Who has to do what
The overseas rules cover HELP, VET Student Loans and Australian Apprenticeship Support Loans. If you plan to live and work overseas, the ATO says you must:
- update your contact details and submit an overseas travel notification within 7 days of leaving Australia, if you intend to (or already) reside overseas for 183 days or more in any 12 months, and
- lodge your worldwide income, or a non-lodgment advice.
The deadline to report for each Australian income year (1 July to 30 June) is 31 October. For the 2025-26 year that is 31 October 2026. You report through myTax in ATO online services (Tax, then Lodgments, then Report worldwide income) or through a registered tax agent. The same obligations apply whether you are still an Australian resident for tax or have become a foreign resident. The residency tests decide which tax status you have, but not whether the loan stays.
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What counts as worldwide income
The ATO defines worldwide income as your repayment income plus your non-resident foreign-sourced income. The ATO says repayment income includes taxable income, reportable fringe benefits, reportable super contributions and exempt foreign employment income, among other items. Foreign amounts are converted to Australian dollars using the average exchange rate for the income year, or the ATO's foreign income conversion calculator.
If your worldwide income is at or below 25% of the minimum repayment threshold, you lodge a non-lodgment advice instead of a full report. The ATO page quotes $16,750 for 2025-26. For 2026-27, 25% of the $69,528 minimum threshold works out to $17,382, and the ATO page is the place to confirm the figure it applies.
2026-27 and 2025-26 repayment thresholds
| Repayment income, 2026-27 | Repayment |
|---|---|
| $0 to $69,528 | Nil |
| $69,529 to $129,717 | 15c for each $1 over $69,528 |
| $129,718 to $186,050 | $9,028 plus 17c for each $1 over $129,717 |
| $186,051 and over | 10% of total repayment income |
| Repayment income, 2025-26 | Repayment |
|---|---|
| $0 to $67,000 | Nil |
| $67,001 to $125,000 | 15c for each $1 over $67,000 |
| $125,001 to $179,285 | $8,700 plus 17c for each $1 over $125,000 |
| $179,286 and over | 10% of total repayment income |
The ATO says that from 2025-26 the compulsory repayment is calculated on the income above the minimum threshold, with a range of rates by income band, instead of a single percentage of all income. The top band is the exception: 10% of total repayment income.
Worked examples for 2026-27
Assume worldwide income, already converted to Australian dollars, is the whole repayment income.
| Worldwide income | Working | Repayment |
|---|---|---|
| $60,000 | Below the $69,528 threshold | $0 |
| $100,000 | 15% x ($100,000 - $69,528) = 15% x $30,472 | $4,570.80 |
| $150,000 | $9,028 + 17% x ($150,000 - $129,717) = $9,028 + 17% x $20,283 = $9,028 + $3,448.11 | $12,476.11 |
| $200,000 | 10% x $200,000 | $20,000 |
The $100,000 case is about $381 a month ($4,570.80 / 12). The $150,000 case is about $1,040 a month. The ATO also has a study and training loan repayment calculator.
Repayments, indexation and the 20% reduction
The ATO says repayments can be a compulsory repayment or an overseas levy, depending on how your worldwide income is made up. You can still make voluntary repayments while overseas. Indexation is applied each year on 1 June to loan amounts more than 11 months old, using the lower of the consumer price index and the wage price index. The ATO says it has completed the 20% reduction for debts that existed on 1 June 2025.
How a HELP debt can affect a home loan
The ATO does not set how banks treat HELP debts. One lender's published guide (Unloan, a division of Commonwealth Bank) says most lenders take HELP debt into account when working out borrowing power, treat it differently from other debt because repayments are taken automatically from wages, and says it does not appear on a credit report. It says repayments are factored into serviceability calculations. That is one lender's description, and lenders differ.
For someone living overseas, the ATO works the repayment out from worldwide income. How a particular lender counts a HELP debt for a borrower paid overseas is for that lender to say. Questions to ask a mortgage broker and foreign income and home loans cover the wider conversation, and how lenders assess foreign income goes further.
Keep reading
- Tax for Australian expats: what the ATO expects while you live overseas
- Australian tax residency tests explained: are you a resident or a foreign resident?
- How lenders assess foreign income for an Australian home loan
- Moving overseas with an Australian mortgage: what to tell your lender
- Do Australian expats pay the foreign buyer stamp duty and land tax surcharges?
- Double tax agreements and Australian property: how treaties treat rent and sale gains
Frequently asked questions
Do I still have to repay my HELP debt if I live overseas?
Yes. The ATO says people with HELP, VET Student Loan or Australian Apprenticeship Support Loan debts must meet overseas obligations, whether or not they remain Australian tax residents. If worldwide income is above the minimum repayment threshold, a repayment is required.
When do I tell the ATO I am leaving?
Within 7 days of leaving Australia, if you intend to live overseas for 183 days or more in any 12 months. The ATO says you also update your contact details. If you are already living overseas, you can still submit the overseas travel notification.
What happens if I do not report my income?
The ATO page does not list specific penalties. It says that lodging on time avoids a late lodgment penalty, and that the loan keeps being indexed and may grow if no repayments are made. A registered tax agent can explain a particular case.
Is the overseas repayment calculated on my Australian income only?
No. It is worked out on worldwide income, which the ATO defines as repayment income plus non-resident foreign-sourced income. Foreign amounts are converted to Australian dollars using the average exchange rate for the income year, or the ATO's foreign income conversion calculator, and the result is compared with the minimum repayment threshold.
Does a HELP debt affect a home loan application?
One lender's published guide says it affects borrowing power because the repayments are counted in serviceability. The ATO does not set how lenders treat it, and treatment varies between lenders. Ask the lender or a licensed broker how they count it, particularly if your income is paid in a foreign currency or from overseas.
Sources
- Overseas obligations when repaying loans, Australian Taxation Office
- Study and training loan repayment thresholds and rates, Australian Taxation Office
- Study and training support loans (whole section), Australian Taxation Office
- Living overseas and remaining an Australian tax resident, Australian Taxation Office
- How your HECS debt affects your home loan, Unloan (lender guide)
Checked 7 October 2026.
Expat Finance is an independent guide. It is not a lender, mortgage broker or credit provider, it does not hold an Australian credit licence, and it does not give credit, legal, tax or migration advice. It is not affiliated with any bank, the ATO or the Foreign Investment Review Board. General information only, not legal, tax, migration or financial advice.