University graduates struggling with cost-of-living pressures are in the prime minister’s sights as he tries to turn a new page following controversy over his Qantas flight upgrades and a home purchase.
Anthony Albanese will announce a commitment to raise the minimum repayment threshold for student loans by around $13,000 a year by 2025 so graduates will begin paying down debts once they earn $67,000 instead of $54,000.
This would be indexed to stay at 75 per cent of graduate earnings.
The government will also move to a marginal repayment system where the amount of a debt repaid is a proportion of income above a given threshold, as recommended by the Universities Accord.
The prime minister is looking to recalibrate his government’s focus after several weeks of being under scrutiny.
Revelations Mr Albanese received 22 free flight upgrades from Qantas, some during his time as transport minister, and allegations he liaised personally with the airline’s former boss Alan Joyce have dogged the prime minister for much of the week.
Before that, controversy brewed around his decision to buy a $4.3 million clifftop property on NSW’s central coast, with questions over whether the purchase was a “good look” during a cost-of-living crisis.
The prime minister will join his South Australian counterpart in a campaign rally on Sunday to announce the student loan policy as he begins to lay out Labor’s agenda ahead of the next election, expected by May.
“This is what Labor governments do – we help people under pressure and we build for the future,” Mr Albanese said.
“This will be the heart of the positive and ambitious agenda we take to the Australian people at the next election.”
An average HELP debt holder will save about $680 per year, with graduates earning $70,000 set to pay $1300 less and those on $80,000 getting a cut of $850.
The changes would affect about one million young Australians and will apply to all graduates earing up to $180,000 a year.
The government will aim to legislate the changes in 2025 and has signalled more action regarding student loans.
“Labor will always be the party of education. No matter where you live, no matter how much your parents earn, we will work to ensure the doors of opportunity are open for you,” the prime minister said.
