Cutting student loans by a flat $5,500 would be a fairer and more effective way of providing relief than Labor’s promised 20% reduction to Hecs debts, a leading independent thinktank says.
Anthony Albanese will introduce legislation this week to deliver a key election commitment that helped secure his government a second term.
The fairer deal for students bill will cut a fifth from the outstanding student debt of about 3 million Australians, or provide the equivalent of $16bn in total relief, according to the government.
While the legislation is not expected to attract any opposition in Canberra, some experts remain critical.
Jack Buckley and Matthew Maltman, economists at the e61 Institute, looked at a 20% cut to student debts in 2012 as…