Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Education, Senator Watt. The Albanese government has stated that tonight's budget is about providing cost-of-living relief without adding to inflation. When speaking with young people, I am constantly told that the debts they acquire while studying are adding to cost-of-living pressures. What is the Albanese government doing to make the HECS-HELP system fairer and to support more Australians to access affordable higher education?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you, Senator Sheldon, for your question. We know that there are people doing it tough right now across Australia, and that's why helping Australians with cost-of-living pressures is the Albanese government's No. 1 priority. We are driving down inflation to take pressure off household budgets. We want people to earn more and keep more of what they earn, but we know that there is still more to be done. Labor's economic plan provides relief where it's needed without adding to inflation.

A particular focus of our plan is helping younger Australians. In last year's budget we increased rent assistance, we poured billions of extra dollars into building more homes and young people's wages are now growing above inflation. From 1 July this year, we are delivering tax cuts for every taxpayer, rewarding hard work and putting more money back in Australians' pockets. Under Labor, younger Australians will get a tax cut which they wouldn't have received under the Liberals and Nationals.

As part of tonight's budget, the Albanese government has cut the student debt of more than three million Australians, wiping around $3 billion in student debt. We will cap the HECS-HELP indexation rate at the lower of the consumer price index and the wage price index. Not only that but we are backdating these changes to wipe the effects of the spike in the HECS-HELP indexation rate in 2023.

Opposition Senators:

Opposition senators interjecting—

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I am surprised to hear at least two frontbenchers from the coalition criticising the decision of the Albanese government to wipe $3 billion worth of student debt. We know now who is for more student debt, and that's the people who are interrupting right now.

This change from the Albanese government will ensure that indexation will never grow faster than the average wage. Australians with an average HECS-HELP debt of $26,500 will receive a credit of around $1,200. The new Commonwealth prac payment will also be available to eligible domestic students studying nursing, midwifery, teaching and social work at universities and those studying nursing qualifications through eligible vocational education providers.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sheldon, first supplementary?

Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

The universities accord report was released earlier this year. What did it say about cost-of-living pressures facing students, and why is the Albanese government making these changes now?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thanks again, Senator Sheldon. The Australian Universities Accord:final report, which was released in February this year, included 47 recommendations to reform the higher education sector for the next decade and beyond. Students and unions highlighted the very real concerns about placement poverty and cost-of-living pressures. The big hike in HECS-HELP debt last year hit a lot of Australians hard, particularly a lot of younger Australians. We've heard the message and we're acting. We want younger Australians to reach their potential, earn a good wage and have fulfilling careers.

We also want to help fix the skill shortage, which festered under those opposite, to make sure Australia has the skills and services we need to thrive. That's why the Albanese government will provide relief for students while protecting the integrity and value of the HECS-HELP system and establish a Commonwealth prac payment. We need more nurses, more midwives, more teachers, more early childhood educators and more social workers, and the Albanese Labor government will help deliver them.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sheldon, second supplementary?

Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

HELP—like the previous Higher Education Contribution Scheme—is designed to reduce upfront barriers to education. This life-changing support has made it possible for millions of Australians to get a university degree. How will these changes benefit Australian students, and how will students be able to access these important cost-of-living measures?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you, Senator Sheldon. The Albanese government is providing much needed cost-of-living relief for younger Australians by cutting $3 billion in student debt for more than three million Australians in this month's budget. We're introducing legislation to cap the HECS-HELP indexation rate to be the lower of either the consumer price index or the wage price index, and that will be backdated from 1 June 2023. I guess we might get to see whether this will be another cost-of-living measure that the Albanese Labor government puts forward that the opposition votes against.

This means that indexation will be reduced from 7.1 per cent to 3.2 per cent in 2023, and from 4.7 per cent to four per cent in 2024. Australians with an average HECS-HELP debt of $26,500 will receive a credit of around $1,200, and those who have recently paid off their student loans may be eligible for a cash refund.

The Albanese government is serious about assisting younger Australians with cost-of-living pressures, and these measures will help do that. (Time expired)