The Liberal Party today confirmed it would not proceed with Labor’s 20 per cent debt-reduction plan, which would reduce the average HELP debt of $27,600 by around $5520.

It is expected more than three million students would benefit from Labor’s plan.

“It’s not fair that [university 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 Coalition’s statement to the ABC reads.

“Instead of helping small businesses with tax relief, Labor would rather spend $16 billion or around $1500 per household on a small proportion of the population.”

Coalition education spokeswoman Sarah Henderson previously labelled the proposal as “elitist” and said only those with access to higher education would benefit.

The debt pledge was at the heart of Prime Minister Anthony Albanese’s pre-election campaign after he said higher education shouldn’t leave Australians with a “lifetime of debt”.

“This generation of students are graduating from three-year degrees with debts of $30,000, $40,000, $50,000,” the PM said last year.

“That level of debt hangs over you.”

“And, because of the changes in rising costs, it comes out of your take-home pay sooner. Fixing this intergenerational unfairness will require substantial investment.”

Under Labor’s plan, the minimum threshold for repayments would also be lifted by more than $10,000 a year, from about $54,000 to $67,000.

An Australian on an income of $70,000 would fork out around $1300 less per year in HECS repayments.

9news.com.au has contacted the Coalition for comment.