Moving overseas does not leave your HECS-HELP debt behind. Since 2017, Australians living abroad with a study or training loan must report their worldwide income to the ATO every year and make compulsory repayments when that income clears the threshold — just as they would at home. Many expats discover this years too late, after penalties and a lump-sum overseas levy have accumulated. Here is exactly what you must do, when, and how much you will repay.
To estimate your repayment at any income level, use the HECS calculator.
The core rule: the debt travels with you
Your HELP debt — HECS-HELP, FEE-HELP, VET Student Loans and Australian Apprenticeship Support Loans are all covered — is not cancelled, frozen or paused when you leave Australia. Indexation continues to apply each 1 June, and your repayment obligation is based on your worldwide income, converted to Australian dollars, wherever in the world it is earned. A salary in London, Singapore or Dubai counts the same as a salary in Sydney.
Two reforms have made the system fairer since 2025. First, every HELP balance held on 1 June 2025 received an automatic one-off 20% reduction. Second, compulsory repayments moved to a marginal system: you now repay a percentage of the income above the threshold, not a percentage of your whole income. The old cliff, where one extra dollar over the threshold triggered a repayment on everything you earned, is gone.
Step 1: tell the ATO within 7 days of leaving
Before you go — or within 7 days of departing — you must lodge an overseas travel notification with the ATO, through ATO Online Services via myGov. This tells the ATO you are leaving, where you are going, and that you will be reporting from overseas. You should also update your contact details and make sure your myGov account stays accessible from abroad, since almost all expat reporting happens online.
If you have already left without notifying, lodge the notification as soon as possible. The ATO can apply penalties for failing to report, and a missing notification is the easiest compliance failure to fix.
Step 2: report your worldwide income every year by 31 October
Each year you live overseas with a study loan, you must report your worldwide income for the previous Australian financial year (1 July to 30 June) by 31 October. There are two thresholds to understand, and they do different jobs:
| Threshold (2025–26) | Amount | What it means |
|---|---|---|
| Reporting threshold | $16,750 | 25% of the repayment threshold. Above this, you must lodge a full worldwide income report. |
| Repayment threshold | $67,000 | Above this, compulsory repayments begin, calculated marginally. |
If your worldwide income is below $16,750, you do not file the full report — but you cannot simply do nothing. You must lodge a non-lodgment advice telling the ATO no report is required. The gap between the two thresholds catches many expats: earning between $16,750 and $67,000 means you must report even though you owe no repayment.
How the repayment is calculated
For 2025–26, compulsory repayments use these marginal rates on your repayment income (your worldwide income in Australian dollars, with some adjustments):
| Repayment income (2025–26) | Compulsory repayment |
|---|---|
| Up to $67,000 | Nil |
| $67,001 – $125,000 | 15c for each $1 over $67,000 |
| $125,001 – $179,285 | $8,700 plus 17c for each $1 over $125,000 |
| $179,286 and over | 10% of total repayment income |
Worked example: an expat in Singapore earns the equivalent of AUD $95,000 in worldwide income. The repayment is 15% of the $28,000 above the $67,000 threshold — $4,200 for the year. Under the old pre-2025 system, a repayment rate applied to the entire $95,000 would have cost far more. The ATO calculates the amount from your report and issues an assessment; for non-residents it is charged as an overseas levy, payable as a lump sum by the due date on the notice.
The three ways to calculate worldwide income
The ATO lets you choose one of three methods each year, and you can switch methods from year to year:
- Simplified self-assessment: you report your gross foreign income and apply a standard deduction based on your occupation. This is the simplest option for most employees abroad.
- Overseas assessed method: you use the income figure from your foreign tax assessment, converted to Australian dollars. Useful if your host country has already assessed you.
- Comprehensive tax-based assessment: you work out your income under Australian tax principles, including deductions you would claim in Australia. More work, but it can produce a lower figure if you have significant deductible expenses.
Whichever method you choose, convert foreign currency amounts to Australian dollars using a reasonable exchange rate for the period, and keep your foreign payslips, tax assessments and employment contracts. The ATO can ask for evidence, and currency conversion is the most common source of errors.
What counts as worldwide income
Worldwide income means all of your income from every source, anywhere in the world, for the Australian financial year. That includes your foreign salary and wages, bonuses and commissions, rental income from properties abroad, investment and dividend income, and any Australian income you still receive, such as bank interest or rent from an Australian property. Capital gains are generally not counted unless they form part of the method you choose, and the simplified self-assessment method applies a standard deduction by occupation to your gross foreign income, which reduces the assessable figure without you having to itemise expenses.
Converting foreign income to Australian dollars is where errors creep in. Use a consistent, reasonable rate — the ATO accepts an average rate for the year or the rate on the day income was received, provided you apply it consistently and keep your working. If your host country taxes you at source, that foreign tax does not reduce your worldwide income figure for loan purposes; the repayment is calculated on the gross income, not on what remains after foreign tax. This surprises expats in high-tax countries, so budget for the overseas levy on top of your local tax bill, not instead of it.
Indexation, voluntary repayments and returning home
Indexation continues while you are overseas. Each 1 June, your balance is indexed at the lower of CPI or the Wage Price Index, so the debt grows in real terms only as fast as wages. Making voluntary repayments at any time — through ATO Online Services or BPAY — reduces the balance that indexation applies to, and voluntary repayments do not reduce your compulsory repayment for the year.
Returning to Australia restores the normal system: your employer withholds additional amounts from your pay toward the loan once you declare the debt on your tax file number declaration, and your annual tax return reconciles the position. Your overseas reporting obligation ends when you are no longer living abroad, but any outstanding overseas levy remains payable.
Penalties apply for failing to notify the ATO of your departure or failing to report your worldwide income. Beyond fines, unreported years can be assessed later with interest, and an unpaid overseas levy can follow you — the ATO can pursue debts through international arrangements and can affect your tax position on return.
Frequently asked questions
Does my HECS debt disappear if I move overseas permanently?
No. There is no expiry, waiver or write-off for moving abroad. The debt remains, indexation continues, and repayments are based on your worldwide income for as long as you hold the loan.
What if I earn below the reporting threshold overseas?
You must still lodge a non-lodgment advice each year, confirming no report is required. Doing nothing is itself a compliance failure.
Do I pay tax in Australia on my overseas salary?
Generally no, if you are a non-resident for tax purposes — but your worldwide income is still used to calculate your study loan repayment. Residency for tax purposes and residency for loan purposes are separate questions; being a non-resident for tax does not exempt you from loan reporting.
How is the overseas levy paid?
After you lodge your worldwide income report, the ATO issues an assessment and the amount is payable as a lump sum by the due date. You can also make voluntary repayments during the year to reduce the balance.
Does the 20% reduction apply if I was already overseas?
Yes. The reduction applied automatically to every eligible HELP balance held on 1 June 2025, regardless of where the borrower lived. Check your balance in ATO Online Services to confirm it was applied.
What if I move overseas mid-year?
Your obligations split by period: income earned while in Australia is dealt with through your Australian tax return, and from departure you fall under the overseas reporting system. Lodge the travel notification within 7 days of leaving and keep records for both periods.
Conclusion
The expat HECS rules are simple once you know them, and expensive if you don’t: notify the ATO within 7 days of leaving, report your worldwide income by 31 October each year (or lodge a non-lodgment advice if you are under $16,750), and repay marginally once your income clears $67,000. Set a recurring reminder for October, keep your foreign income records, and check your balance in ATO Online Services at least once a year. To estimate what you will owe at your income level, run the figures through the HECS calculator.