Latest news with #studentdebt
Daily Mail
10 hours ago
- Business
- Daily Mail
3AW host Neil Mitchell sounds the alarm about Jim Chalmer's tax plan
Neil Mitchell has slammed Anthony Albanese 's government for having a plan to punish baby boomers as younger Australians increasingly decide elections. The 73-year-old 3AW host, from the boomer generation, suggested Treasurer Jim Chalmers had an agenda to tax older Australians over 60. 'Boomers beware. Jim Chalmers is taking about "intergenerational justice" in tax,' he said. 'That means a tax on boomers, who actually did a bit to build this country.' Chalmers used his National Press Club address this week to suggested Labor would use its landslide re-election to help younger Australians, with a hint about new taxes being considered to pay for this new relief. Millennials and Generation Z voters - born after 1981 - outnumbered boomers at the last election for the first time ever. 'The decisions we make in the 2020s will determine the sort of living standards and intergenerational justice that we have in the decades to come,' Chalmers said. 'I think there is a broad recognition of that.' Labor was re-elected last month with a plan to slash student debt by 20 per cent, saving the average graduate $5,520 at a cost to taxpayers of $16billion. It also offered tax cuts for low-income workers earning $18,200 to $45,000, with students, apprentices and part-time workers more likely to be young. This relief is set to cost the Budget $17.1billion over four years. That means Labor would either have to cut spending or increase taxes to fund relief that overwhelmingly favours the young, with Treasury only forecasting Budget deficits in coming years as gross government debt soars above $1trillion. That could see Labor review generous tax concessions on things like family trusts that can avoid paying tax on income generated from within the trust. Former Labor leader Bill Shorten lost the 2019 election proposing a new 30 per cent tax on family trusts as funds were distributed to beneficiaries. While that policy was scrapped, the government's upcoming productivity roundtable in August is expected to explore a range of new revenue-raising options, with Chalmers hinting at tax changes. 'The easiest thing in the world is for people to come to us and say we want you to dramatically cut the taxes in our part of the economy and spend dramatically more on our industry, without recognising that there are necessary trade‑offs associated with that,' Chalmers said. Treasurer Jim Chalmers used his National Press Club address this week to suggested Labor would use its landslide re-election to help younger Australians, with a hint about new taxes to pay for new relief The government is still proceeding with plans to impose a new 15 per cent tax on unrealised gains on superannuation balances above $3million, in a bid to raise $2.3billion a year in revenue. In Opposition, Albanese vowed to leave untouched franking tax credits for company shareholders and negative gearing tax breaks for investor landlords, even though house prices have surged at a faster pace since the pandemic. Labor also has no plans to introduce a capital gains tax on the family home. These existing arrangements favour boomers who were able to buy a house to live in cheaply after the capital gains tax debuted in 1985. Chalmers this week downplayed a point about government payments making up 27 per cent of the economy - the highest level since 1986 outside of the pandemic. 'It's not the highest spending since the 80s. I know that you mean absent Covid, but I think it's unusual that we absent Covid,' he said. 'Quite frequently I'll hear we've got the weakest growth in 40 years, or we've got the highest spending. That's not true.' Boomers still have political power with both Albanese and Opposition Leader Sussan Ley hailing from that generation, covering those born from 1946 to 1964. Chalmers belongs to Generation X, spanning 1965 to 1980, along with every state premier. Only the Northern Territory has a Millennial leader.
Yahoo
2 days ago
- Business
- Yahoo
‘I'm at my wit's end': My niece paid off her husband's credit card, but fell behind on her taxes. How can I help her?
My niece is a highly educated person. She holds a Ph.D. in science, has a good personality and people genuinely like her. She has worked as a freelancer for the same company for over five years. The owner of the company sends her a check every month and a 1099 at the end of the year. I have mentioned to her a few times that she should talk to the owner about simply employing her so her tax load would not be so heavy and she would get employee benefits. However, the owner has all kinds of excuses and promises to do so, perhaps next year. And here is the problem: My niece, as smart and brilliant as she is, is not very good with her money. She got married a couple of years ago and she and her husband bought a house right away. She paid some of her husband's credit-card debt and other expenses. As a result she got behind on her estimated taxes for this year and last year. Israel-Iran clash delivers a fresh shock to investors. History suggests this is the move to make. Why Tom Lee says the odds favor a stock-market rally after the Fed decision My mother-in-law, 95, has $400K in stocks. Would it be smarter taxwise to gift it to her kids — or leave it to them in her will? 'I prepaid our mom's rent for a year': My sister is a millionaire and never helps our mother. How do I cut her out of her will? I'm 75 and have a reverse mortgage. Should I pay it off with my $200K savings — and live off Social Security instead? She also carries a high student-debt load. Her husband pays his taxes separately. His student debt is minimal, and he puts money into his 401(k). She does not have any IRA or any savings. I love my niece dearly and, being older, I would like to make her a beneficiary of my savings and investments. I am not a rich person, but I worked my whole life, and I am a good saver. Here is my dilemma: Knowing what I know, it seems foolish to make her my beneficiary. I want to help her, but I have no idea how. I have tried to talk to her about finances, but she refuses to talk about it. She has some serious health issues, so I am hesitant to press the topic. I am at wit's end. I have no idea what I can do and how I can help her. The Aunt Related: I'm 75 and have a reverse mortgage. Should I pay it off with my $200K savings — and live off Social Security instead? Here's the brutal truth: You can't live your niece's life for her. You're at your wit's end for that reason. There's only so much you can do to influence your niece. You can't go back in time and advise her on what course to choose to limit her student debt or maximize her financial prospects. You can't undo her decision to pay off her husband's credit-card debt at the expense of neglecting her own taxes and falling out of favor with the Internal Revenue Service. You can't get her to live her life the way you would like her to live it, even if it would mean a better outcome financially. You can't force her to see the world through your eyes and your lived experience. She has made her own mistakes and she will continue to make her own mistakes. Willfulness gets us out of bed in the morning, but it also leads us to make the same errors over and over again. Now, understandably perhaps, you want to leave your niece, who is a kind and intelligent woman, money after you're gone. But this raises more issues and concerns: You want to make sure that she does not squander this good fortune and, based on experience, you fear that is exactly what she will do: dig other people out of fiscal holes and dig herself into bigger ones, all while making intemperate investment decisions. The answer to your niece's workplace dilemma is probably to find another job. As a more senior member of the family, you can give her your opinion, even if it's unsolicited, but you can't expect her to follow your advice. Yes, it would be great if she had an emergency fund, a home that she and her husband could pay off over time and a 401(k) or the equivalent with an employer match so she could build up her investments. Maybe all that will happen in time. The best way to ensure from beyond the grave that your wishes are followed is to set up a trust. 'An incentive trust is designed to encourage good financial habits,' according to the Cote Law Group, which is based in Marshfield, Mass. 'Instead of unrestricted payouts, the trust can be structured to provide funds only when certain conditions are met. For example, the trust could match [your niece's] income dollar for dollar, encouraging employment.' Such a trust could provide funds for education, to pay off student debt, to make a down payment for a home purchase or for business investments rather than for discretionary spending, the law firm adds. It could also, for example, require your niece to complete a financial-literacy course before accessing funds. This approach helps instill financial responsibility while providing years-long financial support, it adds. A spendthrift trust, meanwhile, prevents the beneficiary from selling, borrowing against or misusing their inheritance, the Cote Law Group says. It's useful for people who have a 'history of overspending, concerns about gambling or substance abuse and/or a habit of making risky financial decisions.' With a spendthrift trust, creditors and lawsuits cannot access the funds and the beneficiary cannot demand early payouts, the law firm says. That may not be the answer you're looking for. Your niece is not you. She will continue to follow her own dreams and make her own mistakes, and she may allow her heart to rule over her practical instincts until the time comes when she asks herself, 'How did I make these mistakes?' That may happen or it may not. In the meantime, what can you do? Continue to appreciate all the gifts she does have to offer, and lead by example instead. Related: 'I've yelled, screamed and cried': My mother gave $400K to online scammers. She still gives them Apple gift cards. What can I do? Previous columns by Quentin Fottrell: My husband will inherit $180K. I think we should invest the money. He wants to pay off his $168K mortgage. Who's right? 'I'm at a loss': My boyfriend of nearly 10 years is naming his elderly parents as beneficiaries and giving them power of attorney. Am I right to be upset? 'We have no prenuptial agreement': Will my wife be able to take my money if I transfer it to my retirement account? Israel-Iran conflict poses three challenges for stocks that could slam market by up to 20%, warns RBC I'm 51, earn $129K and my 401(k) has $165K. Can I afford to retire when my husband, 59, draws Social Security at 62? These defense stocks offer the best growth prospects, as the Israel-Iran conflict fuels new interest in the sector 'I'm 68 and my 401(k) has dwindled to $82,000': My husband committed financial infidelity and has $50,000 in credit-card debt. What now? 'He failed in his fiduciary duty': My brother liquidated our mother's 401(k) for her nursing home. He claimed the rest. Sign in to access your portfolio
Forbes
3 days ago
- Business
- Forbes
5 Reasons Why 'New-Collar Careers' Are On The Rise In 2025
new-collar careers are on the rise The term "new-collar careers" was first coined by IBM's former CEO Ginni Rometty to describe positions that prioritize skills and certifications over traditional four-year degrees. Unlike white-collar jobs that require a college education or blue-collar work involving physical labor, these roles focus on practical capabilities and technical competencies. Today, new-collar positions offer median salaries exceeding $159,000, according to research by Resume Genius, representing a fundamental shift in how the American workforce values human capital. Five documented forces are reshaping career advancement, creating opportunities that favor skills-based workers over traditionally credentialed candidates. Average student debt reaches $37,000 per graduate, according to federal data. Meanwhile, 41% of recent college graduates work in positions that never required a degree to begin with, creating a compelling economic case for alternative pathways. Information security analysts earn a median salary of $124,910, according to Bureau of Labor Statistics data. Workers entering this field early can accumulate substantial earnings while college-bound peers accumulate debt. According to Junior Achievement, 66% of teens aged 13-17 are likely to consider starting a business or becoming entrepreneurs, suggesting entrepreneurial thinking may prepare young people for skills-based career paths. Early exposure to real-world work experience and entrepreneurship programs provides significant advantages. Teenagers who participate in business mentorship programs, internships, or entrepreneurial education develop practical skills that directly translate to new-collar careers—such as problem-solving, communication, project management, and financial literacy. What this means for you: The traditional college track may no longer offer the best return on investment, especially in fields where practical skills are more valued than academic credentials. Starting skill development in high school through entrepreneurship programs, real-world jobs, or internship experience can provide a crucial head start. Labor market data reveals dramatic shifts in hiring practices. Information security analyst roles show 33% projected growth through 2033—nearly triple the average rate, according to Bureau of Labor Statistics projections. Computer network architects are projected to experience 13% growth. Health services managers are seeing a 29% expansion. Marketing manager roles look to grow 8% annually. Major employers, including IBM, Google, and Apple, have removed degree requirements for numerous positions, prioritizing demonstrated competencies over educational backgrounds. According to Resume Genius data, 65% of employers will prioritize skills and practical experience over formal education by 2025. Why this matters: The job market is actively rewarding practical capabilities over academic achievements. Workers who focus on building demonstrable skills in high-demand areas can access opportunities that were previously limited to college graduates. Online learning platforms, bootcamps, and industry certifications have made advanced skills accessible without traditional institutional barriers. Workers can acquire specialized knowledge in a matter of months rather than years. Professional certifications carry increasing weight with employers. Industry-specific credentials often signal more relevant expertise than broad academic degrees, particularly in rapidly changing technological fields. The speed advantage is significant: cybersecurity professionals can earn a CompTIA Security+ certification in three months, compared to the four years typically required for a traditional computer science education. What this means for career changers: You can pivot to high-paying fields in months, not years. A focused certification program can provide faster entry to lucrative careers than returning to school for another degree. For young people still in high school, combining entrepreneurship programs or business competitions with technical certifications creates an even stronger foundation for new-collar success. The remote work revolution fundamentally altered career accessibility. Every high-paying new-collar role identified in Resume Genius research offers remote or hybrid options. This geographic freedom reduces cost pressures that traditionally favored college graduates. Workers can maintain competitive salaries while living in affordable areas, maximizing purchasing power compared to peers tied to expensive metropolitan markets. Remote work capabilities particularly benefit younger workers who may lack the resources to relocate to expensive business centers for traditional career opportunities. Why this matters to you: Location no longer limits your earning potential. You can access six-figure salaries while living in affordable areas, dramatically improving your quality of life and financial position compared to traditional career paths that require expensive urban living. Artificial intelligence is on the rise, but it is increasing the demand for roles that require human judgment, creativity, and relationship management. Resume Genius excluded positions with automation risk above 50% from their analysis. The remaining roles require strategic thinking, empathy, and complex problem-solving that machines cannot easily replicate. These roles are rooted in judgment, empathy, and real-time decision-making—qualities that AI can't replicate. What this means for your future: Focusing on skills that complement rather than compete with AI provides job security. Roles requiring emotional intelligence, strategic thinking, and complex problem-solving will become increasingly valuable as automation handles routine tasks. All these forces feed off each other. Student debt pushes people away from college. Employers can't find the skills they need. Technology makes learning faster and cheaper. Remote work opens up geography. AI makes human skills more valuable. The result? A completely different job market. Resume Genius research shows this isn't temporary—it's how the economy will work going forward. Companies win, too. They can hire from a bigger pool of candidates, spend less on recruiting, and get workers who can start contributing immediately—no need to train someone for months when they already know what they're doing. Workers can now choose strategies that align with their learning styles, financial situations, and career goals. Success can be more readily attained in new-collar careers if workers focus on developing practical skills, engaging in continuous learning, and achieving demonstrable results. If you can prove your value through portfolios, certifications, and real-world achievements, you will thrive regardless of your educational background. The economic and technological forces driving new-collar careers show no signs of slowing. The question isn't whether these opportunities will continue growing—the data suggests they will. The question is how quickly traditional institutions will adapt to this documented reality.
Daily Mail
4 days ago
- Entertainment
- Daily Mail
Sussan Ley's shock response to Labor's bid to slash the HECS bill for millions of Australians
Sussan Ley has left the door open for the Coalition to back Labor's promise to slash student debt by 20 per cent in a landmark move towards bipartisan government. One of Labor's key pledges before the election was to cut student loan debts like HECS and HELP by 20 per cent. The Liberal Party opposed the policy, branding it 'elitist' and 'profoundly unfair. But now Ley has said she is open to supporting the policy because the shattered party was 'going to look at everything anew'. 'We're not carrying policies forward. We're going to pause and consider everything,' she revealed in an interview with The Daily Aus. 'So we will consider that legislation as it comes forward. We haven't seen it obviously, and when we do, we'll have a discussion within our party room about how we respond to it.' During the wide-ranging interview with Lisa WIlkinson's daughter Billi Fitzsimons, Ley said she could identify with the 'challenges' young people are facing - before making a cringeworthy pop culture reference. 'I remember when not fitting in at school, becoming a sort of dropout punk for a while, struggling with all of the issues that you do as a teenager, and then finding my way by having a passion, which was wanting to fly aeroplanes,' she said. Ley, 63, said she worked three jobs to save up for flying lessons. Before entering politics she previously worked as an air traffic controller, an aerial stock mustering pilot, a shearers' cook, a wool and beef farmer and public servant. She said the Coalition's election loss was a 'very serious, humbling message' and that she was now focused on listening to Australians before building a policy platform. In a bid to perhaps appear 'down with the kids', Ley also dropped a pop culture reference when discussing the brief, post-election breakup of the Coalition. 'So he (David Littleproud) came back to the table to give it another go, and maybe took some inspiration from Charli XCX and Lorde and yeah, got back together on the remix,' she said. However, she slightly misquoted the lyric. The reference is to Charlie XCX's song 'Girl, so confusing featuring lorde' which actually has the lyric: 'Let's WORK IT OUT on the remix'.
Forbes
7 days ago
- Business
- Forbes
5 Ways College Must Adapt To Prepare Students For 2025 And Beyond
Colleges need to better prepare graduates for the future According to Federal Student Aid, the average student loan debt reached $38,375 by the end of 2024, with the total U.S. student debt now totaling $1.8 trillion. Meanwhile, coding bootcamp graduates earn an average starting salary of $70,698, often surpassing entry-level salaries for traditional college graduates. This data reveals a fundamental disconnect: students are paying more for education that may not deliver proportional career returns. Research by USC professor Dave Kang, who has tracked Fortune 500 CEO educational backgrounds for 20 years, found that only 11.8% of Fortune 100 CEOs attended Ivy League schools as undergraduates. Seven to eight Fortune 500 CEOs had no undergraduate degree at all—more than graduated from any single college. The message is clear: prestigious degrees don't guarantee career success, but practical skills and adaptability do. Traditional higher education emphasizes theoretical knowledge over practical application. This approach fails to prepare students for a workforce that prioritizes demonstrated capabilities over academic credentials. According to Course Report, 69% of employers believe boot camp graduates are qualified for tech roles, and 80% would hire another boot camp graduate. This employer confidence stems from bootcamps' emphasis on hands-on projects and real-world applications. What colleges can do: Integrate project-based learning across every major - Partner with local businesses and nonprofits for real assignments - Create for-credit internships with measurable outcomes Real-world example: At Northeastern University, students complete up to three six-month cooperative education programs during their degree. These aren't traditional internships—students take full-time roles with measurable responsibilities and outcomes. How to implement: Business students could manage actual marketing budgets for local nonprofits. Engineering majors could solve real infrastructure problems in their communities. Liberal arts students could develop content strategies for emerging companies. The key difference is making these experiences count toward graduation requirements rather than treating them as optional additions. Artificial intelligence affects every industry, yet most college curricula treat it as a computer science elective. This creates a dangerous skills gap for graduates entering an AI-integrated workforce. Students need practical AI fluency regardless of their major. This means understanding how to work with large language models, recognizing AI-generated content, and knowing when human judgment remains essential. What colleges can do: Introduce basic AI literacy modules in general education requirements - Train faculty to integrate AI tools into assignments across disciplines -Offer electives on prompt engineering, AI ethics, and human-AI collaboration Real-world example: Some institutions are beginning this integration. The MIT Media Lab has developed an AI and Ethics curriculum that teaches students to think critically about algorithmic bias and the societal impact of AI. Universities can adopt similar approaches for undergraduate programs across disciplines. How to implement: A journalism course could challenge students to use AI for background research and then fact-check and verify the findings. An art history class might explore how AI image generation affects concepts of authorship and creativity. The goal isn't to turn every student into a programmer—it's to ensure graduates can work confidently with AI tools while maintaining critical thinking skills. Grade point averages tell employers little about real-world capabilities. Today's hiring managers want to see what candidates have built, written, or accomplished outside traditional coursework. Data shows that Amazon increased its bootcamp graduate hires from 1,077 in 2021-22 to 2,468 in 2024—a 129% growth. Companies like Google, Apple, JPMorgan Chase, and Accenture are actively hiring bootcamp-trained talent across multiple industries. What colleges can do: Encourage students to document and share their projects online - Offer academic credit for building personal brands, portfolios, or digital products - Shift from GPA-centric evaluations to include "proof of work" assessments Real-world example: Progressive art schools are leading this shift toward portfolio-based assessment. Many design programs now require students to maintain digital portfolios throughout their studies, documenting projects and creative development over time. How to implement: Economics students could publish data analysis projects on GitHub. Education majors could document innovative teaching methods through video case studies. Pre-med students could showcase community health initiatives they've designed and implemented. Employers and graduate schools increasingly want to see what applicants can demonstrate, not what they've memorized. The average professional changes careers seven times during their working life. Yet most college programs operate as if students will pursue single careers for decades. What colleges can do: Offer flexible degrees that span multiple fields (tech + ethics, business + design) - Normalize major changes and allow "exploration semesters" with dedicated advising - Replace outdated prerequisites with modular, skill-based learning tracks Real-world example: At Arizona State University, students can combine multiple fields through flexible concentrations—pairing computer science with psychology or business with environmental science. These interdisciplinary approaches better reflect how modern careers actually develop. How to implement: A student who starts as a biology major but discovers a passion for product design should transition seamlessly into a hybrid path without extending graduation by two years or losing credits. Colleges can offer stackable certificates, microcredentials, and project-based validation of knowledge to support career pivots. Students no longer need to wait until graduation to start building careers. The most successful young professionals often launch projects, businesses, or creative ventures while still in college and high school. Established companies like Google, Facebook, LinkedIn, Amazon, JPMorgan, Goldman Sachs, and American Express all hire from coding bootcamps. These companies recognize that practical experience often matters more than traditional credentials. What colleges can do: Provide seed funding for student-led ventures and social impact ideas - Replace traditional advising with access to entrepreneurial mentors and alumni networks - Host demo days, pitch competitions, and startup accelerators on campus Real-world example: At Babson College, students can access seed funding for viable business ideas. The University of Pennsylvania offers mentorship programs that connect students with successful alumni entrepreneurs. How to implement: Every college can empower students to build something tangible during their studies. Offer dedicated workspace for student ventures, access to legal and accounting guidance, connections to local business networks, and academic credit for entrepreneurial projects—students who launch something meaningful during college graduate with proof of their capabilities rather than just academic promise. Coding bootcamp graduates see average salary increases of 50.5% or $23,724 after completing their programs. Seventy-one percent of coding bootcamp graduates find jobs within six months of graduation. These outcomes reflect programs designed around the needs of employers and student career success rather than traditional academic structures. Higher education doesn't need to be dismantled, but it must be redesigned. Students entering college in 2025 need institutions that prepare them for a world shaped by constant change, technological advancement, and entrepreneurial opportunity. The colleges that adapt first will attract the most motivated students and produce the most successful graduates. Those who resist change risk becoming increasingly irrelevant in a world where practical skills and demonstrated capabilities outweigh institutional prestige.
