Tax office coming after overseas Aussies with student debts

Australians living overseas have been warned they can’t dodge student loans by moving away, with the tax office planning a crackdown.

The Australian Tax Office will contact people with student debt who leave or are already overseas in the coming months.

"Moving overseas does not cancel student loan debts and your repayment obligations do not change with your address. Current laws give us the power to pursue these debts overseas," said ATO assistant commissioner Karen Foat.

Expats with Higher Education Loan Program (HELP), Vocational Education & Training student loan (VSL) and Trade Support Loan (TSL) debts can expect to be contacted.

Ms Foat said it took an average of nine years for people to pay off HELP debts.

"But for Australians who travel overseas and don't make any repayments, it takes significantly longer," she said.

Under new rules, Australians with an income contingent loan travelling overseas need to notify the ATO of their new address and lodge an overseas travel notification.

From July 1, anybody earning over $45,881 a year had to start repaying their student loans after the government passed laws cutting the threshold from $55,000.

"Expats should know that once their income reaches the new threshold of $45,881 for 2019/20, they need to be making repayments, just like anyone living in Australia," Ms Foat said.

As at 31 January, there are over 3.2 million Australians with outstanding student loan debts totalling more than $66 billion.