Australian Labor Party’s Jim Chalmers gave his 4th budget speech in the House of Representatives leading into the 2025 federal election. There was a major win for students with the introduction of a $16 billion cut from student loan debts across Australia.
This will take place from the 1st of June and will affect three million Australian students which looks to slash the amount owed by 20%.
Labor’s plan looks to help anyone with a HECS debt, VET student loan, Australian Apprenticeship Support Loan and other income-contingent student support loan accounts.
Previously this debt had been tied to inflation with students being faced with heavy increases. This pushed some debts higher despite a year of making the required payments.
This debt cut for students is reliant on the Australian Labor Party winning the upcoming election for the budget to come into effect.