Education Legislation Amendment (Overseas Debt Recovery) Act 2015 (154 of 2015)

Schedule 2   Repayment of accumulated TSL debts by overseas debtors

Part 1   Amendments

Trade Support Loans Act 2014

6   After Subdivision A of Division 4 of Part 3-2

Insert:

Subdivision AA - Liability of overseas debtors to repay amounts

47A Liability of overseas debtors to repay amounts

(1) If:

(a) a person is a foreign resident during an income year; and

(b) the person's assessed worldwide income for the income year exceeds the minimum repayment income for the income year; and

(c) on 1 June immediately preceding the making of an assessment in respect of the person's income of that income year, the person had an accumulated TSL debt;

the person is liable to pay to the Commonwealth, in accordance with this Division, a levy of the amount worked out under subsection (2).

Note: An amount a person is liable to pay under this section is imposed as a levy under the Student Loans (Overseas Debtors Repayment Levy) Act 2015.

(2) The amount of levy that a person is liable to pay under this section, in respect of an income year, is an amount equal to the difference between:

(a) the amount that the person would have been liable to pay under section 46 if:

(i) the person had a repayment income for the income year of an amount equal to the person's assessed worldwide income for the income year; and

(ii) subsection 46(3) did not apply to the person; and

(b) the amount (if any) the person is liable to pay under section 46, in respect of the income year.

47B Assessed worldwide income

(1) A person's assessed worldwide income for an income year is an amount equal to the sum of:

(a) the person's repayment income for the income year; and

(b) the person's foreign-sourced income for the income year, converted into Australian currency.

(2) The rules may provide for how to work out a person's foreign-sourced income for an income year, including how to convert it into Australian currency.

(3) Without limiting subsection (2), the rules may provide for a person's foreign-sourced income for an income year to be worked out in relation to a period that does not correspond to that income year.

47C Notices to be given to the Commissioner

Notice relating to leaving Australia

(1) A person who:

(a) has an accumulated TSL debt or otherwise has a TSL debt that has not yet been discharged; and

(b) leaves Australia (other than in circumstances specified in the rules) with the intention of remaining outside Australia for at least 183 days;

must, no later than 7 days after leaving Australia, give a notice to the Commissioner in the approved form.

Notice relating to absence from Australia

(2) A person who:

(a) has an accumulated TSL debt or otherwise has a TSL debt that has not yet been discharged; and

(b) has been outside Australia for at least 183 days (other than in circumstances specified in the rules) in any 12 month period; and

(c) was not required under subsection (1) to give a notice to the Commissioner in connection with that absence from Australia;

must, no later than 7 days after the end of those 183 days, give a notice to the Commissioner in the approved form.

Notice relating to income (including foreign-sourced income)

(3) A person who:

(a) is a foreign resident; and

(b) on 1 June immediately preceding an income year, had an accumulated TSL debt;

must (other than in circumstances specified in the rules) give to the Commissioner, in the approved form, a notice relating to the person's income (including foreign-sourced income) for the income year. The notice must be given within the period specified in the form.

Note: The Commissioner may defer the time for giving the return: see section 388-55 in Schedule 1 to the Taxation Administration Act 1953.

Content of notices under this section

(4) The rules may provide for the content of notices under this section.