Australia’s parliament on Thursday passed a law to cut student loans by 20 percent, wiping more than AU$16 billion (NZ$17.4 billion) in debt for 3 million people, and fulfilling a key election promise to help mitigate the rising cost of living.

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…