Tim Watts (Gellibrand, Australian Labor Party, Assistant Minister for Foreign Affairs) Share this | Link to this | Hansard source

The Albanese government's No. 1 priority is taking pressure off households and helping people in Melbourne's west with the cost of living. Over the last two years we've already delivered tax cuts for every Australian, provided $300 in energy bill relief to every household, revived bulk-billing and saved Australians $1 billion through cheaper medicines. Next year we're committed to going further. A re-elected Labor government will cut student debt by 20 per cent—that's 20 per cent for everyone with a HECS debt, Australia wide. This will be additional cost-of-living relief for the three million Australians who have student debt, including more than 21,000 people in our community in Melbourne's west.

Our changes will put $680 a year back in the pocket of the average graduate who has a HECS debt and cut $5,500 off the average debt. Labor wants Australians to earn more and keep more of what they earn and to reduce the debt they owe. These changes don't just help young people who are considering study or those who are currently at university; they help anyone who has a HECS debt, regardless of when they last studied. The impacts are tangible and mean more money in the pockets of more people in Melbourne's west.

Labor will also raise the repayment threshold and lower the rate of repayments, because you shouldn't have to start paying off your student debt until you're earning a decent wage. This plan to slash student debt will work alongside other Labor measures to help make housing affordable for working people. We know that home loan lenders can take student debt into account when determining how much they can borrow, and this can hold people back from buying a home. By reducing existing debt levels and repayments, we're improving the ability of young Australians to save and to break into the housing market. The Albanese government's plan is about pragmatic change to take pressure off households in Melbourne's west and remove barriers to homeownership.

These HECS changes sit alongside our $32 billion Homes for Australia Plan. This includes build-to-rent accommodation. In addition, our Home Guarantee Scheme will support people from Melbourne 's west to buy a home with a smaller deposit.

Labor is also locking in fee-free TAFE, something we know well in Victoria, and making it permanent right across Australia, to deliver the skilled workforce and well-paid jobs of the future—more tradies and construction workers to build more homes, more nurses and healthcare workers to care for our loved ones in our community, more tech engineers to support and build a modern Australia, and more opportunities for people in Melbourne's west to gain the skills to get ahead and to find a secure, well-paid job.

Labor's changes are about putting intergenerational equity and fairness back into the system. It's about education unlocking economic opportunity. It's about giving people a fair go. This is what Labor governments do—helping people under pressure while also building Australia's future. The Albanese Labor government is about ensuring that no-one is held back and no-one is left behind, and our student-debt reforms are delivering on this promise.