@*julia*2010 wrote:
refreshing to see posters' opinions instead
of communicating by using memes.
for the first time - australians living overseas
will be targeted:
Federal Budget 2015: tax hit for foreigners and Australians living overseas
http://www.afr.com/news/policy/budget/federal-budget-2015-tax-hit-for-foreigners-and-australians-liv...
The OP loves memes. Learnt from the master/mistress.
I posted the following in another thread as well (HECs debt thread)
First of all does the Aust Govt have any 'tax agreements' with any countries they want to collect HECS & HELP debts for them?.
The only country I am aware of that they (Pyne) have had talks with is the UK, so far.
Second, the graduate living overseas has to be earning above the threshold (The compulsory repayment threshold for the 2014โ15 income year is $53,345. For 2015-16, the compulsory replayment threshold will be $54,126.).
For thos who earn below that, or don't work at all, then there is no recovery.
Of course there are Australian graduates living overseas that do voluntarily pay off their HECS & HELP debt too.
Mr Pyne said changes will make the system fairer and are expected to raise more than $140 million for the Government over 10 years.
Hope they didn't use that estimated figure to bolster the Budget.
Collecting student loans from overseas debtors just a start
.....The challenge will be to collect repayments in a cost-effective way. Retaining the income-contingent aspect for overseas debtors would place an administrative burden on the ATO as well as on debtors. England has a similar income-contingent loan program to Australia. But, unlike Australia, it requires its overseas debtors to repay.
Like debtors living in England they repay under the income-contingent system. Each year, overseas debtors are required to submit significant paperwork to prove their income levels. A default repayment applies to debtors who do not submit evidence. Despite these efforts, more than two-thirds of English debtors do not repay.
Pyne wants to introduce a similar system. He is investigating a bilateral agreement with the UK in order to recover debts from Australians living there.
But, as the chart below shows, overseas debtors living in the UK and New Zealand (with which Australia already has an in-principle agreement for debt recovery) represent fewer than 30% of all overseas debtors.
Extending these agreements to other countries is likely to be difficult. We need a low-cost repayment system that can collect from debtors in many countries.
....A more cost-effective way is to require overseas debtors to repay a flat amount each year. New Zealand provides a possible guide. It minimises administrative costs by charging overseas debtors flat amounts based on outstanding debt levels each year. The repayment amount ranges from A$1000 to A$4800 a year depending on the amount owed.
http://theconversation.com/collecting-student-loans-from-overseas-debtors-just-a-start-41157
