Search

It may be macabre, but dark tourism helps us learn from the worst of human history

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/dr-neil-robinson-1312179">Dr Neil Robinson</a>, <a href="https://theconversation.com/institutions/university-of-salford-878">University of Salford</a> Dark tourism has become a much more well-covered pasttime in recent years, in which a macabre fascination lead tourists to travel to various places not served by Thomas Cook: the sites of battles and genocides, war cemeteries, prisons, and even <a href="http://www.theatlantic.com/international/archive/2014/07/the-rise-of-dark-tourism/374432/">current warzones such as Syria</a>. The 20th century alone has provided such a <a href="http://www.therichest.com/expensive-lifestyle/location/10-great-places-to-visit-for-dark-tourism/">long list of places</a> at which catastrophes or great loss of life and suffering has occurred. Sites visited range from the spot from which JFK was assassinated, to prisons such as Alcatraz in San Francisco, through to battlefields of the World Wars, or the vestiges of genocides such at Auschwitz in Poland or Tuol Sleng in Phnom Penh, Cambodia. It’s not everybody’s cup of tea, but we shouldn’t condemn those for whom this is an interest. Dark tourism appears to be a manifestation of our media-rich society through which information found online may persuade us to see historical sites in person. But its origins can be traced back much further than the fascination with death and disasters of the 19th and 20th century. In the 11th century, people and pilgrims often visited places with religious significance such as Jerusalem, where the location of Christ’s crucifixion is a popular attraction; tourists visited Gettysburg, the site of the bloodiest battle of the American Civil War in 1863; and in more recent centuries, the Grand Tour offered an opportunity for the wealthy to experience Europe, with sites such as the classical ruins of the Colosseum in Rome – which in the name of entertainment saw execution, torture and death – one of the must-see attractions. Today, in parallel with the growth in popularity of dark tourism is the enormous growth of social media and the 24-hour news economy. The ease of access to such blanket coverage through the web, Facebook and Twitter has increased people’s awareness of, and fascination for, these historical sites of war, conflict and catastrophe. For example, the last decade has brought a surge in visitor numbers to <a href="https://theconversation.com/from-fiction-to-gallows-humour-how-chernobyl-survivors-are-still-coping-with-trauma-57923">Chernobyl</a>, where guides take visitors around the abandoned city of Pripyat (radiation levels permitting) which has been deserted since the nuclear power plant explosion on April 26, 1986. The 30th anniversary this year has in itself <a href="http://www.dailymail.co.uk/travel/travel_news/article-3526271/Chernobyl-tourists-pose-photos-eerie-sites.html">added to interest in visiting</a> the overgrown and crumbling city. As with tourism of any kind, this greater footfall brings benefits. In this case, not just the economic boost but also as a tool of education and even conflict resolution. For example, the <a href="http://www.belfasttours.com/package/belfast-political-mural-tour">taxi tours of Belfast’s murals</a>, which document Northern Ireland’s Troubles, offer visitors a way to understand the history and provide the communities involved a means to reflect and move on from the conflict. This model is <a href="http://www.h-net.org/reviews/showpdf.php?id=25852">viewed with interest</a> and hope by moderates on both sides of the Arab-Israeli divide searching for a peaceful solution for the long term. The tours of <a href="http://whc.unesco.org/en/list/916">Robin Island prison</a> in South Africa, where Nelson Mandela spent 18 years incarcerated among many others, starkly present how those imprisoned by a corrupt and discriminatory political regime can later engage in peace and reconciliation. The <a href="http://www.bruisedpassports.com/africa/5-reasons-you-must-go-for-a-township-tour-in-south-africa">Soweto township tours</a> in Johannesburg have acted in part as a means through which generations of South Africans can better understand their country’s dark past and help to establish truth and reconciliation for the future. Dark tourism should not in my opinion by viewed as unethical, repugnant or even a self-indulgent activity. Certainly some dark tourists may engage in their pursuits for all the wrong reasons, seeing death and destruction as a commodity to be consumed with little thought for those who caught up in its wake. But others visit such sites to pay their respects, to better understand the magnitude of death and destruction, and to inform the outside world of the details of terrible events – even in some case offering to help. These are positive effects that may come from so much pain and suffering. We should strive to better understand the origins of the terrible events of human history to be more able to prevent us repeating them. In this regard, that more people visit sites associated with dark tourism and learn about them should be seen as a positive.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/60966/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/dr-neil-robinson-1312179">Dr Neil Robinson</a>, Lecturer in Business, <a href="https://theconversation.com/institutions/university-of-salford-878">University of Salford</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/it-may-be-macabre-but-dark-tourism-helps-us-learn-from-the-worst-of-human-history-60966">original article</a>. </div>

Travel Trouble

7 health investments that are tax deductible

When someone says “investment”, we tend to think of money and wealth creation: property, shares, superannuation, savings accounts and so on. However, an investment is the contribution of something you value towards the anticipation of growing that value. That contribution could be money or it could be in the form of time, skills, knowledge, or labour. Similarly, the anticipated growth in value could be in monetary terms or towards growth in business, education, research, or even health – both your own and others’. Just like money matters and tax affairs require a wholistic view, so too does health. Which is why when it comes to getting the most out of health investments, it’s crucial to consider physical, mental and financial health. Many, such as those listed below, happen to be tax deductible too: <ol> <li>Safety equipment and education</li> </ol> Workplace safety is perhaps the most crucial of all health investments. What form that takes can differ enormously between professions. Yet if it is important for doing your job safely, then generally it will be tax deductible. This may be protective clothing for tradespeople, medical workers, and industrial machinists, or advanced driving/road safety training courses for taxi drivers and couriers. Sun protection for jobs that take place largely or exclusively outdoors is also generally deductible – but use those sunglasses or sunscreen at home as well, and you’ll only be able to claim the work-related portion of the cost. <ol start="2"> <li>Insurances</li> </ol> Certain insurance premiums are typically tax deductible. Professional indemnity insurance is a legitimate (and often essential) business expense in many jobs, such as for doctors and journalists. Income protection insurance against severe illness or injury may also be deductible. Plus, having private health insurance also delivers a tax benefit when lodging your tax return. <ol start="3"> <li>Professional coaching</li> </ol> Professional coaching can be useful for mental health and clarity, both over existing work situations and career progression or transition planning. Provided this coaching is strictly professional and relates to your ability to earn an income, it may be tax deductible. <ol start="4"> <li>Accounting and financial advice </li> </ol> Good financial health goes hand in hand with good advice about money matters. Most Aussies know that the cost of managing their tax affairs is deductible. Less well known, though, is that financial advice expenses are also generally deductible. Busy accountants can forget to ask if you incurred these costs when going through your expenses at tax time, so be sure to flag it with them. <ol start="5"> <li>Industry-specific deductions</li> </ol> In some instances, health-related expenses may be tax deductible because they are required within a particular job. For instance, models, athletes and fitness instructors may be able to claim gym memberships and nutritionist visits; dieticians and chefs may be able to claim healthy eating books and subscriptions. Check the <a href="https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/occupation-and-industry-specific-guides">ATO’s Occupation and industry-specific guides</a> to see relevant deductions in your line of work. <ol start="6"> <li>Medical checks</li> </ol> If you require compulsory medical assessments and check-ups as part of your job, these may be tax deductible. Examples include health screenings for pilots, miners, and emergency workers. COVID-19 tests to determine whether you can attend your workplace may also be deductible. Vaccinations, however, are deemed by the ATO to be private expenses. <ol start="7"> <li>Donations</li> </ol> Many health organisations are registered charities and not-for-profits, making donations to them deductible. Often, people donate to health charities because of personal experience, either as a patient/survivor themselves or having known someone who was. So not only are you investing in critical research and future patient support as a means of giving back, but you can also claim a tax deduction as a reward for donations over $2. Proof of purchase is key For any expense to be tax deductible, it must be necessary for work purposes and have come out of your own pocket, not been paid for or reimbursed by your employer. Don’t forget to claim depreciation of work-related equipment over subsequent years. These are extra dollars in your pocket to offset the cost of their eventual replacement. And be sure to keep copies of receipts for your purchases to prove your expenses – both now and in the future. Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754. Image credits: Shutterstock

Money & Banking

10 ways to make those stage 3 tax cuts count

You’re already used to living without these extra dollars. So, you won’t miss them by continuing to do so. Consider the various options available and which best suits your circumstances, then devise a plan of action to put that money to work. <ol> <li>Check tax brackets</li> </ol> Not only are some income tax rates falling, but the thresholds for others are increasing - potentially pushing you into a lower tax bracket. For example, Alice currently earns $130,000 and this tips her into marginal tax rate of 37 per cent. The Stage 3 changes will increase the 37 per cent tax threshold to $135,001. As such, Alice drops to a lower tax bracket. Not only this, her new tax bracket will have its marginal tax rate reduced from 32.5 per cent to 30 per cent. It’s a double win for Alice! This shouldn’t change your money habits but is still good to know. <ol start="2"> <li>Update your plan</li> </ol> Check <a href="https://www.ato.gov.au/about-ato/new-legislation/in-detail/individuals/individual-income-tax-rates-and-threshold-changes">what your new tax rate will be</a> to calculate your new take-home pay (or simply look at your first full pay cycle in the new financial year). Plot your new income into your household spending and investment plan. Now you know what you have to play with. <ol start="3"> <li>Check your pay</li> </ol> Most employers use digital payroll systems which automatically update tax rates. But not all do. And even then, mistakes can happen. From July, double check that your pay is adjusted correctly. If you notice a mistake, speak up – not only will you and your colleagues benefit, but you could save your employer from costly penalties for an innocent mistake. <ol start="4"> <li>Monitor expenses</li> </ol> Don’t let ballooning expenses wipe out any tax cut gains. Avoid pre-spending those gains too. The additional income is spaced out over each pay; it’s not a lump sum you can blow on a spending spree. <ol start="5"> <li>Automatic redirects</li> </ol> Consider setting up an automated redirect of the difference in your pay as soon as it hits your account. The money could be diverted into a high-interest savings account or used to top up your emergency fund. <ol start="6"> <li>Super contributions</li> </ol> Tax cut cash can be used in combination with super contribution rules to supercharge retirement earnings. Low income earners may be eligible for <a href="https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/government-super-contributions/super-co-contribution">government co-contributions</a> while <a href="https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/spouse-super-contributions">spouse contributions</a> can offer further tax benefits. This may be particularly useful for anyone <a href="https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap#ato-Carryforwardunusedcontributioncapamounts">trying to catch-up</a> after time out of the workforce (e.g., raising kids or caring for relatives) or repaying <a href="https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/super-statistics/early-release/covid-19-early-release-of-super">early withdrawals during COVID</a>. <ol start="7"> <li>Pay down debt</li> </ol> Every extra dollar spent paying off debt will save on future interest and clear it faster. Prioritise higher interest debts (like credit cards). Consider consolidating multiple debts into one with a lower rate (e.g., your mortgage) to reduce total interest and simplify repayments. <ol start="8"> <li>Invest in yourself</li> </ol> The old saying goes “you’ve got to spend money to make money”. Nowhere are the returns typically better than from self improvement. That could be undertaking new qualifications or additional training, enabling you to secure pay rises or transition to a higher-paying industry. Or it may be investing in your health and wellbeing, to reduce medical expenses, improve job prospects and productivity, and enhance your decision-making abilities (including about money matters). <ol start="9"> <li>Lodge returns promptly</li> </ol> This applies to every tax year: the sooner you lodge your tax return, the sooner you access your tax refund. Even if you’re facing a tax bill, getting it done sooner means less interest accruing and no late payment penalties. <ol start="10"> <li>Revisit strategies</li> </ol> While making changes to incorporate these tax cuts, take the opportunity to re-evaluate your overall finances. Revisit investment strategies to ensure they are delivering optimal returns. Check superannuation thresholds and performance. Scrutinise total tax liabilities (for instance, lower tax rates may mean you won’t qualify for the same level of tax deductions). Make updates where necessary. Keeping on top of your finances will mean better bang for your buck now while streamlining your affairs in future years. Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754. Image credits: Shutterstock

Money & Banking

"Tax the boomers": Outrage over elderly couple's complaint after $1m Lotto win

A "greedy" elderly couple have been rinsed online after complaining about losing their age pension payments after they won the Lotto. The couple, aged 73 and 67, wrote into <a href="https://www.smh.com.au/money/super-and-retirement/we-won-the-lottery-but-lost-our-pension-could-we-have-prevented-this-20240702-p5jqga.html" target="_blank" rel="noopener">Sydney Morning Herald</a>'s financial advice column with Noel Whittaker to ask how they could've prevented losing the government funds and still kept hold of their million-dollar winnings. The couple's submission read, "We are a couple... both retired and receiving the full aged pension. We recently won $1,000,000 in the lottery and have placed that money in a basic interest-bearing savings account with our bank." "We intend to use that money to buy a new house and sell our existing one but may just renovate. The windfall has stopped our pension completely until we spend the money, which is all good and well. But could we have prevented the pension loss in any way?" Whittaker responded that the couple should consider themselves extremely fortunate and enjoy the money, saying they "could have a far better lifestyle living off capital instead of relying on welfare". He also urged the couple not "spend to get a pension". The boomers' questions quickly drew attention online, with many flocking to Facebook comments to slam the couple for their "greed". One person wrote, "If you won the lotto, why would you want the pension?", while another added, "Ah yes, the call of the boomers everywhere, 'I have millions but where's my pension money?'" Others said the Lotto winners should consider themselves lucky they are now able to provide for themselves, with one person writing, "Pension is a support system to allow you to survive without/reduced work in retirement. If you are a multimillionaire then you don't need it." Another person echoed the sentiment, saying, "Wow, what entitlement. The pension is a safety net, if you don’t qualify for it think yourself lucky." Other social media users simply shared their outrage towards the boomer generation, as one frustrated person wrote, "Won a million and whinging they can't scam the taxpayers, what self-centered arrogance", while another added, "Tax the boomers! No more handouts." Image credits: Shutterstock <div class="x6s0dn4 x3nfvp2" style="font-family: inherit; align-items: center; display: inline-flex; min-width: 604px;"> <ul class="html-ul xe8uvvx xdj266r x4uap5 x18d9i69 xkhd6sd x1n0m28w x78zum5 x1wfe3co xat24cr xsgj6o6 x1o1nzlu xyqdw3p" style="list-style: none; margin: 0px -8px 0px 4px; padding: 3px 0px 0px; display: flex; min-height: 15px; line-height: 12px; caret-color: #1c1e21; color: #1c1e21; font-family: system-ui, -apple-system, BlinkMacSystemFont, '.SFNSText-Regular', sans-serif; font-size: 12.000001px;" aria-hidden="false"> <li class="html-li xe8uvvx xdj266r xat24cr xexx8yu x4uap5 x18d9i69 xkhd6sd x1rg5ohu x1emribx x1i64zmx" style="list-style: none; display: inline-block; padding: 0px; margin: 0px 8px;"> </li> </ul> </div>

Retirement Income

How holidaying in developing countries affects local inequality

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/alexander-tziamalis-333272">Alexander Tziamalis</a>, <a href="https://theconversation.com/institutions/sheffield-hallam-university-846">Sheffield Hallam University</a> and <a href="https://theconversation.com/profiles/yuan-wang-1360783">Yuan Wang</a>, <a href="https://theconversation.com/institutions/sheffield-hallam-university-846">Sheffield Hallam University</a> A few years ago, one of us (Alex) went for a vacation to the Dominican Republic. The motivation was similar to millions of other tourists every year: escape the daily routine, enjoy the sun and beaches, and gather some strength to face another cold winter. Unfortunately, a few things weren’t very conducive to a happy break. The staff at the mammoth hotel were making as little as US$1 (£0.79) for a 12-hour shift. Worse, most of them lived in a shanty town nearby. They had no sewers and no reliable electricity. The hotel also exploited its power over local farmers to procure food exceedingly cheaply. Schools were overcrowded and many children dropped out to work in businesses like these hotels and farms, perpetuating the cycle. This anecdotal picture is corroborated by the country’s economic data. Despite <a href="https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=DO">GDP growth</a> frequently above 5% each year, the Dominican Republic suffers from <a href="https://dominicantoday.com/dr/local/2023/02/17/dominican-republic-shows-a-high-level-of-economic-inequality-in-latin-america-and-the-caribbean/">substantial inequality</a>. The wealthiest 1% capture 30% of all income, compared to 18% in the US. But how bad is tourism for inequality in developing countries overall? <a href="https://shura.shu.ac.uk/31942/">Our recent research</a> has sought to answer this, looking at 71 countries around the world. The picture is complicated, but the overall results are not as bleak as you might fear. <h2>Upsides and downsides</h2> Clearly there are pros and cons to tourism. It makes holidaymakers happy while bringing people closer and promoting awareness of other cultures. It empowers communities and provides disadvantaged groups with opportunities, from the local artisan who can sell directly to customers, to women <a href="https://blogs.worldbank.org/psd/empowering-women-through-tourism-0">who would otherwise</a> be struggling to find work. Tourism sustains a lot of jobs and economic value overall, making it attractive to governments as a way of boosting growth. In 2019 there were a whopping <a href="https://www.statista.com/statistics/209334/total-number-of-international-tourist-arrivals/#:%7E:text=Despite%20the%20significant%20annual%20increase,lowest%20figure%20recorded%20since%201989">1.5 billion</a> international tourist arrivals around the world. They were serviced by <a href="https://www.statista.com/statistics/1268465/number-of-travel-and-tourism-jobs-worldwide/#:%7E:text=Despite%20the%20increase%2C%20the%20number,to%20320%20million%20in%202023.">nearly 300 million</a> travel and tourism workers, and the sector generated <a href="https://wttc.org/research/economic-impact#:%7E:text=In%202022%2C%20the%20Travel%20%26%20Tourism,%2C%20only%2014.1%25%20below%202019.">over 7%</a> of global GDP. On the other hand, tourism can <a href="https://www.theworldcounts.com/challenges/consumption/transport-and-tourism/negative-environmental-impacts-of-tourism">degrade the environment</a>. Witness the Inca citadel of Machu Picchu in the Peruvian Andes needing to <a href="https://www.machupicchutrek.net/how-many-tourists-visit-machu-picchu-annually/">restrict</a> the number of visitors, for instance, because the site was <a href="https://storymaps.arcgis.com/stories/d2f4fc1c7b314cc8a6c8af466cec0d24">getting damaged</a>. Equally, <a href="https://www.itmustbenow.com/feature/our-big-questions/exploitation-travel-tourism/">tourism is associated</a> with other <a href="https://www.cntraveler.com/galleries/2015-06-19/barcelona-bhutan-places-that-limit-tourist-numbers">knock-on effects</a> such as water scarcity, pollution, crime, sex exploitation and destroying tradition. But what about inequality? The tourism industry <a href="https://www.itmustbenow.com/feature/our-big-questions/exploitation-travel-tourism/">is frequently associated</a> with ridiculously low wages, long hours without a break, and unhealthy conditions for live-in staff. Dedicated trade unions often don’t exist, or they’re underpowered and cannot effectively protect workers. Tourism can also distort the economy. <a href="https://www.theguardian.com/technology/2022/aug/10/i-wanted-my-children-to-grow-up-here-how-airbnb-is-ruining-local-communities-in-north-wales">In the UK</a> for example, communities in many popular tourist destinations cannot afford to buy a home anymore. Yet when you look at how tourism affects equality overall, the existing academic literature shows conflicting results. A number of studies <a href="https://www.sciencedirect.com/science/article/abs/pii/S0160738316301281#:%7E:text=Findings%20confirm%20that%20tourism%20increases%20income%20inequality%20in%20developing%20economies.&text=The%20squared%20tourism%20revenue%20has%20a%20significant%20negative%20impact%20on%20income%20inequality.&text=Findings%20confirm%20the%20presence%20of%20Kuznets%20curve%20hypothesis.">find that</a> it worsens income inequality, while others <a href="https://journals.sagepub.com/doi/abs/10.1177/0047287520954538">find the opposite</a>. If you were wondering about the Dominican Republic, there’s <a href="https://journals.sagepub.com/doi/abs/10.1177/0047287518789272#:%7E:text=The%20results%20showed%20that%20income,in%20the%20distribution%20of%20wealth.">a study</a> showing that tourism actually has a negligible impact on inequality. <h2>Our findings</h2> Ours is the first study to <a href="https://journals.sagepub.com/doi/10.1177/13548166231177106">look at the effect</a> of a few potential determining factors to try and gain a deeper understanding of the relationship between tourism and equality. These factors include the country’s level of economic and financial development, inflation rate and government policies seeking to redistribute wealth. Our dataset spans from 1996–2016. We would have ideally looked at even more than 71 countries, but others had to be excluded because good-quality data was unavailable. We found that tourism eased income inequality in lower income countries when it went hand in hand with redistributive policies. <a href="https://webcache.googleusercontent.com/search?q=cache:6nbn68M3_toJ:https://dailynews.co.tz/how-tz-could-attract-more-tourists/&cd=8&hl=en&ct=clnk&gl=uk">Tanzania, for example,</a> gets 17% of its GDP from tourism. This has enabled the country to <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8121963/">significantly increase</a> its spending on health, education and infrastructure. In wealthier countries, the opposite was counterintuitively the case: increasing tourism exacerbated inequality when combined with redistributive policies. It may be that in places where education and infrastructure are already at high levels, improving them has less effect on inequality. Or it may be that improving the welfare system reduces workers’ incentive to upskill and seek better paid jobs in other sectors. These possibilities need further investigation. Our analysis also highlighted the importance of financial opportunities such as broad access to bank credit. All countries with more inclusive financial systems comparatively reduced inequality when they brought in more tourists. It might be that financial access enables a broader cross-section of entrepreneurs to set up or expand tourist businesses, with knock-on benefits to their communities. This is bad news for developing countries like India, Brazil South Africa and Barbados, where <a href="https://www.worldbank.org/en/news/press-release/2015/09/14/long-term-finance-shortage-post-2008-crisis-blunts-progress-in-developing-countries">it’s difficult</a> to obtain long-term loan, which usually come with onerous terms. Having said that, the benefits from financial access were more marked in developed countries. In such countries, it may be that this galvanises proportionately more entrepreneurs because they are not being held back to the same extent by other problems like corruption and poor education. When we looked at the effect of inflation, it worsened inequality in richer countries <a href="https://www.niesr.ac.uk/blog/unequal-impact-rising-inflation">like the UK</a> as tourism increases. We suspect that when inflation takes off in wealthier countries, it’s more difficult for tourism workers to renegotiate their wages quickly because employment contracts are more formal. Equally, poorer countries are often more used to higher inflation, so workers may be more adept at such negotiations. So overall, it’s not possible to say that increasing tourism widens or reduces inequality – it very much depends on other factors. But clearly tourism can be good news for inequality in poorer countries when it’s combined with redistributive policies and financial inclusion. This certainly won’t solve problems like worker exploitation across the board, but it does mean that holidaying in developing countries will often be helping them to become more equal over time.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/208690/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/alexander-tziamalis-333272">Alexander Tziamalis</a>, Senior Lecturer in Economics, <a href="https://theconversation.com/institutions/sheffield-hallam-university-846">Sheffield Hallam University</a> and <a href="https://theconversation.com/profiles/yuan-wang-1360783">Yuan Wang</a>, Seinor Lecturer in Economics, <a href="https://theconversation.com/institutions/sheffield-hallam-university-846">Sheffield Hallam University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-holidaying-in-developing-countries-affects-local-inequality-208690">original article</a>. </div>

Travel Trouble

Why you should expect to pay more tourist taxes – even though the evidence for them is unclear

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/rhys-ap-gwilym-1531623">Rhys ap Gwilym</a>, <a href="https://theconversation.com/institutions/bangor-university-1221">Bangor University</a> and <a href="https://theconversation.com/profiles/linda-osti-1431286">Linda Osti</a>, <a href="https://theconversation.com/institutions/bangor-university-1221">Bangor University</a> In April 2024, Venice began its controversial experiment to <a href="https://www.timeout.com/news/venice-will-charge-tourists-5-to-enter-the-city-from-next-year-090823">charge day trippers</a> €5 (£4.30) to visit the city on some of the busiest days of the year. But it’s not just the lagoon city, with its <a href="https://www.bbc.co.uk/travel/article/20230928-venices-new-5-entry-fee-explained#:%7E:text=Over%20the%20past%20three%20decades%2C%20Venice%20has%20become,thirds%20of%20visitors%20come%20just%20for%20the%20day.">30 million visitors</a> a year which is interested in trying out new tourism taxes. In the UK, a council in the county of Kent <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Ftheconversationuk.cmail20.com%2Ft%2Fr-l-tiuhhult-iukktlluuk-o%2F&data=05%7C02%7Cr.a.gwilym%40bangor.ac.uk%7C39ac5db833674c1a026508dc63a24fa7%7Cc6474c55a9234d2a9bd4ece37148dbb2%7C0%7C0%7C638494795990617858%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=D6oVizx3pFoiwRaTcKaakQ079%2FIQx86jcbFpj2%2FS0RQ%3D&reserved=0">has recommended</a> introducing a tourism tax on overnight stays in the county. In Scotland, it seems likely that <a href="https://edinburgh.org/planning/local-information/visitor-levy-for-edinburgh/#:%7E:text=The%20Edinburgh%20Visitor%20Levy%2C%20otherwise%20referred%20to%20as,would%20then%20be%20invested%20back%20into%20the%20city.">visitors to Edinburgh</a> will be paying a fee by 2026, and the Welsh government <a href="https://www.walesonline.co.uk/news/wales-news/welsh-government-announces-tourists-pay-26591498">plans to introduce</a> similar legislation later this year. Such taxes may seem new to the UK, but there are more than 60 destinations around the world where this type of tax is already in place. These vary from a nationwide tax in Iceland to various towns across the US. Some have been in place for a long time (France was the <a href="https://www.impots.gouv.fr/taxe-de-sejour">first in 1910</a>), but most were introduced during the last decade or two. Before the pandemic really struck (and tourism was put on hold), 2020 was described by one newspaper as the <a href="https://www.telegraph.co.uk/travel/news/tourist-tax-amsterdam-venice/">“year of the tourist tax”</a>, as Amsterdam joined an ever-growing list of destinations, which includes Paris, Malta and Cancun, to charge visitors for simply visiting. Introducing these tourist taxes has often been controversial, with industry bodies <a href="https://www.bbc.co.uk/news/uk-wales-62707152">voicing concerns</a> about the potential impacts on the tourist trade. And it appears that the link between such levies and visitor numbers is not simple, with several studies reaching different conclusions. For example, some have suggested that tourism levies have hindered <a href="https://www-sciencedirect-com.bangor.idm.oclc.org/science/article/pii/S0261517704000238">international tourism in the Balearics</a> and <a href="https://journals-sagepub-com.bangor.idm.oclc.org/doi/pdf/10.1177/00472875211053658">the Maldives</a>, and that they may dissuade people from participating in <a href="https://eprints.bournemouth.ac.uk/35087/1/ADEDOYIN%2C%20Festus%20Fatai_Ph.D._2020.pdf">domestic tourism</a>. Yet in one of the world’s most popular tourism spots with a levy, Barcelona, visitor numbers have <a href="https://groupnao.com/wp-content/uploads/2020/11/TOURISM-TAXES-BY-DESIGN-NOV12-2020_rettet-compressed-2.pdf">consistently risen</a>, with hotel guests increasing from 7.1 million in 2013 to 9.5 million in 2019. In fact, the relationship between a visitor levy and tourist flow is so complex that there is no unified view, even within the same country. Italy has been one of the most studied, and results <a href="https://crenos.unica.it/crenosterritorio/sites/default/files/allegati-pubblicazioni-tes/Indagine_Villasimius_Quaderno_Crenos_ISBN.pdf">are inconsistent</a> <a href="https://onlinelibrary.wiley.com/doi/abs/10.1002/jtr.2123">there too</a>. Another study, looking at three neighbouring Italian seaside spots finds that only in one destination has the visitor levy <a href="https://www.rivisteweb.it/doi/10.1429/77318">reduced tourist flow</a>. And a study on the Italian cities of Rome, Florence and Padua shows that these cities <a href="https://link-springer-com.bangor.idm.oclc.org/chapter/10.1007/978-3-030-61274-0_23">have not experienced any negative effects</a> either in terms of domestic or international demand. So the impact of tourism taxes on visitor numbers is inconclusive. But what about other effects, such as the potential benefits of spending the revenues raised? As part of an ongoing research project, we looked at seven different destinations in which tourist taxes are levied to look at how the money raised is then spent. For most places, tourism tax revenues were being used to fund marketing and branding – so invested directly into promoting more tourism. The income was also commonly used to fund tourism infrastructure, from public toilets and walking or cycling paths to a multi-billion dollar <a href="https://www.occc.net/About-Us-Media-Relations-Press-Releases/ArticleID/569/Orange%20County%20Board%20Votes%20to%20Approve%20Convention%20Center%20Completion%20with%20Tourist%20Development%20Tax%20Revenues">convention centre</a> in Orange County, Florida. In <a href="https://www.caib.es/sites/impostturisme/en/l/projects/?mcont=95762">the Balearics</a>, revenues tend to go to projects that mitigate the negative impacts of tourism on the environment, culture and society of the islands. These include waste management, conserving natural habitats and historical monuments, and social housing. But in general, tourism taxes have been implemented successfully across the destinations we looked at, and there is little evidence of tourists being put off from visiting. Research also suggests that when tourists are told what the levy is used for – and when it relates directly to <a href="https://www.mdpi.com/2227-7099/5/2/21">improving their experience</a> or <a href="https://ejtr.vumk.eu/index.php/about/article/view/2813/605">enhancing sustainable tourism</a> – <a href="https://www-sciencedirect-com.bangor.idm.oclc.org/science/article/pii/S2212571X20301621?casa_token=HcD-yQh65XcAAAAA:GhVRo4vX9JY1E3Lcx5ZPaTr5ZHArMGNrmK_2ASJCtMPjVpdCQLdun25BmFEYquGgz8-1riOWdg">tourists are willing to accept and pay</a> the levy. <h2>Day trippers</h2> For many tourism destinations, the major problem is not overnight tourists, but rather <a href="https://www.mirror.co.uk/news/uk-news/fuming-snowdonia-visitors-demand-self-30203642">day visitors</a> who use local resources while making little in the way of a financial contribution. For these reasons, taxes might also be used to deter day visits and instead encourage longer stays. <a href="https://www.economist.com/why-venice-is-starting-to-charge-tourists-to-enter?utm_medium=cpc.adword.pd&utm_source=google&ppccampaignID=18156330227&ppcadID=&utm_campaign=a.22brand_pmax&utm_content=conversion.direct-response.anonymous&gad_source=1&gclid=Cj0KCQjw_qexBhCoARIsAFgBleshST3IQMYR8hONLSLnA_loj9dukAqxURhdVCn1RmGeD5iOQzw_r2caAsqrEALw_wcB&gclsrc=aw.ds">Venice is at the forefront</a> of this shift. And in April 2024, after long discussions between the local authority, residents and business owners, Venice started a <a href="https://cdamedia.veneziaunica.it/en/video/it-is-difficult-to-book-a-visit-to-venice/">trial</a> of a day visitor tax (a so-called <a href="https://cda.veneziaunica.it/en">“access fee”</a>). Back in Kent, it may take longer for any such radical plans to come to fruition. In contrast to Scotland and Wales, there are currently no national plans to <a href="http://www.parliament.uk/written-questions-answers-statements/written-question/commons/2023-09-13/199425">introduce tourist taxes</a> in England. This might be considered shortsighted, given the dire need of many destinations in England to improve local infrastructure that tourists rely on, including <a href="https://www.reading.ac.uk/news/2024/Research-News/Swimming-in-sewage-Bathing-forecasts-not-keeping-people-safe">clean bathing water</a> and <a href="https://www.lancs.live/news/cumbria-news/lake-district-warning-parking-issues-27173650">public transport</a>. In <a href="https://www.accountingweb.co.uk/business/finance-strategy/manchester-acts-as-trailblazer-for-tourist-tax">Manchester</a> and <a href="https://www.ft.com/content/0e0385e6-29ec-4302-9903-6fbf63d8854a">Liverpool</a>, businesses have implemented voluntary overnight charges on visitors, in the absence of the statutory basis to implement compulsory levies. Many other English towns and cities will probably follow their lead. Tourism taxes are something we might all have to consider budgeting for in our future travel plans, wherever we choose to visit.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/229134/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/rhys-ap-gwilym-1531623">Rhys ap Gwilym</a>, Senior Lecturer in Economics, <a href="https://theconversation.com/institutions/bangor-university-1221">Bangor University</a> and <a href="https://theconversation.com/profiles/linda-osti-1431286">Linda Osti</a>, Senior Lecturer in Tourism Management, <a href="https://theconversation.com/institutions/bangor-university-1221">Bangor University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/why-you-should-expect-to-pay-more-tourist-taxes-even-though-the-evidence-for-them-is-unclear-229134">original article</a>. </div>

Travel Trouble

Australia’s tax system is being weaponised against victims of domestic abuse. Here’s how

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/ann-kayis-kumar-466422">Ann Kayis-Kumar</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> When women seeking financial help from the government-funded UNSW <a href="https://www.unsw.edu.au/business/our-schools/accounting-auditing-taxation/about-us/unsw-clinic">Tax and Business Advisory Clinic</a> are asked whether they have ever been affected by family or domestic violence, most say they have. In the past year this number has grown from <a href="https://cdn.theconversation.com/static_files/files/3339/sub009.pdf?1718777706">65%</a> to over 80%. And about <a href="https://ssrn.com/abstract=4746954">14%</a> of the clinic’s clients say their tax debts are a result of intimate partner violence. These debts often arise from business debts, bankruptcy, corporate directorships and director penalty notices. We know that economic abuse is a red flag for other forms of domestic violence. Economic abuse occurs in nearly all Australian domestic and family violence cases, affecting more than <a href="https://www.abs.gov.au/statistics/people/crime-and-justice/personal-safety-australia/latest-release">2.4 million Australians</a> and costing the economy an estimated <a href="https://www.commbank.com.au/content/dam/caas/newsroom/docs/Cost%20of%20financial%20abuse%20in%20Australia.pdf">A$10.9 billion</a> a year. Unfortunately, existing laws fall well short of protecting abuse victim-survivors from financial loss. <h2>How violent partners weaponise tax</h2> The perpetrators of violence can effectively weaponise the tax system by placing tax debts solely in the names of former partners, often because they have made them directors of companies or through family businesses operating through partnerships or trusts. There is a policy assumption that family members benefit from family partnerships. But this does not always hold in practice and can be problematic when there is economic abuse because Australian tax law requires victims report and pay tax on their “share” of the family partnership’s income. The average tax debt at the tax clinic is about $90,000. This can result in debilitating financial burdens, exhausted savings, insecure housing and prolonged economic instability, well after abusive relationships end. <h2>Change is needed</h2> Australia has no specific strategy for relief of tax debts caused by financial abuse. There are “serious hardship” provisions in Australian taxation law, but these are outdated and in need of <a href="https://theconversation.com/sometimes-people-can-do-with-a-break-3-ways-tax-debt-relief-rules-are-too-tough-156948">reform</a>. Usually people do not have the funds up front so the only way the Australian Taxation Office can collect debts from the abused partner is through (generally two-year) payment plans, offsetting future tax refunds, engaging external debt collectors and initiating bankruptcy proceedings. To that end, the decision announced in this year’s budget to give the Tax Commissioner discretion <a href="https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/changes-to-offsetting-debts-on-hold">not to offset</a> against tax returns debts previously placed “on hold” is welcome. It will provide short-term relief by enabling abuse victims to get their refunds instead of having it used by the Tax Office to reduce their debt. Colleagues Christine Speidel, Leslie Book and I want this power extended to all <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4746954">forms of tax debts</a> not just for tax debts that have been placed “on hold” especially where the taxpayer is known to have experienced financial abuse. But this wouldn’t go far enough – the victim-survivors would still have the perpetrator’s tax debt hanging over them. Where this happens, financial instability can <a href="https://www.commbank.com.au/content/dam/commbank-assets/support/2021-01/unsw-report-key-findings.pdf">drive women back</a> into abusive relationships. <h2>The US shows what can be done</h2> Legislative reform to shift tax liability from abuse survivors to perpetrators is the key to helping solve the problem. <figure class="align-right zoomable"></figure> The United States has offered some form of “<a href="https://www.irs.gov/individuals/innocent-spouse-relief">innocent spouse relief</a>” since 1971. In 2011 it widened eligibility and <a href="https://www.irs.gov/pub/irs-news/ir-11-080.pdf">removed a two-year time limit</a> for requesting relief. It is important to understand the US provisions apply because the country offers jointly filed “married” tax returns. In Australia tax returns are filed by individuals. Australia’s laws would need to change to ensure abused women do not find themselves jointly liable. Any changes should also include debts incurred in the name of partnerships and company directors. The US is the first and only country to do this, largely because of the advocacy of US low-income tax clinics over decades. Australia now has such clinics, funded as part of the Tax Office <a href="https://www.ato.gov.au/individuals-and-families/financial-difficulties-and-disasters/support-to-lodge-and-pay/national-tax-clinic-program">National Tax Clinic Program</a>. Australia’s adoption of US-style rules could provide a model for other jurisdictions, increase tax debt collection (as perpetrators are likely to have better capacity to pay than victims) and foster greater confidence in the Tax Office. Most importantly, it would acknowledge that victim-survivors with tax debts should not bear responsibility for debts incurred by perpetrators. <hr /> For information and advice about family and intimate partner violence contact 1800 RESPECT (<a href="https://www.1800respect.org.au/">1800 737 732</a>). If you or someone you know is in immediate danger, contact 000. The Men’s Referral Service (<a href="https://ntv.org.au/get-help/">1300 766 491)</a> offers advice and counselling to men looking to change their behaviour.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/232609/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ann-kayis-kumar-466422">Ann Kayis-Kumar</a>, Founding Director of UNSW Tax and Business Advisory Clinic, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australias-tax-system-is-being-weaponised-against-victims-of-domestic-abuse-heres-how-232609">original article</a>. </div>

Money & Banking

‘Sleep tourism’ promises the trip of your dreams. Beyond the hype plus 5 tips for a holiday at home

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/charlotte-gupta-347235">Charlotte Gupta</a>, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> and <a href="https://theconversation.com/profiles/dean-j-miller-808724">Dean J. Miller</a>, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> Imagine arriving at your hotel after a long flight and being greeted by your own personal sleep butler. They present you with a pillow menu and invite you to a sleep meditation session later that day. You unpack in a room kitted with an AI-powered smart bed, blackout shades, blue light-blocking glasses and weighted blankets. Holidays are traditionally for activities or sightseeing – eating Parisian pastry under the Eiffel tower, ice skating at New York City’s Rockefeller Centre, lying by the pool in Bali or sipping limoncello in Sicily. But “<a href="https://www.smh.com.au/traveller/inspiration/pillow-menus-and-sleep-gummies-the-new-hotel-trend-that-s-putting-guests-to-sleep-20230823-p5dyu5.html">sleep tourism</a>” offers vacations for the sole purpose of getting good sleep. The emerging trend extends out of the global wellness tourism industry – reportedly worth more than <a href="https://www.forbes.com/sites/rogersands/2023/11/17/the-global-wellness-tourism-sector-surpasses-814-billion-market-share/">US$800 billion globally</a> (A$1.2 trillion) and <a href="https://www.statista.com/statistics/1018497/global-market-size-of-the-wellness-tourism-industry/">expected to boom</a>. Luxurious sleep retreats and sleep suites at hotels are popping up <a href="https://www.countryandtownhouse.com/style/health-and-beauty/sleep-retreats/">all over the world</a> for tourists to get some much-needed rest, relaxation and recovery. But do you really need to leave home for some shuteye? <h2>Not getting enough</h2> The rise of sleep tourism may be a sign of just how chronically sleep deprived we all are. In Australia more than one-third of adults are not achieving the recommended <a href="https://www.sciencedirect.com/science/article/pii/S2352721816301292?via%3Dihub">7–9 hours</a> of sleep per night, and the estimated cost of this inadequate sleep is <a href="https://academic.oup.com/sleep/article/41/8/zsy083/5025924">A$45 billion</a> each year. Inadequate sleep is linked to <a href="https://www.tandfonline.com/doi/full/10.2147/NSS.S134864">long-term health problems</a> including poor mental health, heart disease, metabolic disease and deaths from any cause. <h2>Can a fancy hotel give you a better sleep?</h2> Many of the sleep services available in the sleep tourism industry aim to optimise the bedroom for sleep. This is a core component of <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4400203/?ref=askdoctorjad.com">sleep hygiene</a> – a series of healthy sleep practices that facilitate good sleep including sleeping in a comfortable bedroom with a good mattress and pillow, sleeping in a quiet environment and relaxing before bed. The more people follow sleep hygiene practices, the better their <a href="https://www.tandfonline.com/doi/abs/10.1080/08964280209596396">sleep quality and quantity</a>. When we are staying in a hotel we are also likely away from any stressors we encounter in everyday life (such as work pressure or caring responsibilities). And we’re away from potential nighttime disruptions to sleep we might experience at home (the construction work next door, restless pets, unsettled children). So regardless of the sleep features hotels offer, it is likely we will experience improved sleep when we are away. <h2>What the science says about catching up on sleep</h2> In the short-term, <a href="https://theconversation.com/is-it-possible-to-catch-up-on-sleep-we-asked-five-experts-98699#:%7E:text=We%20can%20catch%20up%20on,and%20we%20cannot%20resist%20sleep.">we can catch up on sleep</a>. This can happen, for example, after a short night of sleep when our brain accumulates “<a href="https://www.tandfonline.com/doi/abs/10.3109/07420528.2012.675256">sleep pressure</a>”. This term describes how strong the biological drive for sleep is. More sleep pressure makes it easier to sleep the next night and to sleep for longer. But while a longer sleep the next night can relieve the sleep pressure, it does not reverse the <a href="https://jcsm.aasm.org/doi/pdf/10.5664/jcsm.26918">effects of the short sleep on our brain and body</a>. Every night’s sleep is important for our body to recover and for our brain to process the events of that day. Spending a holiday “catching up” on sleep could help you feel more rested, but it is not a substitute for prioritising regular healthy sleep at home. All good things, including holidays, must come to an end. Unfortunately the perks of sleep tourism may end too. Our bodies do not like variability in the time of day that we sleep. The most common example of this is called “<a href="https://www.mdpi.com/2072-6643/13/12/4543">social jet lag</a>”, where weekday sleep (getting up early to get to work or school) is vastly different to weekend sleep (late nights and sleep ins). This can result in a sleepy, grouchy start to the week on Monday. Sleep tourism may be similar, if you do not come back home with the intention to prioritise sleep. So we should be mindful that as well as sleeping well on holiday, it is important to optimise conditions at home to get consistent, adequate sleep every night. <h2>5 tips for having a sleep holiday at home</h2> An AI-powered mattress and a sleep butler at home might be the dream. But these features are not the only way we can optimise our sleep environment and give ourselves the best chance to get a good night’s sleep. Here are five ideas to start the night right: 1. avoid bright artificial light in the evening (such as bright overhead lights, phones, laptops) 2. make your bed as comfortable as possible with fresh pillows and a supportive mattress 3. use black-out window coverings and maintain a cool room temperature for the ideal sleeping environment 4. establish an evening wind-down routine, such as a warm shower and reading a book before bed or even a “<a href="https://theconversation.com/turns-out-the-viral-sleepy-girl-mocktail-is-backed-by-science-should-you-try-it-222151">sleepy girl mocktail</a>” 5. use consistency as the key to a good sleep routine. Aim for a similar bedtime and wake time – even on weekends.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/231718/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/charlotte-gupta-347235">Charlotte Gupta</a>, Senior postdoctoral research fellow, Appleton Institute, HealthWise research group, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> and <a href="https://theconversation.com/profiles/dean-j-miller-808724">Dean J. Miller</a>, Adjunct Research Fellow, Appleton Institute of Behavioural Science, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/sleep-tourism-promises-the-trip-of-your-dreams-beyond-the-hype-plus-5-tips-for-a-holiday-at-home-231718">original article</a>. </div>

Travel Trouble

Beware of ‘tax hacks’ to maximise your return this year. The tax office is taking a close look at incorrect claims

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/ann-kayis-kumar-466422">Ann Kayis-Kumar</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> For many people a tax refund is a much-anticipated lump sum of money. So, it is understandable Australians will be looking for ways to maximise their returns – particularly we are in a cost-of-living crisis. But, whether you do your own return or use a tax agent, taking risks is not advised. <h2>Be wary of tax hacks</h2> But be wary of “tax hacks” you might hear about from online sources (I’m looking at you, <a href="https://www.afr.com/companies/professional-services/tiktok-gst-fraud-hit-on-tax-office-blows-out-to-4-6b-20230813-p5dw2y">TikTok</a>). Two truisms spring to mind: 1. Don’t let the tax tail wag the dog Many tax hacks suggest you spend considerable money on purchases up front to claim tax deductions. But a tax deduction isn’t actually worth the value amount of your spend. For example: let’s say you’re on a taxable income of A$60,000 per year, which puts you roughly in the <a href="https://www.afr.com/politics/how-wealthy-are-you-compared-to-everyone-else-in-eight-charts-20221214-p5c6a8">50th percentile</a> of income earners and means your <a href="https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents#ato-Australianresidenttaxrates2020to2025">marginal tax rate is 32.5 cents</a>. You might spend $1,000 on a purchase in the hope of getting a sweet $1,000 tax deduction. However, you’re going to be $675 out of pocket. This is because that $1,000 deduction is only worth $325 (because tax is calculated on your taxable income, which is assessable income less allowable deductions). It will be worth even less next year because of the introduction of the <a href="https://www.abc.net.au/news/2024-02-27/stage-three-tax-cut-changes-pass-senate/103519338">revised Stage 3 tax cuts</a> and that’s a good thing because you’ll be paying less tax overall. 2. If it’s too good to be true, it probably is Even if you use a registered tax agent (and it’s important to check they are registered by checking <a href="https://www.tpb.gov.au/public-register">the Tax Practitioners’ Board</a>), it’s a common pitfall to think any aggressive deductions they might suggest are their responsibility if the Australian Taxation Office (ATO) comes knocking. That’s not the case. Taxpayers are responsible for errors in returns made by their tax agents, so the ATO will hold you responsible. Indeed, the <a href="https://www.ato.gov.au/media-centre/ato-flags-3-key-focus-areas-for-this-tax-time">ATO has announced</a> it will be taking a close look at three common errors being made by taxpayers: <ul> <li> incorrectly claiming work-related expenses </li> <li> inflating claims for rental properties </li> <li> failing to include all income when lodging. </li> </ul> It might be tempting to think you’ve got away with over claiming deductions or under reporting income but the ATO has sophisticated systems to <a href="https://www.ato.gov.au/About-ATO/Commitments-and-reporting/Information-and-privacy/How-we-use-data-and-analytics">analyse your data</a>) and track your claims. You’ll need to substantiate your claims, so keep records. If the tax office finds mistakes, you could face <a href="https://www.ato.gov.au/individuals-and-families/paying-the-ato/interest-and-penalties/penalties/penalties-for-making-false-or-misleading-statements">financial penalties</a>, even jail time. Two months ago, a woman was sentenced to two years and six months jail and ordered to repay $39,600 after she lodged three fraudulent Business Activity Statements and received a GST refund to which she wasn’t entitled. While under investigation, she then sent eight false statements to the ATO and tried to claim more money. This is one on many individuals named on the <a href="https://www.ato.gov.au/about-ato/tax-avoidance/the-fight-against-tax-crime/our-focus/refund-fraud/gst-refund-fraud-attempts/operation-protego">ATO’s website</a> highlighting the results of regular crackdowns. <h2>So, should I use a tax agent?</h2> There are nearly 20.5 million active tax file numbers registered to individuals in Australia and last tax year the ATO received 13.7 million individual tax return lodgements. This was a 3% increase on the previous year. Of these lodgements more than 5.6 million were lodged by self-preparers and more than 8 million were lodged by tax agents. It <a href="https://theconversation.com/does-paying-for-tax-advice-save-money-only-if-youre-wealthy-184641">makes sense</a> most Australians use agents to prepare and lodge their tax returns. It’s easier, less stressful, gives you confidence the job is being done right and saves time. Having said that, it does come at a price (see above on the value of deductions), and previous research which finds that <a href="https://theconversation.com/does-paying-for-tax-advice-save-money-only-if-youre-wealthy-184641">every extra dollar spent on a tax agent</a> only yields an estimated tax savings of 20 cents), and if you have simple tax affairs then it’s relatively easy and quick to do it yourself. <h2>How do I prepare my tax return?</h2> Generally, everyone should be lodging an income tax return each year (or, if you don’t need to lodge a tax return, lodging a non-lodgement advice). The ATO has a “Do I need to lodge a tax return?” tool <a href="https://www.ato.gov.au/individuals-and-families/your-tax-return/before-you-prepare-your-tax-return/work-out-if-you-need-to-lodge-a-tax-return">if you’re unsure</a>. It also has a useful <a href="https://www.ato.gov.au/individuals-and-families/your-tax-return/how-to-lodge-your-tax-return/lodge-your-tax-return-online-with-mytax">two minute video</a> which steps you through the process for lodging with their online system myTax. For those of us with simple tax affairs, you just need to follow these steps: <ol> <li> gather and prepare all your information regarding income from work, interest, dividends and any other income such as capital gains from crypto assets or sale of shares </li> <li> then gather and prepare all your information on deductions and work expenses to be claimed making sure you have the evidence to back up your claims. This can be in the form receipts, invoices, log books and diary entries </li> <li> if you are a self-preparer you can log onto your myGov or the ATO’s app to prepare and lodge your return. If you wait until late-July you’ll have the benefit of the ATO’s pre-filled data, too. This gives you plenty of time to make the October 31 deadline. </li> </ol> There’s also the option to use the ATO’s free, volunteer-run TaxHelp program (provided you meet the <a href="https://www.ato.gov.au/individuals-and-families/your-tax-return/help-and-support-to-lodge-your-tax-return/tax-help-program">eligibility criteria</a>), your local Tax Clinic (<a href="https://www.ato.gov.au/individuals-and-families/financial-difficulties-and-disasters/support-to-lodge-and-pay/national-tax-clinic-program">details here</a>), or by seeking help from a registered tax agent. Just make sure you engage them before the October 31 deadline. <h2>Where it might get tricky</h2> But for others, for example if you have an ABN, it gets a bit more complicated. If you operate your business as a sole trader, you must lodge a tax return, even if your income is below the tax-free threshold. And if you have registered for GST – which you must do when your business or enterprise has a GST turnover of $75,000 or more, or if you are a taxi driver or Uber driver – then you will also need to submit quarterly BAS. It gets even more complicated for partnerships, trusts and companies, so it is best to seek the guidance and professional expertise of a registered tax agent, if you aren’t already. <h2>What if I can’t afford a tax agent?</h2> This year, many Australians are doing it tough. Indeed, research by the ASIC’s Moneysmart program estimates <a href="https://www.abc.net.au/news/2024-06-04/asic-survey-millions-of-australians-facing-financial-difficulty/103926704">more than five million Australians</a> are in financial strife. Many people will find it hard to prioritise paying a registered tax agent when they cannot afford basic necessities like food. If you’re in this situation, you might find it useful to get in touch with a free financial counsellor via the <a href="https://ndh.org.au/">National Debt Helpline</a> or the <a href="https://sbdh.org.au/">Small Business Debt Helpline</a>. <h2>Don’t procrastinate</h2> Don’t put off doing your tax. If you’re behind, it might seem daunting to get back on track, especially if you think you’ll have to pay extra tax this year instead of getting a refund. But not lodging your returns will backfire. Like avoiding a trip to the doctor to get a skin check, the longer you wait, the more the problem will grow. Reaching out to the ATO is the key because they have tools to support you, including payment plans. It also shows the ATO that you are willing to comply. Ultimately, being up to date will save you fines, interest and penalties. If you are one of the <a href="https://theconversation.com/worried-youll-lodge-a-late-tax-return-at-least-80-000-australians-cant-afford-tax-advice-211267">80,000 Australians in serious hardship</a> who need but can’t afford professional help to complete and lodge overdue returns, the government-funded <a href="https://www.ato.gov.au/General/Gen/National-Tax-Clinic-program/">National Tax Clinics Program</a> can help with free tax advice.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/231693/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ann-kayis-kumar-466422">Ann Kayis-Kumar</a>, Associate Professor Ann Kayis-Kumar is the Founding Director of UNSW Tax and Business Advisory Clinic, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/beware-of-tax-hacks-to-maximise-your-return-this-year-the-tax-office-is-taking-a-close-look-at-incorrect-claims-231693">original article</a>. </div>

Money & Banking

Tourism Australia staff caught spending $140k of taxpayers' money on personal travel

Three Tourism Australia employees have been fired after spending $137,441 of taxpayers' money for personal travel expenses, with the National Anti-Corruption Commission (NACC) called in to investigate. Tourism Australia is the government agency in charge of promoting Australia's tourism industry abroad. Tourism Australia chief executive Phillipa Harrison appeared before a Senate committee in Canberra on Tuesday and confirmed the breach of the agency’s travel policy. The spending had been uncovered in October 2023 when the agency's own staff detected the misuse of funds and “immediately reported and escalated” it. “The three employees undertook personal travel that was booked through Tourism Australia’s corporate travel agent and was invoiced to Tourism Australia,” she told the committee. “Tourism Australia demanded that the three individuals repay the full amount of this travel.” She added that the full amount was repaid to Tourism Australia last December, and the three employees have since been sacked. Harrison also said that Deloitte was hired to do an extensive audit dating back to 2021 “to ensure that we understood the full extent of the issue” but “no further instances of wrongdoing were identified”. “Off the back of the audit I have overseen a strengthening of our travel policy processes to ensure the conduct cannot be repeated,” she said. Tourism Australia have referred the matter to the NACC and are awaiting a response. When asked by New South Wales Nationals senator Ross Cadell about the identities of the staff and whether the agency's chief financial officer was among those involved, she replied: "The NACC has advised me that I'm unable to provide the further details on the roles and the people involved until they have finished their investigations." "To do so may compromise current or potential investigations, and prematurely impact the reputations of individuals in circumstances where the legislation enacted by parliament intends to avoid that by requiring that investigations, generally, be conducted in private and that information concerning them is not to be disclosed." She took a question on notice about how many trips were booked by the staff and the destinations for the travel. Her refusal to answer the questions caught the senator off-guard and he said: “I am shooketh, shaken, by not being able to ask these questions,” before calling a short suspension to discuss the concerns. On return, she officially claimed “public interest immunity” and was told she had to outline the situation in writing. "I have to say, this is the first time in my experience where a direction from the NACC has directed an official not to make a public statement," Tourism and Trade Minister Don Farrell said. "This does present some significant issues which I myself would like to get clarified. "You and I both voted for this legislation and obviously this is how it's being applied. The witness, obviously, has to comply with the direction of the NACC, she has no choice." The matter has not been referred to authorities. Image: Tourism Australia/ news.com.au

Travel Trouble

Tourist's shocking behaviour sparks fury

Locals were left fuming after a picture of a tourist wearing next to nothing while shopping down a busy street went viral in Palma, Mallorca. The man confidently made his way through the sunny city centre in nothing but a pair of Speedos and shoes, surrounded by others who were fully dressed. “Please arrest these near naked people,” one woman wrote. “Or the shirtless, near nude, bikini wearing morons who wander around markets, towns and shops. Ukkk! Quality tourism can’t come soon enough!" she added. “Another moron that should be banned from the island," another commented. “If the government/police were serious, they could slowly improve Mallorca by banning all these types of idiots.” Another local added that tourists would not behave like this at home and that his behaviour displayed a “lack of respect” typical of many tourists. Others were confused about where the holidaymaker was keeping his wallet as it seemed like he only held on to his phone and a red garment. One local even asked why he wasn't arrested, and someone replied: “Mallorca has some great laws in place. Unfortunately, nobody seems to enforce them.” It is illegal to only wear a bikini or swimming shorts in some public parts of Spain – including the Balearic Islands. Tourists can cop a fine of up to $1000 for wearing swimwear or going shirtless anywhere but the beach. The incident comes after weeks of furious anti-tourist protests, with residents in the Tenerife saying they are “fed-up” of “low quality” Brit tourists who only come for the cheap beer, burgers and sunbathing. Image: Majorca Daily Bulletin

Travel Trouble

A tax on sugary drinks can make us healthier. It’s time for Australia to introduce one

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/peter-breadon-1348098">Peter Breadon</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> and <a href="https://theconversation.com/profiles/jessica-geraghty-1530733">Jessica Geraghty</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> Sugary drinks cause weight gain and <a href="https://www.nature.com/articles/s41574-021-00627-6">increase the risk</a> of a range of diseases, including diabetes. The <a href="https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2792842">evidence shows</a> that well-designed taxes can reduce sugary drink sales, cause people to choose healthier options and get manufacturers to reduce the sugar in their drinks. And although these taxes haven’t been around long, there are already signs that they are making people healthier. It’s time for Australia to catch up to the rest of the world and introduce a tax on sugary drinks. As our new Grattan Institute <a href="https://grattan.edu.au/report/sickly-sweet/">report</a> shows, doing so could mean the average Australian drinks almost 700 grams less sugar each year. <h2>Sugary drinks are making us sick</h2> The share of adults in Australia who are obese has tripled since 1980, from <a href="https://theconversation.com/mapping-australias-collective-weight-gain-7816">10%</a> to more than <a href="https://www.abs.gov.au/statistics/health/health-conditions-and-risks/waist-circumference-and-bmi/latest-release">30%</a>, and diabetes is our <a href="https://www.diabetesaustralia.com.au/about-diabetes/diabetes-in-australia/">fastest-growing</a> chronic condition. The costs for the health system and economy are measured in the billions of dollars each year. But the biggest costs are borne by individuals and their families in the form of illness, suffering and early death. Sugary drinks are a big part of the problem. The more of them we drink, the greater our risk of <a href="https://www.nature.com/articles/s41574-021-00627-6">gaining weight</a>, <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2963518/">developing type 2 diabetes</a>, and suffering <a href="https://academic.oup.com/eurpub/article/31/1/122/5896049?login=false">poor oral health</a>. These drinks have no real nutrients, but they do have a lot of sugar. The average Australian consumes <a href="https://www.abs.gov.au/statistics/health/health-conditions-and-risks/apparent-consumption-selected-foodstuffs-australia/latest-release">1.3</a> times the maximum recommended amount of sugar each day. Sugary drinks are responsible for more than one-quarter of our daily sugar intake, more than any other major type of food. You might be shocked by how much sugar you’re drinking. Many 375ml cans of soft drink contain eight to 12 teaspoons of sugar, nearly the entire daily recommended limit for an adult. Many 600ml bottles blow our entire daily sugar budget, and then some. The picture is even worse for disadvantaged Australians, who are more likely to have <a href="https://www.abs.gov.au/statistics/health/health-conditions-and-risks/diabetes/latest-release">diabetes</a> and <a href="https://www.abs.gov.au/statistics/health/health-conditions-and-risks/waist-circumference-and-bmi/latest-release">obesity</a>, and who also consume the most sugary drinks. <h2>Sugary drink taxes work</h2> Fortunately, there’s a proven way to reduce the damage sugary drinks cause. More than <a href="https://ssbtax.worldbank.org/">100 countries</a> have a sugary drinks tax, covering most of the world’s population. <a href="https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2792842">Research</a> shows these taxes lead to higher prices and fewer purchases. Some taxes are specifically designed to encourage manufacturers to change their recipes and cut the sugar in their drinks. Under these “tiered taxes”, there is no tax on drinks with a small amount of sugar, but the tax steps up two or three times as the amount of sugar rises. That gives manufacturers a strong incentive to add less sugar, so they reduce their exposure to the tax or avoid paying it altogether. This is the best result from a sugary drinks tax. It means drinks get healthier, while the tax is kept to a minimum. In countries with tiered taxes, manufacturers have slashed the sugar in their drinks. In the United Kingdom, the share of products above the tax threshold <a href="https://journals.plos.org/plosmedicine/article?id=10.1371/journal.pmed.1003025">decreased dramatically</a>. In 2015, more than half (52%) of products in the UK were above the tax threshold of 5 grams of sugar per 100ml. Four years later, when the tax was in place, that share had plunged to 15%. The number of products with the most sugar – more than 8 grams per 100ml – declined the most, falling from 38% to just 7%. The Australian drinks market today looks similar to the UK’s before the tax was introduced. Health benefits take longer to appear, but there are already promising signs that the taxes are working. Obesity among primary school-age girls has fallen in <a href="https://journals.plos.org/plosmedicine/article?id=10.1371/journal.pmed.1004160">the UK</a> and <a href="https://jamanetwork.com/journals/jamapediatrics/fullarticle/2786784">Mexico</a>. Oral health has also improved, with studies reporting fewer children going to hospital to get their teeth removed in <a href="https://nutrition.bmj.com/content/6/2/243">the UK</a>, and reduced dental decay <a href="https://pubmed.ncbi.nlm.nih.gov/33853058/">in Mexico</a> and <a href="https://www.ajpmonline.org/article/S0749-3797(23)00069-7/abstract">Philadelphia</a>. One <a href="https://www.ajpmonline.org/article/S0749-3797(23)00158-7/fulltext">study from the United States</a> found big reductions in gestational diabetes in cities with a sugary drinks tax. <h2>The tax Australia should introduce</h2> Like successful taxes overseas, Australia should introduce a sugary drink tax that targets drinks with the most sugar: <ul> <li>drinks with 8 grams or more of sugar per 100ml should face a $0.60 per litre tax</li> <li>drinks with 5–8 grams should be taxed at $0.40 per litre</li> <li>drinks with less than 5 grams of sugar should be tax-free.</li> </ul> This means a 250ml Coke, which has nearly 11 grams of sugar per 100ml, would cost $0.15 more. But of course consumers could avoid the tax by choosing a sugar-free soft drink, or a bottle of water. Grattan Institute <a href="https://grattan.edu.au/report/sickly-sweet/">modelling</a> shows that under this tiered tax, Australians would drink about 275 million litres fewer sugary drinks each year, or the volume of 110 Olympic swimming pools. The tax is about health, but government budgets also benefit. If it was introduced today, it would raise about half a billion dollars in the first year. Vested interests such as the beverages industry have fiercely resisted sugary drink taxes around the world, issuing disingenuous warnings about the risks to poor people, the sugar industry and drinks manufacturers. But our new report shows sugary drink taxes have been introduced smoothly overseas, and none of these concerns should hold Australia back. We certainly can’t rely on industry pledges to voluntarily reduce sugar. They have been <a href="https://www.cambridge.org/core/journals/public-health-nutrition/article/trends-in-sugar-content-of-nonalcoholic-beverages-in-australia-between-2015-and-2019-during-the-operation-of-a-voluntary-industry-pledge-to-reduce-sugar-content/EE662DE7552670ED532F6650C9D56939">weak</a> and misleading, and <a href="https://www.theguardian.com/australia-news/2024/apr/10/sugar-increase-in-fanta-and-sprite-prompts-calls-for-new-tax-on-australia-food-and-drinks-industry">failed to stick</a>. It will take many policies and interventions to turn back the tide of obesity and chronic disease in Australia, but a sugary drinks tax should be part of the solution. It’s a policy that works, it’s easy to implement, and most Australians <a href="https://bmjopen.bmj.com/content/9/6/e027962">support it</a>. The federal government should show it’s serious about tackling Australia’s biggest health problems and take this small step towards a healthier future.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/228906/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/peter-breadon-1348098">Peter Breadon</a>, Program Director, Health and Aged Care, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> and <a href="https://theconversation.com/profiles/jessica-geraghty-1530733">Jessica Geraghty</a>, Senior Associate, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/a-tax-on-sugary-drinks-can-make-us-healthier-its-time-for-australia-to-introduce-one-228906">original article</a>. </div>

Food & Wine

Australian churches collectively raise billions of dollars a year – why aren’t they taxed?

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/dale-boccabella-15706">Dale Boccabella</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> and <a href="https://theconversation.com/profiles/ranjana-gupta-1207482">Ranjana Gupta</a>, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> There’s a good reason your local volunteer-run netball club doesn’t pay tax. In Australia, various nonprofit organisations are exempt from paying income tax, including those that do charitable work, such as churches. These exemptions or concessions can also extend to other taxes, including fringe benefits tax, state and local government property taxes and payroll taxes. The traditional justification for granting these concessions is that charitable activities benefit society. They contribute to the wellbeing of the community in a variety of non-religious ways. For example, charities offer welfare, health care and education services that the government would generally otherwise provide due to their obvious public benefits. The tax exemption, which allows a charity to retain all the funds it raises, provides the financial support required to relieve the government of this burden. The nonprofit sector is often called the third sector of society, the other two being government and for-profit businesses. But in Australia, this third sector is quite large. Some grassroots organisations have only a tiny footprint, but other nonprofits are very large. And many of these bigger entities – including some “megachurches” – run huge commercial enterprises. These are often indistinguishable from comparable business activities in the for-profit sector. So why doesn’t this revenue get taxed? And should we really give all nonprofits the same tax exemptions? <h2>Why don’t churches pay tax?</h2> The primary aim of a church is to advance or promote its religion. This itself counts as a charitable purpose under the <a href="https://www.legislation.gov.au/C2013A00100/asmade/text">2013 Charities Act</a>. However, section five of that act requires a church to have only charitable purposes – any other purposes must be incidental to or in aid of these. Viewed alone, the conduct of a church with an extensive commercial enterprise – which could include selling merchandise, or holding concerts and conferences – is not a charitable purpose. But Australian case law and <a href="https://www.acnc.gov.au/for-charities/start-charity/role-acnc-deciding-charity-status/legal-meaning-charity#:%7E:text=Taxation%20Ruling%20(TR)%202011%2F,set%20out%20in%20taxation%20rulings.">an ATO ruling</a> both support the idea that carrying on business-like activities can be incidental to or in aid of a charitable purpose. This could be the case, for example, if a large church’s commercial activities were to help give effect to its charitable purposes. Because of this, under Australia’s current income tax law, a church that is running a large commercial enterprise is able to retain its exemption from income tax on the profits from these activities. There are various public policy concerns with this. First, the lost tax revenue is likely to be significant, although the government’s annual tax expenditure statement does not currently provide an estimate of the amount of tax revenue lost. And second, the tax exemption may give rise to unfairness. A for-profit business competing with a church in a relevant industry may be at a competitive disadvantage – despite similar business activities, the for-profit entity pays income tax but the church does not. This competitive disadvantage may be reflected in lower prices for customers of the church business. <h2>What about taxing their employees?</h2> Churches that run extensive enterprises are likely to have many employees. Generally, all the normal Australian tax rules apply to the way these employees are paid – for example, employees pay income tax on these wages. Distributing profits to members would go against the usual rules of the church, and this prohibition is <a href="https://www.legislation.gov.au/C2013A00100/asmade/text">required</a> anyway for an organisation to qualify as a charity. Some churches may be criticised for paying their founders or leaders “excessive” wages, but these are still taxed in the same way as normal salaries. It’s important to consider fringe benefit tax – which employers have to pay on certain benefits they provide to employees. Aside from some qualifications, all the usual <a href="https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/how-fringe-benefits-tax-works">fringe benefit tax rules</a> apply to non-wage benefits provided to employees of a church. Just like their commercial (and taxable) counterparts, the payment for “luxury” travel and accommodation for church leaders and employees when on church business will not generate a fringe benefits taxable amount for the church. One qualification, though, is that a church is likely to be a <a href="https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/fbt-concessions-for-not-for-profit-organisations/fbt-rebatable-employers">rebatable employer</a> under the fringe benefit tax regime. This means it can obtain some tax relief on benefits provided to each employee, up to a cap. <h2>We may need to rethink blanket tax exemptions for charities</h2> Back in an age where nonprofits were mainly small and focused on addressing the needs of people failed by the market, the income tax exemption for such charities appeared appropriate. But in the modern era, some charities – including some churches – operate huge business enterprises and collect rent on extensive property holdings. Many are now questioning whether we should continue offering them an uncapped exemption from income tax, especially where there are questions surrounding how appropriately these profits are used. Debates about solutions to the problem have focused on various arguments. However, more data may be needed on the way charities apply their profits to a charitable purpose, particularly those involved in substantial commercial activities. An all-or-nothing rule exempting the whole charitable sector may no longer be fit for purpose if it fails to take into account the very different circumstances of different nonprofits.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/228901/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/dale-boccabella-15706">Dale Boccabella</a>, Associate Professor of Taxation Law, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> and <a href="https://theconversation.com/profiles/ranjana-gupta-1207482">Ranjana Gupta</a>, Senior Lecturer Taxation, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australian-churches-collectively-raise-billions-of-dollars-a-year-why-arent-they-taxed-228901">original article</a>. </div>

Money & Banking

Why this iconic view of Mt Fuji is set to be obstructed

One small town in Japan is fed up with disrespectful tourists, and is set to take drastic measures to block an iconic view of My Fuji to deter travellers. Fujikawaguchiko, at the foot of the Yoshida Trail to Mount Fuji, has long been overrun with tourists who are hellbent on getting the perfect picture of the Japanese mountain. Tourists specifically flock to the Lawson convenience store to take their pictures, with the contrast between the busy neon-lit shop and the peaceful mountain behind it making for the perfect holiday snap. However, in recent years since Japan reopened its borders to international tourists after harsh Covid lockdowns, these tourists have had the run of the town, and locals have had enough. To combat the over tourism of the area and deter travellers, local officials of the town are set to erect a giant mesh barrier atop the store, blocking the picture perfect view. One town official said that there have been ongoing problems with tourists leaving trash and not following traffic rules, despite signs and security guards being posted to warn them. "It is regrettable that we had to take such measures," the official said. The net, which measures 2.5 meters high and 20 meters long, will be erected early next week. The crowds plaguing the small town, which is in Yamanashi prefecture, to the north of Fuji and about 100 kilometres west of Tokyo, is just one part of a larger over tourism issue in the whole of Japan. "Overtourism – and all the subsequent consequences like rubbish, rising CO2 emissions and reckless hikers – is the biggest problem facing Mount Fuji," Masatake Izumi, a Yamanashi prefectural government official, <a href="https://www.cnn.com/travel/mount-fuji-overtourism-intl-hnk/index.html">told CNN Travel</a> in 2023. Some locals had even nicknamed the 3,776-meter (12,388-foot) mountain, called Fuji-san in Japanese, "trash mountain." Image credits: Getty Images

International Travel

Stamp duty is holding us back from moving homes – we’ve worked out how much

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/nick-garvin-1453835">Nick Garvin</a>, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> If just one state of Australia, New South Wales, scrapped its stamp duty on real-estate transactions, about 100,000 more Australians would move homes each year, according to our <a href="https://e61.in/wp-content/uploads/2024/02/Stamp-duty-effects-on-purchases-and-moves.pdf">best estimates</a>. Stamp duty is an unquestioned part of buying a home in Australia – you put your details in an online mortgage calculator, and stamp duty is automatically deducted from the amount you have to contribute. It’s easy to overlook how much more affordable a home would be without it. That means it’s also easy to overlook how much more Australians would buy and move if stamp duty wasn’t there. The 2010 Henry Tax Review found stamp duty was <a href="https://treasury.gov.au/sites/default/files/2019-10/afts_final_report_part_2_vol_1_consolidated.pdf">inequitable</a>. It taxes most the people who most need to or want to move. The review reported: "Ideally, there would be no role for any stamp duties, including conveyancing stamp duties, in a modern Australian tax system. Recognising the revenue needs of the States, the removal of stamp duty should be achieved through a switch to more efficient taxes, such as those levied on broad consumption or land bases." But does stamp duty actually stop anyone moving? It’s a claim more often made than assessed, which is what our team at the <a href="https://e61.in/wp-content/uploads/2024/02/Stamp-duty-effects-on-purchases-and-moves.pdf">e61 Institute</a> set out to do. We used real-estate transaction data and a natural experiment. <h2>What happened when Queensland hiked stamp duty</h2> In 2011, Queensland hiked stamp duty for most buyers by removing some concessions for owner-occupiers at short notice. For owner-occupiers it increased stamp duty by about one percentage point, lifting the average rate from 1.26% of the purchase price to 2.27%. What we found gives us the best estimate to date of what stamp duty does to home purchases. A one percentage point increase in stamp duty causes the number of home purchases to decline by 7.2%. The number of moves (changes of address) falls by about as much. The effect appears to be indiscriminate. Purchases of houses fell about as much as purchases of apartments, and purchases in cities fell about as much as purchases in regions. Moves between suburbs and moves interstate dropped by similar rates. With NSW stamp duty currently averaging about <a href="https://conveyancing.com.au/need-to-know/stamp-duty-nsw">3.5%</a> of the purchase price, our estimates suggest there would be about 25% more purchases and moves by home owners if it were scrapped completely. That’s 100,000 moves. Victoria’s higher rate of stamp duty, about <a href="https://www.sro.vic.gov.au/rates-taxes-duties-and-levies/general-land-transfer-duty-property-current-rates">4.2%</a>, means if it was scrapped there would be about 30% more purchases. That’s another 90,000 moves. <h2>Even low headline rates have big effects</h2> The big effect from small-looking headline rates ought not to be surprising. When someone buys a home, they typically front up much less cash than the purchase price. While stamp duty seems low as a percentage of the purchase price, it is high as a percentage of the cash the buyer needs to find. Here’s an example. If stamp duty is 4% of the purchase price, and a purchaser pays $800,000 for a property with a mortgage deposit of $160,000, the $32,000 stamp duty adds 20%, not 4%, to what’s needed. If the deposit takes five years to save, stamp duty makes it six. A similar thing happens when an owner-occupier changes address. If the buyer sells a fully owned home for $700,000 and buys a new home for $800,000, the upgrade ought to cost them $100,000. A 4% stamp duty lifts that to $132,000. Averaged across all Australian cities, stamp duty costs about <a href="https://e61.in/wp-content/uploads/2024/02/Stepped-on-by-Stamp-Duty.pdf">five months</a> of after-tax earnings. In Sydney and Melbourne, it’s six. <h2>Stamp duty has bracket creep</h2> This cost has steadily climbed from around <a href="https://e61.in/wp-content/uploads/2024/02/Stepped-on-by-Stamp-Duty.pdf">six weeks</a> of total earnings in the 1990s. It has happened because home prices have climbed faster than incomes and because stamp duty has brackets, meaning more buyers have been pushed into higher ones. Replacing the stamp duty revenue that states have come to rely on would not be easy, but a switch would almost certainly help the economy function better. The more that people are able to move, the more they will move to jobs to which they are better suited, boosting productivity. The more that people downsize when they want to, the more housing will be made available for others. Our findings suggest the costs are far from trivial, making a switch away from stamp duty worthwhile, even if it is disruptive and takes time.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/225773/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/nick-garvin-1453835">Nick Garvin</a>, Adjunct Fellow, Department of Economics, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/stamp-duty-is-holding-us-back-from-moving-homes-weve-worked-out-how-much-225773">original article</a>. </div>

Money & Banking

"There's no way": Man receives $52 billion tax bill

An American man has been left confused after receiving a letter from the government claiming he owed $52 billion in unpaid taxes. Barry Tangert got two letters in the mail from the state of Pennsylvania, opening the first to find a refund check from the federal government for over $900. His joy was short-lived though as he opened the second letter to find the income billing notice from the Pennsylvania Department of Revenue claiming that he owed a jaw-dropping $52,950,744,735.28 ($34,576,826,561.47 AUD). “I knew it was an obvious blunder. I don’t even make over $100,000 a year, so there’s no way I could owe anywhere near that,” Barry Tangert told local outlet News 8. The total sum was so large it didn’t even fit on a single line on the document. Tangert immediately knew it was a mistake, with the astonishing number being more than triple the $11 billion America’s richest man Elon Musk says he owed the government in 2022. How the error made it all the way to his doorstep is still a mystery to Tangert. “I don’t know if it was a computer glitch in the transmission or if it was an input error from my tax preparer,” Tangert said, noting that his tax preparer filed an amendment after noticing an error on his 2022 return. He reached out to the Pennsylvania Department of Revenue’s customer service line, which also provided little help to the baffled man. “The first thing he said was, ‘You had a good year.’ And I said, ‘I wish,’” Tangert said. Fortunately, the state department has since resolved the issue, which it chalked up to wrong numbers simply being put into the system. Image credits: WGAL News 8

Money & Banking

Does hosting the Olympics, the World Cup or other major sports events really pay off?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/ivan-savin-678930">Ivan Savin</a>, <a href="https://theconversation.com/institutions/escp-business-school-813">ESCP Business School</a> After a long battle, <a href="https://www.france24.com/en/europe/20240213-paris-booksellers-stay-olympics-macron-bouquiniste-france">Paris’s beloved bouquinistes will be staying put</a> this summer. The decision, announced on 13 February by the French government, came after considerable public backlash to the police prefecture’s original plan to move part of the iconic Seine booksellers elsewhere for the inauguration of the Olympics Games on 26 July. Meanwhile, less than six months away from the event, Parisians continue to grumble over a <a href="https://www.ouest-france.fr/jeux-olympiques/cest-aberrant-ce-maire-vient-dapprendre-que-sa-ville-accueillera-les-jeux-de-paris-ab1fa968-cfd1-11ee-89c0-6cefac77e04a">lack of consultations</a> with locals, warnings of <a href="https://www.rfi.fr/en/france/20231130-paris-vehicle-traffic-to-be-heavily-restricted-during-2024-olympic-games">gridlocked traffic</a>, closed metro stations, extensive video surveillance and other grievances. So for host countries, what was the point of the Olympics, again? In academia, the debate about the potential positive and negative effects of large-scale sporting events is ongoing. Although these events are often associated with substantial economic losses, the long-term benefits are the main argument in favour of hosting them. These include the development of material and soft infrastructure such as hotels, restaurants or parks. Big games can also help put the host region on the map as an attractive place for sports and cultural events, and inspire a better entrepreneurial climate. <h2>The pros and the cons of big sporting events?</h2> The cost of these benefits, as the Parisians have realised, is steep. Host countries appear to suffer from increased tax burdens, low returns on public investments, high construction costs, and onerous running cost of facilities after the event. Communities can also be blighted by noise, pollution, and damage to the environment, while increased criminal activity and potential conflicts between locals and visitors can take a toll on their quality of life. As a result, in the recent past several major cities, including Rome and Hamburg, <a href="https://www.dw.com/en/6-cities-that-rejected-the-olympics/a-46289852">withdrew their bids to host the games</a>. A common feature of the economics of large-scale sporting events is that our expectations of them are more optimistic than what we make of them once they have taken place. Typically, expenditure tends to tip over the original budget, while the revenue-side indicators (such as the number of visitors) are rarely achieved. When analysing the effect of hosting large-scale sporting events on tourist visits, it is important to take into consideration both the positive and negative components of the overall effect. While positive effects may be associated with visitors, negative effects may arise when “regular” tourists refuse to visit the location due to the event. This might be because of overloaded infrastructure, sharp increases in accommodation costs, and inconveniences associated with overcrowding or raucous or/and violent visitors. On top of that, reports of poverty or crime in the global media can actually undermine the location’s attractiveness. <h2>When big sporting events crowd out regular tourists</h2> In an <a href="https://doi.org/10.1177/1527002523120639">article published in the Journal of Sports Economics</a> with Igor Drapkin and Ilya Zverev, I assess the effects of hosting large-scale sporting events, such as Winter and Summer Olympics plus FIFA World Cups, on international tourist visits. We utilise a comprehensive dataset on flow of tourists covering the world’s largest destination and origin countries between 1995 and 2019. As a first step, we built an econometric model that effectively predicts the flow of tourists between any pair of countries in our data. Subsequently we compared the predicted tourist inflow in a hypothetical scenario where no large-scale sporting event would have taken place with the actual figures. If the actual figures exceed the predicted ones, we consider the event to have a net positive impact. Otherwise, we consider that it had a “crowding out” effect on “regular” tourists. While conducting this analysis, we distinguished between short-term (i.e., focusing just on the year of the event) and mid-term (year of the event plus three subsequent years). Our results show that the effects of large-scale sporting events vary a lot across host countries: The World Cup in Japan and South Korea 2002 and South Africa 2010 were associated with a distinct increase in tourist arrivals, whereas all other World Cups were either neutral or negative. Among the Summer Olympics, China in 2008 is the only case with a significant positive effect on tourist inflows. The effects of the other four events (Australia 2000, Greece 2004, Great Britain 2012, and Brazil 2016) were found to be negative in the short- and medium-term. As for the Winter Olympics, the only positive case is Russia in 2014. The remaining five events had a negative impact except the one-year neutral effect for Japan 1998. Following large-scale sporting events, host countries are therefore typically less visited by tourists. Out of the 18 hosting countries studied, 11 saw tourist numbers decline over four years, and three did not experience a significant change. <h2>The case for cautious optimism</h2> Our research indicates that the positive effect of hosting large-scale sporting events on tourist inflows is, at best, moderate. While many tourists are attracted by FIFA World Cups and Olympic games, the crowding-out effect of “regular” tourists is strong and often underestimated. This implies that tourists visiting for an event like the Olympics typically dissuade those who would have come for other reasons. Thus, efforts to attract new visitors should be accompanied by efforts to retain the already existing ones. Large-scale sporting events should be considered as part of a long-term policy for promoting a territory to tourists rather than a standalone solution. Revealingly, our results indicate that it is easier to get a net increase in tourist inflows in countries that are less frequent destinations for tourists – for example, those in Asia or Africa. By contrast, the United States and Europe, both of which are traditionally popular with tourists, have no single case of a net positive effect. Put differently, the large-scale sporting events in Asia and Africa helped promote their host countries as tourist destinations, making the case for the initial investment. In the US and Europe, however, those in the last few decades brought little return, at least in terms of tourist inflow.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/222118/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ivan-savin-678930">Ivan Savin</a>, Associate professor of quantitative analytics, research fellow at ICTA-UAB, <a href="https://theconversation.com/institutions/escp-business-school-813">ESCP Business School</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/does-hosting-the-olympics-the-world-cup-or-other-major-sports-events-really-pay-off-222118">original article</a>. </div>

Travel Tips

What to expect from the federal budget

There's just three weeks left until Treasurer Jim Chalmers unveils the federal budget. With the cost of living crisis still a major issue across the country, we can expect to see some policies aimed at alleviating the pressure. Some policies, have already been announced and here are a few others that we can expect to hear from Chalmers on May 14. Stage 3 cuts announced in January, will form a key part of this year's budget, which will direct more benefit towards low- and middle-income earners – although Australians on high salaries will still receive a tax cut. The decision was made to alleviate the cost-of-living pressures and partly address the bracket creep. The cuts lower the threshold for the lowest two brackets (so they pay less tax on that income), and raise the threshold for the highest two brackets (so they need to earn more to be taxed at a higher rate). This means that someone with average income of around $73,000 will get $1504, but how much you actually receive will depend on your income. The new version of the stage 3 cuts will come into effect on July 1. Superannuation will be paid on government-funded parental leave, with the change due to kick in for parents with babies born after July 1, 2025. They will receive a 12 per cent superannuation on top of their government-funded parental leave, with around 180,000 families expected to benefit from it. The figures will be included in the May 14 budget. Although nothing has been officially announced, there will likely be HECS-HELP debt relief for current and former students. "I think there's a range of areas where we need to do much better with the younger generation, and HECS is one of them," Prime Minister Anthony Albanese said on radio on April 18. "We've received a review of that... and what that has said is that the system can be made simpler and be made fairer. "We're examining the recommendations and we'll be making announcements pretty soon on that. We, of course, have a budget coming up." There have also been some hints from the government that energy bill relief will continue in this year's budget. "Our government understands that for small business – as for Australian families – energy bills remain a source of financial pressure," Albanese said, citing the existing policy that gives eligible families up to $500 off their power bills and eligible small businesses up to $650. "Our government understands that for small business – as for Australian families – energy bills remain a source of financial pressure," he said. "That's why the energy bill relief package I negotiated with the states and territories delivered up to $650 in savings for around 1 million small businesses, along with 5 million families. "And as we put together next month's budget, small businesses and families will again be front and centre in our thinking." Energy bills are also set to go down, or remain stable for the most part from July 1. Image: Getty

Money & Banking

Tourist slapped with $225k bill after simple mistake

An American tourist has revealed the moment he was charged with a $US143k (AU$225k) bill after a short holiday to Switzerland. Rene Remund and his wife Linda went on the trip last September. Prior to their travels, Remund made sure to inform his mobile phone provider, T-Mobile, that he was going overseas and as a customer of 30 years, he was told he was “covered”. So, with no worries at all, the tourist shared photos of his moments in the Swiss countryside with friends and family via photo messages. Imagine his surprise when he came home to a six-figure bill, after he racked up thousands and thousands of dollars in daily roaming costs. “I get this T-Mobile bill and it doesn’t bother me very much because I was reading $143,” he explained, adding it wasn’t until he went to pay the bill that he realised a few more zeros were involved. “I look at the bill and I say, ‘excuse me’,” he said. “$143,000 … are you guys crazy?” According to the bill, Remund had racked up 9.5 gigabytes of data while in Europe, which cost him thousands of dollars each day. While it wasn't a huge amount of data, not being covered by roaming fees will cause a user to run up a huge bill very quickly. “I called [T-Mobile] and the girl put me on hold for a while,” he explained. “She said let me check this out and I’ll get back to you. She gets back and says, yeah this is a good bill. “I said, ‘what do you mean it’s a good bill?’ And she says ‘well, this is what you owe’. “I said ‘you’re kidding me … you’re crazy’.” After confirming that his bill was in fact AU$225,000, Remund hired a lawyer to argue the fact that he was covered for international roaming. His lawyer issued a letter to the president of T-Mobile, and they only received a reply a few days ago. The letter from T-Mobile allegedly said that the service provider was “sorry” for the charges, and that Remund would receive a “credit” to eliminate the entire bill. In an email shared to local media Scripps News Tampa, the mobile phone provider said that customers should always “check the travel features of their plan, such as international data roaming, before departing”. “If a customer is on an older plan that doesn’t include international roaming for data and calling, they’ll need to make sure they’re using aeroplane mode and wi-fi when using data to be certain the device doesn’t connect to an international network.” <em style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; color: #323338; font-family: Figtree, Roboto, 'Noto Sans Hebrew', 'Noto Kufi Arabic', 'Noto Sans JP', sans-serif; background-color: #ffffff; outline: none !important;">Images: ABC Action News

Travel Trouble

Elephant tourism often involves cruelty – here are steps toward more humane, animal-friendly excursions

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/michelle-szydlowski-1495781">Michelle Szydlowski</a>, <a href="https://theconversation.com/institutions/miami-university-1934">Miami University</a> Suju Kali is a 50-year-old elephant in Nepal who has been carrying tourists for over 30 years. Like many elephants I encounter through my <a href="https://doi.org/10.1080/10888705.2022.2028628">research</a>, Suju Kali exhibits anxiety and can be aggressive toward strangers. She suffers from emotional trauma as a result of prolonged, commercial human contact. Like Suju Kali, many animals are trapped within the tourism industry. Some venues have no oversight and little concern for animal or tourist safety. Between 120,000 and 340,000 animals are used globally in a variety of wildlife tourism attractions, including <a href="https://doi.org/10.1371/journal.pone.0138939">endangered species</a> like elephants. Over a quarter of the world’s <a href="https://www.iucnredlist.org/species/7140/45818198">endangered elephants</a> reside in captivity with little oversight. Wildlife tourism – which involves viewing wildlife such as primates or birds in conservation areas, feeding or touching captive or “rehabilitated” wildlife in facilities, and bathing or riding animals like elephants – is <a href="https://doi.org/10.1080/14724049.2022.2156523">tricky business</a>. I know this because I am <a href="https://scholar.google.com/citations?user=YbweA2MAAAAJ&hl=en">a researcher studying human relationships with elephants</a> in both tourism and conservation settings within Southeast Asia. These types of experiences have long been an <a href="https://kathmandupost.com/money/2021/06/17/tourism-is-nepal-s-fourth-largest-industry-by-employment-study">extremely popular and profitable</a> part of the <a href="https://journals.plos.org/plosbiology/article?id=10.1371/journal.pbio.1002074">tourism market</a>. But now, many travel-related organizations are urging people not to participate in, or <a href="https://www.usatoday.com/story/travel/destinations/2018/04/27/animal-welfare-travelers-how-enjoy-wildlife-without-harming/544938002/">calling for an outright ban on, interactive wildlife experiences</a>. Tourism vendors have started marketing more “ethical options” for consumers. Some are attempting to truly improve the health and welfare of wildlife, and some are transitioning captive wildlife into touch-free, non-riding or lower-stress environments. In other places, organizations are attempting to <a href="https://www.fao.org/documents/card/es/c/b2c5dad0-b9b9-5a3d-a720-20bf3b9f0dc2/">implement standards of care</a> or create manuals that outline good practices for animal husbandry. This marketing, academics argue, is often simply “<a href="https://doi.org/10.1016/j.gecco.2017.11.007">greenwashing</a>,” <a href="http://dx.doi.org/10.1080/13683500.2023.2280704">applying marketing labels to make consumers feel better</a> about their choices without making any real changes. Worse, research shows that some programs marketing themselves as ethical tourism may instead be widening economic gaps and harming both humans and other species that they are meant to protect. <h2>No quick fix</h2> For example, rather than tourist dollars trickling down to local struggling families as intended by local governments, many tourism venues are owned by nonresidents, <a href="http://dx.doi.org/10.3126/japfcsc.v2i1.26746">meaning the profits do not stay in the area</a>. Likewise, only a small number of residents can afford to own tourism venues, and venues do not provide employment for locals from lower income groups. This economic gap is especially obvious in Nepalese elephant stables: Venue owners continue to make money off elephants, while elephant caregivers continue to work 17 hours a day for about US$21 a month; tourists are led to believe they are “<a href="https://www.cabidigitallibrary.org/doi/book/10.1079/9781800624498.0000">promoting sustainability</a>.” Yet, there are no easy answers, especially for elephants working in tourism. Moving them to sanctuaries is difficult because with no governmental or global welfare oversight, elephants may end up in worse conditions. Many kindhearted souls who want to “help” elephants know little about their biology and mental health needs, or what it takes to keep them healthy. Also, feeding large animals like Suju Kali is pricey, <a href="https://doi.org/10.3390/ani14010171">costing around $19,000 yearly</a>. So without profits from riding or other income, owners – or would-be rescuers – can’t maintain elephants. Releasing captive elephants to the jungle is not a choice – many have never learned to live in the wild, so they cannot survive on their own. <h2>Hurting local people</h2> Part of the problem lies with governments, as many have marketed tourism as a way to fund conservation projects. For example in Nepal, a percentage of ticket sales from elephant rides are given to community groups to use for forest preservation and support for local families. Increasing demand for <a href="https://www.routledge.com/Tourism-and-Animal-Ethics/Fennell/p/book/9781032431826">wildlife-based tourism</a> may increase traffic in the area and thus put pressure on local governments to further limit local people’s access to forest resources. This may also lead to <a href="https://www.worldanimalprotection.org/latest/news/un-world-tourism-organisation-urged-create-better-future-animals/">increased demands on local communities</a>, as was the case in Nepal. In the 1970s, the Nepalese government removed local people from their lands in what is now Chitwan National Park as part of increasing “conservation efforts” and changed the protected area’s boundaries. Indigenous “Tharu,” or people of the forest, were forced to abandon their villages and land. While some were offered access to “buffer zones” in the 1990s, many remain poor and landless today. In addition, more and more desirable land surrounding conservation areas in Nepal is being developed for tourist-based businesses such as hotels, restaurants and shops, <a href="http://dx.doi.org/10.3126/japfcsc.v2i1.26746">pushing local poor people farther away</a> from central village areas and the associated tourism income. Some activists would like humans to simply release all wildlife back into the wild, but <a href="https://www.cabidigitallibrary.org/doi/book/10.1079/9781800624498.0000">there are multiple issues</a> with that. Elephant habitats throughout Southeast Asia have been transformed into croplands, cities or train tracks for human use. Other problems arise from the fact that tourism elephants have <a href="https://doi.org/10.4324/9781315457413">never learned</a> how to be elephants in their natural elements, as they were <a href="https://www.pugetsound.edu/sites/default/files/file/8342_Journal%20of%20Tourism%20%282009%29_0.pdf">separated from their herds</a> at an early age. So tourism may be vital to providing food, care and shelter to captive elephants for the rest of their lives and providing jobs for those who really need them. Because elephants can live beyond 60 years, this can be a large commitment. <h2>How to be an ethical tourist</h2> To protect elephants, tourists should check out reviews and photos from any venue they want to visit, and look for clues that animal welfare might be impacted, such as tourists allowed to feed, hold or ride captive wildlife animals. Look for healthy animals, which means doing research on what “healthy” animals of that species should look like. If a venue lists no-touch demonstrations – “unnatural” behaviors that don’t mimic what an elephant might do of their own accord, such as sitting on a ball or riding a bike, or other performances – remember that the behind-the-scenes training used to achieve these behaviors can be <a href="https://doi.org/10.21832/9781845415051-014">violent, traumatic or coercive</a>. Another way to help people and elephant is to to use small, local companies to book your adventures in your area of interest, rather than paying large, international tourism agencies. Look for locally owned hotels, and wait to book excursions until you arrive so you can use local service providers. Book homestay programs and attend cultural events led by community members; talk to tourists and locals you meet in the target town to get their opinions, and use local guides who provide wildlife viewing opportunities <a href="https://nepaldynamicecotours.com/">while maintaining distance from animals</a>. Or tourists can ask to visit <a href="https://www.americanhumane.org/press-release/global-humane-launches-humane-tourism-certification-program/">venues that are certified</a> by international humane animal organizations and that <a href="https://www.su4e.org/">do not allow contact</a> with wildlife. Or they can opt for guided hikes, canoe or kayak experiences, and other environmentally friendly options. While these suggestions will not guarantee that your excursion is animal-friendly, they will help decrease your impact on wildlife, support local families and encourage venues to stop using elephants as entertainment. Those are good first steps.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/219792/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/michelle-szydlowski-1495781">Michelle Szydlowski</a>, Visiting Assistant Professor, Department of Biology, Project Dragonfly, <a href="https://theconversation.com/institutions/miami-university-1934">Miami University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/elephant-tourism-often-involves-cruelty-here-are-steps-toward-more-humane-animal-friendly-excursions-219792">original article</a>. </div>

Travel Tips

Our Partners

Over 60

News

Shop

Catalogues

Newspaper

Contests

Entertainment

Travel

Health

Lifestyle

Finance

Property

Compare

Games

Information

Keep up to date

Search

It may be macabre, but dark tourism helps us learn from the worst of human history

7 health investments that are tax deductible

10 ways to make those stage 3 tax cuts count

"Tax the boomers": Outrage over elderly couple's complaint after $1m Lotto win

How holidaying in developing countries affects local inequality

Why you should expect to pay more tourist taxes – even though the evidence for them is unclear

Australia’s tax system is being weaponised against victims of domestic abuse. Here’s how

‘Sleep tourism’ promises the trip of your dreams. Beyond the hype plus 5 tips for a holiday at home

Beware of ‘tax hacks’ to maximise your return this year. The tax office is taking a close look at incorrect claims