This bill did not become law and is no longer proceeding.
Education & skills
People with student and training loans would start repaying later because the minimum income threshold would rise and be linked to median wages from 1 July 2023.
Student and training loan rules left borrowers repaying too early and let debts keep growing through annual indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans.. This bill raises the minimum repayment incomeThe income level a borrower must reach before compulsory repayments start; the bill would raise this level and link it to wages. threshold and ties it to median wages, while removing indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. from covered loans.
Australia’s student and training loan system indexed debts each year and required repayments once incomes passed a relatively low threshold. After the 7.1 per cent HELPThe main student loan scheme this bill would change, covering debts that are repaid through the tax system once income is high enough. indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. increase on 1 June 2023, the bill’s case became more visible because it targeted both indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. and repayment thresholds. The government later announced separate indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. relief in the 2024 Budget and a separate repayment-threshold reform on 2 November 2024, but this bill itself lapsed at the end of the Parliament in July 2025.
No significant public case against this bill is recorded so far, and the main concern visible around student loans was that relief might still come too slowly or not go far enough to stop large debt increases. The public pressure that did emerge came mainly from crossbench and commentators seeking stronger or faster action on HECSThe older name people still use for the main student debt system, which is closely tied to HELP and the repayment rules discussed on this page. indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans., not from a clear campaign against raising repayment thresholds or abolishing indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. in this bill.
Senator Mehreen FaruqiThe bill's sponsor, identified on the page as the member who introduced and supported the proposal. introduced this bill. Speeches supporting it came from Greens.
Did it become law?
No
The bill did not complete passage through Parliament.
Final passage
No final passage
The bill has not completed passage and is no longer proceeding.
Time before failure
964 days
From introduction to the final recorded step before the bill stopped proceeding
Meaning
People with student and training loans would start repaying later because the minimum income threshold would rise and be linked to median wages from 1 July 2023.
Student debts would stop growing through annual indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. from 1 July 2022, which would reduce future loan balances.
The repayment income threshold would be based on Australian Bureau of StatisticsThe national data agency whose earnings figures would be used to calculate the repayment threshold under this bill. earnings data, and the minister could set a substitute figure if that data is late.
People with education and training loans would face a changed repayment rate as well as a higher income threshold before repayments begin.
The minimum repayment threshold for these loans will be raised and tied to the median wage from 1 July 2023.Education and Other Legislation Amendment (Abolishing Indexation and Raising the Minimum Repayment Income for Education and Training Loans) explanatory memorandum
Indexation of these loans will be removed from 1 July 2022.Education and Other Legislation Amendment (Abolishing Indexation and Raising the Minimum Repayment Income for Education and Training Loans) explanatory memorandum
19. This item inserts a new section 154-11 which defines ‘median wage’ as 52 times the total weekly earnings amount published by the ABS in its ‘Employee earnings’ statistics for the most recent month of August before the start of the income year. The section also provides that, if the ABS has not published the data for the August reference period by 31 March of the following year, the Minister may determine an amount to be used for the purposes of calculating the median wage but must make a genuine attempt to determine that amount accurately and provide a statement of reasons explaining their calculation. This is to ensure that the median wage can still be calculated for an income year if the ABS data is not published in time.Education and Other Legislation Amendment (Abolishing Indexation and Raising the Minimum Repayment Income for Education and Training Loans) explanatory memorandum
20. These items have the effect of raising the minimum repayment income and amending the percentage of income a person is liable to repay the Commonwealth for education and training loans.Education and Other Legislation Amendment (Abolishing Indexation and Raising the Minimum Repayment Income for Education and Training Loans) explanatory memorandum
Context
Australia’s student and training loan system indexed debts each year and required repayments once incomes passed a relatively low threshold. After the 7.1 per cent HELPThe main student loan scheme this bill would change, covering debts that are repaid through the tax system once income is high enough. indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. increase on 1 June 2023, the bill’s case became more visible because it targeted both indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. and repayment thresholds. The government later announced separate indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. relief in the 2024 Budget and a separate repayment-threshold reform on 2 November 2024, but this bill itself lapsed at the end of the Parliament in July 2025.
Bill introduced to abolish indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. and lift repayment thresholds
Senator Mehreen FaruqiThe bill's sponsor, identified on the page as the member who introduced and supported the proposal. introduced the bill to stop indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. on education and training loans and make borrowers start repaying only at a higher income linked to median wages.
Hansard ↗HELPThe main student loan scheme this bill would change, covering debts that are repaid through the tax system once income is high enough. debts rise by 7.1 per cent through annual indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans.
Financial Review reporting said the 1 June 2023 indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. increase would add about $1,760 on average to HELPThe main student loan scheme this bill would change, covering debts that are repaid through the tax system once income is high enough. balances, making the bill’s push to end indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. more concrete for borrowers.
Australian Financial Review ↗Repayments were still applied after indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. on amounts already withheld
The Financial Review reported criticism of the rule under which the ATO indexed debts on 1 June before annual compulsory repayments withheld from wages were processed through tax returns.
Australian Financial Review ↗Crossbench pressure builds over high HECSThe older name people still use for the main student debt system, which is closely tied to HELP and the repayment rules discussed on this page. indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans.
Independent MPs publicly pressed the government to change a student loan system they said was leaving graduates with debts growing faster than they could pay them down.
Australian Financial Review ↗Government announces separate indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. relief
Ahead of the 2024 Budget, the government announced a separate student-debt package focused on capping HELPThe main student loan scheme this bill would change, covering debts that are repaid through the tax system once income is high enough. indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. and reducing balances, not the repayment-threshold change proposed in this bill.
Department of Education annual report ↗Government later announces repayment-threshold reform
The government separately announced that from 1 July 2025 it would reduce annual student-loan repayments and lift the minimum repayment thresholdAnother way of describing the income trigger for starting loan repayments, which this bill would move higher. for 2025-26.
Prime Minister media release ↗Bill lapses at the end of Parliament
The bill did not pass and formally lapsed when the Parliament ended, so its proposal to abolish indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. and tie the minimum repayment thresholdAnother way of describing the income trigger for starting loan repayments, which this bill would move higher. to median wages never became law through this measure.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Referred to Committee (01/12/2022): Senate Education and Employment Legislation Committee; Committee report (17/04/2023)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
Key criticism
No significant public case against this bill is recorded so far, and the main concern visible around student loans was that relief might still come too slowly or not go far enough to stop large debt increases. The public pressure that did emerge came mainly from crossbench and commentators seeking stronger or faster action on HECSThe older name people still use for the main student debt system, which is closely tied to HELP and the repayment rules discussed on this page. indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans., not from a clear campaign against raising repayment thresholds or abolishing indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. in this bill.
No party represented in the debate is recorded here as opposing the bill.
Votes
No recorded votes were found before this bill stopped proceeding.
Parliamentary debate
Start here — lead voices
Faruqi supports the bill and says it is an immediate step to tackle the student debt crisis by freezing indexationThe yearly increase applied to loan balances so they rise with inflation; this bill would remove that increase for the covered loans. and lifting repayment thresholds.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“This bill is one of the pieces of the puzzle in making that vision a reality.”Read the full speech in Hansard ↗
Record
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Lapsed at end of Parliament
Lapsed at end of Parliament
The bill reached this recorded parliamentary step.
Senate Education and Employment Legislation Committee; Committee report (17/04/2023)
Referred to committee
Referred to Committee (1 Dec 2022): Senate Education and Employment Legislation Committee; Committee report (17 Apr 2023)
APH bill page notes