Do you have to repay HECS-HELP debt if you leave Australia?

Thinking of heading overseas? You may be wondering what happens to your student loans. Even while living abroad you’re still on the hook for your HECS-HELP debt. In fact, because of indexation , your debt keeps growing. 

So, if you're planning to leave Australia for more than six months it’s helpful you stay informed on your repayment obligations, including options like International Money Transfers, to ensure you're managing your HECS debt, no matter where you are in the world.

Essential information:

Managing your HECS debt starts before you even leave Australia. If you’re planning to live overseas for more than 183 days (about six months), you need to let the ATO know within seven days of leaving. You’ll also have to report all your income while you're abroad, even if you're not working the whole time.

Follow the steps below to determine what you owe at the end of the financial year.

Step 1: Fire up your myGov account

Having a myGov  account when you're overseas is essential when you are paying off a HECS-HELP loan from outside of Australia. It not only connects you directly to the ATO, but it also puts other government services like Centrelink, Medicare, and My Health Record in one convenient place so you can access them while you’re abroad.

If you intend to switch from an Australian to a foreign mobile phone number, the ATO recommends that you deactivate the security code feature connected with your account. This way you’ll be able to log in from abroad without having to retrieve a code from your old number. Alternatively, if you are holding on to your Aussie SIM, it may be worth keeping this feature for extra security.

But don’t worry if you haven’t got an account and you're already overseas, because you can still create a myGov account online as long as you provide all your relevant details, like your Australian Tax File Number.

Step 2: Tell the tax office that you are moving overseas

Nowadays, student debt follows working travellers wherever they go, so in the same way you would tell your bank before you travel, you must now contact the tax office if you are planning to leave Australia for more than 183 days and have a HECS-HELP debt.

This is more than just a quick heads-up message, however: you must complete an overseas travel notification either online or through a registered tax agent.

You will be required to provide: 

• a copy of your current Australian passport
• your travel plan details like your expected country of residence
• your departure/return dates.

If you use a tax agent, you must update all your relevant details both on myGov and with ATO online services . If you notify the ATO online, you only need to update your details on ATO online services, not on your myGov account.

If you are currently working overseas with HECS-HELP debt and have not yet told the ATO, contact them immediately. 

Step 3: Declare your worldwide income

‘Worldwide income’ is a combination of any Australian income and any foreign-sourced income you receive while you reside outside of the country.

To work out if you need to lodge a tax return you can use the ATO’s Do I need to lodge? tool. If the answer's yes, you can go straight to myTax to complete your return online.

Earn under $12,887 - File a non-lodgement advice

If you earn less than 25% of the minimum repayment threshold, which is $12,887 AUD for the 2024-25 financial year, simply log into myGov and follow the prompts to let the tax office know you won't be lodging a tax return in the current financial year.

Earn between $12,887.25 and $54,435 - Report income but don’t make repayments

For expats that make more than $12,887, it’s compulsory to report worldwide income to the ATO before 31 October of the following Australian financial year. While you are required to file a report on your overseas income, if you make less than $54,435 AUD you are still below the repayment threshold, so no overseas levy will be raised.

Income $54,435 and over - Report income and make repayments

If you do earn over the repayment threshold you will have to start paying your HECS-HELP loan in the form of compulsory repayments or an overseas levy. The repayment rates  vary depending on how much income you earn.

All compulsory HECS-HELP payments from overseas are made through your tax return which can be lodged from 1 July through myGov. Be aware that if you don’t lodge your tax return or make your compulsory HECS-HELP payments by October 31st, you can face fines up to $3,600.

The minimum repayment threshold will change from $54,435 in 2024-25 to $67,000 in 2025-26.

Step 4: Make your repayments from overseas

If you are required to pay the overseas levy or you decide to make voluntary repayments on your HECS-HELP loan you have a few different options but bear in mind that the ATO will only accept payments in Australian dollars.

One of the biggest traps that expats fall into is making a standard bank transfer from overseas, potentially incurring unwanted fees and higher than necessary exchange rates. If you’ve got to make repayments you’ll want to ensure that you get the best exchange rate at the lowest cost possible.

With a specialist international money transfer provider, you can set up an account, choose the currency, date of transfer and set up repayments in AUD to go directly to the ATO account with your payment reference. 

To compare exchange rates being offered by specialist IMT providers, check out our exchange rate table below or jump over to our international money transfers hub for even more options from IMT specialists and banks.

Managing your HECS-HELP debt from overseas doesn’t have to be complicated if you have a plan:

• Set reminders. Mark key dates on your digital calendar, such as when to report income and when repayments are due.
• Use MyGov and ATO apps. These apps help keep all your financial obligations in one place, making it easier to manage payments and reports from anywhere in the world.
• Set up automatic transfers. If possible, automate your repayments through a trusted international money transfer service to avoid missing deadlines or incurring late fees.
• Build savings. If possible, put away cash to earn interest so that you can more easily pay off your debts when required and have the option to make voluntary repayments to reduce your debt.