshold for repayment from $54,000 to $67,000 and lower the repayment rate.

Western Sydney University Vice-Chancellor, George Williams, said the proposed reforms were “extremely welcome” but warned they did not go far enough in addressing the cause of Australia’s “broken higher education system”.

“We continue to call for immediate action to deal with the root of the debt spiral problem,” he said.

“The system for setting student fees in the first place is broken and deeply unfair. Today’s changes do nothing for new university students facing inflated fees.”

Professor Williams called for “a commonsense and fair approach” to the cost of university degrees, some of which cost so much that students are “priced out” of following their dreams.

“The fact that a three-year Arts degree now costs $50,000 is actively discouraging some students from considering or staying at university,” he said.

“We need action on all fronts: student loan repayments and the overall cost of degrees.”

Originally published as Government facing pressure from all sides on student debt election pledge