Education Minister Christopher Pyne has announced the looming closure of a HECS and HELP debt loophole, as Australians working overseas will soon be forced to repay student debts in the same way as their local counterparts, in policy to be announced during this month’s Federal Budget.
According to 7 News, there is currently $8 billion in student loans which will be written off – a figure which which the government plans to minimise in new reforms, targeting graduates or those with student loan debts working abroad. Currently, student debts in Australia are only repaid to the government after an individual earns above $53,000 through employment in Australia.
As such debts are repaid and lodged through tax returns and the ATO, determining whether an individual with student debt is earning above the threshold overseas has since been “in the too-hard-basket”, according to Christopher Pyne.
Nice knowing you, urban myth that HECS debt could be obliterated by packing ‘er up and moving to London. To anybody living the seemingly debt-free dream OS, condolences for your impending loss.
“Currently, because graduates living overseas don’t have to do an Australian tax return, there is no way to know if they are earning above the threshold that triggers HECS repayments and many get off scot-free.”
“No government has ever tackled this obviously unfair situation – it’s been in the too-hard basket. Our plan will enforce the same HECS repayment obligations on Australians living overseas that apply to those who remain on our shores.”
Christopher Pyne’s new reforms reportedly will force overseas workers with student debts to make repayments from 2017. The reforms are estimated to effect tens of thousands of Australians currently employed overseas with a student debt gathering dust back home.
Lead image by Stefan Postles via Getty.
