Study links student debt to tax evasion

UK: Graduates with student loan debts are more likely to become tax evaders later in life - particularly if they don't feel their degree course was very good - Australian research suggests.

Australia was a key model for the tuition fees and loans introduced at English universities and its Higher Education Contributions Scheme (Hecs) is well established.

In a study of the taxpaying habits of 447 recent Australian graduates, Eliza Ahmed and Valerie Braithwaite of the Australian National University were surprised to find that a student's dissatisfaction with their university course played a key role in directly triggering tax evasion.

"When graduates did not feel that they had received quality training for their investment, this discontent was expressed through shamelessness about not paying Hecs and willingness to evade tax," they said in a study published this week.

One graduate told them: "I think that Hecs should only be repaid if the education received has been of value in gaining employment".

Another complained: "The one thing that I did find annoying was paying Hecs for one or two units where the tutors were hopeless and basically didn't teach us much at all. I realise it is more the responsibility of the universities to ensure that their tutors are competent, but it is in cases like this that people resent having to pay Hecs, that is, when they didn't learn anything new."

Loss of future tax revenue as a knock-on effect of student loans would be bad news for the chancellor. The UK government is already collecting student loan repayments via the tax system and intends to collect billions of pounds from graduates in years to come.

While there have been vocal protests about top-up fees, both ministers and opponents have assumed that collecting the money in this way will be efficient and reliable.

And in one important respect the UK government is more vulnerable than the Australian authorities to graduate tax evasion because it is faced with collecting repayments from graduates throughout the European Union who are entitled to the same loans as students in England.

The Australian researchers found graduates repaying student loans were more likely to evade taxes by being paid cash in hand, exaggerating the deductions or rebates they were entitled to, or not reporting all the money they earned.

Some of the graduates argued that the Hecs scheme was socially unjust as justification for avoiding payment. Australian families have the option of paying contributions upfront but this is not practical for poor families and one graduate pointed out that this puts them behind when they begin work. They added: "When you start working (often on a low wage) there are a number of debts you face. Adding Hecs makes it all the more difficult. I was repaying Hecs as a sales assistant because the rate was lowered to $21,000."

Another told the researchers: "The government should realise that investing in tertiary education is investing in the country's future. By raising fees, introducing up-front fees ... they are encouraging people not to study and not to help educate the country. Education should be free, after all people in the army get paid to be educated!"

These are familiar arguments in the UK too and Drs Ahmed and Braithwaite warn that the legitimacy of the tax system and the legitimacy of higher education institutions are interconnected.

"If universities are unable to provide quality tuition at affordable prices for all those who wish to pursue tertiary education, then a new generation of taxpayers will be entering the labour force with a negative attitude not only to their university experiences, but also to the government and the tax system.

"Most importantly, universities and government need to work cooperatively in working out their differences and responsibilities. Through blaming each other, and allowing perceived injustice to fester and spread, they are damaging the system that supports them both," they conclude.

By Donald MacLeod posted 24 August 05

Row brews over community store's credit system

There are claims an Aboriginal community in Darwin is on the brink of violence over a system which lets residents take goods on credit by signing over their finances to the local shop.

A former worker within the Bagot community says residents are turning against each other over the practice.

Natalie Hunter quit her job as financial counsellor inside the Bagot community in fear, she says, for her safety.

Ms Hunter says she questioned why residents' pensions were sent directly to the community shop.

She says the Bagot Community Council, the CDEP Indigenous employment scheme and Centrelink let the arrangement go on, locking people into a cycle of debt.

She says it is not clear who takes the shop profits but some locals have lashed out against those who want the practice stopped.

"One of the ladies has got a broken arm out of it and if nothing gets done there'll be family feuds going on in there," she said.

By Sorry 11 May 05

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"MESSAGE STICK" NEWSLETTER:
1. ATSIC abolition: the story so far. The last few months have seen both major parties buying into Indigenous Affairs in destructive and politically opportunistic ways. First the ALP and then the Government announced they would abolish ATSIC, but now the decision has been referred to a Senate Committee so the full implications of the Government's proposal can be examined. For more information on the Senate Inquiry into Indigenous Administration call 02 6277 3419 or go to:

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Reconciliation dreaming
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Amnesty sees lack of progress on reconciliation
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Inquiry told reforms will decimate Indigenous education
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Australia: Howard's fortune cookie

Coalition witnessed a big turnaround in the opinion poll?

Australians have witnessed a big turnaround all right, forget about the corporate media's latest opinion poll just look at, [war criminal], John Howard's social and foreign policies. What do they reflect?

The Un-Australian Newspoll is like a two dimensional view of a four dimensional object opposed to a four dimensional view.

When we take into account the poor and disaffected in our communities, the marginalised and weak, not to mention the middle class workers and those youth climbing Howard's ladder of survival (opportunity without rungs) then its hard to actually witness anything other than wrath, indulgence and corporate interests, trying to manipulate the general public with a thing called a Poll. Especially when the source is Un-Australian.

Now it has become clear that the next generation of youth from middle, lower and peasantry class will have to pay off university debt if they want to learn even if they do get a place in university.

Before they consider buying a house they have to decide if they can afford one and unless they're filthy rich, it's nearly impossible to buy a house. Might they decide to add opportunity to their lifestyle?

So without some rungs on the ladder of opportunity itself, then it may be a little hard for some people to be able to see that the Coalition have allegedly done a turnaround in the opinion poll!

Just add that to the financial fortune cookie!

Unfortunately" Newspoll doesn't reflect the views of the people who died, and who were mistreated and less cared for in public hospitals, no matter how good Howard's economical management or financial backlash on Medicare sustained his overflowing goblet.

Just add that to the financial fortune cookie!

Unfortunately Newspoll's don't show you the prisoner abuses, and lies perpetrated by the Howard government, and don't forget who the Newspoll does reflect, column "A" the filthy rich, those protected species.

Just add that to the financial fortune cookie!

In fact the only gift Howard can grant the Australian community is financial security for the rich who are all too willing to plunder the savings from the middle class and poor with excessive taxing and who reap from third world countries their dignity like in Iraq.

But ask yourself about this wealth tag that Howard relies on? Good financial management? Or theft? Corporate dollars from privatising our public institutions, higher taxes, resources dug out of the Australian Soil and black money for helping the coalition of the willing under the heading of a Free Trade Agreement with the US.

ALL AUSTRALIANS SHOULD BE ASKING HOWARD WHERE IS THE SOCIAL DOLLAR?

WE KNOW WHERE THE NATIONAL SECURITY DOLLARS ARE!

WE KNOW WHERE THE WAR DOLLARS ARE!

WE KNOW WHERE THE CORPORATE DOLLARS ARE!

AND WE KNOW WHERE THE NATURAL RESOURCES DOLLARS ARE!

SO WHERE IS THE SOCIAL DOLLAR?

What did Howard do besides financial security for the wealthy? Baton down the hatches? Duck and weave? This financial management is reckless in the grand scheme of things. Security that's sinister, elusive and dark. When you work it out, the problems this illusionary security will cause down the track, will actually outweigh any of the benefits, even to the wealthy because it lacks morals. What good is money if you look like an arsehole?

Just add that to the financial fortune cookie!

For example just take the cost of Australia's current National Insecurity away from the Howard government's financial management. Bad foreign policy? Means now we have invaded Iraq and occupied that country, bad enough and right in front of their eyes we attempted to get paid off $$ by the USA in the way of a Free Trade Agreement.

How do you think the rest of the world views that? Why wouldn't Iraq's mates want to throw rocks at Australians, and not just in Australia but at Australians and their institutions throughout the world, including tourists and those living overseas.

Just add that to the financial fortune cookie!

The reality? There can be No Hope With Howard a liar and a cheat, a mongrel to humanity and the rest of the world all comes down to bad will and that bad will inherited by all Australians.

Just add that to the financial fortune cookie!

They witness the Coalitions fortunes? We witness Regrets? If this puts Howard in the best position according to a Newspoll then that surely doesn't say much for the Australian people? What about our ethical standards and their human rights abuses regardless of their illusionary fortunes? What have we got to show for it? What's the good of their illusionary fortunes if people are locked up and framed for a crime they never committed? Or if people can't receive proper medical treatment because their illusionary fortunes have been directed away from public hospitals?

Just add that to the financial fortune cookie!

According to the Un-Australian poll, Prime Minister John Howard and the Coalition are now in the best position to retain government since Mark Latham became leader of the Labor Party.

The result comes as Howard prepares to fly to the United States this afternoon where he will meet, [war criminal], President George W Bush to discuss Iraq and the Guantanamo prisoners and lobby for the free trade agreement before heading to Europe for the D-Day commemorations. And when Terrorism, [? fear-mongering, propaganda, false flag operations,
scapegoat and patsies for the Coalition of the Killing's resource war's in the Middle East], rules the air waves from perth's, [ASIO provocature], guilty plea from Jack Roche to Sydney's Terrorist drill by emergency services.

The poll published in The Un-Australian, [allegedly], shows support for the Government forget about the figures.

Shadow Finance Minister Bob McMullan says he does not believe there has been such a massive shift in public opinion.

"It doesn't reflect what any reasonable measure could be of the political situation, that we're going up and down like a merry-go-round, that is just not happening and doesn't happen," he said.

"Australian people aren't out there changing their mind every day or every fortnight, it never happens."

Newspoll managing director Sol Lebovic is a Coalition manipulator because Australians were not only influenced by the budget but rather more influenced by Howard's track record as a mongrel to children in detention, refugees and asylum seekers and out of touch with the dignity and human rights of prisoners in Iraq and Australia who are locked up some in solitary confinement and tortured by maintaining them below the survival level of human existence some in the name of terror suspects.

Sol: "I've seen in budgets before a delayed reaction," he said.

Well Sol oils and oils and I guess we need to give you the slip you greasy slime ball!

What you did not take into account Sol was the current climate! Sure you took into account the current economical climate, without deducting the inflation of it, but definitely not Australia's current foreign policy, national insecurity and human rights record.

In the Newspoll taken a fortnight ago, just after the Budget, the Coalition slipped further behind Labor, with 46 per cent support on a two-party preferred basis to Labor's 54 percent.

Labor will hold on to the lead it's secured regardless of an Un-Australian opinion perhaps if we could ask you to keep your opinions to yourself in future Sol! Just remember Oil's ain't Oil's Sol! Should I need to remind you!

By Charlie Chan 1 June 04

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Australia: Reconciliation dreaming
Djerrkura had witnessed the collapse of ATSIC, which he led from 1996 to 1999, with sadness. Despite the peak indigenous organisation's flaws, which he did not deny, its abolition, he said, had been done in "the classic imperial fashion, without negotiation, without understanding and with little empathy". He noted that as early as December 2001 he had called on his successor Geoff Clark to resign for the good of the organisation. But he reserved his harshest words for John Howard.

Greens call on Mark Latham to commit to ending Howard's abusive policies Greens Senator Kerry Nettle has called on Mark Latham to commit to abolishing the human rights abusing policies of the, [war criminal], Howard government if they win the next election.

Howard's bribe political nonsense!
ALMOST 10,000 NSW children will be denied a bribe of $700 handed out to help them read and write because of a political bunfight between the State and Federal Governments? Or because Howard's bribe is being used as leverage to get satisfactory results from State governments about education policy? Howard's bribe is seen as a political stunt due to bad opinion polls.

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HEY! BIG BROTHER? LET INNOCENT PEOPLE GO!
Young men terrorised, tortured, and threatened with charges for no crime by Australia mate the lucky country. Lucky if you're not used for Howard's FEDERAL ELECTION and George Dubya's WAR ON LIBERTY! Who shot liberty? IGNORANCE!

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Skippy's: Last word on who we are?
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Govt is unaccountable, ALP primary votes
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Debt office uses wider net to scoop up $58m

Millions of dollars have been stripped from the wages or bank accounts of people with outstanding fines under new rules aimed at reducing the huge number of unpaid penalties in NSW.

The State Debt Recovery Office has targeted the wages or bank accounts of 5200 people to collect outstanding fines for traffic or parking offences, fare evasion, failing to vote and court fees.

Overall, in the past seven months, the office has collected $58 million in outstanding penalties via wage and bank deductions or other means.

But despite that, the total of outstanding fines rose to $498 million in December - up from $460million in June 2001.

Rules introduced by the State Government last June allow the office to deduct fines from wages or bank accounts, levy charges on land titles, summons people to explain their financial situation and force them to perform community service.

The rules were put in place after the Auditor-General revealed last April how many fines were outstanding and criticised the office for not using all its powers to collect them.

Every day, the office receives about 3000 new fines to collect, suspends 325 licences, cancels 95 car registrations and imposes penalties on 86 business fleets.

Since the office was set up in 1998, it has collected $346 million in fines. It expects to collect nearly $100 million this financial year. More than one-third of outstanding fines were levied before 1998 and some fines date back 20 years.

The office has not even started processing fines from the Licensing Court, whose annual report reveals that no unpaid fines and penalties have been collected for six years because of delays to an upgrade of its computer system. At least $1.6 million in court charges are outstanding, along with $2.9 million in uncollected licence fees and poker machine taxes.

A spokesman for Treasurer, Michael Egan, said the debt office was concentrating on "the big line items" but was working on the "somewhat minuscule" problem at the Licensing Court.

The Audit Office said about $334 million in fines was "unlikely to be recovered", but the Government says it does not write off any fines. It cost $12 million to collect $90million in fines in the 2000-01 financial year.

Fine defaulters can arrange to pay in instalments or have their fines deferred because of long-term medical problems.

By Whose Bank 21 January 03

THE MULE: Withdraw your money? Quick!

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Robin Egan
Two thirds of fines are never collected because they go beyond the means of the defendants and because in lots of cases people do not see that they are responsible. Especially where people know their in the right and no fine ought to have been a penalty.

Bills, Bills and more Bills NSW Parliament deep in debt

NSW Parliament is unjustifiable creating intellectual debt, Academics, politicians, judges, lawyers and volunteers.

All because of the Bills they, NSW Elected Parliament draft. Instead of creating laws that work. Laws with morals, principals values and ethics a politician will reach out for the dead wood.

Instead of saying my name is Bob Carr - and I would like to be strip searched before I go to watch a movie tonight - and can you please do it in front of a crowd so I can be embarrassed.

Bob says you're not equal to me and those laws do not affect me - so bring them in for the sake of my political career.

The same as poring water down the drain?

Well if you put together all the academic skills. Come up with a Bill, one Bill of Rights and all the rest of the Bills necessary to change the law - in line with the principals, (The Bill of Rights sets out) then we have turned the tap off. We are not wasting water!

Academic skills being focused on real issues and not political grand standing to help politicians get elected or help politicians to seize more power or prestige.

Most people are likely to be corrupted because of power or prestige.

Why make radical Bills when you can get advice. Why close you ears to that advice when the feedback is negative.

Think of the ideas that Academic skills could create if people were pleased to work on something constructive instead of using their skills defensively because of an encroachment over (the line drawn in the sand) of their freedoms.

Civil and democratic rights will be upheld or they will win in the end so why bugger them up now. Why draconian laws? Why the debate? Why go to the High Court to solve it when common sense could see it. And common law seen it before. Why wast resources re inventing the wheel.

We cannot afford police not being aware of lawbreakers so don't take them off the job by diverting them for political gain.

Laws that will be respected and upheld. Laws that encourage respect and do not divide the community. More ideas about saving water and more ideas about saving intellectual energy.

By Gregory Kable Nov 22 2002

THE CHOOK: How do you rate?

NSW police incite violent protests at WTO meeting
Dick Adams NSW Police - Putting up defences ... Homebush Bay being prepared yesterday for Friday's World Trade Organisation meeting of ministers.

The scavengers of terror
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