Student debt cut legislation before parliament today
The laws will cut debts by 20 per cent with graduates to avoid repayments kicking in until they're earning at least 67-thousand dollars a year.
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ABC News
19 minutes ago
- ABC News
ATO reversed its own decision to bill former PM Paul Keating's company nearly $1m after three-year battle
The Australian Taxation Office (ATO) wrote off almost $1 million in interest and penalties owed by one of Paul Keating's companies in 2015, in an abrupt about face after negotiations with the former prime minister and his financial advisers. This was unusual because for most taxpayers, formally challenging such a decision would require them to contest the matter in the Federal Court. In this case, the payment notice was cancelled after a negotiation, raising questions about the treatment of powerful people by Australia's chief revenue collection agency. It also raises questions about a lack of transparency in how the tax office conducts confidential settlements. Four Corners does not suggest any wrongdoing by Mr Keating or his advisers in seeking to have the debt cancelled. Four Corners first contacted Mr Keating two weeks ago to request an interview about how this settlement came about, but he declined. The interest and penalties bill was issued after the ATO discovered in 2012 that Mr Keating's company, Brenlex Pty Ltd, had not reported profits from an earlier share sale. This followed a 2010 agreement by Mr Keating to settle tax liabilities of more than $3 million involving another of his companies, Verenna Pty Ltd. At the time, Mr Keating was questioned about his other companies, including Brenlex, and his advisers confirmed it had paid a significant amount of tax relating to the sale of shares and was up to date with its tax liabilities. Mr Keating agreed he would ensure his tax affairs were in order henceforth. However, the ATO later discovered that Brenlex owed $446,000 in tax from the sale of shares years earlier in Lake Technology, an audio engineering company Mr Keating had advised. Brenlex agreed to pay the tax debt, but the ATO demanded more than $600,000 in interest and penalties which had accrued in the years since Mr Keating sold the shares. These are known as a general interest charge (GIC) and late lodgement penalties. Mr Keating's advisers fought to avoid the interest and penalties, asking the tax office to write them off entirely via an ATO rule known as a "Commissioner's discretion". The argument went back and forth through 2013 and 2014. By October 2014, the debt had grown to $904,000, at which point the ATO sent a formal notice to not waive the interest and penalties charge. "Your request has been fully considered and it has been decided that on this occasion the circumstances detailed do not warrant remission of the GIC," the notice said. "There is a clear acknowledgement that the Company should have accounted for the disposal of shares in the relevant financial years returns and did not." In April the next year, the ATO issued Brenlex a formal creditor's statutory demand to pay the debt within 21 days, which had now grown to $953,396. Mr Keating then became involved in the correspondence as part of efforts by his advisers to persuade the ATO to waive the bill because, they said, it was an honest mistake. Mr Keating's advisers told the tax office the former prime minister had mistakenly believed his company Brenlex had paid the tax. They argued he had "inadvertently failed to advise his directors" of the sale, despite filing a substantial shareholder notice reporting the disposal of the Lake Technology shares. Mr Keating's advisers argued "the lodgement and payment of the Company returns were overlooked" but the tax office said "This is not a valid justification". The ATO was told Mr Keating had truly, though incorrectly, believed that all tax matters with Brenlex were up to date. The tax office refused to alter its position. In July 2015, a last-ditch letter from Brenlex was sent to the ATO requesting a meeting. Ten days later, the tax office made a backflip. In a four-line email it wrote off the almost $1 million debt. "I am able to confirm that the GIC and Late Lodgement Penalties … have been remitted in full," the email said. "Consequently the balance of the account has been reduced to nil and the amount payable as stated in the Creditors Statutory Demand is no longer owed." The email gave no reason for the sudden change of heart. The ATO's reversal of its decision, having issued the October 2014 notice, was unusual. Just how unusual can be seen from a joint submission to a Senate committee this year by five accounting bodies. They said it was unfair that the only recourse available to taxpayers to challenge this kind of decision was an appeal to the Federal Court, which was a "lengthy and complex process that is out of reach of most taxpayers". They complained that these decisions were "not subject to an internal ATO review. The only recourse available to the taxpayer is to appeal the ATO's decision in the Federal Court". In a reminder published on its website last month, the ATO said: "Taxpayers should be aware that remission requests are carefully assessed to ensure a level playing field for those taxpayers who pay on time." These revelations come at a time when the ATO's handling of this issue is under review. The Tax Ombudsman is scrutinising the management of general interest charges, to ensure "decisions are fair and reasonable and are made consistently for taxpayers in like circumstances". Typically, the ATO does not comment on the tax affairs of specific taxpayers due to confidentiality obligations. It told Four Corners in a statement that "inadvertently overlooking" the need to pay tax was generally not valid grounds on which to cancel GIC. "However, there may be instances where GIC is remitted when a taxpayer inadvertently overlooks the requirement to lodge a form or make a payment, depending on the individual circumstances of the taxpayer," the ATO said.
ABC News
33 minutes ago
- ABC News
Can customers trust how banks are using AI?
ING's Australia's chief executive Melanie Evans responds to ASIC's warning that the banks can't afford to get the implementation of artificial intelligence wrong.
Sydney Morning Herald
an hour ago
- Sydney Morning Herald
Let's lower the voting age and see some progress
Herald opinion writers Vivienne Skinner and Brad Emery discussed the pros and cons of lowering the voting age to 16 in Australia after England's move to join Wales and Scotland (' Sixteen is sweet to step up to the polls', ' An interest in politics is great, but only adults should be allowed to vote ', July 23). I was delighted to read that independent MP Monique Ryan intends to bring a private member's bill to Parliament on this issue. Initially, I would support the vote for 16 and 17-year-olds to be voluntary, with a view to make it compulsory over time. Democracy worldwide is under pressure with elderly, self-serving leaders mainly concerned with holding on to power. In a world rapidly changing environmentally, socially and geopolitically, we have old men making decisions that will largely affect the young, who have no voice. This change would almost certainly increase the progressive vote, and may be why British PM Keir Starmer is putting it forward. It could work for Anthony Albanese, too. Now is the time to refresh our democracy and make our society as representative as the UK's. Andrew Caro, Greenwich While there are thoughtful arguments each way, my feeling is that 16 is too young. People such as Tanya Plibersek and Monique Ryan move in relatively select society in which politics is of interest and importance, so perhaps have a biased view of how much ability and interest the average 16-year-old has. There is also the maturity factor, which is not necessarily based on chronological age. Let them reach at least 18, while encouraging them to become politically aware and hopefully more able to make reasoned, logical, responsible decisions. Augusta Monro, Dural I must challenge columnist Brad Emery on his assertion that 16 and 17-year-olds are 'considered minors in every other regulatory contexts'. At 16, youths can legally have sex and bring children into the world (in most states) – one of the most important decisions of their lives. At 16, you can register as an organ donor, get an abortion, get married (with permission), get a learner's permit, apply for youth allowance, consent to medical and dental treatment, have your own Medicare card and work full-time. You only have to look at the 'School Strike 4 Climate' protests, in which thousands of youths took part, to see the commitment that young Australian have to civic duty. I believe that the voting age should be lowered to 16 now. Bruce Welch, Marrickville Australia has one of the lowest ages of criminal responsibility in the Western world. If 10-year-olds can be tried as adults for crimes, then surely they should also be allowed to vote. Either they are capable of adult decisions, or they are not. Bart Fielden, Lindfield Marine tragedy The toxic algal bloom on South Australia's coastline should indeed be taken seriously (' Government all at sea on toxic algal bloom ', July 23). The Great Barrier Reef has already suffered several mass bleachings, largely due to ocean warming. Now a widespread algal bloom has put South Australia's Great Southern Reef under threat. It is heartbreaking to see the devastation of coastal treasures like the Coorong, which once had an abundance of thriving birdlife and wetland vegetation. Many readers will remember the iconic film Storm Boy, which was set in this location. Again, a marine heatwave was a major contributor. Environment Minister Murray Watt has finally decided to visit Adelaide with a pledge of $14 million to deal with the algal bloom disaster. But what's the point of Labor spending that money when at the same time it approves fossil fuel projects? The government must account for the effects of global warming when dealing with such disasters. Anne O'Hara, Wanniassa (ACT) Gender writes Correspondent Ryszard Linkiewicz claims fewer boys read books nowadays because male authors have been 'purged from reading lists' (Letters, July 23). But why should boys only be interested in stories written by men? At school, we girls read F. Scott Fitzgerald, Ernest Hemingway, Joseph Conrad and other male authors. We read them despite the fact they were written by men, about men, with only the occasional one-dimensional female character to whom we might relate. It is sad that boys only have what Linkiewicz calls 'poorly written tripe' by the likes of Helen Garner, Kate Grenville, A.S. Byatt, Doris Lessing and other women. What a pity that, according to him, those whose 'literacy skills develop more slowly' can't find anything of interest in the works of such (female) giants of the literary canon. Gerianne Rudd, Toowong (Qld) There are several Australian male authors who are writing and publishing books now, all available to boys. I've just finished Mark Brandi's latest book Eden and have read his Wimmera and Southern Aurora, all of which have boys or men as the main characters, and are easy to read. Then there's also Tim Winton and Trent Dalton, plus Aaron Blabey with his graphic novels Bad Guys. The graphic novels in particular are a good way to encourage reading among boys and young men. Rosemary Wolf, Mount Warrigal Ryszard Linkiewicz notes that NSW schools have replaced distinguished authors with 'poorly written tripe'. I feel this has long been the case. Ryszard is lucky he didn't sit the HSC in 1970, when we studied such literary gems as Jane Eyre and Wuthering Heights. So many hours of boredom. Trevor McCarroll, Gerringong No right to rule Yet more correspondents (Letters, July 23) resorting to disparaging statements such as 'sense of entitlement' and ' their right to rule' to attack Gisele Kapterian for exercising her right, on behalf of those who supported her, to ensure that in an incredibly close election, every voter's true intention is properly accounted for. That is the entitlement of every candidate in our elections, and our system was established to enable that to happen. No one in this country has a right to rule, and even if they thought they did, it would be only to govern, not rule, and face their electors every three years. Peter Thornton, Killara Reality lost The Israeli ambassador to Australia was very quick to admonish the Australian government, along with 27 other countries, for their call to end the Gaza war, saying they were 'disconnected from reality and it sends the wrong message to Hamas' (' Penny Wong: Israel condemnation channels Australians' 'distress' over Gaza ', July 22). He conveniently forgets the reality that this whole catastrophe would not have happened had it not been for the abject failure of the Israeli government, the IDF, the Shin Bet (internal security service) and Mossad to protect Israel citizens from the Hamas attack on October 7, 2023. Perhaps he's the one 'disconnected from reality', and no amount of killing people seeking humanitarian aid is going to change that. Alexis Lander, Kensington Definition dilemma I read closely the piece by Adam Slomin about the definition of antisemitism. (' Defining antisemitism is no threat to free speech. Without a definition, we are adrift ', July 23). Unfortunately, the International Holocaust Remembrance Alliance's working definition of antisemitism would be more easily accepted if Israeli Prime Minister Benjamin Netenyahu and his government also adopted that definition, instead of calling all criticism of Israel's policies and actions 'antisemitic'. If Israel cannot accept that definition as best practice, why should anyone else? Doug Richards, Tamarama I find it extraordinary that Herald correspondents should suggest that the best way to combat antisemitism is for Jews to publicly disassociate themselves from Israel (Letters, July 23). I doubt that these writers would say that Arabs or Muslims must publicly condemn Hamas, or the Syrian, Iranian, Saudi Arabian, Afghani or Indonesian regimes. What about Australians of Chinese, Russian or American origin or connections? Should they have to condemn 'their' regimes? Opposition to particular actions by Israeli settlers or the government is not antisemitic as many Jewish people and Israelis prove. But the ideas that the Jewish state is uniquely evil and that all Jews are implicated in everything it does are, and should be, roundly rejected. John Sexton, Centennial Park Chinese Australians aren't directed to 'unequivocally denounce the actions' of the Chinese government in Tibet or Xinjiang or against Taiwan to stop harassment and firebombing and graffiti of their businesses and cultural centres, Dave Bailey (Letters, July 23). Indonesian Australians aren't told to 'disassociate themselves from the worst things happening in' West Papua to stop doxxing and protests directed at them at universities or art performances, Jennifer Briggs. It's only Jewish Australians who apparently deserve to suffer persecution for the actions of a foreign state. Richard Abram, Bexley Victims of tobacco war On the illegal tobacco debate, I agree with the obvious premise that cigarettes cause harm, and cheap cigarettes keep people using them. But if the plan is simply to close down the illegal tobacco market, I worry for many habitual smokers on low incomes (' Eviction, jail and fines for illegal tobacco sellers', July 23). As a psychologist, I work with a number of people on disability support pensions who live with severe mental illnesses. Cigarettes are a part of their way of life, and they're just not interested in quitting. If they are forced to go back to highly taxed/priced legal cigarettes, they will forego food and other necessities in order to keep smoking. I've seen this happen. Even though they're well aware of the terrible health prospects, cigarettes nevertheless help many people to keep going. Sadly, they're not keen on patches or gum. So, whatever is done about illegal cigarettes, allowances need to be made for many on low incomes who will continue smoking regardless. Otherwise their quality of life and mental health will crash. Jim Filshie, Kingsgrove I hardly think any landlord is going to evict a retailer for selling illegal tobacco. I recall reading that these same sellers are offering landlords above market rates to rent their premises and with today's vacancy rates in strip retail shops, I'd suggest it would be a rarity to see any landlord evict a tenant for anything apart from rent arrears. Barb La Ganza, North Narrabeen I think that tough legislation and penalties is the right approach rather than lowering the tax rate on tobacco products. However, it remains to be seen if the words will be put into action. It has been more than eleven years since smoking was banned in all cafes and restaurants, and I have seen little evidence of enforcement. Reports to Health NSW and local councils achieve nothing. Bob Edgar, Moss Vale HECS anomaly Ross Gittins quite rightly points out the stupidity of the Morrison government's Job Ready program, which resulted in arts degrees costing $50,000 (' Cutting HECS debt is the least Albanese could do for young Australians ', July 23). Why the new Labor government hasn't changed this policy is a mystery. Reducing students' HECS debts by 20 per cent is a good start, but surely preventing future extreme and unfair tertiary debt must be on the agenda. As they say, 'it's a no brainer'. Eric Sekula, Turramurra While the government tinkers with HECS debts in a rather ineffective attempt to reduce financial burdens on the young, it is quite amazing that university education in EU countries like France, Germany and Sweden is almost free. Furthermore, living allowances are provided which reduce the need to work part-time. Governments there heavily subsidise universities and the considerable benefit is little disincentive for university study even for the relatively poor. These policies obviously do much to reduce inequality. The secret is of course higher average taxation and the realisation that university degrees will result in higher salaries and thus more tax being paid during a lifetime of work. Geoff Harding, Chatswood Tax outrage There are certainly valid arguments for a tax on high-value family homes (Letters, July 23), but the government also urgently needs to address the miserable contributions from the oil and gas industry, among others. According to The Australia Institute and despite the industry's insistence that it pays substantial tax, nurses paid $7 billion more tax during the past 10 years than oil and gas companies paid in company tax and Petroleum Resource Rent Tax. In short, nurses paid $52 billion and the oil and gas companies $45 billion. Finally, the oil and gas industry 'exports 80 per cent of Australia's gas, gets most of the gas it exports for free, is a small employer and pays little tax'. It is hoped that Jim Chalmers' economic summit will not be dominated by the usual rent seekers. Alison Stewart, Riverview Super changes The story in the Herald (' Average pay of $240k to be hit by super tax', July 23) outlines a number of scenarios for people who will be hit by Labor's superannuation tax changes. But what the report fails to mention is that both a husband and a wife can have $3 million each in super. It also doesn't ask the question 'why do people running a farm have the farm included in superannuation?' Also, many farming families also have trust accounts, thus decreasing their taxable income. It's all legal but not an option for the average Australian. If everyone wants the Labor government to enact the policies it took to the recent election, then the money has to be found from somewhere, particularly as companies are not reinvesting to create growth in the economy. Peter Nelson, Moss Vale Welfare state It has become all too apparent that Australian society is fast becoming a welfare state following many years of government handouts (' Australia risks becoming a 'welfare state', study warns ', July 23). In many instances, this has been initiated to win elections. While government support is appreciated by those with urgent or specific needs, far too many now see it as an easy alternative to employment and making a contribution to society. With government spending approaching 40 per cent of gross domestic product and the emphasis currently on how to increase productivity, the answer clearly lies within government itself. The issue of debt – private and government – must be addressed if productivity is to be increased, or, accept that peak productivity and economic growth has been reached. Efficiency is just not a private sector issue but also a government issue with ever-increasing public sector employment. Australia's standard of living cannot be totally reliant upon an ever- smaller private sector. Just look at the number of business failures over the past few years. Bruce Clydsdale, Bathurst Moved to tears Your story on Labor MP Ali France has to be one of the most moving pieces of journalism in a long, long time (' How Ali France's late son's words propelled her to parliament ', July 23). Her compassion and courage, which included both the loss of her son, in addition to her disability, are just phenomenal and reduced me to tears. I sincerely hope we hear a lot more from Ali for a long time to come. Rose Lysnar, Sherwood (Qld) Ali France's maiden speech was inspiring. Let's hope that the 48th parliament provides a safe, supportive workplace which embodies her values of service, fairness, kindness and perseverance. Viv Mackenzie, Port Hacking Ali France is a beacon of hope for the many Australians living with grief and/or disability. We now have a strong voice in federal parliament. Sending grateful thanks to the voters of Dickson. Margot Alaba, Balgowlah
