Well as unpopular as talking about the actual proposal seems to be I'd like to say I think it's great. It's a win-in.
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Students/Graduates can wipe out some debt quite easily and get some cool stuff for their resumes
-The community gets some volunteer labour
Ok so not quite this simple, HECS is a debt to taxpayers, taxpayers recieve services in lieu of payment so it's not volunteering e.g. free labour - but it's still cheap labour. Still the community is getting pretty good value for money and
students are getting some good experience.
Personally whilst I work full-time and am quite well paid for it I would still consider doing this. Admittedly not at anything approaching full-time, more like a weekend every now and then. Also it would help if the volunteering options were good, for instance while not really an option in Canberra imagine being able to do surf lifesaving for it? Yeah I'll spend a weekend at the beach and get my HECS debt reduced, thank you very much.
And now to veer off-topic again:
Before wading into this area I would suggest being significantly more familiar with the policy environment and the significant changes being introduced on July 1 this year. I refer you to the following (and yes there will be reading - it is the key to being informed):
Australian Labor Party : New universal Employment Services tenders
workplace.gov.au - Request for Tender for Employment Services 2009-12 - Now Closed