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Higher Education Loans and Tax Evasion: A Response to Perceived Unfairness
Author(s) -
AHMED ELIZA,
BRAITHWAITE VALERIE
Publication year - 2007
Publication title -
law and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.534
H-Index - 45
eISSN - 1467-9930
pISSN - 0265-8240
DOI - 10.1111/j.1467-9930.2007.00249.x
Subject(s) - payment , government (linguistics) , injustice , debt , evasion (ethics) , public economics , politics , tax evasion , higher education , business , economics , finance , political science , economic growth , law , linguistics , philosophy , immune system , immunology , biology
Australian higher education funding policy has been a contentious and emotionally charged topic on the political agenda since the introduction of the Higher Education Contribution Scheme (HECS). Under HECS, students have options either to pay upfront or defer payment. This article examines the implications for the Australian Taxation Office, which has responsibility for debt collection among students who defer HECS payments. Results show that HECS debt undermines tax compliance directly, and indirectly through perceived injustice. The path model demonstrates how perceptions of government policy can shape cooperation with government in other spheres.