Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Tax Cuts for Wealthy Results in Tax Increase on Graduates

Blow-out on Tax Cuts for Wealthy Results in Tax Increase on Graduates

Reports that Prime Minister John Key wishes to increase the repayment rate on student loan borrowers has been slammed by the New Zealand Union of Students’ Associations as a tax increase on graduates to pay for a blow-out in the tax-cuts that the government gave to the wealthy.

“Increasing the repayment rate is a tax increase for the 500,000 New Zealanders who have student loans. Student loan repayments are a tax, since they are collected by IRD, straight out of your pay, just the same as PAYE. It’s outrageous that graduates should have to pay higher taxes to pay for a budget short-fall which has been caused by the tax-cuts that the National government gave to high income earners,” said Pete Hodkinson, president of the New Zealand Union of Students’ Associations.

“Many of those with loans are struggling to make their minimum repayments already, since obligations start at such a low level ($19,084 compared with $48,000 in Australia).”

NZUSA points to Inland Revenue Department figures that show that loans are currently being repaid as expected, except for by some people who are overseas. The “cost” that Government claims of the loans scheme is that it takes time to pay them back, and an account is made for the time cost of the money.

“Higher income earners pay back faster, so higher wages improve repayment times. Slower payers ‘cost’ more because they take longer. Therefore, the way to increase repayments is to increase wages and to get graduates into jobs. Better paid graduates pay their loans back faster. More jobs and better pay in New Zealand will reduce the incentive for people to stay overseas, where repayment rates are poor, and encourage New Zealanders who live overseas to come home and contribute to their country,” said Hodkinson.

“The National Government has got themselves into this situation because they gave tax-cuts to the richest New Zealanders. That is what has blown-out the Budget. The implications of a generation of former students carrying onerous huge debt repayment burdens because those who came before them, and had free education, want lower taxes is not fair. It is not sustainable, and will lead to intergenerational frustration and anger.”

NZUSA is the national representative body for tertiary students and has been advocating on student issues since 1929.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Cancel Culture And The ‘hate Speech’ Laws

If there really is anyone out there who feels genuinely panicked about what ‘cancel culture' is doing to our precious freedoms, then maybe they should just take a deep breath, look hard at who has allegedly been ‘ cancelled’ and see if they can detect any trace of a lasting “cancellation“ effect. Chances are, the alleged cancellees will be doing just fine. By and large, they will be people who do not lack for a public platform – never have, never will – and the downstream effects of being “ cancelled” will almost invariably be trending towards zero... More>>


Government: To Rev Up Reductions In Transport Emissions

The Government is calling for feedback on a range of potential policies to eliminate emissions in the transport sector. Transport Minister Michael Wood today released Hīkina te Kohupara – Kia mauri ora ai te iwi - Transport Emissions: Pathways to ... More>>

KiwiSaver: Default Provider Scheme Improvements Slash Fees, Boosts Savings

Hundreds of thousands of New Zealanders will be significantly better off in retirement following changes to the default KiwiSaver scheme, Finance Minister Grant Robertson and Commerce and Consumer Affairs Minister David Clark said today. More>>


Government: Hundreds Of New Electric Cars For State Sector

Total of 422 new electric vehicles and charging infrastructure across the state sector $5.1 million for the Department of Conservation to buy 148 electric vehicles and install charging infrastructure $1.1 million to help Kāinga Ora buy 40 electric ... More>>

Child Poverty: Reports Highlight Need For Ongoing Action

The Government has released the first Annual Report for the Child and Youth Wellbeing Strategy and the second Child Poverty Related Indicators (CPRI) Report, both of which highlight improvements in the lives of children as a result of actions of the Government, ... More>>


PM: Statement On The Speaker And Annual Review Debate

“The serious issue of alleged sexual assault and harassment at Parliament was poorly managed and inappropriately politicised last night. The tone of the debate did not reflect well on Parliament as a whole,” Prime Minister Jacinda Ardern said. ... More>>

Parliament: Mallard Fails To Give Taxpayers A Straight Answer

Trevor Mallard has confirmed he is unfit to be Parliament’s Speaker by failing to answer several important questions relating to the false rape accusation saga that cost taxpayers more than $330,000, Shadow Leader of the House Chris Bishop says. ... More>>

Local Government: Independent Review To Explore Future

Local Government Minister Nanaia Mahuta says an independent review of local government will explore how councils can maintain and improve the wellbeing of New Zealanders in the communities they serve long into the future. More>>





InfoPages News Channels