HECS-HELP Overseas — What Happens to Your Debt?

Updated

If you have a HECS-HELP (or other HELP) debt and you move overseas, you are still required to make compulsory repayments if your worldwide income exceeds the repayment threshold. The ATO introduced the overseas repayment framework in 2017 to close the loophole where Australians living abroad effectively avoided HECS repayments indefinitely.

The Overseas HECS Repayment Rules

From 1 January 2016 (with compulsory repayments applying from 1 July 2017), Australians with HELP debts living overseas must:

  1. Register with the ATO within 28 days of moving overseas (if you expect to be outside Australia for 183+ days in a 12-month period)
  2. Submit a worldwide income statement to the ATO each year
  3. Make a compulsory repayment if your worldwide income exceeds the minimum threshold

The repayment works the same way as in Australia — the same thresholds and rates apply — but because you are not earning Australian wages through PAYG, you must report your income and pay the amount directly to the ATO.

Who Is Affected?

The overseas repayment rules apply if:

  • You have a HECS-HELP, FEE-HELP, VET Student Loan, SA-HELP, or OS-HELP debt
  • You will be outside Australia for 183 days or more in a 12-month period
  • Your worldwide income exceeds the repayment threshold ($54,435 for FY2025–26)

Income includes all employment income, self-employment income, investment income, and rental income — regardless of where it is earned or which country it is received in.

How to Register and Report

Step 1 — Register as an Overseas Repayer

Within 28 days of becoming an overseas repayer (living outside Australia for 183+ days):

  1. Log in to myGov / ATO online services
  2. Navigate to Manage → Overseas repayers
  3. Register your overseas address and expected income

Step 2 — Annual Worldwide Income Statement

Each year (by 31 October, similar to the Australian tax lodgement deadline), submit a worldwide income statement to the ATO. You will need to:

  • Declare your total worldwide income in AUD
  • Convert all foreign income using the RBA exchange rate for the relevant dates

Step 3 — Pay the Compulsory Repayment

The ATO calculates the compulsory repayment based on your worldwide income. You pay this directly to the ATO via BPAY or the ATO’s online services.

Currency Conversion

All income must be reported in AUD. Use the RBA’s historical exchange rates (rba.gov.au) to convert foreign currency income.

Indexation Still Applies

While you are overseas, indexation still applies on 1 June each year to your outstanding HECS balance. Your debt does not pause during your time abroad.

What Happens If You Don’t Register or Report?

Failure to register as an overseas repayer or submit a worldwide income statement can result in:

  • ATO penalties and interest
  • An estimated assessment based on available information
  • Recovery action when you return to Australia (including through tax returns lodged on return)

The ATO uses data matching and international information-sharing to identify Australians with HELP debts living overseas.

Returning to Australia

When you return to Australia and resume earning Australian income through PAYG, the standard withholding system resumes. You should notify your employer of your HECS debt on your TFN declaration.

Frequently Asked Questions

Do I have to repay HECS if I live overseas? Yes, if your worldwide income exceeds the repayment threshold. Since 2017, Australians living abroad must register as overseas HECS repayers and submit an annual worldwide income statement.

Does my HECS debt grow while I’m overseas? Yes. Indexation is applied to your balance on 1 June each year regardless of where you live. The debt does not pause during time overseas.

What if I worked overseas before 2017? The overseas repayment obligations apply from 1 July 2017 onwards. Income earned before that date is not retroactively assessed under the overseas framework, but indexation continued to apply throughout.

This article provides general information about HECS-HELP overseas obligations. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.