Latest news with #NicholasEagar
Perth Now
7 hours ago
- Business
- Perth Now
Dire flaw in Labor's student fee cut plan
A flat $5500 reduction of HELP debt would deliver better uniform relief for Australians with student debt, with analysis of Labor's signature policy finding that the cost-of-living relief would currently largely help high-income earners. The research, released by not-for-profit research body e61 Institute on Thursday found the policy as is, doesn't meaningfully speed up debt repayment, and unfairly benefits students who graduated in 2024. Instead of a 20 per cent cut to balances, e61 said the relief would be better targeted if Australia's with student debt were given a flat $5500 cut. The figure also represents the average amount set to be wiped across all HELP accounts. e61 said that a $5500 reduction would help 35 per cent of account holders make their final repayment in an earlier year, or 15 per cent more debt holders than a 20 per cent discount. New analysis from e61 urged Labor to consider a flat $5500 cut to student debts, instead of a 20 per cent cut. NewsWire/ Nicholas Eagar Credit: NewsWire e61 Research Economist Matthew Maltman said the benefits of a straight cut was important factor due to the policy's $16bn price tag, which equals the annual cost of Jobseeker. 'Most HELP debt is held by university graduates, who have much higher lifetime incomes than the average taxpayer. And even if you look within graduates, those with more costly degrees tend to go on to earn higher incomes in the future,' he said. 'You could make the argument that we need to provide debt relief to humanities students in a targeted way because of Job Ready Graduates. 'But the current policy isn't at all targeted and that means it's going to give a very large amount of debt relief to future lawyers, dentists and doctors who are going to go on to enjoy very high lifetime incomes.' Labor says its 20 per cent cut to student debt will be the first piece of legislation it will pass once parliament resumes on July 22. NewsWire/ Martin Ollman Credit: News Corp Australia University students who finished their degrees in 2024 will also receive twice as much relief as people who left in 2020, and two and a half times more than students who are currently in their first year of a three year degree. e61 Senior Research Economist Jack Buckley said this would create a debt relief lottery. 'If you cut 20 per cent of each individual's balance, it means two very similar people will receive very different amounts of debt relief simply because one finished their degree in 2024 and the other finished a few years earlier or later,' said Mr Buckley. Anthony Albanese has repeatedly said the 20 per cent cut to HELP debts will be the first piece of legislation passed when parliament returns on July 22, with the changes backdated to account balances as of June 1. Labor is also set to increase the debt repayment threshold from $56,156 to $67,000, repayments of payment will also be lowered.
Perth Now
3 days ago
- Business
- Perth Now
Big tax return mistakes you need to avoid this year
Australian taxpayers are being warned to keep up with their records as the ATO will need proof of any claimed expenses. As tax time rapidly approaches, H & R Block told NewsWire Australians should take their time and gather the right supporting documents if they are to maximise their returns this financial year. H & R Block director of taxation communications Mark Chapman had a simple message for taxpayers. 'If you can't substantiate it, you can't claim it,' he said. 'This underscores the importance of maintaining clear records — receipts, invoices, and logs — for all deductions to ensure compliance with ATO requirements.' 142,000 taxpayers had their claims rejected last year. NewsWire / Nicholas Eagar Credit: NewsWire Mr Chapman said Australians record keeping should start with maximising their work-related deductions, with the ATO letting taxpayers claim up to $300 in work-related items without receipts, although he advised to make sure they have a record in case. These include expenses on home office costs, tools and equipment for work, professional memberships and work related travel. BDO business services partner Mark Pizzacalla agrees saying if you've spent money to earn an income there's a good chance it's deductible. 'That includes working-from-home expenses, travel between jobs, uniforms, tools, professional development, and even union fees,' he said. 'Bear in mind that the ATO is increasingly data-driven and you need to keep your receipts and records to ensure that you can substantiate your claim.' He also highlights there a number of things Australians can do to make their taxable income fall prior to June 30. 'If you've been proactive before 30 June, there are a number of strategies that can help reduce your taxable income, including making a personal super contribution, making charitable donations above $2 to gift deductible recipients, or prepaying deductible amounts for certain eligible expenditures,' Mr Pizzacalla said. Taxpayers are being told its not too late to make a charitable deduction. NewsWire / Emma Brasier Credit: News Corp Australia The calls from the tax experts come as the ATO is warning Australians to be patient with their tax returns. Last year 142,000 people who lodged in the first 2 weeks of July had to lodge amendments, or had their returns investigated and amended by the ATO to fix inaccuracies in their tax return, for example, income that had not been declared properly. ATO Assistant Commissioner Rob Thomson said that waiting until late July allows for the ATO to prefill information in your tax return. 'We know doing your tax return is something to tick off your to-do list each year, but there's no need to rush. The best time to lodge is from late July once everything is ready.' 'We pre-fill information from your employer, banks, government agencies and health funds into your tax return to help you get it right the first time – regardless of whether you use a registered tax agent or lodge yourself,' Mr Thomson said.
Perth Now
3 days ago
- Business
- Perth Now
Health insurer fined $35m, misled 4k members
Private health insurer Bupa has been fined $35m after conceding it engaged in misleading or deceptive conduct to talk more than 4000 Australians out of claiming hospital treatments. The Australian Competition and Consumer Commission said in a statement on Monday that Bupa admitted to the breaches after telling customers they were not entitled to private health insurance benefits for their claims, even though they were entitled to make a claim. This left some customers thousands of dollars out of pocket for medical treatments they had to pay for when Bupa should have paid at least part of the bill. Bupa was fined $35m for misrepresenting customers. NewsWire / Nicholas Eagar Credit: NewsWire The ACCC said some policyholders also upgraded to more expensive policies to ensure they were covered. ACCC chair Gina Cass-Gottlieb said Bupa's conduct affected thousands of members over more than five years and caused harm to consumers, some of whom delayed, cancelled or went without treatment for which they were, at least partially, covered under their health insurance policies. 'Consumers purchase private health insurance to provide peace of mind, certainty of coverage and the ability to choose where and when to undertake their procedures,' Ms Cass-Gottlieb said. 'Bupa's conduct denied certain members benefits to which they were entitled to under their private health insurance policies.' Bupa APAC chief executive Nick Stone said he was deeply sorry for failing to get things right because customers were saddened by the impacts this has had on them or their families. 'Our priority has been to communicate and compensate our affected health insurance customers and providers, along with putting in place measures to help ensure this does not happen again,' Mr Stone said. Bupa has admitted over a five-year period between May 2018 and August 2023 that it misrepresented members over two separate insurance types – 'mixed cover claims' and 'uncategorised items'. A mixed cover claim includes both treatment that is covered in part by a customer's policy and another part covered by the customer itself. Bupa admits the issues occurred between May 2018 and August 2023. NewsWire/Tertius Pickard Credit: News Corp Australia According to Bupa, the private health insurer pays out more than $20m in claims a year as well as six million in-hospital and medical claims, with the mixed coverage claims representing less than 0.02 per cent of assessed customers over the five-year period. Similarly, Bupa says about 0.004 per cent of claims fall under uncategorised items, which include treatments that were not assigned to a standard clinical category in Bupa's claims assessment systems. The ACCC says Bupa's conduct occurred because Bupa staff did not have consistent and clear instructions and training for assessing mixed coverage claims, and its systems were programmed to incorrectly reject mixed coverage and uncategorised item claims. 'Private health insurance is complex, and consumers should be able to trust their health insurer to assess and pay health insurance claims accurately,' Ms Cass-Gottlieb said. 'Bupa's conduct is very serious and falls well short of what is expected of one of the largest health insurers in Australia. Bupa should have invested in the necessary systems, processes and training to prevent this from happening, and address it promptly when it occurred.' The ACCC and Bupa will jointly ask the court to order Bupa to pay a penalty of $35m among other orders. It is a matter for the court to determine whether the penalty and other orders are appropriate. Bupa started compensating affected members, medical providers and hospitals before the start of this legal action and has paid $14.3m for more than 4100 affected claims.
Perth Now
5 days ago
- Business
- Perth Now
Major super boost for 200,000 Aussies
Major superannuation changes are set to roll out across the country starting from July 1, set to help millions of women bridge the gender pay gap. Starting next Tuesday parents taking government-funded paid parental leave will also receive a superannuation payment. This additional payment is estimated to help the near 200,000 Australian mothers each year and narrow the gender superannuation gap by around 30 per cent. According to the ASFA a woman taking 24 weeks leave the superannuation contributions will lead to $7,200 more at the time of retirement. When the regime is extended to 26 weeks, the boost to the super balance increases to around $7,800. Mothers are tipped to be among the winners when the superannuation changes come into effect on July 1. NewsWire / Nicholas Eagar Credit: NCA NewsWire ASFA chief executive Mary Delahunty said this is a major win for Australian women who take time out of the paid workforce to have and raise children, and helps reduce the superannuation gender gap. 'While compulsory superannuation has been delivering on its purpose of providing a dignified retirement for most Australians, it's long been known that women are often financially disadvantaged in retirement due to time taken out of work to have and raise a family. she said. 'The introduction of superannuation payments on government paid parental leave from 1 July on will go a long way to closing the gender superannuation gap.' Australian treasurer Jim Chalmers said paying super on paid parental leave from this Tuesday is part of our efforts to ensure parents earn more, keep more of what they earn and retire with more as well. 'A sornger paid parental leave system is good for families and good for the economy as well,' he told NewsWire. 'This important change means a more dignified and secure retirement for more Australian parents and especially women.' A second change which will see nearly 14 million workers will see their superannuation guarantee increase from 11.5 to 12 per cent starting from July 1. While the changes seem small, the treasury uses an example of a 27 year old woman who has taken up a graduate position as a professional lawyer. 'During her career, she takes an extended six-year career break for the birth and care of her two children,' treasury estimates. 'Her balance will be $22,000 higher at retirement as a result of the permanent 0.5 percentage point increase in the SG rate from 11.5 to 12 per cent.' Treasurer Chalmers said this will make a meaningful difference for Aussies. NewsWire / Martin Ollman Credit: News Corp Australia Mr Chalmers says these reforms will make a meaningful difference for millions of Australians, helping them work towards a well-deserved and dignified retirement. 'Since we've come to government, we've increased the superannuation guarantee four times, and this means an extra $98,000 at retirement for a 30 year old earning the average full-time income,' Mr Chalmers said. While the Albanese government has implemented an increase of the Superannuation guarantee from 10 to 12 per cent. It was the then Morrison government who started the changes, which saw superannuation lift from 9.5 per cent to 12, at a 0.5 per cent increment a year. The treasury department says the changes to Tuesday's superannuation guarantee will see 14 million employees have their retirement lifted. The ASFA said this increase means a median 30-year old worker making $75,000 a year will add about $20,000 to their superannuation balance by the time they retire. This $20,000 increase will mean the median 30-year old will retire with $610,000 in superannuation, above the $53,383 a year or $595,000 they would need for a comfortable retirement. ASFA says a couple requires $73,875 a year or $690,000 combined in total to live comfortably in retirement using their super plus age pension top-ups. The major caveat to these figures for singles and couples is owning your own home by retirement. The National Minimum Wage and award wages will increase by 3.5 per cent from 1 July 2025, adding $0.85 per hour to $24.95 for full time staff. Treasury estimates this change will add $75,114 over the average working life of an employee. This includes 353,000 retail industry workers, 287,000 social, community, home care and disability workers, and 234,000 hospitality worker
Perth Now
7 days ago
- Business
- Perth Now
Australians' insane net worth revealed
Australia's household wealth has surged again in the March quarter off the back of rising house and land prices. Australia's net wealth rose by $125.3bn, new Australian Bureau of Statistics figures show. Overall, households are now worth $17.3 trillion. Australian household wealth has ballooned on the back of strong property price growth. NewsWire / Nicholas Eagar Credit: NewsWire This was in part driven by house price rises, which were up 0.7 per cent in the 2025 March quarter. While house prices have risen for eight consecutive quarters, year-on-year growth has slowed to 4.2 per cent from 8.0 per cent in March 2024. At the same time, household borrowing grew by 1.4 per cent, or $42.4bn, reducing the overall growth in household wealth by 0.2 percentage points. The demand for credit was up $136.1bn in the March quarter, including $25.9bn in household borrowing, $45.9bn in private non-financial corporation borrowing and $45.5bn in government credit. ABS head of finance statistics Mish Tan said the growth in credit was likely to continue. 'The RBA's cash rate cut in February this year was the first easing of interest rates since November 2020, giving some relief to household budgets in the March quarter through lower mortgage interest payments,' Dr Tan said. 'We expect to see the broader impact of recent cuts, including another in May, on house prices and credit growth later this year.' Superannuation fell, negatively impacting household wealth. Credit: News Corp Australia, NewsWire/ Monique Harmer The May interest rate cuts will be included in next quarter's figures. Household deposits rose 1.7 per cent ($29.5bn) in the March quarter, contributing 0.3 percentage points to the overall rise in household wealth. Superannuation assets fell 0.4 per cent, or $16.4bn, reducing the overall growth in household wealth by 0.1 percentage point. The fall was driven by slowing domestic and overseas equity markets. 'Household superannuation balances fell for the first time since the September quarter 2022, as global uncertainty weighed on share prices,' Dr Tan said.
