Labor’s student debt reduction amounts to only 7.9%

Labor’s student debt reduction amounts to only 7.9% | Australian Greens Skip to main content Search Get Involved Join Donate Our plan Tax the 1% Tackle the cost of living Healthcare for all Fix the housing crisis Strong climate action Policy principles & aims Our team Federal MPs State/territory MPs Officeholders Media releases Take action Volunteer Donate Issues & campaigns Events Greens Shop Leave a bequest Our movement About the Greens Become a member Jobs Green Magazine All news Get Involved Join Donate Search Our plan Toggle Tax the 1% Tackle the cost of living Healthcare for all Fix the housing crisis Strong climate action Policy principles & aims Our team Toggle Federal MPs State/territory MPs Officeholders Media releases Take action Toggle Volunteer Donate Issues & campaigns Events Greens Shop Leave a bequest Our movement Toggle About the Greens Become a member Jobs Green Magazine All news Labor’s student debt reduction amounts to only 7.9% 2025-07-21 Analysis conducted by the Parliamentary Library shows that Labor’s much-touted 20% student-debt cut collapses to a mere 7.9% once indexation since their election in 2022 is accounted for.

In other words, the impact of the 20% student debt cut is severely diminished by indexation, even after the Government’s changes to indexation by tying it to the lesser of WPI or CPI. For a student with a $30,000 student debt in 2022 when the Albanese government came to power, after Labor’s indexation tweaks and the promised 20% debt cut, they will end up with a debt of $27,619 - only 7.9% below what they began with.

The Greens have relentlessly pushed the Albanese Government to deliver desperately needed student debt relief since they came to power, and the pressure has worked in securing the changes to indexation as well as recent commitments to raise the minimum repayment income, introduce a marginal repayment system and cut student debt. However, Labor’s plans will mean nothing for young people starting a $50,000 arts degree today, whose debt will grow every year due to indexation and take a lifetime to pay off.

And effectively only a 7.9% one-off reduction in debt doesn't even touch the sides of this growing burden. Lines attributable to Senator Mehreen Faruqi, Deputy Leader of the Australian Greens and spokesperson on Higher Education: “Since the Labor government was elected, an increase in student debt because of indexation means that the promise of 20% reduction effectively shrinks to just 7.9%.

“Labor crowing about a small one-off debt reduction won’t fix the enormous burden of uni fees or student debt that keeps growing every year. “Of course any student debt relief is better than none, but we are demanding all student debt be wiped and a return to free uni and TAFE, funded by taxing big corporations to pay their fair share. “In opposition, Labor spoke a big game against the Morrison Government’s fee hikes for degrees like arts, business and law.

In Government, they’ve shown their true colours, smashing students with $50,000 arts degrees that grow every year and take a lifetime to pay off. “If the Labor government is serious about providing relief to students, scrapping the fee hikes of the failed job-ready graduates scheme should be a matter of urgency. “Wiping all student debt and making Uni free is not radical, it’s common sense.

Other countries do it, Australia used to do it. Free university existed in this country and was dismantled by the very party which now expects applause for a paltry repair job.” MEDIA CONTACTS FARUQI: Lauren Skinner – 0474 437 111 Facebook for the Australian Greens YouTube for the Australian Greens X for the Australian Greens Instagram for the Australian Greens Bluesky for the Australian Greens Privacy Members website Your safety Contact us Our plan Tax the 1% Tackle the cost of living Healthcare for all Fix the housing crisis Strong climate action In your language 2025 policy platform Policy principles & aims Our team Federal MPs State/territory MPs Officeholders Federal portfolios Federal media releases Take action Volunteer Donate Issues & campaigns Upcoming events Greens Shop Leave a bequest Green Magazine All news Our movement About the Greens Become a member Jobs Members website State/territory parties Contact us The Greens acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture.

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