Australia’s parliament on Thursday passed a law to cut student loans by 20%, wiping more than A$16 billion ($10.31 billion) in debt for 3 million people, and fulfilling a key election promise to help mitigate the rising cost of living, Reuters reported.

The law is the first passed by Prime Minister Anthony Albanese’s centre-left Labor Party since being re-elected in May with one of the country's largest-ever majorities.

“We promised cutting student debt would be the first thing we did back in parliament – and that’s exactly what we've done,” Albanese said in a statement, according to Reuters.

“Getting an education shouldn't mean a lifetime of debt.”