Jana Stewart (Victoria, Australian Labor Party) Share this | Hansard source

Education unlocks economic opportunity, which is why the education of Australians, from early childhood all the way through to adulthood, is a focus for the Albanese Labor government. We've got a pretty good education system, but it can be a lot better and a lot fairer. The Universities Accord (Student Support and Other Measures) Bill 2024 is an important part of achieving that goal. This bill is the first stage of the implementation of the Universities Accord, responding to 29 of the accord's 47 recommendations. We know that, after 10 years of coalition neglect, the tertiary system will have to be reformed in stages. Piece by piece, we will build up Australia's tertiary education system to be one that is high performing and truly fair.

First, this legislation alters the indexation formula of the Higher Education Loan Program. The annual indexation of HELP debt will now be based on the consumer price index or the wage price index, whichever is lower. We know HECS debt is negatively impacting the lives of many Australians, particularly gen Z and millennials. Many of them are trying to start their adult lives, boost their education, kick start their career, make a living and/or purchase their first home. This is against the backdrop of global cost-of-living pressures, climate change and a tumultuous geopolitical environment. That's why this bill ensures that HECS debt won't grow faster than wages and will help students to be students and to study without stress. It will erase around $3 billion in student debt for three million Australians across the country, providing relief to workers, apprentices, trainees and students.

Our government understands the economic pain caused by the opposition's unfair indexation hikes, which is why these changes will apply to all student support loans that existed on 1 June 2023. This means that last year's consumer price indexation of 7.1 per cent will be replaced with the lower wage price index rate of 3.2 per cent while also reducing this year's indexation from 4.7 per cent to four per cent. As a result, an Australian with an average student debt of $26½ thousand will see around $1,200 wiped from their student loan. For someone with a debt of $45,000, it will mean that their debt is cut by around $2,000. For someone with a debt of $60,000, it will mean their debt is cut by almost $2,700.

Second, this bill allows for grants to be paid to higher education providers for a new Commonwealth prac payment. Students have told us that mandatory placements not only see them work without pay but prevent them from working jobs outside of their studies. This means that many Australians either delay finishing their degree or don't finish at all, simply because they cannot afford to. The Albanese Labor government hears these concerns and has introduced a payment for eligible teaching, nursing, midwifery and social work students. The other thing that these industries have in common is that they are female dominated industries, so we know this will be better for women too. We know how important these jobs are to our country, which is why we're providing the support that these students need.

Third, the bill establishes a new Commonwealth grants scheme funding cluster for fee-free university-ready courses. These fee-free courses provide a bridge between school and university, providing Australians with the foundational skills they need to succeed at university. Across Australia, we will uncap fee-free university-ready courses, giving more Australians the opportunity to pursue university study. Fourth, the bill requires higher education providers to allocate at least 40 per cent of the student services and amenities fees revenue they collect from students to student led bodies. We know how important it is that students have a say in how their services and amenities fees are spent and we are acting accordingly.

Our higher education system was neglected by the previous government for over a decade. Not only was it neglected by the coalition but it was made more unfair through changes made to lower payment thresholds. Our government is fixing this by making further changes related to student loans and their repayments. The Albanese Labor government will raise the minimum repayment threshold for student loans and cut repayment rates to make the repayment system fairer for all three million Australians with a student debt.

The lifting of the minimum repayment threshold from around $54,000 in 2024-25 to $67,000 in 2025-26 will allow Australians to keep more of what they earn at a time when many are looking to save for a house deposit or start a family. We are also introducing a system where repayments are based on the portion of a person's income above the new $67,000 threshold. For someone on an income of around $70,000, this will mean they will save around $1,300 a year in lower repayments. The government's move to a marginal repayments system is informed by the architect of the HELP system, Professor Bruce Chapman, and responds to another recommendation of the Australian Universities Accord. These changes mark the most significant reform to Australia's higher education system in more than 35 years.

When our government came to office, we inherited an economy in distress. Inflation was at 6.1 per cent and climbing dangerously in an upwards spiral, reflecting the troubled economy and policy vacuum left by the former coalition government. In recognition of the pressure that the coalition's unjust economic policies placed on Australians with student debt, the Albanese Labor government will, if re-elected, wipe 20 per cent off all existing student loans by 1 June next year. In doing so, we will erase around $16 billion in debt for more than three million Australians with a student loan. The wiping of student debt builds on our changes to the HELP indexation formula and will save a university student with an average HECS debt of around $26,500 more than $5,000. All up, the average student loan will be around $6,500 lower if the Albanese Labor team is re-elected, and it will be done by 1 June next year.

The Albanese Labor government understands that our tertiary system doesn't include just universities. In the past decade alone, we have seen state and federal coalition governments defund and shut down our TAFEs, which are invaluable in providing our workforce with the workers that Australians need. That's why the government will introduce legislation to permanently fund 100,000 fee-free TAFE places a year from 2027 onwards. Permanent fee-free TAFE builds on the government's existing partnership with states and territories to deliver 180,000 places in 2023 and 300,000 places over three years from 2024. Since the Albanese government introduced fee-free TAFE in January 2023, the program has seen 508,000 enrolments in courses in areas of priority for the Australian economy. This includes 131,000 in care, including disability and aged care; 48,000 in technology; 35,000 in construction; and 35,500 in early childhood education and care.

Our government is not just talk; we are about action. We are expanding Australians' access to our tertiary system. A record 170,000 young Australians, 124,000 jobseekers and 30,000 First Nations Australians have enrolled in TAFE courses under our government. I am proud to be part of a government that prioritises education pathways for Australians, no matter who you are and no matter where you come from. This is starkly different from the former coalition government's blatant disdain for vocational study.

The Universities Accord is not only bigger than one piece of legislation but bigger than one term of parliament. This is a historical commitment of national importance. Minister Jason Clare and the broader Albanese Labor government will continue to ensure Australians' tertiary system is fit for purpose for modern Australia. It's time we make it right and it's time we make it fairer.