More than 3 million university students promised 20 per cent reductions in their student debts under Labor would not get that saving under a Peter Dutton government, with the Coalition confirming it would not proceed with Labor’s $16 billion debt-reduction plan.
A Liberal campaign statement said the party would ditch the policy as a savings measure, after the Coalition previously labelled it as “elitist” as “profoundly unfair” on those without student loans.
Mr Dutton’s campaign has also promised to scrap a popular electric vehicle subsidy, issuing a joint statement with shadow treasurer Angus Taylor and shadow finance minister Jane Hume, after coming under pressure to say how they would pay for a $21 billion boost to defence spending.
“It’s not fair that [uni students] should get thousands of dollars from taxpayers, but the young tradies who had to borrow to pay for their ute or their tools, or the uni students who diligently paid off their student debt, get nothing,” the statement said.
“Instead of helping small businesses with tax relief, Labor would rather spend $16 billion or around $1,500 per household on a small proportion of the population.”
Labor said its policy would mean a university graduate with the average debt of $27,600 would see about $5,520 wiped from their outstanding loan next year under a re-elected Albanese government.
It framed the policy as cost-of-living relief for more than 3 million people who still have a student loan.
And while the policy would wipe $16 billion from debts overall, the Mid Year Economic Fiscal Outlook has costed it at $737.7 million over four years.
But last week, Coalition education spokeswoman Sarah Henderson told the ABC the policy was “elitist and unfair” and delivered “large financial windfalls to those with multiple degrees while ignoring 24 million Australians who don’t have a student loan.”
Labor’s plan was also criticised by economist Chris Richardson, who said in November that handing $16 billion to graduates was a “reverse Robin Hood: it’s a tax cut targeted to the big end of town, with money going from the less well off to the better off.”
Dutton to end EV subsides
The opposition leader was asked on Monday if he would repeal the EV tax break. (ABC News: Mark Leonardi)
Mr Dutton’s team has also been forced to clarify that he will scrap a popular electric vehicle tax break, two days after the opposition leader said he had no plans to change the Labor scheme.
Asked on Monday whether he would scrap EV subsidies, the opposition leader told reporters , “we don’t have any proposals to change those settings”.
But in a media release issued by Liberal party headquarters on Wednesday, it was revealed the Coalition does intend to repeal “Labor’s taxpayer-funded and badly designed electric car subsidies” as part of its plan to cut “wasteful spending”.
The statement said scrapping the FBT exemption on novated leases would save upwards of $3 billion over the forward estimates and $23 billion over the medium term.
It appears to be a second policy backflip from Mr Dutton, who had previously said all Commonwealth public sector workers should to return to the office — before admitting the policy was “a mistake” and working from home was helpful for families.
The Liberal campaign has also reiterated other savings measures it has already announced, including cancelling the Commonwealth’s funding for the $200 billion Suburban Rail Loop in Victoria, ending the $20 billion Rewiring the Nation Fund and scrapping the $10 billion Housing Australia Future Fund.
“In this uncertain environment, a prospective government must make serious decisions to fix the budget and protect Australia from future shocks,” the joint statement said.
