Labor Targets 20% Student Debt Cut, Arts Students Face Delays

Following its federal election victory, Australia's Labor government has prioritized reducing student debt, with the first legislation expected to deliver a 20% cut to outstanding student loans. This measure is aimed at alleviating financial pressure on young Australians and is likely to pass swiftly given Labor's increased majority and support from the Greens. The debt reduction, which will save the average debtor about $5,500, is intended to apply before the next round of loan indexation takes effect. Additionally, the income threshold for compulsory student loan repayments is set to rise, ensuring that those earning under $67,000 in 2025-26 will not need to make repayments, further easing the burden for over a million people. However, humanities students facing high fees under the previous government's Job-ready Graduates scheme may not see fee reductions until 2027. Labor's focus on student debt relief is part of a broader strategy to address cost-of-living pressures and restore confidence among younger voters.