Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. How will cutting student debt and making free TAFE permanent impact the lives of young Australians?

Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Hasluck for her question and for her passionate advocacy of the rights of young people in her electorate to get access to education, which is the most powerful weapon that we have against disadvantage. We know that education is one of the best investments that we can make. It's an investment in individuals, an investment so that they can get a job that they love and build the life that they deserve. But, for our nation as well, it's an investment in the creativity and innovation that Australia needs to grow and thrive.

That's why on Sunday we announced a three-stage policy—one to cut student debt by 20 per cent. A typical university graduate will benefit to the tune of $5½ thousand. We're also reforming the student debt repayment system, increasing the first payment threshold from $54,000 to $67,000 and lowering the repayment rate. If you're earning $70,000, you will save $1,300 a year in repayments. But we understand that it's not just about university education; it's also about vocational education and it's also about TAFE, which is why we will make free TAFE for 100,000 students each and every year—people doing apprenticeships for the jobs that we need and the skills that we need to fill. Under this Labor government, free TAFE is here to stay.

I met students yesterday who told me about the real, meaningful difference that this will make in their lives. I met an ANU student who said: 'As someone who's looking at close to $60,000 of debt by the time I finish my degree, having this wiped from it will make such a big difference in the future—buying a house. I'm also a really big fan of making the repayment salary later. It's really, really helpful.' This is structural reform not only to boost take-home pay of young Australians but also to support those Australians who are retraining as the economy shifts to make sure that they're not left behind. This is a positive initiative.

Of course, those opposite declared their opposition to this policy before it had even been announced. Sound familiar? It's a bit like tax cuts. I'm amazed that Senator Sarah Henderson actually said this: 'It's a tax cut targeted to the big end of town.' Those opposite, who wanted to exclude low-income earners from any tax cut at all, are now calling a policy that will help the motor mechanic apprentices who I met yesterday with the debt that they owe.