9th Nov 2015, 8:12 PM – Senate Education Legislation Amendment (Overseas Debt Recovery) Bill 2015, Student Loans (Overseas Debtors Repayment Levy) Bill 2015 - Second Reading - Take onus off individual

The majority voted against an amendment introduced by Greens Senator Robert Simms.

Amendment text

At the end of the motion, add:

", but the Senate calls on the Government to use existing mutual taxation agreements to assist in the identification of foreign residents and overseas travellers required to repay HELP [Higher Education Loan Programme] or TSL [Trade Support Loan] debt, rather than require those residents and travellers to comply with changes in Australian law.".

What does this amendment mean?

Senator Simms introduced this amendment in order to "tak[e] the onus off the individual" (see his whole explanation). Currently, the bills make it the responsibility of overseas Australians (or Australians planning on being overseas for over six months) to be aware of the new requirement to repay their debts and to register with the Australian Taxation Office.

What exactly do the bills do?

These bills relate to the policy for requiring Australians working overseas to repay their student debts.

If made into law, the bills will require Australians living overseas and earning over the threshold (which was $54,126 in 2015–16) to repay their Higher Education Loan Programme (HELP) debt or Trade Support Loan (TSL) debt under the same compulsory repayment scheme that applies in Australia.

The bills will also require Australians with HELP or TSL debts to notify the Commissioner of Taxation if they plan to be overseas for at least 183 days or if they have been overseas for at least 183 days over any 12 month period. The notification will have to occur either:

• no later than seven days after leaving Australia; or
• no later than seven days after the end of those 183 days

See StudyAssist for information about when these changes will come into effect.

Previously, Australians with HELP or TSL debts who moved overseas didn't have to make any repayments, regardless of how much they earned. Nor did they have to notify the Commissioner if they went overseas.

For more information, read the bills digest. Also see ABC News.

Disclaimer: Don't rely on this information to determine your new tax obligations - seek government information (for example, the StudyAssist website).