Luke Hartsuyker (Cowper, National Party, Deputy Leader of the House) Share this | Hansard source

I appreciate the opportunity to thank members who have spoken on the Education Legislation Amendment (Overseas Debt Recovery) Bill 2015 and the Student Loans (Overseas Debtors Repayment Levy) Bill 2015. Together these bills create an obligation for Australians, who have received the benefit of one of the government's most generous income-contingent student loans, to make repayments while living overseas. This includes both the Higher Education Loan Program and Trade Support Loans.

For the first time all Australians, regardless of where they live and work, will be required to make repayments on their HELP or Trade Support Loans debt. Overseas debtors will only be required to make the same repayments based on income they would have to make if they were in Australia. Australians who are volunteering overseas, who are looking for work, or who are earning only a modest amount while they travel, will not be required to make repayments. However Australians who are living overseas and earning a good income should pay back Australia for the high-quality education that they have received.

The proposed legislation includes two bills. The Education Legislation Amendment (Overseas Debt Recovery) Bill 2015 will amend the Higher Education Support Act 2003 and the Trade Support Loans Act 2014 to create the arrangements that underpin the operation of the scheme. The Student Loans (Overseas Debtors Repayment Levy) Bill 2015 will strengthen the legislative basis for the program and improve the capacity of the Australian Taxation Office to collect these repayments through the current tax administration arrangements. Under the proposed legislation, from 1 January 2016, HELP and TSL debtors who move overseas for six months or more will be required to notify the ATO of their absence. From 1 July 2017 debtors will be required to repay their loans based on the income they earned in the 2016-17 financial year.

The Education Legislation Amendment (Overseas Debt Recovery) Bill 2015 also includes minor amendments to the Higher Education Support Act 2003 to allow the Department of Education and Training to access tax file numbers. This is merely an extension of processes currently in place for Trade Support Loans and will allow the ATO and the Department of Education and Training to effectively administer overseas debt recovery and HELP more broadly.

The bill also amends the Taxation Administration Act 1953 to allow the sharing of protected tax data with overseas jurisdictions for the purposes of student loan debt administration. This amendment is necessary to support potential reciprocal arrangements with other countries on student loan debt recovery. The government is already making good progress with New Zealand and the United Kingdom in exploring potential data-sharing arrangements to support the scheme. The Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 are also amended to ensure that repayments made by overseas debtors are not allowable self-education expenses and cannot be claimed as a tax deduction. This is consistent with the treatment of HELP and TSL repayments made in Australia.

This is groundbreaking legislation and, not only will preserve our income-contingent loan schemes for students and apprentices, but will improve them by making them fairer for all Australians, regardless of where they live. This change is fair both for the individual and for the taxpayer. Overseas debt recovery is expected to save more than $25 million from 2015-16 to 2018-19 and more than $150 million over the next 10 years in fiscal balance terms. Not only that, it will contribute to the sustainability of the government's generous income-contingent loans which are available to students and apprentices and are the envy of the world.

This government is fully committed to maintaining our world-class student loan schemes and is doing all that it can to ensure that they remain sustainable. Higher education and training are vital tools to create innovation in our workers and in our economy. The government recognises the importance of our loan schemes in supporting equal access to higher education and training for all Australians which leads to greater workforce engagement. Australia needs a higher education and training system that fuels innovation, drives productivity and gives students the skills they need for future success. The government will support higher education, training and research so that we can grasp the opportunities presented by new industries and create a more innovative and more productive Australia.

Overseas debt recovery is just one of a number of measures we have been seeking to implement to strengthen HELP. In this context the government are pleased that the opposition are also supporting this measure by recognising the fairness and sense in asking overseas debtors to repay their student loans on the same terms as people who stay on these shores. As the member for Lalor said, this initiative of the government is 'fair and equitable, and it's reasonable'. I thank the member for Lalor for her comments. While supporting this bill unanimously, opposition speakers have noted that there will be complexity in implementing this measure, and ensuring individuals understand the changes will be an important challenge. The government know that, which is why we are putting in place a communication strategy that will make the new requirements very clear to people. It is why we are providing a simple interface for repayment and it is why we are backing it up with targeted compliance efforts. It is also why we are exploring reciprocal arrangements with countries such as New Zealand and the United Kingdom to support the recovery of these debts.

In conclusion, let me say how proud I am that this government has taken action to collect these overseas debts. These bills will ensure equitable repayment of student loan debts by all Australians and contribute to the long-term sustainability of our world-class loan schemes. This is an important step forward in the government's agenda to secure the future of Australia's higher education and training system. I commend these bills to the House.

Question agreed to.

Bill read a second time.

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