Overseas obligations for those working with a HECS debt.
Heading overseas for work with a debt?
There are new repayment obligations which have come into affect for people with a HELP or TSL debt who are living and working overseas. These overseas repayment arrangements apply to the following study loan schemes: HECS-HELP, FEE-HELP, OS-HELP and SA-HELP.
Tradies are also affected if they also apply to VET FEE-HELP, VET Student Loans for vocational education and training and Trade Support Loans (TSL) for apprenticeships.
If your worldwide income is above the minimum repayment threshold (A$54,869 in 2016-17), you will need to make repayments based on this income – the same as you would if you were in Australia.
When do the new HECS obligations start?
The obligations are in place now. From 1 July 2017, you will need to work out your worldwide income for the 2016-17 income year and report this information to the Australian Taxation Office (ATO). You can lodge online using ATO online services via myGov or through a registered Australian tax agent. If this does apply to you please contact the team here at HA Accounting.
Your income details are due by 31 October each year if you are not using a registered Australian tax agent. For our clients, we have until May 2018, the reporting is done the same way as tax returns of Australian residents.
What do I need to do next?
The first step is to notify the ATO before you travel, or within 7 days of leaving Australia. If you intend to move overseas for 183 days or more in any 12 month period. 183 days equates to around six months. If you have questions of residency or not please give us a call to determine if this will apply to you.
If you already live overseas, make sure you notify the ATO of your contact details. Ensure it is no later than the 1st July 2017.
For further information on the changes to HELP repayment obligations, see the: