University graduates to save $5,500, on average, in Albanese plan to wipe 20% of student debt

The Albanese government’s cut to student debt is being sold as a cost-of-living-measure. Photograph: AAP

All Australians will have their student debt cut by 20% next financial year, as part of a major federal government overhaul designed to boost access to education and address “intergenerational unfairness”.

The change, which will be outlined by the prime minister at a campaign rally in Adelaide on Sunday, will wipe about $16bn worth of debt and is being sold as a cost-of-living measure for young Australians.