Labor introduces legislation that will wipe out about $3 billion of HECS debt for more than 3 million Australians

By Jason Clare

Last year, the big hike in HECS debt hit a lot of Australians hard, in particular a lot of young Australians studying at our universities.

The Albanese Labor Government has heard them and we’re acting.

In August 2024, Labor introduced legislation into Parliament that will wipe out about $3 billion of HECS debt for more than three million Australians.

We are setting indexation for HECS at either inflation or wages, whatever is the lowest.

And we are backdating this change to 1 June last year. In other words, we’re going to wipe out what happened with last year’s indexation spike and make sure it never happens again.

For someone with an average HECS debt of about $26,500, this means that their HECS debt will be cut by about by about $1,200.

For someone with a HECS debt of $45,000, it will mean that their HECS debt is cut by about $2,000.

This is an important change that will make HECS fairer.

But it doesn’t stop there.

For the first time ever, the Australian Government will also now provide financial support to teaching, nursing, midwifery and social work students, to help them while do their practical training in our schools and hospitals.

These are people who’ve signed up to do some of the most important jobs in this country and the Commonwealth Prac Payments will give them a bit of practical help while they do the practical training.

These changes are just some of the ways Labor is tackling the cost of living and the cost of degrees.

Education is the most powerful cause for good and the Albanese Labor Government is building a better and fairer education system to give more Australians the skills they need to get a job, to make more money and live a better life for themselves and their families.

That’s what this is all about.

Calculate your estimated HELP indexation credit by visiting https://www.education.gov.au/helpestimator.

Jason Clare is the Minister for Education and the Member for Blaxland