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Monday, 31 March 2025

Labor to Cancel Debts

 




Labor have committed to cancelling 20% of student debt. That's a very good policy. Any debt forgiveness is good.

“The Albanese Labor Government will cut a further 20 per cent off all student loan debts, wiping around $16 billion in student debt for around three million Australians.

By 1 June next year, the Government will cut 20 per cent off all student loans to reduce the debt burden for Australians with a student loan.

This will cut around $16 billion in debt, including all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other income-contingent student support loan accounts that exist on 1 June next year.

For someone with the average HELP debt of $27,600 they will see around $5,520 wiped from their outstanding HELP loans next year.

This will provide significant relief to Australian students and workers with a student loan debt and builds on our reforms to fix the indexation formula, which is cutting around $3 billion in student debt.

This means, all up, the Albanese Labor Government will cut close to $20 billion in student loan debt for more than three million Australians.

This builds on the Government’s announcement that from 1 July next year it will reduce the amount Australians with a student debt have to repay per year and raise the threshold when people need to start repaying.”[1]

The problem is Labor are committed to high immigration. High socialist subsidies. High energy costs through renewable ideology. High welfare. High NDIS and more. All of these policies increase the cost of living and make our money less valuable. So, the amount of money they are freeing young Australians on will be completely gobbled up by their other policies.

However, this shows that debt forgiveness is becoming a mainstream issue. How can it not be? Debt is a mainstream issue. Drowning in debt is a mainstream issue. People are working out that one of the infallible laws of nature and economics is that a system that allows borrowing will always collapse under the weight of that debt, because it is not able to pay its debts collectively. The only way to avoid that collapse is debt forgiveness (this was proven several thousand years ago, before the Bible was even written, and has never been disproven).

Technically, Australia's economy collapsed just before Howard left office, or just after. On a per capita basis Australians have only gotten poorer since then, maybe even since a little earlier. But they have managed to "grow" the economy by cheating, they simply bring in lots of people, in increasing numbers, and then tax those people. Those immigrants eventually fall behind, on average like most Australians, and so they need to bring in more.

So, our economy is already broken. What do you do when a complex system is broken? As Moss would say, "Have you tried turning it off and then on again?" That's what a Jubilee is.

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