Labor’s Hecs reduction bill not the fairest way to relieve student debt, economists say

The faculty of law building at the University of Sydney. The Albanese government’s fairer deal for students bill will cut a fifth from the outstanding student debt of about 3 million Australians. Photograph: AAP

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.