Bill Debate · In Committee
Senate · Wednesday 30 July 2025
Official Hansard for this day (APH) · Read this debate on OpenAustralia
The Senate considered amendments to the Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025 during committee stage, with Senator Mehreen Faruqi moving proposals to discharge student debt, cap or abolish HELP indexation, and alter indexation calculations. Minister Jess Walsh defended the government's 20% debt reduction and structural reforms, opposing the changes as unnecessary given existing accord recommendations. Opposition and crossbench members raised concerns about indexation mechanisms and the Job-ready Graduates package throughout the debate. All amendments moved by Senator Faruqi and Senator Henderson were defeated in divisions.
All amendments were defeated.
Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.
Opened the debate
Faruqi moved an amendment to discharge all student debt incurred between 1 January and 1 June 2025, arguing that a 20% cut was insufficient and that education should be free. Faruqi contended that student debt entrenches inequality and punishes learners, asserting that wiping all debt was necessary for social justice. Faruqi urged the Senate to support the amendment to provide real relief to millions of Australians facing a cost-of-living crisis.
Government response
Walsh stated the government would not support the amendment to wipe all debt, arguing the bill already provided significant relief by cutting 20% off debts, amounting to $16 billion for three million Australians. Walsh highlighted structural reforms, including increasing the minimum repayment threshold to $67,000 and introducing a marginal repayment system. Walsh emphasised that these measures fulfilled election promises and improved the fairness and sustainability of the HECS system.
Opposition response
Duniam indicated the opposition would not support Henderson's amendment but acknowledged its merit, suggesting it could be advanced as policy in the future. Duniam stated the coalition would not block the bill but expressed concern that the government's measures did not fully resolve underlying issues. Duniam criticised the government's political point-scoring and called for greater bipartisanship on education matters.
Henderson moved an amendment to cap HELP indexation at 3%, arguing this would provide certainty and prevent debt escalation seen under previous indexation methods. Henderson claimed the government's current approach left indexation uncapped and exposed students to high increases if wages and inflation rose. Henderson urged support for the amendment to protect young Australians from financial risk.
Pocock supported capping indexation but criticised the government for charging indexation on amounts already repaid to the ATO. Pocock questioned the lack of reform to the Job-ready Graduates package, arguing it added significant debt to students in certain disciplines. Pocock urged the government to address the root causes of student debt rather than relying on one-off discounts.
Brockman interjected briefly during the proceedings but did not deliver a substantive speech outlining a position on the bill or amendments.
Dowling supported the bill, highlighting the 20% debt wipe and structural changes to repayment thresholds as significant relief for young Australians. Dowling noted the average debt relief in Tasmania would be over $412 thousand per person. Dowling asked the minister to detail the impact of these changes on students in Tasmania and Victoria.
Walker argued the bill provided tangible relief to three million Australians, helping them manage cost-of-living pressures and pursue life milestones. Walker criticised previous indexation methods that outpaced wage growth and framed the debt reduction as a correction of unfair burdens. Walker urged support for the measure as an investment in young Australians and the economy.
Hanson opposed the bill, characterising it as vote-buying that added $16 billion to national debt. Hanson argued taxpayers should not fund debt relief for students who signed contracts knowing repayment terms. Hanson supported Henderson's amendment to cap indexation but stated One Nation would not support the bill overall.
Roberts questioned the source of funding for the debt cut, insisting taxpayers ultimately bore the cost. Roberts criticised the government for increasing the cost of living while providing relief funded by the same taxpayers. Roberts argued the policy was part of a cycle of spending that burdened the public.
lead
Senator Faruqi argued that student debt and its indexation mechanism were fundamentally unjust. The proposed amendment aimed to change the calculation method so that repayments were deducted from the debt balance before indexation was applied. Faruqi contended that applying indexation to debt that had already been repaid was unreasonable. The senator urged the government to support this measure as a minimum step toward fairness.
minister
Minister Walsh stated the government would not support the amendment. Walsh noted that the government was already acting on universities accord recommendations to improve the fairness of HELP debt indexation. The minister highlighted that the current bill removed $16 billion from student debt and included structural reforms. Walsh indicated that further advice from the Australian Tertiary Education Commission would be sought regarding remaining recommendations.