The Australian Greens Have Promised to Wipe Student Debt

Get the HECS outta here.

As election szn warms up, parties are making pledges left, right and centre (literally).

The Australian Greens, who sit on the progressive side of politics, have just announced they will wipe student debt if they secure the balance of power at the next federal election.

We hear you asking—what is the balance of power? What would this mean for students? We’ve got you covered.

Who are the Australian Greens?

Following the Liberal-National Coalition and Labor Party, the Australian Greens are currently the third largest political party in Australia by vote. Current polling suggests Greens have a 9% primary vote.

According to their official website, the Greens’ four core values are ‘ecological sustainability’, ‘social justice’, ‘grassroots democracy’ and’ peace and non-violence’. Their leader is MP Adam Bandt.

What are they proposing?

The Greens have pledged to scrap student loan debts if they secure the balance of power at the next federal election.

Greens Education Spokesperson Mehreen Faruqi claims this would be “more beneficial” for young people than the ‘stage three tax cuts’ supported by both major political parties (which we’ll explain in a sec), according to Parliamentary Budget Office figures.

Given the rising cost of living, Faruqi stated “student debt should not be an added burden on people who are already struggling”.

We wrote an explainer on HECS and associated university fees and loan schemes here, if you want more on that.

What are the tax cuts supported by Liberal and Labor?

Both major parties support what are called ‘stage three tax cuts’.

Under this scheme, by 2024, all income earners on salaries between $45,000 and $200,000 will pay 30% tax. Earners of over $200,000 will not have to pay 37 cents per dollar anymore.

Greens leader Adam Bandt argues these are “tax cuts for the wealthy”, whereas wiping student debt will benefit students and lower income earners.

What is the ‘balance of power’?

The ‘balance of power’ is held by a party when their vote is necessary for a bill or motion to be passed.

Anything voted on in parliament requires a majority of total votes in order to pass. So, if a bill is introduced which is supported by one major party and not the other, a minor party might find themselves holding the balance of power—aka, the bill can’t pass without their approval.

When will the federal election likely be?

It’s down to the Prime Minister to call an election, but it must be held before the end of May when the current senate term expires.

The election will likely not be held before 7 May because of public holidays and the federal budget being announced.

So somewhere in between, we’ll be gearing up for an influx of election promises, debates and political tea.