HELP debt when leaving Australia: overseas repayment rules explained

How the overseas repayment obligation works

Since 1 January 2017, Australian residents with HELP, VSL, SFSS, SSL, ABSTUDY SSL, or TSL debts who live overseas are required to lodge an overseas HELP repayment assessment with the ATO if their worldwide income exceeds the minimum repayment threshold (ATO).

The system works as follows. When you move overseas, you must notify the ATO of your overseas contact address within 28 days of departure. Each year, you must assess your worldwide income (from all countries, all sources) against the HELP repayment threshold. If your worldwide income exceeds the threshold, you must lodge an overseas HELP repayment assessment and pay the required amount.

The repayment threshold and rates are the same as for Australian residents — currently, the minimum threshold is approximately AUD 54,435 (for the 2024-25 financial year, with rates adjusted annually). Above the threshold, the repayment rate is 1% of your repayment income, increasing progressively to 10% at higher income levels (ATO).

Your worldwide income is converted to Australian dollars using the average exchange rate for the financial year published by the ATO.

Who is affected

The overseas repayment obligation applies to Australian citizens and former permanent residents with an outstanding HELP debt who leave Australia. It also applies to former temporary visa holders who accumulated a HELP debt while studying in Australia and then leave — though in practice, most temporary visa holders who studied at Australian universities paid full international student fees and did not access the HELP loan scheme.

The main group affected is Australian citizens and permanent residents who studied under HELP, moved overseas for work, and still have an outstanding balance. However, some permanent residents who subsequently leave Australia (whether returning to their home country or moving to a third country) may also be affected if they incurred HELP debt during their time in Australia.

How to lodge an overseas HELP repayment assessment

The ATO provides an online system for lodging the overseas assessment. You log into ATO online services through myGov and navigate to the overseas HELP repayment section. You then report your worldwide income for the Australian financial year (1 July to 30 June), converting all foreign income to AUD at the applicable exchange rate.

Supporting evidence may include foreign tax returns, payslips, bank statements, or employer certificates confirming your income. The ATO may request this evidence if it queries your declared income.

If your worldwide income exceeds the threshold, the system calculates the compulsory repayment amount. You then pay this amount to the ATO. Payments can be made through the ATO's standard payment channels.

The deadline for lodging the overseas assessment and making the repayment is generally aligned with the Australian tax return lodgement deadline — 31 October of the following year, or later if you use a registered tax agent.

What happens if you do not comply

Failing to notify the ATO of your overseas address, failing to lodge an overseas HELP repayment assessment, or failing to make the required repayment can result in penalties. The ATO can impose a failure-to-lodge penalty for each 28-day period the assessment is overdue, up to a maximum amount. Interest charges may apply on overdue repayments. The ATO can also use information-sharing agreements with foreign tax authorities to identify non-compliant debtors.

The government has limited enforcement mechanisms overseas — the ATO cannot garnish wages in a foreign country — but the debt remains on your record and any future interaction with the Australian tax system (including if you return to Australia) will trigger enforcement.

If you return to Australia with unpaid overseas HELP repayments, the amounts are added to your HELP balance and compulsory repayments resume through the domestic PAYG withholding system.

HELP debt and the DASP process

The DASP (Departing Australia Superannuation Payment) and HELP debt processes are separate. Your DASP payment is not automatically used to offset your HELP debt. However, if you receive a substantial DASP payment, you could voluntarily use part of it to make a lump-sum HELP repayment before or after departure.

Voluntary repayments reduce your outstanding HELP balance. Unlike in previous years, there is currently no discount for voluntary repayments — the government removed the voluntary repayment discount in 2017.

Can you avoid the repayment obligation?

The overseas repayment obligation is a legal requirement. You cannot opt out of it by choosing not to lodge, by not providing your overseas address, or by leaving Australia without notifying the ATO.

The obligation ceases only when your HELP debt is fully repaid, whether through compulsory repayments, voluntary payments, or a combination. The debt does not expire with time — there is no statute of limitations on HELP debt.

If your worldwide income is consistently below the repayment threshold, you have no repayment obligation in those years. The threshold is indexed annually and applies to your total worldwide income, not just Australian income.

Practical considerations for migrants leaving Australia

If you are a former permanent resident or citizen who studied under HELP and is moving overseas, check your HELP balance through myGov before departing. Notify the ATO of your overseas address within 28 days of leaving. Understand the repayment threshold and whether your expected overseas income will exceed it. Set reminders for the annual lodgement deadline. Consider making voluntary lump-sum repayments if you have the means, to reduce or eliminate the debt before departure.

If you are a temporary visa holder who did not access HELP (because you paid full fees or were not eligible for HELP), the overseas repayment obligation does not apply to you. HELP debt is only relevant if you actually received a HELP loan.

Does my HELP debt expire if I stay overseas long enough?

No. HELP debt does not have an expiry date or statute of limitations. It remains on your record until fully repaid, regardless of how long you are overseas.

Do I need to lodge an overseas assessment if my income is below the threshold?

If your worldwide income is below the repayment threshold, you do not have a compulsory repayment obligation for that year. However, the ATO recommends notifying them of your overseas status regardless. The requirement to lodge an assessment applies when your income exceeds the threshold.

Can I make voluntary repayments from overseas?

Yes. You can make voluntary HELP repayments at any time through the ATO's payment system. There is no minimum amount for voluntary repayments, though there is currently no discount for voluntary payments.

What exchange rate is used to calculate my worldwide income?

The ATO publishes average exchange rates for each financial year. You convert your foreign income to AUD using the applicable average rate for the year. If you received a lump sum at a specific date, the rate on that date may be more appropriate — the ATO provides guidance on which rate to use.

What if I become a citizen of another country and renounce Australian citizenship?

If you renounce Australian citizenship and are no longer an Australian resident, the overseas HELP repayment obligation may cease to apply — but the debt itself does not disappear. If you ever return to Australia or have future interactions with the Australian tax system, the outstanding balance remains. Consult the ATO directly for advice on your specific situation.