Dear araminty-ga;
Thank you for allowing me an opportunity to answer your interesting
question.
The official position is "NO". From what I gather this is apparently a
rumor. This is not to say that someone might have manipulated the
system through someone with influence in a rare instance or two, but
if it is a loophole it is a very rare and secretive one that no one
appears to be talking about.
I found an instance where someone asks the same question as you:
MONEYMANAGER.COM.AU
http://www.moneymanager.com.au/articles/2003/03/14/1047583685009.html
“Going overseas, does the debt follow me?
QUESTION: After graduating from university four years ago, I have been
living overseas and earning an income through playing sport. My
current HECS debt stands at $12K. I have heard that it is erased after
living a certain amount of time overseas. Is this true? If so, how
long is the duration?
ANSWER: The ATO maintains your HECS account and continues to calculate
indexation every year until the debt is paid off. You can still make
voluntary repayments of your HECS debt when you are overseas. Any lump
sum payments off your HECS will attract a 15 per cent discount.
For further information on HECS go to: HECS website.
HIGHER EDUCATION CONTRIBUTION SCHEME (HECS) 2003 LOANS AND FEES MANUAL
http://www.hecs.gov.au/overseas.htm
So, I decided to go there and read the HECS manual to see what the
official position on the issue is. I made my way to this statement
about HECS debts:
http://www.hecs.gov.au/faqs.htm#3_6
“What happens to my debt when I leave Australia?”
“If you leave Australia to work overseas, the Australian Taxation
Office maintains your HECS account and continues to calculate
indexation every year until the debt is paid off. There is no need to
provide notification that you will be overseas as your compulsory HECS
repayments are suspended when your income falls below the minimum
repayment threshold and/or you are not paying tax under the Australian
taxation system. You can still make voluntary repayments of your HECS
debt at any time while you are overseas. When you return to Australia,
you will have to start repaying your debt if you are earning above the
minimum income threshold.”
As you can clearly see, if you leave Australia to work, no matter how
long you intend to be gone, your “compulsory HECS debt repayment”
continues to be calculated “every year” unless you are (1) earning
less than the minimum income threshold, or (2) you are no longer
paying Australian taxes. Not only is repayment suggested for overseas
workers, it is expected and required of them unless they are exempt
(see 1 & 2 above). There are other exemptions, but overseas work is
not one of them:
http://www.hecs.gov.au/manual/03/htm/chapter3.htm#3_6
Nowhere is an exemption mentioned for overseas work.
You can, however, reduce your debt
http://www.hecs.gov.au/faqs.htm#5_2
Or, in some instances, be permitted a reduction or removal of HECS
debt in cases where hardship can be proven:
http://www.hecs.gov.au/faqs.htm#3_7
Below you will find that I have carefully defined my search strategy
for you in the event that you need to search for more information. By
following the same type of searches that I did you may be able to
enhance the research I have provided even further. I hope you find
that that my research exceeds your expectations. If you have any
questions about my research please post a clarification request prior
to rating the answer. Otherwise, I welcome your rating and your final
comments and I look forward to working with you again in the near
future. Thank you for bringing your question to us.
Best regards;
Tutuzdad-ga
INFORMATION SOURCES
MONEYMANAGER.COM.AU
http://www.moneymanager.com.au/articles/2003/03/14/1047583685009.html
HIGHER EDUCATION CONTRIBUTION SCHEME (HECS) 2003 LOANS AND FEES MANUAL
http://www.hecs.gov.au/overseas.htm
SEARCH STRATEGY
SEARCH ENGINE USED:
Google ://www.google.com
SEARCH TERMS USED:
HECS DEBT FORGIVEN
HECS DEBT FAQ
HECS DEBT EXEMPTIONS
HECS DEBT WORK OVERSEAS |
