Taxpayers to cover $200m student debts for Australians who left the country

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Taxpayers to cover $200m student debts for Australians who left the country
Sarah HendersonUniversityHelp Debt
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Tens of thousands of Australians who have left the country will be gifted more than $200 million by the Albanese government under its plans to cut 20 per cent of student debt.

Taxpayers to cover 20 per cent of $1.1 billion in student debt s for Australians who left the country under Labor election policy

According to Australian Tax Office data, only 3,182 people made compulsory payments last year while about 4,000 made voluntary repayments. Education Minister Jason Clare accepted there was some level of student debt that does not get repaid, as Labor has positioned itself as the “party of education”. “The ATO writes to individuals who are overseas to inform them of changes to repayment rates and thresholds, and how to comply with their obligations.”

“With only 3,182 debtors making compulsory repayments, the government needs to ensure that millions of dollars owed to taxpayers is being properly collected. “There have been cases of returning student debtors hit with bills for multiple years of repayments missed.” Many of the extraordinarily high loan amounts appeared to have been accrued before the caps were put in place in 2020.

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