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.



Last night, Christopher Pyne announced that the reforms will have a significant place in the upcoming Federal budget. He explained the prickly issue by saying,

“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.”

Pyne criticised a previous lack of effort by Australian governments to address the loophole:

“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 also claimed that there is “no good reason” Australians earning an income over $53,000 overseas should be allowed to effectively dodge student debts. While Australians abroad can always make voluntary payments towards their debt while working, failing to do so is not illegal.

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.

via ABC.

Lead image by Stefan Postles via Getty.