Calls for Prime Minister’s plans for student loan relief to be unveiled – Australian Associated Press

The annual student debt repayment of three million Australians will be reduced if the government’s plans for the next election are successful, as the prime minister is urged not to wait to present his first major plan to voters after a string of controversies.

The minimum repayment threshold for student loans would increase by about $13,000 a year, so graduates will start paying off their debts when they earn $67,000 as of July 1, 2025, instead of $54,000.

The government would also move to a marginal repayment regime, in which the amount of debt repaid would be a proportion of income above a certain threshold, as recommended by the Universities Accord.

The announcement comes as Prime Minister Anthony Albanese looks to turn the page on the controversy surrounding the upgrade of his Qantas flight and home purchase.

Reports Albanese received 22 free upgrades from Qantas, some while he was transport minister, and denied allegations that he was personally involved with former airline boss Alan Joyce, which dogged the prime minister for much of the week.

Previously, there had been controversy surrounding his decision to buy a $4.3 million clifftop property on the New South Wales Central Coast, with questions over whether the purchase was a “good deal” amid the cost of living crisis.

Albanese will join South Australian Premier Peter Malinauskas at a rally on Sunday to detail student loan policy and begin to set Labor’s agenda ahead of the next election, due in May.

“This is what Labor governments do – we help people under pressure and build the future,” Albanese said.

“This will be at the heart of the positive and ambitious agenda we put forward to Australians at the next election.”

The average HELP debt holder will save about $680 a year, with graduates earning $70,000 paying $1,300 less and those earning $80,000 receiving a $850 cut.

The changes would affect around one million young Australians and would apply to all graduates earning up to $180,000 a year.

The government will aim to adopt the changes in 2025 so that they come into force in the next financial year.

Green senator Mehreen Faruqi welcomed the plan but criticized its ambition and timetable.

“Labour wants people to wait (until July next year) when people need help now,” she said.

Indexation should be completely abolished as proposed in the Greens bill that Labor blocked, said Senator Faruqi.

“Pass this bill to parliament next week so we can pass it this year,” she said.

Universities Australia hailed the move as a victory for students as the cost of living influences the decision to enter and graduate from university.

“This additional relief will provide much-needed support to those already paying off HELP debt,” the organization said in a statement.

“We also hope that this will make more people want to study at university.

“Australia needs a large number of skilled workers to ensure its future success, and that means educating more graduates.”