Disclosure Statement: Durand Financial Services Pty Ltd and its advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. General Advice Warning: The information contained within this website does not consider your personal circumstances and is of a general nature only. You should not act on it without first obtaining professional financial advice specific to your circumstances.
(Australian Associated Press)
Australian graduates living overseas have been warned moving away doesn’t mean they can dodge their student loans, and the tax office intends to remind them.
The Australian Taxation Office announced on Tuesday it would contact people with student debt who leave or are already overseas in the coming months.
ATO assistant commissioner Karen Foat said it was easy to get caught up in the excitement of moving overseas and forget about one’s repayment obligations.
“Moving overseas does not cancel student loan debts and your repayment obligations do not change with your address. Current laws give us the power to pursue these debts overseas,” she said.
Expats with Higher Education Loan Program (HELP), Vocational Education & Training student loan (VSL) and Trade Support Loan (TSL) debts can expect to be contacted.
Ms Foat said it took an average of nine years for people to pay off HELP debts.
“But for Australians who travel overseas and don’t make any repayments, it takes significantly longer,” she said.
Under new rules, Australians with an income contingent loan travelling overseas need to notify the ATO of their new address and lodge an overseas travel notification.
From July 1, anybody earning over $45,881 a year had to start repaying their student loans after the government passed laws cutting the threshold from $55,000.
“Expats should know that once their income reaches the new threshold of $45,881 for 2019/20, they need to be making repayments, just like anyone living in Australia,” Ms Foat said.
As at 31 January, there are over 3.2 million Australians with outstanding student loan debts totalling more than $66 billion.