Senator Jana Stewart
Mutthi Mutthi and Wamba Wamba
Labor Senator for Victoria

The Albanese Government will cut the student debt of more than three million Australians in this month’s Budget, including 802,756 Victorian students with a HELP debt.

Our Budget will be all about easing pressure on hard-working Australian families and continuing the fight against inflation at the same time as we lay foundations for future growth in our economy. 

This action taken will wipe around $3 billion in student debt – easing pressure on students and workers across the country. 

It will provide significant relief for Victorian students and those with a student debt while continuing to protect the integrity and value of the HELP and other student loans systems, which have massively expanded tertiary access for more Australians.  

In response to the Australian Universities Accord, the Government will cap the HELP indexation rate to be the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) and backdate this relief to all student support loan accounts that existed on 1 June 2023.    

This will benefit every person across Victoria with a HELP debt, fixing the issue of last year’s spike in the CPI indexation rate of 7.1 per cent and preventing growth in debt from outpacing wages in the future. 

The 2023 indexation rate based on WPI would only have been 3.2 per cent.  

An individual with an average HELP debt of $26,500 will see around $1,200 wiped from their outstanding HELP loans this year, pending the passage of legislation.  

Australians with a HELP debt can find out how much this is estimated to benefit them using the HELP Indexation Credit Estimator: education.gov.au/HELPestimator. 

This is part of the first stage of reforms the Albanese Government will implement in response to the Universities Accord.  

Quotes attributable to Senator for Victoria, Jana Stewart: 

“The Albanese Labor Government is cutting student debt for around 802,756 persons with a HELP debt in Victoria.

“I’ve heard from students and people across our state with student loan debt who were shocked at last year’s spike in indexation. This Government has listened to you and we’re taking action to make sure student debt never grows faster than wages. 

“This will make the system fairer and help young Australians from rural and regional communities with a HELP debt.” 

Quotes attributable to Minister for Education Jason Clare: 

“This will wipe out around $3 billion in student debt from more than three million Australians. 

“The Universities Accord recommended indexing HELP loans to whatever is lower out of CPI and WPI.  

“We are doing this, and going further. We will backdate this reform to last year. This will wipe out what happened last year and make sure it never happens again.” 

Quotes attributable to Minister for Skills and Training Brendan O’Connor:  

“This continues our work to ease cost of living pressures and reduce and remove financial barriers to education and training. 

“VET Student Loans and Apprenticeship Support Loans support many Australians to get the skills they need for secure and rewarding careers, and these changes make sure that help is provided on a fairer basis. 

“By backdating this reform to last year, we’re making sure that those with student loans affected by last year’s jump in indexation get this important cost-of-living relief.” 

Estimated indexation credit for HELP debtors 

*Actual credit amount will vary depending on individual circumstances including repayments made during the year. All HELP debts that were indexed in 2023 and are subject to indexation on 1 June 2024 will receive an indexation credit.