{"id":"F2017L00157","name":"Overseas Debtors Repayment Guidelines 2017","slug":"overseas-debtors-repayment-guidelines-2017","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":95840,"registerId":"commonwealth-F2017L00157-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Overseas Debtors Repayment Guidelines 2017","content":"![Commonwealth Coat of Arms](image.001.png)\n\nOverseas Debtors Repayment Guidelines 2017\n\nmade under subsection 238-10(1) of the Higher Education Support Act 2003.\n\nCompilation No. 1\n\nCompilation date: 1 July 2018\n\nIncludes amendments up to: Higher Education (Overseas Debtor Repayment) Amendment and Repeal Instrument 2018 \\[F2018L00949\\]\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the Overseas Debtors Repayment Guidelines 2017 that shows the text of the law as amended and in force on 1 July 2018 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.\n\nApplication, saving and transitional provisions for provisions and amendments\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\nPart 1—Preliminary\n\n1 Name\n\n2 Commencement\n\n3 Authority\n\n4 Definitions\n\nPart 2—Foreign‑sourced income\n\n5 Purpose\n\n6 The 3 methods for working out a person’s foreign‑sourced income\n\n7 The simple self‑assessment method\n\n8 The overseas assessed method\n\n9 The comprehensive tax‑based assessment method\n\n10 Translation of foreign currency\n\nPart 3—Notices to be given to the Commissioner\n\n11 Purpose\n\n12 Notices relating to leaving Australia\n\n13 Notices relating to absence from Australia\n\n14 Notices relating to income\n\n15 Approved forms\n\nPart 1—Preliminary\n\n1 Name\n\nThis instrument is the Overseas Debtors Repayment Guidelines 2017.\n\n2 Commencement\n\n(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this instrument

The day after this instrument is registered.

\n```\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3 Authority\n\nThis instrument is made under the Higher Education Support Act 2003.\n\n4 Definitions\n\nNote: A number of expressions used in this instrument are defined in the Act.\n\n(1) In this instrument:\n\nAct means the Higher Education Support Act 2003.\n\n> ATO Occupation Code means the Salary and wage occupation codes 2018 published by the Australian Taxation Office in June 2018.\n\n> Note: In 2018, the Salary and wage occupation codes 2018 was available at www.ato.gov.au.\n\nforeign currency means a currency other than Australian currency.\n\n(2) An expression used in this instrument that is also used in the Income Tax Assessment Act 1997 has the same meaning as in that Act.\n\nPart 2—Foreign‑sourced income\n\n5 Purpose\n\nThis Part sets out how to work out a person’s foreign‑sourced income for the 2016‑17 income year and later income years.\n\nNote: Foreign‑sourced income is relevant to working out the person’s assessed worldwide income for section 154‑17 of the Act.\n\n6 The 3 methods for working out a person’s foreign‑sourced income\n\n(1) The following are the methods for working out a person’s foreign‑sourced income for an income year:\n\n(a) the simple self‑assessment method (see section 7);\n\n(b) the overseas assessed method (see section 8);\n\n(c) the comprehensive tax‑based assessment method (see section 9).\n\nNote: Subsection 8(2) restricts when the overseas assessed method can be used.\n\n(2) The method to be used to work out the person’s foreign‑sourced income for the income year is the method that the person chooses, as stated in the notice given to the Commissioner under subsection 154‑18(3) of the Act, relating to the person’s income for the income year.\n\n(3) However, if the person does not choose one of the methods in that notice, the simple self‑assessment method (see section 7) may be used to work out the person’s foreign‑sourced income for the income year.\n\n(4) The person cannot choose more than one of the methods for the same income year.\n\n7 The simple self‑assessment method\n\n(1) Under the simple self‑assessment method, the person’s foreign‑sourced income for the income year is an amount equal to the difference between:\n\n(a) the total amount of all the person’s income for the income year, other than ordinary income or statutory income that has an Australian source; and\n\n(b) the standard deduction for the income year for the occupation in which the person derived the most income (other than ordinary income or statutory income that has an Australian source) for the income year.\n\n (2) For paragraph (1)(b), the standard deduction for an occupation is:\n (a) if the occupation has an occupation code listed in the ATO Occupation Code—the median ratio of work-related expenses to employment-related income calculated by the Australian Taxation Office for the occupation with that occupation code; or\n (b) otherwise—nil.\n\n8 The overseas assessed method\n\n(1) Under the overseas assessed method, the person’s foreign‑sourced income for the income year is an amount equal to the person’s income for taxation purposes according to the most recent assessment of the person’s income, for a period of 12 months, by a taxation authority of a foreign country.\n\n(2) However, the overseas assessed method cannot be used to work out the person’s foreign‑sourced income for the income year if:\n\n(a) the period to which that most recent assessment relates does not overlap with the income year; or\n\n(b) taxation authorities from different foreign countries have each made assessments of the person’s income for periods of 12 months that overlap with the income year; or\n\n(c) that most recent assessment has already been used to work out the person’s foreign‑sourced income for a previous income year.\n\n9 The comprehensive tax‑based assessment method\n\nUnder the comprehensive tax‑based assessment method, the person’s foreign‑sourced income for the income year is an amount equal to the difference between:\n\n(a) the total amount of all the person’s income for the income year, other than ordinary income or statutory income that has an Australian source; and\n\n(b) the total amounts of the deductions that would be allowable under the income tax law if that income were assessable income.\n\n10 Translation of foreign currency\n\nFor the purposes of subsection 154‑17(2) of the Act, convert an amount of a person’s foreign‑sourced income for an income year that is in a foreign currency by translating the foreign currency to Australian currency at the average exchange rate for the financial year most closely corresponding to the income year.\n\nPart 3—Notices to be given to the Commissioner\n\n11 Purpose\n\nThis Part sets out matters relating to the notices that must be given to the Commissioner under section 154‑18 of the Act.\n\n12 Notices relating to leaving Australia\n\n(1) A notice under subsection 154‑18(1) of the Act relating to a person leaving Australia must contain:\n\n(a) the person’s name; and\n\n(b) the person’s date of birth; and\n\n(c) the following details (to the extent they are known):\n\n(i) the person’s intended country of residence;\n\n(ii) the person’s contact details, including email address and telephone number.\n\n(2) For the purposes of paragraph 154‑18(1)(b) of the Act, a person is not required to give a notice under subsection 154‑18(1) of the Act relating to the person leaving Australia if:\n\n(a) the person gave a notice under that subsection in relation to a previous departure from Australia; and\n\n(b) since giving that notice, the person has not been an Australian resident.\n\n13 Notices relating to absence from Australia\n\nA notice under subsection 154‑18(2) of the Act relating to a person being outside Australia must contain:\n\n(a) the person’s name; and\n\n(b) the person’s date of birth; and\n\n(c) the person’s country of residence; and\n\n(d) to the extent they are known, the person’s contact details, including email address and telephone number.\n\n14 Notices relating to income\n\n(1) A notice under subsection 154‑18(3) of the Act relating to a person’s income for an income year must contain:\n\n(a) the person’s name; and\n\n(b) the person’s date of birth; and\n\n(c) the person’s country of residence; and\n\n(d) the person’s occupation; and\n\n(e) the amount of the person’s income (including foreign‑sourced income) for the income year; and\n\n(f) the method used to work out that foreign‑sourced income; and\n\n(g) if the overseas assessed method was used—the person’s identification number used for tax purposes by the taxation authority of a foreign country that made the assessment of the person’s income.\n\n(2) However, paragraphs (1)(d) to (g) do not apply if:\n\n(a) the person’s income (including foreign‑sourced income) for the income year does not exceed 25% of the minimum repayment income for the income year; and\n\n(b) the notice includes a declaration to that effect.\n\nNote: Minimum repayment income is defined in section 154‑10 of the Act.\n\n15 Approved forms\n\nThis Part does not affect the Commissioner’s power under section 388‑50 in Schedule 1 to the Taxation Administration Act 1953 to require additional content to be included in the approved form of a notice under section 154‑18 o\n\n> Note: Endnotes\n\n> Note: Endnote 1—About the endnotes\n\nThe endnotes provide information about this compilation and the compiled law.\n\nThe following endnotes are included in every compilation:\n\nEndnote 1—About the endnotes\n\nEndnote 2—Abbreviation key\n\nEndnote 3—Legislation history\n\nEndnote 4—Amendment history\n\nAbbreviation key—Endnote 2\n\nThe abbreviation key sets out abbreviations that may be used in the endnotes.\n\nLegislation history and amendment history—Endnotes 3 and 4\n\nAmending laws are annotated in the legislation history and amendment history.\n\nThe legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.\n\nThe amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.\n\nMisdescribed amendments\n\nA misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.\n\nIf a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.\n\n> Note: Endnote 2—Abbreviation key\n\n| | o = order(s) |\n| ---------------------------------------------- | ----------------------------------- |\n| ad = added or inserted | Ord = Ordinance |\n| am = amended | orig = original |\n| amdt = amendment | par = paragraph(s)/subparagraph(s) |\n| c = clause(s) | /sub‑subparagraph(s) |\n| C[x] = Compilation No. x | pres = present |\n| Ch = Chapter(s) | prev = previous |\n| def = definition(s) | (prev…) = previously |\n| Dict = Dictionary | Pt = Part(s) |\n| disallowed = disallowed by Parliament | r = regulation(s)/rule(s) |\n| Div = Division(s) | |\n| exp = expires/expired or ceases/ceased to have | reloc = relocated |\n| effect | renum = renumbered |\n| F = Federal Register of Legislation | rep = repealed |\n| gaz = gazette | rs = repealed and substituted |\n| LA = Legislation Act 2003 | s = section(s)/subsection(s) |\n| LIA = Legislative Instruments Act 2003 | Sch = Schedule(s) |\n| (md) = misdescribed amendment can be given | Sdiv = Subdivision(s) |\n| effect | SLI = Select Legislative Instrument |\n| (md not incorp) = misdescribed amendment | SR = Statutory Rules |\n| cannot be given effect | Sub‑Ch = Sub‑Chapter(s) |\n| mod = modified/modification | SubPt = Subpart(s) |\n| No. = Number(s) | underlining = whole or part not |\n| | commenced or to be commenced |\n\n> Note: Endnote 3—Legislation history\n\n| Name | Registration | Commencement | Application, saving and transitional provisions |\n| --------------------------------------------------------------------------------- | ----------------------------- | ------------ | ----------------------------------------------- |\n| Overseas Debtors Repayment Guidelines 2017 | 24 Feb 2017(See F2017L00157) | 25 Feb 2017 | - |\n| Higher Education (Overseas Debtor Repayment) Amendment and Repeal Instrument 2018 | 29 June 2018(see F2018L00949) | 01 July 2018 | Sch 1, c 4 |\n\n> Note: Endnote 4—Amendment history\n\n| Provision affected | How affected |\n| --------------------- | ---------------------------------------------- |\n| r. 4r. 7(1)(b)r. 7(2) | ad def F2018L00949am F2018L00949rs F2018L00949 |","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The Guidelines remain tightly focused on their original purpose: establishing administrative machinery for overseas debtors to report income and calculate repayment obligations. The 2018 amendments refined the simple self-assessment method (updating the ATO Occupation Code reference and restructuring section 7) but did not expand the scope beyond foreign-sourced income assessment and notification requirements."},"complexity_factors":["Three distinct calculation methods with specific eligibility restrictions (section 8(2) contains three exclusion conditions for the overseas assessed method)","Cross-referencing to multiple Acts: Higher Education Support Act 2003 (authority and definitions), Income Tax Assessment Act 1997 (shared definitions), Taxation Administration Act 1953 (approved forms)","Conditional logic in section 14(2) creating an exemption from detailed reporting when income is below 25% of minimum repayment threshold","Nested definitions: 'ATO Occupation Code' refers to external ATO publication (Salary and wage occupation codes 2018), creating dependency on non-legislative documents","Temporal alignment requirements between foreign tax assessment periods and Australian income years (section 8(2)(a))","Self-executing default mechanism in section 6(3) where failure to choose a method triggers the simple self-assessment method"],"plain_english_summary":"These Guidelines require Australians with HELP or TSL debts who live overseas to report foreign income to the ATO and calculate repayments. They offer three calculation routes—a simple occupation‑based estimate, use of a foreign tax assessment, or a comprehensive tax‑style calculation—and set annual reporting duties (including notifying departure/destination and contact details) and currency conversion rules. They close a previous loophole that let debtors avoid repayment by moving abroad and make compliance mandatory for overseas residents."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The 2018 amendment recorded in the compilation links the standard deduction mechanism to the ATO Salary and wage occupation codes (a definitional and operational clarification) and adjusts the related clauses (r 4 and r 7). Those amendments implement and clarify the operational detail of how the standard deduction is determined but do not materially expand the instrument’s policy scope beyond its original purpose of specifying methods to calculate foreign‑sourced income and the content of required notices (see endnotes and amendment history)."},"complexity_factors":["Short instrument with focused subject matter (Parts 2–3) — relatively compact","3 distinct calculation methods with different inputs and limitations (ss 6–9)","Cross‑references to primary Act (Higher Education Support Act 2003) and to income tax law for definitions and allowable deductions (r 4(2), s 9)","Conditional restrictions and exclusions on the overseas assessed method (s 8(2))","Use of an external data source (ATO Occupation Code) as a determinant for the standard deduction (r 4 definition, s 7(2))","Currency translation rule tied to a corresponding financial year (s 10) — possible mismatch with foreign tax periods","Notice‑content requirements with exemptions for low incomes (ss 12–14)","Delegated administrative discretion retained for form content via Taxation Administration Act power (s 15)"],"plain_english_summary":"**What this instrument does (mechanics)\n\n- Sets detailed rules for calculating a person’s \"foreign‑sourced income\" for the purposes of working out assessed worldwide income under the Higher Education Support Act 2003 (HESA) (Part 2, especially ss 5–10).\n- Provides three alternative calculation methods a person can choose (s 6):\n - Simple self‑assessment method (s 7): take all income that is not Australian‑sourced and subtract a single \"standard deduction\" for the occupation that produced the most foreign income; the deduction is the ATO median ratio for that occupation if an ATO occupation code exists, otherwise nil (s 7(2)).\n - Overseas assessed method (s 8): use the person’s most recent foreign taxation authority assessment for a 12‑month period, subject to limits (the assessed period must overlap the income year, there can’t be conflicting 12‑month assessments from multiple countries for overlapping periods, and the same assessment cannot be reused) (s 8).\n - Comprehensive tax‑based assessment method (s 9): total foreign income less the deductions that would be allowable under Australian income tax law if that foreign income were assessable.\n- Provides the currency‑conversion rule: translate foreign currency to Australian dollars using the average exchange rate for the financial year that most closely corresponds to the income year (s 10).\n- Specifies what must be included in notices a person must give to the Commissioner when they leave Australia, when they are absent, and when reporting income and the chosen method (ss 11–14). Notices must include identity, date of birth, country of residence, contact details, occupation, income amount, the method chosen, and, if using the overseas assessed method, the foreign tax identification number (s 14). Small amounts (income ≤ 25% of the minimum repayment income) may be declared with a simple declaration and omit some details (s 14(2)).\n- Confirms the Commissioner may require additional content in approved forms via existing taxation administration powers (s 15).\n\nWho it affects\n\n- Primary: people with HELP/HECS‑style higher education debts who live overseas or spend time overseas and therefore must have their \"assessed worldwide income\" determined under HESA (the Guidelines implement s 154‑17 and the notice rules in s 154‑18 of HESA).\n- Secondary: the Commissioner (administrator), foreign taxation authorities (when relying on their assessments), and the Australian Taxation Office to the extent ATO occupation codes are used.\n\nWhy it matters (practical effect)\n\n- Determines how much of a person’s foreign income is counted toward repayment thresholds for HELP‑style debts, which directly affects whether and how much they must repay while overseas (see ss 5–9).\n- Gives the debtor control to choose among three methods (subject to limits) (s 6), so selection affects measured income and therefore repayment liability.\n\nCosts, incentives, trade‑offs and implementation issues (concrete mechanisms)\n\n- Who pays: the person with the overseas HELP debt pays any required repayments; the Guidelines change how the amount of foreign income (the taxable base for repayment thresholds) is calculated (ss 5–10).\n- Who decides: the debtor chooses the method in the income notice to the Commissioner (s 6(2)); if no method is chosen, the simple self‑assessment method applies by default (s 6(3)).\n- Incentives and potential strategic behaviour: because the person chooses the method, debtors may select the approach that produces the lowest reported foreign‑sourced income. The simple method can reduce reporting complexity but may over‑ or under‑state allowable deductions; the overseas assessed method imports a foreign tax authority’s 12‑month assessment, which could be lower or higher depending on foreign rules and exchange rates (s 8); the comprehensive method allows a full tax‑style deduction set but requires applying Australian tax deduction rules to foreign income (s 9).\n- Verification and administrative burden: reliance on foreign tax assessments (s 8) and use of ATO occupation median ratios (s 7(2)) create verification and matching tasks for the Commissioner. Foreign assessments may not align in period or content with Australian income years (s 8(2)(a)–(c)); the Guidelines limit which foreign assessments can be used to manage that risk.\n- Measurement and exchange‑rate risk: translation uses a financial‑year average exchange rate (s 10), so timing and currency volatility can materially affect converted amounts.\n- Compliance costs for individuals: notices must include personal details, occupation, income and method, and a foreign tax identification number if the overseas assessed method is used (ss 12–14). There is a limited small‑income shortcut (s 14(2)).\n- Dependence on third‑party data sources: the standard deduction depends on the ATO Salary and wage occupation codes (defined at r 4 and applied at r 7(2)), so changes to ATO data sources can affect outcomes.\n\nNet operational effect (section pointers)\n\n- Gives debtors choice over methodology (s 6), but constrains some choices to prevent double‑counting or incompatible foreign assessment periods (s 8).\n- Implements straightforward procedural rules for notices and evidence, while leaving some administrative detail to the Commissioner’s form powers (s 15)."}},"importantCases":[],"_links":{"self":"/api/acts/overseas-debtors-repayment-guidelines-2017","history":"/api/acts/overseas-debtors-repayment-guidelines-2017/history","analysis":"/api/acts/overseas-debtors-repayment-guidelines-2017/analysis","conflicts":"/api/acts/overseas-debtors-repayment-guidelines-2017/conflicts","importantCases":"/api/acts/overseas-debtors-repayment-guidelines-2017/important-cases","documents":"/api/acts/overseas-debtors-repayment-guidelines-2017/documents"}}