Australians with student debts will see their repayments fall and will not begin paying down their debt until they earn more in a pre-election federal government move to ease cost of living pressures for younger Australians.
The government says the average student debt holder will pay about $680 less in repayments a year.
The changes would mean a shift to a marginal repayment system, as recommended by the Universities Accord, which found existing arrangements disproportionately affect those on lower incomes.
Under the proposal, repayments would operate similar to income tax thresholds where you pay a set rate per dollar above a certain level.
That rate per dollar increases as you move along the income scale.
The federal government’s plan…
