19th Feb 2016 3:26pm | By 1st Contact
The Australian government’s mid-year economic review has seen the introduction of new compliance measures. These measures target Australians living abroad with outstanding student loans.
Prior to the introduction of the new legislation, graduates living overseas could avoid repaying their higher education loans to the Australian government as long as they remained offshore residents.
Since the introduction of the scheme in 1989, it is estimated that $800 million has remained unpaid from gradates residing overseas.
From 1 July 2017 if you have received either assistance from the Higher Education Loan Programme, or a Trade Support Loan, and you earn above the minimum repayment threshold (currently $54,126 per year) you will be required to pay back your student loan even if you live abroad.
This move aligns Australian policy with that of other OECD countries, such as New Zealand and the UK. The Australian Taxation Office will use data matching with international agencies to identify student debtors working overseas.
The Federal Government claims the move will save more than $150 million over the next decade and help ensure the sustainability of the university sector.
If you need to begin repaying your Australian student debt, 1st Contact has a cost-effective international money transfer service that can help you get money home. You can transfer your funds back to Australia at great rates and for a fraction of the fees charged by major banks.
With us you can ensure your repayments are made on time, every time, without ever having to go into a bank.
To start transferring your money hassle-free sign up for a free account on the 1st Contact Forex website. Give us a call on +613 8651 4500 if you’d like to speak to a consultant.