Overview

• The legislation applies a one-off 20% reduction to outstanding HELP debts for about 3 million graduates, cutting the average loan by roughly $5,500 at an estimated cost of $16 billion.
• Repayment rules shift with the income threshold rising from about $54,000 to $67,000 and a marginal-rate model charging 15% on earnings between $67,000 and $125,000 and 17% beyond.
• Education Minister Jason Clare introduced the bill on July 23 as the Albanese government’s first second-term measure, and it passed the House with Coalition support.
• Greens education spokeswoman Mehreen Faruqi plans to table amendments to abolish annual indexation, warning that inflation adjustments will otherwise keep debts growing.
• The bill is under Senate review ahead of a key vote that will test whether Labor can secure passage with Coalition backing or agree concessions with Greens.