The Albanese government’s landmark student debt relief bill has cleared the House of Representatives, bringing long-awaited financial relief for more than three million Australians one step closer to reality.
The legislation, which proposes a 20 per cent reduction in student loan debt and a significant increase to the repayment threshold, was passed with support from both major parties. The average student debt relief under the new policy would amount to around $5,500.
Although Labor commands a 94-seat majority and could have passed the bill unilaterally, Coalition support was critical for its expected passage through the Senate, where Labor lacks a majority and the Greens have signalled potential resistance unless amendments are attached.
Opposition Leader Sussan Ley confirmed the Coalition would not block the bill, despite voicing concerns about the government’s broader cost-of-living strategy. Speaking to reporters before the vote, Ms Ley said, “We will not oppose the government’s proposal. But let students remember this moment. Anthony Albanese promised lower costs and an easier life, yet students continue to face rising rents, electricity prices, and grocery bills.”
Ley acknowledged the financial pressures faced by students and said the Coalition would continue to scrutinize the government. “We support students, and we said we’d be constructive where possible and critical where necessary.”
The bill is part of Labor’s youth-focused re-election platform. In addition to reducing existing debts, it proposes raising the minimum income threshold for student loan repayments from $54,000 to $67,000, potentially allowing young Australians more time to establish financial stability before repayments begin.
Education Minister Jason Clare expressed confidence the bill would pass swiftly, stating he hoped it would clear Parliament before question time.
If passed by the Senate, the legislation will deliver one of the largest student debt reductions in Australia’s history — and make good on a key campaign promise by the Albanese government.
