Australian Prime Minister Anthony Albanese said on Sunday his government plans to cut student loans for about three million Australians by 20 percent, erasing around A$16 billion ($10.49 billion) in debt.

The move builds on May’s budget, which attacked cost-of-living pressures in Australia and offered student debt relief, as well as more investment to make drugs cheaper and a boost to a rent assistance program.

“This will help everyone with student debt right now as we work hard to provide a better deal for every student in the years to come,” Albanese said in a statement announcing the reduction student loans for tertiary education.

The changes would mean the average graduate with a $27,600 loan would have $5,520 written off, the government said.

The government has said it already plans to reduce the amount Australians with student debt must repay per year and raise the threshold to start repayments.

Cost-of-living pressures, fueled by stubbornly high inflation, have particular resonance with the federal election looming and the centre-left Labor government now polling behind their Conservative opponents.

($1 = 1.5246 Australian dollars)

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