Greens' Mehreen Faruqi makes election promise to scrap student debt if the party holds balance of power

On Thursday, Greens education spokesperson Mehreen Faruqi will spearhead a push to wipe student debt, claiming it would be more beneficial than stage three tax cuts which are supported by both major political parties.

The minor party says scrapping student loan debts is a cheaper and fairer alternative to ease the cost of living pressures, which has been exacerbated by the pandemic and conflict in Ukraine driving up commodity prices.

Parliamentary Budget Office figures show younger people would benefit more from the abolishment of student debt rather than stage three tax cuts.

The analysis also highlights stage three tax cut benefits skew towards higher income earners.

Senator Faruqi said young people, especially women were more financially impacted during the COVID-19 pandemic.

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"Student debt should not be an added burden on people who are already struggling, especially after the impacts of the pandemic," she said.

"Many current MPs, including the Prime Minister, went to university when it was free, but now students are being saddled with tens of thousands of dollars in study debt that often takes decades to repay."

The stage three tax cuts will see a simplification of Australia's progressive tax system.

By 2024, all income earners on salaries between $45,000 and $200,000 will pay 30 per cent and will scrap the 37 cents per dollar tax in place for people earning more than $120,000.

Greens leader Adam Bandt said both major parties were looking to unravel the country's taxation system.

"With housing through the roof and wages low, wiping student debt will make a real difference to people," Mr Bandt said.

"Liberal and Labor both want to end Australia's progressive tax system with tax cuts for the wealthy, but in balance of power the Greens will kick Scott Morrison out and push the next government to wipe student debt instead."