Albanese promises changes to HELP repayment arrangements to ease cost of living

People repaying HELP student debts would get cost-of-living relief under changes to repayment arrangements to be announced by Prime Minister Anthony Albanese on Sunday.

The minimum threshold for repayments to start would be lifted by more than $10,000 a year, from about $54,000 in 2024-25 to $67.000 in 2025-26. This threshold would be indexed so it always remained about 75% of average graduate earnings.

The government would also move to a marginal repayment system for HELP debts. That would in the short term be to the advantage of people on incomes just above the threshold.

This change, which does not alter the overall amount of the person’s debt, was recommended by Bruce Chapman, the academic who was a designer of the original HECS scheme in the 1980s. Chapman undertook work for the universities accord released by Education Minister Jason Clare.

The accord recommended “reducing the financial burden of repayment on low-income earners and limiting disincentives to work additional hours by moving to a system of HELP repayment based on marginal rates”.

In a Sunday speech, Albanese will say the changes will boost take home pay for one million young Australians.

The average HELP debt holder would pay about $680 less annually in their repayments.

A university graduate earning $70,000 would have their minimum repayments reduced by $1,300. A graduate on $80,000 would receive a cut of $850.

The targeted relief would apply to all graduates earning up to $180,000 annually.

The changes extend to student loans for vocational education.

The government plans to bring in legislation for the changes next year, but it is not clear whether this will be before or after the election, which must be held by May.

The cost over the forward estimates would be about $300 million.

Albanese said:“We will make it easier for young Australians to save in the future and we are going to make the system better and fairer as well. This is good for cost of living. Good for intergenerational fairness. Good for building Australia’s future.”

This is the government’s second recent round of changes to the HELP scheme .

In changes to indexation in this year’s budget the government announced it would cut the student debt of more than three million people, wiping more than $3 billion from what people owe.

It capped the HELP indexation rate to be the lower of either the Consumer Price Index (CPI) or the Wages Price Index (WPI), backdated from June 1 last year. Indexation had been based on the CPI. Legislation for the budget change is currently before the parliament. Läs mer…

Politics with Michelle Grattan: Bruce Wolpe says personal relations between Trump and Albanese would be ‘rocky’

Days from the US presidential election, the polls are showing the outcome of the race between Kamala Harris and Donald Trump remains a nail biter.

With the United States our closest ally, the result could have potential implications for Australia in areas such as climate change policy, defence and the economy. If there is a Trump victory, Prime Minister Anthony Albanese will also have the challenge of building a relationship with an unpredictable character.

To discuss the state of the contest and what comes next, we’re joined by Bruce Wolpe, senior fellow at the United States Studies Centre at the University of Sydney. Wolpe worked with the Democrats in Congress, and on the staff of Julia Gillard. Last year, he authored the book, Trump’s Australia.

Wolpe regards the election as too close to call.

They’re just deadlocked in two fundamental respects. National head-to-head across the country – the popular vote – they’re 49-48, 47-47, no one cracking 50, and there’s no clear favourite. And then that same pattern exists in all of the seven swing states that will decide the election per the Electoral College.

In terms of key issues:

Just as it is here in Australia, hip pocket is the strongest determinant of how you will vote, and so inflation and the state of the economy, in the lived experience, is the number one issue. Americans and Australians share the same experience over the past post-COVID years where there’s been an outbreak of inflation and high interest rates. And that means that the basket of goods that you buy day in, day out, week in, week out, from the supermarket to your petrol to your insurance prices are up between 10 and 40%.

The second big issue is immigration. As I’m sure you know from looking at the news over the past three years, just following things, the southern border with Mexico has been effectively out of control. It’s back under control but in that time, perhaps millions of people have flowed into the United States.

The third big issue is abortion rights, reproductive health rights and its future. The Supreme Court two years ago repealed Roe v Wade, which established a right found in the Constitution for women to take care of their reproductive health services. That’s the first time that a universal human constitutional right has been repealed since Dred Scott in the Civil War [denying slaves’ rights]. Three generations of women have grown up with the protections for them.

This has become a very powerful issue. And 52% of all voters are women.

On what either a Harris or a Trump administration might look like for Australia:

I think with Harris, we would just see very strong continuity with Biden. I mean, on foreign policy issues, they really have worked together.

The relationship with Australia is fine. Her relationship with the Prime Minister is absolutely fine. They know each other, can work together, a very comfortable working relationship.

[As to] Trump and Australia: first, I really have to say in the first [Trump] term, I think Australia had the most untroubled relationship with Trump than any other country in the world, and that includes Israel, that includes Europe, that includes Canada.

There is a structural trade surplus that the United States has with Australia. So Australia is not number one on the hit list of nations that are, quote, taking advantage of the United States in their trade agreements. […] It will start off in Trump’s head with all the countries that he wants to go after – I don’t think Australia is high on the list.

However, on a personal level, Wolpe says there might be some issues between Trump and Albanese:

I think personally it will be rocky at the start for several reasons. First, Trump will be briefed on everything that the Prime Minister has said on him and his presidency. And he attacked Trump for the January 6th insurrection. He’s for abortion rights and attacked the ruling of the Supreme Court. He’s for gun control, and Australia has a completely different posture on gun control, and Trump is strong on the Second Amendment. If Trump looks at the agenda of the Albanese government, it is a mirror image of Joe Biden’s domestic policy agenda adjusted for realities in both countries. But it’s the same deal. Läs mer…

Grattan on Friday: furore over Anthony Albanese’s Qantas perks chips away at public trust in politicians

A major takeout from the inquiry into the national response to COVID is that a lack of trust would likely mean a less cooperative public during a future pandemic.

Trust spiked early in the crisis, as fear ran high and people turned to known institutions and authority figures. Later, trust declined and frustrations rose, with people reacting against harsh measures.

Criticism has grown in retrospect. In a 2024 survey, 54% said the government’s handling at the time was appropriate. This had been 80% at the pandemic’s peak. By 2024, 29% said the government had overreacted; they were more likely to rate its performance poorly than were people earlier.

The review, by an independent panel, stressed the importance of better communication and coordination in planning for future crises. But a few wrinkles should also be considered.

If we had another pandemic in five years, people would indeed be more resistant to restrictions. But if the next similar crisis was, say, 50 years on, the then-public’s attitude would be anyone’s guess. Trust might surge and subside in a similar pattern.

The change in views is unsurprising. Looking back, memories of the threat fade somewhat – because overall Australia did well – while those of the restraints (some of them notable overreach) loom larger.

The pandemic’s lift in public trust was a blip – driven by extraordinary circumstances – in a long-term decline. This decline is a serious intractable problem in our democracy, as in many other countries.

You’d have to be super optimistic to expect a revival in trust in the foreseeable future. But if it continues to fall away, the foundations of our political institutions and our society will become shakier.

In the United States, Donald Trump made a huge assault on people’s trust in the electoral system after he lost the 2020 presidential election. There’d be fears he would do the same if he loses next week.

Thankfully, in Australia trust around election management remains absolutely solid. But there’s mounting concern about the corrosive effect of misinformation and disinformation in the political debate and, equally, distrust of proposals to curb these.

The polarisation in our media is a much paler version of what we see in the US, but is still wearing away at trust.

Distrust and cynicism are closely related, and can be fuelled by relatively small things.

Australians have always been disrespectful of the political class. To a degree this can be positive, if it is healthy scepticism. But if it descends into a belief politicians are more likely to serve themselves than serve the public good, that pulls democracy downwards.

Independent Helen Haines wrote this week: “in a world of aggressive lobbying, of jobs for mates, and acceptance of pork-barrelling, it is no surprise that in Australia there is diminishing trust in politics and governments”.

The furore over Anthony Albanese obtaining Qantas upgrades, arising from Joe Aston’s just-published The Chairman’s Lounge, might be seen as small beer, as “scandals” go.

But it raises suspicions, justified or not, in voters’ minds about decision-making. If big corporations are so cosy with politicians, are the politicians more likely to lend them sympathetic ears?

After all, the pursuit of access and influence is behind much of the money that’s donated to politics. The same applies to privileges extended.

Integrity is vital to trust. It didn’t pass the integrity test for Albanese to have accepted upgrades from Qantas, especially for personal travel, when he was transport minister in the former Labor government, overseeing regulation of the airline.

After dodging for days – he said it took a long time to check his records – Albanese finally denied ever contacting then Qantas chief Alan Joyce (or other executives) to request upgrades. But, it will be asked, did a mates network mean he didn’t need to?

Albanese is highly sensitive over the Qantas story, insisting to colleagues and others it is just a media beatup.

The affair has chipped away at public trust not just in the prime minister but, to an extent, more generally, as scrutiny stretched to travel largesse received by opposition figures, including Peter Dutton asking to use Gina Rinehart’s plane.

Research for the COVID inquiry showed a distrustful public wants more transparency from their politicians.

It’s a paradox that we’ve seen an expansion of mechanisms for transparency, yet there’s the perception, and often the reality, of things being deeply opaque.

In the upgrades affair, Albanese has made much of the fact he declared everything on his parliamentary register of interests. Yet that doesn’t get us to the core of the relationship between a senior politician and key people in an airline.

It’s the same with the gambling industry. What has been going on behind the scenes to delay the government’s decision on gambling reform, expected months ago? We can find from the record the donations the gambling industry gave, but not the influence exerted privately.

The increasing professionalisation of politics may have worked against trust. It distances voters from the politicians, and provides more tools for manipulating public opinion.

This may be one reason why “community candidates”, with their grassroots campaigning, have appealed. But the apparent shyness of Simon Holmes à Court, whose Climate 200 fund donates to some of these candidates, about finding himself on the Australian Financial Review’s “covert power” list only turned more attention to the backstory of money and politics.

Concern about integrity and trust was a driver of the Albanese government’s establishment, with much fanfare, of the National Anti-Corruption Commission (NACC). Now a scathing report released this week threatens to undermine public trust in that body.

It followed the NACC’s decision not to investigate six people referred to it by the royal commission into Robodebt.

Robodebt had delivered a massive blow to people’s trust in government and the public service, and it was vital full accountability was pursued.

The NACC head, Paul Brereton, delegated the decision-making on whether to open an investigation to another commissioner, because he’d had a professional relationship with one of the people referred.

But, in a damning report, the Inspector of the NACC found Brereton had not adequately excused himself.

“I found that the NACC Commissioner’s involvement in the decision-making was comprehensive, before, during and after the 19 October 2023 meeting at which the substantive decision was made not to investigate the referrals,” the Inspector concluded.

Brereton’s response has been to say mistakes happen, the important thing is to correct them, and this will be done – through the appointment of an “eminent person” to review whether the referrals should be investigated.

Both government and opposition are declaring faith in Brereton. But crossbench senator David Pocock argues Brereton should go. Anthony Whealy, former judge and chair of the Centre for Public Integrity, told the ABC that while Brereton hadn’t committed a sackable offence, in his shoes he would step down, to protect the NACC’s reputation.

Is that the price of maintaining trust in this institution that was supposed to help restore trust? Läs mer…

NACC decision not to investigate Robodebt referrals will be revisited by ‘eminent person’

The National Anti-Corruption Commission’s controversial decision not to investigate referrals from the Robodebt Royal Commission will be revisited by an independent person.

The embarrassing turnaround comes after the NACC’s inspector, Gail Furness, found NACC Commissioner Paul Brereton had not adequately excused himself from the decision not to investigate the six referrals. The inspector received an opinion from a retired judge.

Brereton knew one of those referred professionally and so delegated the decision-making, but was still involved in the process, according to the inspector. Under the relevant act, his behaviour was “officer misconduct”.

The inspector said she had received more than 1,200 complaints about the decision not to investigate those referred.

“There were, across the complaints, expressions of profound disappointment in the NACC’s decision,” she said in her report.

More generally, the NACC, which has been operating more than a year, has been criticised for the high level of secrecy surrounding it, making it difficult to judge how well it is performing.

The NACC said in a Wednesday statement the mistake involved Brereton’s misapprehension “of the extent to which a perceived conflict of interest required him to be isolated from the decision-making process” about whether to investigate the referrals.

“The opinion [from the retired judge] was to the effect that the Commissioner’s participation in some parts of the process meant the decision was affected by apprehended bias,” the NACC statement said.

“Apprehended bias means that a reasonable observer might think that the Commissioner’s decision might not be impartial.”

The NACC is in the process of engaging an “independent eminent person” to look at whether there should be an investigation into those referred.

The names of the six are in the secret section of the Robodebt royal commission report and have not been made public. There is continued pressure for the release of this section, and the government is considering whether to do so.

In its statement the NACC stressed the Inspector’s report “contains no suggestion of actual bias and no finding of intentional wrong doing or other impropriety”.

It said the royal commission’s referrals were received in the NACC’s first week, when it was establishing processes for its work generally.

The statement said Brereton had declared immediately and repeatedly that he had a perceived (though not actual) conflict of interest because he had a previous professional relationship with one of the people referred. It was not a personal relationship.

Brereton decided it would be appropriate to delegate the decision whether to investigate to a deputy commissioner, and to excuse himself from the meeting when the decision was to be made, the statement said.

But the inspector said Brereton “should have not only designated a delegate but removed himself from related decision-making processes and limited his exposure to the relevant factual information.

”The NACC Commissioner’s involvement in the decision-making was comprehensive before, during and after the 19th October 2023 meeting at which the substantive decision was made not to investigate the referrals.”

Brereton said he took sole responsibility for the mistake. “Mistakes are always regrettable, but the most important thing is that they are put right. This mistake will be rectified by having the decision reconsidered by an independent eminent person”.

Bring review of NACC forward: Pocock

Crossbench senator David Pocock called for the independent statutory review of the NACC to be brought forward.

He said the NACC’s purpose was “to rebuild public trust in politics and public institutions” but “I am concerned that it has not delivered on this mandate and in particular that it lacks transparency”.

“The Inspector’s findings and what they say about the Commissioner’s judgement are concerning, as is the way the NACC has operated to date,” Pocock said in a statement.

“I believe that the independent statutory review of the NACC should be brought forward so we can better examine these issues and look to refine the NACC’s operations if required.” The review is due in 2027. Läs mer…

NACC decision not to investigate Robodebt references will be revisited by ‘eminent person’

The National Anti-Corruption Commission’s controversial decision not to investigate referrals from the Robodebt Royal Commission will be revisited by an independent person.

The embarrassing turnaround comes after the NACC’s inspector, Gail Furness, found NACC Commissioner Paul Brereton had not adequately excused himself from the decision not to investigate the six referrals. The inspector received an opinion from a retired judge.

Brereton knew one of those referred professionally and so delegated the decision-making, but was still involved in the process, according to the inspector. Under the relevant act, his behaviour was “officer misconduct”.

The inspector said she had received more than 1,200 complaints about the decision not to investigate those referred.

“There were, across the complaints, expressions of profound disappointment in the NACC’s decision,” she said in her report.

More generally, the NACC, which has been operating more than a year, has been criticised for the high level of secrecy surrounding it, making it difficult to judge how well it is performing.

The NACC said in a Wednesday statement the mistake involved Brereton’s misapprehension “of the extent to which a perceived conflict of interest required him to be isolated from the decision-making process” about whether to investigate the referrals.

“The opinion [from the retired judge] was to the effect that the Commissioner’s participation in some parts of the process meant the decision was affected by apprehended bias,” the NACC statement said.

“Apprehended bias means that a reasonable observer might think that the Commissioner’s decision might not be impartial.”

The NACC is in the process of engaging an “independent eminent person” to look at whether there should be an investigation into those referred.

The names of the six are in the secret section of the Robodebt royal commission report and have not been made public. There is continued pressure for the release of this section, and the government is considering whether to do so.

In its statement the NACC stressed the Inspector’s report “contains no suggestion of actual bias and no finding of intentional wrong doing or other impropriety”.

It said the royal commission’s referrals were received in the NACC’s first week, when it was establishing processes for its work generally.

The statement said Brereton had declared immediately and repeatedly that he had a perceived (though not actual) conflict of interest because he had a previous professional relationship with one of the people referred. It was not a personal relationship.

Brereton decided it would be appropriate to delegate the decision whether to investigate to a deputy commissioner, and to excuse himself from the meeting when the decision was to be made, the statement said.

But the inspector said Brereton “should have not only designated a delegate but removed himself from related decision-making processes and limited his exposure to the relevant factual information.

”The NACC Commissioner’s involvement in the decision-making was comprehensive before, during and after the 19th October 2023 meeting at which the substantive decision was made not to investigate the referrals.”

Brereton said he took sole responsibility for the mistake. “Mistakes are always regrettable, but the most important thing is that they are put right. This mistake will be rectified by having the decision reconsidered by an independent eminent person”. Läs mer…