Speaking to ABC radio AM, Jim Chalmers says the change makes it clear to banks how they are to consider student loan debt and comes after months of meetings with the regulators.

He met with the bank heads yesterday and informed them of the lending guideline change. Chalmers repeats that it is “commonsense” because student debt is different to other debt, in that it “paid back in an income contingent way” and shouldn’t prevent someone who is otherwise eligible for a home loan.

Chalmers:

This is just a set of common sense changes to get more people into a home. It’s why I’ve taken the lead on this, speaking to the regulators, speaking to the banks, to see if we can make a meaningful difference for people who might have otherwise been excluded because of their student debt.