In Sydney, as reported by Reuters, Australian Prime Minister Anthony Albanese announced on Sunday that the government plans to reduce student loans for approximately three million Australians by 20%, effectively eliminating about A$16 billion ($10.49 billion) in debts. This initiative extends from the measures introduced in May’s budget aimed at addressing cost of living pressures in Australia. The budget also focused on providing debt relief for students, increasing investment to make medicines more affordable, and enhancing a rent assistance program.
Albanese stated that this strategy is designed to assist individuals currently burdened by student debt while efforts are made to secure better conditions for future students. According to government disclosures, these changes imply that an average graduate with a loan amounting to A$27,600 would see a reduction of A$5,520 in their debt.
Further plans from the government include reducing the annual repayment obligations for Australians with student debts and raising the income threshold at which these repayments commence. The issue of cost of living pressures, exacerbated by persistently high inflation, is particularly significant with an upcoming federal election. The center-left Labor government currently trails behind their conservative rivals in polling. The conversion rate is noted as $1 equaling 1.5246 Australian dollars.
