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If the measure gets implemented, the Australian government will cut the debt of more than three million people

Australia plans to wipe out about A$3 billion ($2 billion) from student loans, cutting the debt of more than three million people, as the country continues to grapple with inflation and cost-of-living pressures.

The Albanese government announced the measure in its monthly budget on Sunday in hopes that it would ease economic pressure on workers and students, said Minister for Education Jason Clare in a statement.

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The federal government will wipe out around $3 billion worth of student debt in the upcoming budget by changing the way HECS loans are indexed year-on-year.