Universities Accord (Cutting Student Debt by 20 Per Cent)

Current status

This bill became law on Aug 2nd, 2025.

Policy area

Education & skills

What does this bill do?

The Act cuts eligible HELP, VET student loan, Australian apprenticeship support loan, student start-up loan, ABSTUDY student start-up loan and student financial supplement debts by 20 per cent if they were incurred on or before 1 June 2025.

Why was it introduced?

The government introduced the bill to deliver an election promise and to respond to the Universities Accord’s finding that high and growing student debt was adding to cost-of-living pressure and could discourage people from higher education. The repayment changes implement the Accord recommendation to reduce the repayment burden on lower-income earners by using marginal repayment rates.

Broader context

The bill sits in the government’s Universities Accord response. It combines a one-off election commitment to reduce existing student debts with longer-term repayment changes that the Accord recommended for fairness and work incentives.

Key criticism

Criticism focused less on whether debt relief was welcome and more on whether this bill was the right kind of relief. Coalition speakers said the 20 per cent cut was expensive and poorly targeted. Greens and independent senators argued it did not go far enough on student debt, indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages., Job-ready Graduates fees and unpaid placements.

Who supported it?

Jason Clare, Minister for Education introduced this bill. It passed with support from Labor, Greens, Australia's Voice, some crossbench members; opposed by One Nation, some crossbench members.

Introduced in House 23 July 2025
Passed House 29 July 2025
Passed Senate 31 July 2025 Aye 36 No 3
Became law 02 Aug 2025

Did it become law?

Yes

Became law 02 Aug 2025

Final passage

Recorded final vote

1 counted final-passage vote was recorded.

Passage speed

10 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. The Act cuts eligible HELP, VET student loan, Australian apprenticeship support loan, student start-up loan, ABSTUDY student start-up loan and student financial supplement debts by 20 per cent if they were incurred on or before 1 June 2025.

  2. The 20 per cent cut applies before the 1 June 2025 indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages. step, so the reduced balance is the one that is indexed for 2025.

  3. For debts newly incurred between 1 January 2025 and 1 June 2025, the Act reduces the debt amount by 20 per cent at the point the debt is worked out.

  4. The Act also lifts the minimum compulsory repayment income from $54,435 in 2024-25 to $67,000 in 2025-26, with later increases linked to wages.

  5. Compulsory repayments move to a marginal system: people repay only on income above the repayment threshold, rather than paying a percentage of their whole repayment income once they cross the threshold.

  6. The explanatory memorandum says the debt cut will benefit about 3 million Australians with student loan debt, and that around 70 per cent of people repaying HELP debtA Commonwealth student loan debt under the Higher Education Loan Program, including HECS-HELP and other higher education loans that are repaid through the tax system. are aged 35 or younger.

  7. The Act includes limited rule-making powers to handle transition issues and to move the 1 June 2025 reference date by no more than two days where specified conditions are met.

Show source excerpts
  1. provide a one-off 20 per cent reduction to Higher Education Loan Program (HELP) debts in HESA, and other student loans provided under the Student Loans Acts that are incurred on or before 1 June 2025
    Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025 explanatory memorandum
  2. reduce a person’s debts as calculated at the end of the method statement in section 31 by 20%, before the application of indexation
    Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025 explanatory memorandum
  3. This section applies if a person incurs an AASL debt during the period beginning on 1 January 2025 and ending on 1 June 2025 ... the amount of the AASL debt is the amount worked out under that section reduced by 20%.
    Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025 introduced text
  4. increasing the minimum repayment threshold from $54,435 in 2024-25 to $67,000 in 2025-26 (which will continue to increase each year with the growth in wages)
    Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025 explanatory memorandum
  5. introducing a marginal repayment system where compulsory student loan repayments are calculated only on income above the new $67,000 threshold rather than having it based on a percentage of the repayment income
    Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025 explanatory memorandum
  6. The debt reduction measure will benefit 3 million Australians with a student loan debt. It will particularly help younger Australians, with around 70% of people repaying a HELP debt being 35 or younger.
    Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025 explanatory memorandum
  7. make rules modifying the operation of a provision ... as if a reference in the provision to 1 June 2025 were a reference to a later day specified by those rules (which must be no later than 2 calendar days after 1 June 2025)
    Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025 introduced text

Broader context for this bill

The bill sits in the government’s Universities Accord response. It combines a one-off election commitment to reduce existing student debts with longer-term repayment changes that the Accord recommended for fairness and work incentives.

  1. 2024

    Universities Accord identifies student debt pressure

    The explanatory memorandum says the Accord recognised high and growing student debt as a financial burden that was worsening cost-of-living pressure and could discourage future students from higher education.

    Explanatory memorandum ↗
  2. 2024

    Government caps student debt indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages.

    The explanatory memorandum says the government had already delivered the Accord recommendation to cap student-loan indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages. at the lower of CPI or wage growth, providing about $3 billion in relief.

    Explanatory memorandum ↗
  3. 19 June 2025

    APRA finalises HELP lending changes

    The explanatory memorandum says APRA finalised targeted changes to how banks treat HELP repayments when assessing home loan applications, following another Accord recommendation.

    Explanatory memorandum ↗
  4. 23 July 2025

    Debt-cut bill introduced first after election

    Jason Clare told the House the bill was the government’s first bill after the election and would cut the student debt of three million Australians by 20 per cent.

    Minister’s second reading speech ↗
  5. 02 Aug 2025

    Student debt changes become law

    The bill received Royal Assent on 2 August 2025 and commenced the next day as the Universities Accord (Cutting Student Debt by 20 Per Cent) Act 2025.

    APH bill page and final law metadata ↗

How did it move through Parliament?

House Senate
Introduced 23 July 2025

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 23 July 2025

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 29 July 2025

The bill reached this recorded parliamentary step.

House second reading agreed 29 July 2025

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

House third reading agreed 29 July 2025

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 29 July 2025

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 29 July 2025

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 29 July 2025

The bill reached this recorded parliamentary step.

Second reading debate 30 July 2025

The bill reached this recorded parliamentary step.

Senate second reading agreed 30 July 2025

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Committee of the WholeA Senate stage where senators consider the bill in detail and can move amendments to the bill text. debate 30 July 2025

The bill reached this recorded parliamentary step.

Committee of the WholeA Senate stage where senators consider the bill in detail and can move amendments to the bill text. debate 31 July 2025

The bill reached this recorded parliamentary step.

Senate third reading agreed Aye 36 No 3 31 July 2025

Recorded vote: 36 to 3.

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 31 July 2025

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 02 Aug 2025

The Governor-General gave Royal Assent, turning the bill into an Act.

The main case against this bill

Criticism focused less on whether debt relief was welcome and more on whether this bill was the right kind of relief. Coalition speakers said the 20 per cent cut was expensive and poorly targeted. Greens and independent senators argued it did not go far enough on student debt, indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages., Job-ready Graduates fees and unpaid placements.

The Coalition ultimately said it would not stand in the way of the bill, while the Greens and several crossbenchers supported relief but moved amendments for broader changes.

Cost and targeting

Coalition speakers argued that a $16 billion debt cut would be paid for by all taxpayers while giving larger dollar benefits to people with bigger debts, including some future high-income earners.

Raised by Coalition speakers including Zoe McKenzie and Jonathon Duniam Source ↗

Future students and course fees

Greens and independent amendments argued that a one-off debt cut did not fix future student debt or reverse Job-ready Graduates fee increases, especially for some humanities and social science courses.

Raised by Australian Greens, David Pocock and Monique Ryan Source ↗

Indexation and repayments

Several amendments sought stronger indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages. changes, including ending student debt indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages., capping it at 3 per cent, or accounting for PAYG withholding before indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages. was applied.

Raised by Australian Greens, Sarah Henderson, David Pocock and Monique Ryan Source ↗

Placement poverty

Greens and independent amendments said students undertaking mandatory practical placements needed broader or higher payments, including calls to pay all mandatory placements at least at the minimum wage.

Raised by Australian Greens and Monique Ryan Source ↗

Further sources

Recorded votes

How the bill itself passed

The chamber-passage votes come first. Expand a vote to see the party breakdown.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

29 July 2025

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Carried

Senate passed the bill

Aye 36 No 3

Passed 36 to 3. Support came from Labor, Greens, Australia's Voice, and minor parties and independents. Opposition came from One Nation and minor parties and independents.

31 July 2025

Party Recorded votes Aye / No
Labor 23 / 0
Greens 10 / 0
Independent 2 / 0
One Nation 0 / 2
Australia's Voice 1 / 0
Unknown 0 / 1

Earlier bill-stage votes

Carried

Senate adopted the committee report

Aye 36 No 3

Passed 36 to 3. Support came from Labor, Greens, Australia's Voice, and minor parties and independents. Opposition came from One Nation and minor parties and independents.

31 July 2025

Party Recorded votes Aye / No
Labor 23 / 0
Greens 10 / 0
Independent 2 / 0
One Nation 0 / 2
Australia's Voice 1 / 0
Unknown 0 / 1

Amendments at a glance

Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.

Senate

Defeated

Call for free education and paid placements

Aye 10 No 33

Moved by Mehreen Faruqi (Australian Greens). Defeated 10 to 33. Support came from Greens. Opposition came from Labor, Liberal Party, One Nation, UAP, and minor parties and independents.

30 July 2025

This vote tested the Greens’ broader student-debt position before the Senate agreed to the bill in principle.

Party Recorded votes Aye / No
Labor 0 / 25
Greens 10 / 0
Liberal Party 0 / 3
One Nation 0 / 3
Independent 0 / 1
UAP 0 / 1
Defeated

Wipe covered student debts

Aye 10 No 33

Moved by Mehreen Faruqi (Australian Greens). Defeated 10 to 33. Support came from Greens. Opposition came from Labor, Liberal Party, One Nation, UAP, and minor parties and independents.

30 July 2025

This was a vote on whether the bill should wipe covered student debts rather than reduce them by 20 per cent.

Party Recorded votes Aye / No
Labor 0 / 23
Greens 10 / 0
Liberal Party 0 / 5
Independent 0 / 2
One Nation 0 / 2
UAP 0 / 1
Defeated

Cap student debt indexation at 3 per cent

Aye 8 No 38

Moved by The Hon Sarah Henderson (Liberal Party of Australia). Defeated 8 to 38. Support came from One Nation, UAP, and minor parties and independents. Opposition came from Labor and Greens. One cross-floor vote was recorded: The Hon Sarah Henderson (Liberal Party) voted aye. Liberal Party had split recorded votes.

30 July 2025

This vote tested a Coalition-backed indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages. cap proposal during detailed Senate consideration.

Party Recorded votes Aye / No
Labor 0 / 25
Greens 0 / 10
Liberal Party 1 / 3
One Nation 3 / 0
Independent 2 / 0
UAP 1 / 0
Unknown 1 / 0
Defeated

End indexation of student debts

Aye 10 No 34

Moved by Mehreen Faruqi (Australian Greens). Defeated 10 to 34. Support came from Greens. Opposition came from Labor, Liberal Party, Nationals, UAP, and minor parties and independents.

30 July 2025

This vote tested whether student debts should stop being indexed after the debt cut.

Party Recorded votes Aye / No
Labor 0 / 25
Greens 10 / 0
Liberal Party 0 / 5
Independent 0 / 2
Nationals 0 / 1
UAP 0 / 1
Defeated

Index debts after PAYG withholdings

Aye 10 No 33

Moved by Mehreen Faruqi (Australian Greens). Defeated 10 to 33. Support came from Greens. Opposition came from Labor, Liberal Party, Nationals, UAP, and minor parties and independents.

30 July 2025

This vote tested a narrower Greens indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages. change after the proposal to end indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages. was defeated.

Party Recorded votes Aye / No
Labor 0 / 25
Greens 10 / 0
Liberal Party 0 / 4
Independent 0 / 2
Nationals 0 / 1
UAP 0 / 1
Defeated

Call for free education and paid placements

Aye 10 No 33

Moved by Mehreen Faruqi (Australian Greens). Defeated 10 to 33. Support came from Greens. Opposition came from Labor, Liberal Party, One Nation, UAP, and minor parties and independents.

30 July 2025

This journal entry confirms the counted second-reading amendment vote.

Party Recorded votes Aye / No
Labor 0 / 25
Greens 10 / 0
Liberal Party 0 / 3
One Nation 0 / 3
Independent 0 / 1
UAP 0 / 1
Defeated

Reduce Job-ready Graduates course fees

Aye 11 No 29

Moved by Mehreen Faruqi (Australian Greens). Defeated 11 to 29. Support came from Greens and Australia's Voice. Opposition came from Labor, Liberal Party, One Nation, and minor parties and independents.

31 July 2025

This was the final counted amendment vote before the bill was reported without amendment.

Party Recorded votes Aye / No
Labor 0 / 21
Greens 10 / 0
Liberal Party 0 / 3
Independent 0 / 2
One Nation 0 / 2
Australia's Voice 1 / 0
Unknown 0 / 1

This list includes amendment votes, procedural votes and votes on the bill itself.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Jason Clare

Australian Labor Party • MP 23 July 2025

Jason Clare introduced the bill as the government’s first bill after the election, saying it would cut student debt by 20 per cent and make repayments fairer by raising the threshold and moving to marginal repayments.

Read in Hansard ↗
Lead opposing voice Opposes

Malcolm Roberts

Pauline Hanson's One Nation Party • Senator 29 July 2025

Malcolm Roberts opposed the bill, calling it a con job and arguing it only partly offset debt increases caused by inflation and indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages..

Read in Hansard ↗
Lead non-major voice Mixed

Fatima Payman

Australia's Voice • Senator 29 July 2025

Fatima Payman supported student debt relief but said broader higher education reforms were still needed to make education more affordable and fair.

Read in Hansard ↗
Lead voice Mixed

Jonathon Duniam

Liberal Party • Senator 29 July 2025

Jonathon Duniam said the Coalition would allow the bill to pass, while criticising it as a costly and poorly targeted response to cost-of-living pressure and student debt indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages..

Read in Hansard ↗

All speeches by bloc

Labor

9 speakers · 10 contributions · 9 support

  1. Helen Polley Helen Polley supported the bill as part of Labor’s education agenda, saying it would reduce student debt and help with cost-of-living pressure.
    “This is really important legislation”

    Australian Labor Party • Senator • 29 July 2025

    Read the full speech in Hansard ↗
  2. Jenny McAllister Jenny McAllister moved the second reading in the Senate and incorporated the government’s speech supporting the 20 per cent student debt cut and repayment reforms.
    “I move: That this bill be now read a second time.”

    Australian Labor Party • Senator • 29 July 2025

    Read the full speech in Hansard ↗
  3. Anthony Albanese Anthony Albanese supported the bill as cost-of-living relief and an education reform, linking the debt cut to Labor’s election promise and broader education agenda.
    “This bill delivers both, cutting 20 per cent off all student debt for university students but also, importantly, vocational education and training students.”

    Australian Labor Party • MP • 29 July 2025

    Read the full speech in Hansard ↗
  4. Corinne Mulholland Corinne Mulholland supported the bill, highlighting the 20 per cent debt cut and the benefit for Australians with student loans.
    “the Albanese Labor government is delivering on our commitment to cut student debt by 20 per cent.”

    Australian Labor Party • Senator • 29 July 2025

    Read the full speech in Hansard ↗
  5. Carol Brown Carol Brown supported the bill as cost-of-living relief that would cut student debt and make repayments fairer for people with student loans.
    “I rise to speak in support of this critical piece of legislation”

    Australian Labor Party • Senator • 29 July 2025

    Read the full speech in Hansard ↗
  6. Ellie Whiteaker Ellie Whiteaker supported the bill, saying it delivered Labor’s election promise and would provide real cost-of-living relief to more than three million Australians.
    “a bill that will deliver real cost-of-living relief to over three million Australians”

    Australian Labor Party • Senator • 29 July 2025

    Read the full speech in Hansard ↗
  7. Marielle Smith Marielle Smith supported the bill, saying it would give cost-of-living relief to people with student debt and make higher education more accessible.
    “The bill makes important structural changes to how the repayment system works.”

    Australian Labor Party • Senator • 29 July 2025

    Read the full speech in Hansard ↗
  8. Malarndirri McCarthy Malarndirri McCarthy closed the Senate second-reading debate for the government, saying the bill delivered the promised 20 per cent debt cut and fairer repayment reforms.
    “The Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025 delivers on the government’s commitment”

    Australian Labor Party • Senator • 29 July 2025

    Read the full speech in Hansard ↗

Coalition

4 speakers · 4 mixed

  1. Sarah Henderson Sarah Henderson said the Coalition would not oppose the bill, but criticised the government’s handling of cost of living and moved for a 3 per cent cap on student debt indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages..
    “The Universities Accord (Cutting Student Debt by 20 Per Cent) Bill is an admission of abject failure”

    Liberal Party • Senator • 29 July 2025

    Read the full speech in Hansard ↗
  2. Zoe McKenzie Zoe McKenzie said the Coalition would not block the bill, but argued the $16 billion one-off debt cut was unfair to taxpayers without student debt and poorly targeted to some higher-income graduates.
    “it is their taxation dollars that are going towards this one-off $16 billion cost to the bottom line of the budget.”

    Liberal Party • MP • 29 July 2025

    Read the full speech in Hansard ↗
  3. Leah Blyth Leah Blyth said the Coalition would support the bill but criticised it as poor public policy that did not address wider cost-of-living pressures or higher education quality concerns.
    “While the coalition is supporting the Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025”

    Liberal Party • Senator • 29 July 2025

    Read the full speech in Hansard ↗

Greens

2 speakers · 2 mixed

  1. Mehreen Faruqi Mehreen Faruqi welcomed debt relief but argued the bill did not go far enough, calling for all student debt to be wiped, free university and TAFE, Job-ready Graduates reversal and proper payment for placements.
    “it needs to go much further.”

    Australian Greens • Senator • 29 July 2025

    Read the full speech in Hansard ↗
  2. Jordon Steele-John Jordon Steele-John supported relief but argued the bill was not enough, saying student debt should not exist and calling for free education and broader support for students on placements.
    “University student debt is a weight on the backs of millions of people”

    Australian Greens • Senator • 29 July 2025

    Read the full speech in Hansard ↗

One Nation

1 speaker · 1 oppose

Minor parties and independents

2 speakers · 2 mixed

  1. Monique Ryan Monique Ryan supported urgent debt relief but moved a second-reading amendment calling for indexationThe annual adjustment that increases student loan balances to keep them in line with an index such as inflation or wages. timing changes, Job-ready Graduates reform and broader practical placement support.
    “whilst not declining to give the bill a second reading, the House: notes that many degrees have increased in cost well above CPI”

    Independent • MP • 29 July 2025

    Read the full speech in Hansard ↗

Full record

Full chat