This entry was posted on Thursday, February 28th, 2013 at 12:52 pm and is filed under Uncategorized.
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This government has been given insufficient credit for the way they are tackling rorts in the Student Loan scheme.
Sorting out these rorts should have been done years ago.
I am thinking here about fringe benefits granted by companies owned by the borrower and other bits.
Example; if I have shares in Fonterra Investment fund and get a $72 dividend it will be tax free as it is a Portfolio Investment Entity.
A student loan borrower’s $72 dividend will be tax free, but the tax man will take $12 of that dividend to reduce the student loan. That is, 12% of the pretax sum of that dividend.
It is difficult to explain, but this government is on the right track.