Andrew Giles (Scullin, Australian Labor Party, Minister for Skills and Training) Share this | Hansard source

'A huge weight off my shoulders', 'opening up new opportunities', 'every penny helps my savings'—now, these aren't my words; they are the words of some TAFE students who joined me recently to talk to me about what student debt relief means to them. This is real cost-of-living support, helping students with those week-to-week costs and helping them save for the rent, a home deposit or whatever it is that is their dream.

But, beyond that, this is something that is continuing to break down barriers. Through this measure, through this bill, the Albanese government is sending a really strong signal to Australians, particularly but not only young people, so that everyone can see that accessing education and training is possible, that pursuing a new career needn't be only a dream but is something that can be tangibly reached.

In our first term, the Albanese government wiped $3 billion of student debt through changes to indexation, putting this money back into the pockets of students and apprentices right around the country. We listened to students, who were telling us that cutting student debt made a real difference to their lives. So we didn't stop there. Last year, in Sturt, the Prime Minister announced that a re-elected Albanese government would introduce as our first piece of legislation a 20 per cent cut to student debt for students in universities and for students in the VET sector, too. We listened to students, and now we are delivering.

I want to recognise the fantastic work of my friend Minister Clare, the Minister for Education—the work he's done to put this bill before the House, to show that we are delivering to those students and to thousands like them right around the country. This is of course the first bill presented to the parliament by the re-elected Albanese government.

The bill also underscores our government's commitment to making tertiary education more accessible. This is a wide-ranging commitment, of course, because it sits alongside measures such as free TAFE—almost the last bill legislated in the last parliament—alongside our critical apprenticeship incentives and of course alongside paid prac. It means that more women, more First Nations Australians and more people from our regions can get the skills they want so they can do the jobs we need—secure, long-term, well paid jobs in industries like construction, the care economy, manufacturing and technology. By cutting student debt, the Albanese government is taking pressure off more than three million Australians who have a student debt loan, including nearly 300,000 students in the VET sector, whose debt will be reduced by half a billion dollars. That is three million Australians right around the country—including, of course, more than 20,000 students and apprentices in my electorate of Scullin.

During the election campaign I heard from so many community members—again, particularly young people—about what the 20 per cent cut to their student debt meant to them. With this bill there are additional measures. We're also increasing the repayment threshold to $67,000 in 2025-26. This means, for example, that someone earning $70,000 a year will have around $1,300 less in repayments.

As the Minister for Skills and Training I'm particularly proud of what this legislation means for students in the vocational education and training sector. I've been travelling to TAFEs right around the country, meeting with students and apprentices to hear about how government can better support them. I've seen firsthand how many of them have leapt at the chance to undertake a free TAFE course. On the basis of the latest data we know there've been more than 650,000 enrolments in free TAFE. We also know that free TAFE is producing results, with more than 170,000 course completions, seeing more Australians heading towards work in critical industries. And now these students, these apprentices, will be benefiting from student debt relief, too. Students with Australian Apprenticeship Support Loans and those with VET student loans will benefit—nearly 300,000 of them.

On 1 June 2025, apprentices with these student loans had $1.22 billion of loan debt, while students with VET student loans had around $1.6 billion of student debt. Now, as a result of our 20 per cent student debt cut, around 244 million of Australian Apprenticeship Support Loan debt and $317 million of VET student loan debt will be removed. For an apprentice with the average-size loan, $9,000, the debt relief they'll see will be $1,800, while debt relief for someone with the average VET student loan of $11,000 will be $2,200.

These loan programs have made further study and training possible for hundreds of thousands of Australians. They've enabled students and apprentices to pursue high-level training, including in courses that address the needs our country is facing and of course creating better employment outcomes and opportunities for them. In manufacturing, our government continues to drive forward a future made in Australia. In the care economy, we are developing reforms across aged care, health and early childhood education to support communities and ensure that they have the services they need. In housing, too, we are boosting the pipeline of housing construction workers to build the new homes Australians need. In science and technology, we are putting Australia at the forefront of global innovation and developing solutions for the modern world. Not only is this of benefit to students; we know how much Australian businesses and the economy benefit from the skills these graduates bring.

I very recently met with some students from CIT here in Canberra who very generously shared their stories with me. Jennifer has a $40,000 student debt across both HECS and VET. She told me: 'I am relieved I will be saving around $8,000. It makes such a huge difference. I feel a huge weight off my shoulders, and I really feel like I can focus on finishing my course and getting into my industry.' Ralph is undertaking a Diploma of Nursing. As a result of this legislation, he will save $3,000. Ralph's looking to continue his journey to become a registered nurse. He told me that having more money back in his pocket will make a big difference. Izzy is set to see $2,000 of her student debt cut. For someone who has gone to TAFE to follow her passion for interior design, she feels like the government is supporting her to pursue her dream. Lauren told me she is trying to save for a home and that the student debt cut she will receive will get her a little bit closer to that goal. Elliott was pleased that they would receive a student debt cut on top of seeing wages rise for early childhood educators and free TAFE too.

This is just a snapshot of the nearly 300,000 students and apprentices in the VET sector who will benefit from our government's student debt relief. It's clear to the students that this will make a really tangible difference in their lives. It's recognition from our government that we want to support students and apprentices to pursue new opportunities through TAFE and help set themselves up for their future and our future too.

Very shortly after the Albanese government was first elected to office we brought stakeholders together in a jobs and skills summit. Alongside employers, unions and civil society, we are continuing to work to address what we inherited, which was the worst skills crisis in 50 years and the second-worst of any advanced economy. In our first term, we followed this by putting TAFE back at the heart of the VET system, delivering now more than 650,000 free TAFE places to address critical skills shortages and offer more people the opportunity to get ahead through training. These vital skills are now being deployed in industries like construction, hospitality, health and aged care, cyber and manufacturing. At this point, the very start of our second term, this bill, which will deliver a 20 per cent cut to student debt, will help expand opportunity to those who have traditionally been denied it while critically delivering immediate cost-of-living relief. I commend the bill to the House.

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