Australian expats warned on student debts

The tax office is warning Australian expats that moving overseas doesn't allow them to avoid study debts.

A plane nearby houses at Heathrow Airport.

The ATO is warning Australian students that moving overseas won't void their student loans. (AAP)

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.


Share
2 min read

Published

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world