The Albanese government’s plan to cut $16 billion from Commonwealth student debts has come in for strident criticism since the scheme was announced at the weekend.
But the denunciations are overblown and ignore the social and economic damage being done by rising student debt. Many policy settings in Australia disproportionately benefit older generations – from the generous tax treatment of housing investments to tax-free superannuation withdrawals in retirement. The cost to taxpayers of these policies favouring older Australians dwarfs the modest student debt relief being proposed by Labor.An army of older Australians also benefited from fee-free university courses during the 1970s and 1980s.
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