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

I thank all senators who have contributed to this debate. I particularly thank those who have indicated their support for the Turnbull government's reforms to ensure that our world-leading income-contingent loan program for students, which is one of the world's most generous, continues to be viable and sustainable into the future. We are marking the 30th anniversary of the introduction of HECS by the Hawke-Keating government. Mr Acting Deputy President Whish-Wilson, I'm sure you, I and others would have been in that first generation that saw HECS-HELP and its introduction.

I want to acknowledge the members of the Senate Education and Employment Legislation Committee who have undertaken work on this legislation. Their work is demonstration that what we've seen since the advent of HECS and its subsequent HELP scheme is nothing but continued growth in participation in higher education, particularly participation across different equity cohorts. I particularly thank the Chair, Senator Gichuhi, and Senator Paterson, whose report the Turnbull government has adopted, including their proposed recommendations and amendments for a renewable limit on outstanding HELP loans. The renewable loans balance, as proposed, will commence from 1 January 2020, but the existing loan caps will be increased from 1 January 2019. I also want to thank, in particular, those experts, such as the original architect of HECS, Professor Bruce Chapman, who have made contributions to the Senate inquiry and to deliberations on this matter. These proposed changes are the culmination of a process that commenced with a policy discussion paper back at the time of the 2016-17 budget.

A generous student loans program provides access to tertiary education for all Australians, irrespective of their backgrounds, their financial means or the circumstances of their families. No real rate of interest is charged on outstanding loans, and as former students would know—and as I trust current students appreciate—it is certainly one of the best loans anybody will ever get. We are determined to preserve it and to ensure that it is sustainable well into the future. Australians will continue to be able to pursue further study, to change careers and to specialise in their current profession, and to do so by accessing very generous loans.

The HELP loan limits will continue to be indexed annually so they will increase in line with the cost of living. The Australian tax office's financial hardship provisions ensure that Australians should not have to make compulsory repayment if it will leave them or their families in financial difficulties. In discussions with some senators—I particularly acknowledge Senator Storer here—we've worked to increase awareness of these provisions to ensure there are clear links to them on the StudyAssist website. Some 90 per cent of applications for full or partial deferral of repayments are approved by the tax office. These measures are fair and progressive and ensure that Australia's world-leading income-contingent loan scheme will continue to be available to future generations of students.

Importantly for all Australian taxpayers, outstanding loans under the HECS-HELP program stand at over $50 billion at present. If we don't act over the next few years, future governments may well be forced to act, and in a way that doesn't preserve, as we have, the integrity, sustainable, and viability of the loan scheme. Indeed estimates are that, without the types of changes that we're proposing, around one-quarter of that $50 billion of outstanding loans will not be repaid.

The Labor Party would have you believe they're all for fairness, sustainability and future prosperity, but they tend to like to kick the can down the road and avoid making the difficult decisions, such as this one, that will improve the sustainability and integrity of this loan scheme well into the future. Today's Labor Party is not the party of Hawke and Keating, who took the decision to first introduce HECS. Indeed, whilst the 30th anniversary of HECS is upon us, another 30-year anniversary looms next year: the last time a Labor government delivered a surplus.

The coalition is determined that we will be responsible with Australia's finances, but also with the future of access for Australian students, by ensuring that the tertiary loans scheme, the HECS-HELP scheme, is viable, sustainable and affordable into the future so that it continues to provide that access for every student to be able to go to university without fear of up-front fees getting in the way of their capacity to do so. I acknowledge Senator Martin's comments before, particularly the remarks that highlighted some of the other steps we've taken in terms of improving access to youth allowance for rural, regional and remote Australians to ensure that some of those who face the highest cost-of-living pressures, in having to move to a city to be able to access higher education, are given additional support to do so.

I thank senators again for their contributions. I commend the bill to the Senate. I indicate that there are some government amendments that will be circulated, particularly relating to the fact that this bill is now being considered subsequent to its initial intended start date, and I hope that the bill enjoys the support of senators.

Question agreed to.