Latest news with #AustralianTaxationOffice
News.com.au
8 hours ago
- Business
- News.com.au
‘How is that possible?': Highest HECS-HELP debt figure leaves people floored
A list of the highest student loan debts across the country has left Australians absolutely gobsmacked, with many questioning how some of the figures are even possible. Data from the Australian Taxation Office obtained by Sky News late last year revealed the highest individual HECS-HELP debts, with at least 50 people having debts over $250,000. The data showed that, as of October 1, 2024, the person with the biggest HECS-HELP debt owes a whopping $831,675.53 in student loans. This number could now very well be higher, given on June 1, 2025, indexation of 3.2 per cent was applied to all student loan debts. The second highest amount on the list was $556,154, followed by $436,110 and $417,134. A photo showing the top 10 highest debts was recently shared to X by journalist and analyst Tarric Brooker, sparking a huge reaction online. People were left stunned by the top number, with many asking: 'How is that even possible?' 'What? That doesn't even make sense,' one person said. 'How on earth do they have debts this high?' another asked, with one person adding, 'what a joke'. Speaking to Mr Brooker said he found the top number on the list 'astounding'. 'Given that the average HECS-HELP debt for Australians in their 20s was a bit under $31,000 in 2022-23, it's somewhat astounding that there is an individual out there who has managed to rack up over $830,000 in debt or roughly 26 times the average for people who are at the median just starting to pay down their debts,' he said. 'Debts this large illustrate how the HECS-HELP system could have been used to effectively be akin to an eternal university student once upon a time.' But he noted that, given the caps now placed on student debts, it would take a 'highly protracted period of higher inflation and wages growth for current university students to reach a debt load that large'. In January 1, 2020, a combined HELP loan limit was introduced that put a cap on the amount students could borrow, but, initially, there were no limits on how much debt could be accrued. For 2025, the HELP loan limit for most students is $126,839. Those studying medicine, dentistry and veterinary science courses leading to initial registration, or eligible aviation courses with census dates in 2025, have a higher limit of $182,172. Many commenters were not happy after finding out just how much student debt some individuals across the country have managed to rack up, with people theorising that the majority of them likely have no intention of ever paying down their loans. 'I know several who are retired, racked up the HECS debt and as it's only repayable on salaried wages, plan to have it written off by the government when they pass on,' one person said. 'You have to admit it's pretty impressive that someone can rort the system so thoroughly. On a more serious note, it's high time universities were held to account for this,' another said. One person branded these figures a sign of a 'broken system', while another joked the person holding the top number was the 'perpetual student final boss'. This week, the Labor government introduced a bill to parliament that, if passed, will see HECS-HELP debts slashed by 20 per cent for some 3 million graduates. The changes would also raise the repayment threshold for student loans from $54,000 to $67,000. Before introducing the bill on Wednesday, Education Minister Jason Clare said there was 'a lot at stake'. 'This was one of the big promises that we made in the election campaign that we would cut the student debt of 3 million Australians by 20 per cent,' he told the ABC. 'This will take the weight off the shoulders of a lot of young people right across the country in particular – at elections young people don't often see themselves on the ballot paper, but they did at this election. 'And they voted for it, in the millions. 'For the average person with a student debt today, this will cut their debt with about ($5500) and so there is a lot at stake there, and I'm hoping that politicians across the parliament will vote for this.'
Yahoo
18 hours ago
- Business
- Yahoo
ATO's urgent warning to tradies over 'growing' tax trend: 'We will not tolerate'
The Australian Taxation Office (ATO) has put out an alert to all business owners after spotting a trend emerging primarily in the building and construction industry. The tax office has discovered some tradies have been committing GST fraud, making dishonest claims and falsifying invoices. These issues have also been noticed in privately owned and wealthy groups, and the ATO wanted to send a "clear message" to stamp it out. Assistant Commissioner Adam O'Grady said despite previous warnings against this behaviour, it's clear this trend is "growing". "While the numbers of businesses involved are relatively small, some are attempting to claim tens of millions of dollars in GST refunds they're not entitled to," he said. RELATED ATO's major tax return update for 15 million Aussies: 'It's time' FIFO worker's huge compensation win after being unfairly sacked Tradie loses $449,000 in an instant after missing key detail "Most businesses do the right thing. What these others are doing is simply not fair. We're dealing with dishonest and deliberate attempts to cheat the tax system. "We will not tolerate this fraudulent behaviour deliberately undermining the system or providing an unfair advantage over honest businesses."What dodgy behaviour has the ATO discovered? The ATO has noticed some businesses have been colluding with others to create fake invoices to justify "overly inflated" GST refunds. They've come in the form of development and construction costs "that never occurred", or intangible services like management fees that "were never provided". The tax office has even spotted multiple entities claiming GST credits for the same invoice, as well as invoices that were "completely fictitious". "Often these schemes are dressed up and sold as clever schemes with a figleaf of technical analysis – but any scheme which generates GST refunds through paper shuffling is likely to be ineffective at best, and civilly and criminally actionable fraud at worst," O'Grady said. "If it's too good to be true, it probably is." The ATO is calling on businesses doing the right thing to let it know if they hear of any dodgy behaviour. "GST revenue is vital to Australia's economy, funding essential services delivered by states and territories," O'Grady added. "Those involved are abusing the system, tarnishing the reputation of the property and construction industry and making it harder for compliant businesses to operate." If you suspect another business of being involved in these arrangements, you can confidentially report it to the ATO by making a tip-off online or by calling 1800 060 062. What are the penalties for GST fraud, dishonest claims, falsifying invoices? The tax office has warned if you're caught and convicted of any of these activities, you can face serious consequences. This can include: Interest charges Penalties Fines Prosecution Referral to the Commonwealth Director of Public Prosecution The ATO has urged people to come forward now and make a voluntary disclosure about their activities before getting a knock at the door from them. The penalties could be reduced if you do this and cooperate with the tax office in to access your portfolio
Sky News AU
a day ago
- Business
- Sky News AU
ATO reveals why now is ideal for Aussies to lodge their tax returns, as fresh warning issued to businesses over GST fraud
The Australian Taxation Office has revealed millions of Aussies will now notice their personal information filled out for them when they go to lodge their tax returns, while a new warning is issued to businesses over GST fraud. While taxpayers were able to start sending off their returns on July 1, the tax office advised Aussies against completing their lodgments until their personal data had been pre-filled by the ATO. This was to help individuals avoid making errors during the submission process and needing to lodge an amendment, which can sometimes delay the progress of a tax refund. The ATO has confirmed most taxpayers with "simple affairs" will now notice their information has been filled into their accounts to make completing their tax returns easier. Assistant Commissioner Rob Thomson delivered the update to Australians on Thursday, saying they are now "good to go" with lodging their returns. "'Whether you lodge using a registered tax agent or lodge yourself through myTax, pre-fill information will now be available," Mr Thomson said in a statement. Australians have been encouraged to still double check their pre-filled data to make sure there are no mistakes, and no data is missing. "Don't forget that you need to include all sources of income in your tax return," Mr Thomson said. "This includes side-hustles, linked income from providing ride sourcing services or selling services via an app. "Remember, the ATO has 40 industry and occupation specific guides to assist you in what you can claim and what records are required to prove it." Taxpayers should also include any deductions they are entitled to claim, the ATO said. Mr Thomson reminded Aussies to remain vigilant to fraudsters and online scammers, adding the ATO's app now has more safety features to help keep personal data protected. "Fraudsters are getting smarter, but so are the protective features in the app. The ATO app will send you real-time messages when changes are made to your ATO record, and you can quickly lock your account to prevent unauthorised access or fraudulent refunds," he said. "These features provide peace of mind knowing your account is protected and you remain in control of your tax affairs anytime, anywhere." Mr Thomson said most tax return refunds are generally completed within two weeks, with the progress of a return able to be monitored through the ATO's app or myGov services. Australians have until October 31 to send off their returns. Meanwhile, a fresh warning has been issued to Australian businesses contemplating committing acts of GST fraud, falsifying invoices or making dishonest claims. Assistant Commissioner Adam O'Grady revealed disingenuous claims involving false invoicing are on the rise, with the fraud currently prevalent within the property and construction industry. However, Mr O'Grady said there are already signs of this type of tax fraud spreading in other industries, particularly "privately owned and wealthy groups". "Despite warnings from the Serious Financial Crime Taskforce late last year, recent observations show dishonest claims involving false invoicing are growing," he said in a statement. Last year, the ATO revealed its Serious Financial Crimes Taskforce had reported a surge in fraudulent claims for large GST refunds across a number of industries. The ATO said the current trend is not related to a GST fraud scheme previously seen driven through social media, but rather concerns "real businesses creating disingenuous invoices" to obtain higher GST refunds. "While the numbers of businesses involved are relatively small, some are attempting to claim tens of millions of dollars in GST refunds they're not entitled to," Mr O'Grady said. Mr O'Grady said while "most businesses do the right thing", others are making "deliberate attempts to cheat the tax system". "We will not tolerate this fraudulent behaviour deliberately undermining the system or providing an unfair advantage over honest businesses," he said. "Those involved will face consequences, including interest charges, penalties, fines, and where appropriate, prosecution, or referral to the Commonwealth Director of Public Prosecution." GST is a tax calculated at a standard rate of 10 per cent on most goods, services and other items sold and consumed in Australia. The tax is paid by the consumer, with the sum then passed on to the government from the business. "GST revenue is vital to Australia's economy, funding essential services delivered by states and territories," Mr O'Grady said, urging businesses and the broader community to help the ATO "stamp out" the illegal behaviour. "Those involved are abusing the system, tarnishing the reputation of the property and construction industry and making it harder for compliant businesses to operate."
AU Financial Review
2 days ago
- Business
- AU Financial Review
Developers, hospitality operators in firing line over GST fraud
Tax authorities are auditing some of the country's largest property, construction and hospitality companies over concerns that fictitious arrangements are being used to improperly claim GST refunds. In a warning issued on Thursday, the Australian Taxation Office explicitly noted large companies in property, construction and hospitality were being monitored. The ATO's investigation tools have flagged that an increasing number of these companies are likely to be wrongfully claiming, in some cases, tens of millions of dollars in GST refunds.
Sky News AU
2 days ago
- Business
- Sky News AU
Millions of Aussies don't believe they will have enough super to comfortably retire, according to new Finder research
Millions of Australians do not believe they will have enough super to retire, signalling a major crisis for the nation and its ageing population. This is the revelation from a recent Finder survey shared exclusively with that found 20 per cent of Aussies - equivalent to 4.3 million Aussies - do not believe they will have enough in their super to "get by" in retirement. Another 10 per cent said their super balance would be too low but would have enough in other investments by the time they retire. One in five said they will have enough in super but will need to cut back on their spending in retirement. Finder's superannuation literacy expert Pascale Helyar-Moray said these shock revelations show a comfortable retirement may be out of reach for many Australians. 'A lack of adequate retirement savings could leave millions of Australians financially vulnerable in their later years,' Ms Helyar-Moray said. 'There's a growing fear that retirement will arrive before the money does – leaving many Australians underprepared.' The research also showed that 27 per cent of Aussies are not sure if they will have enough super to get by in retirement, while 24 per cent were confident they could retire comfortably on their super. Women were worse off with 22 per cent believing they would not have enough super or investments to comfortably retire, compared to 18 per cent of men. Ms Helyar-Moray said many Aussies assume they will fall back on the age pension, however, she stressed this 'isn't guaranteed'. 'Your assets could disqualify you from receiving it,' she said. The Finder expert urged Aussies to make voluntary contributions through salary sacrifice to build a bigger safety net. 'Super earnings below $30,000 are taxed at a maximum of just 15 per cent, which means salary sacrificing into super could help grow your wealth while also lowering your tax,' she said. 'You won't be able to access your super until retirement, so it's wise to ease into it – $100 a month may not sound like much, but it can make a real impact over time.' She also encouraged Australians to shop around to ensure they are getting good returns and are not being slugged with excessive fees. Data from the Australian Taxation Office showed the average Aussie has $172,835 in super, while the median is much lower at $60,037. The Association of Superannuation Funds of Australia projects a 30-year-old earning the median income of $75,000 with a super balance of $30,000 could accumulate $610,000 in super by retirement. This comes above the $595,000 that ASFA estimates is needed for a comfortable retirement for single Aussies that own their home. Meanwhile, a homeowner couple needs $690,000 in super to reach the same level of financial security.
