Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Hansard source

I thank Senator Carr for his question. Let me step Senator Carr through some of the reforms, and indeed I will happily deal with the company tax cuts as well for Senator Carr. First is the sustainability of Australia's student loan scheme, which is the envy of the world in terms of the access it provides for students to attend university without facing any up-front fees at all. But our student loan scheme currently has $52 billion worth of debt against it, and on current estimates around one-quarter of that is estimated to not be repaid. So the Turnbull government is taking action to make sure that we preserve that student loan scheme for the future to guarantee that future generations of Australian students will be able to go to university without the threat of up-front fees.

And, yes, we are proposing a reduction in the threshold at which repayments commence. But at the same time we are introducing a new lower rate of repayment, which, at one per cent, means that around $8 per week will be asked of graduates to begin repaying their student debt into the future—$8 per week for graduates, who still have an employment advantage over other Australians and who have an income advantage over other Australians—all of it done to preserve one of the world's most generous student loan schemes. Do you know what the repayment threshold across the ditch in New Zealand is? It is $19,000. We are proposing $42,000 in Australia. This is ensuring fundamental fairness, equity and access.

Senator Carr contrasts that with the government's enterprise tax reform plans, which were about making Australia a more competitive country in which to invest. What is the most important thing to a university graduate when they finish university? It is getting a job. University graduates need to know that there will be a strong economy with growing industry that is investing in Australia and creating jobs for graduates, and that is exactly what these reforms seek to guarantee. (Time expired)