Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Sneaky tax surprise for tertiary graduates

Sneaky tax surprise for tertiary graduates

Graduates are once again the losers in National’s Budget, this time with changes to student loan repayment thresholds, Labour’s Tertiary Education spokesperson Maryan Street says.

“National has a sneaky tax surprise for tertiary graduates. It has suspended inflation adjustments to the student loan repayment threshold for a further two years until April 2017.

“Students who earn as little as $19,084 have 12 per cent of their after tax earnings taken as automatic student loan repayments. This threshold was booked to rise, but National cancelled the adjustment to claw back $70 million off students who have found work.

“This follows National last year raising repayment levels from 10 to 12 per cent of their earnings which wacked graduates with higher payments, often hundreds of dollars more a month.

“The threshold for repayments was adjusted for inflation under Labour. This meant there was a stronger incentive to find work and recognition that low earners need a little more in their pockets to make ends meet.

“But National has decided to hit low-earners harder. By refusing to lift thresholds with inflation, they are biting further and further into real earnings as living costs rise.

“Students with young families will find much of the support given for new-borns will be swallowed up in tax deducted for student loans. This will hit modest earners the hardest.

“In each and every one of National’s first five budgets, they cut student support. Now they are going after students even as they leave education to make their way in the world,” Maryan Street says.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement.

As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

 

Ombudsman: Canterbury Schools Reorganisation Mishandled

An investigation into the Canterbury schools reorganisation after the February 2011 earthquakes has found significant gaps and flaws in the Ministry’s engagement and communications with schools and communities. More>>

ALSO:

Law Commission: Contempt Report "Protects Right To Fair Trial"

The proposed Act limits what news media representatives and bloggers can report on court proceedings, but it also makes clearer than the current law where the line is between contempt and freedom of expression. More>>

ALSO:

Gordon Campbell: On Our Refugee Intake (And Uber’s Woes)

On figures released this week, there are currently 65.6 million people worldwide who have been displaced from their homes by war, famine or other external causes… More>>

ALSO:

IGIS Report: GCSB Support For Groser WTO Bid Not Illegal

“The inquiry has found that the GCSB did not act unlawfully or improperly in providing assistance to the New Zealand government campaign”, Ms Gwyn said. More>>

ALSO:

PM's Press Conference: Pike And Houses

There were questions on Pike River mine re-entry after new video from inside the drift was released over the weekend. English maintained a human effort would not be feasible irrespective of any future coalition demands from NZ First. He said the government would continue to work with families on non-manned re-entry. More>>

ALSO:

Flogging A Dead Horse: NZ First Seeks New s59 Referendum

10 years on from the so called “anti-smacking” law - NZ First calls for a binding referendum. NZ First MP Tracey Martin told TVNZ’s Q+A programme that the law change has had a “chilling effect” on NZ parents including herself. More>>

ALSO:

Always Interesting: Internet Party Has New Leader

The Internet Party has a new leader: Suzie Dawson... She currently resides in Moscow, Russia, where she has applied for temporary asylum due to severe persecution she reports being subjected to by those whose corruption she worked to expose.More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog