Your HELP debt and moving overseas

Until recently, if you lived overseas you didn’t have to repay your HELP debt. Changes in legislation could unexpectedly impact you if you have a HELP debt and are looking at moving overseas or are currently living overseas.

What are the changes?

From 1 July 2017, moving or living overseas will not remove your HELP debt repayment obligations. Put simply, the ATO will require repayments (known as an “overseas levy”) to be made and you will need to report your foreign income to the ATO each year.

Anyone intending to go overseas for six months or more whether for a holiday, study or work, has an obligation to notify the ATO. The six months is cumulative and does not have to be all at the same time – it is 183 days or more in any 12 month period.

The threshold for HELP repayments to start is A$55,876 for the 2017-18 income year. If you earn above this amount, you will need to make an overseas levy repayment.

You can notify the ATO through the ATO's online services via your myGov account. You will need to link your account to the ATO online services so you can update your overseas contact details.

If you continue to be an Australian resident for tax purposes whilst overseas, you need to lodge an Australian income tax return as usual. Any HELP repayments required will be determined as part of the return.

How to meet your reporting obligations and repay your HELP debt from overseas

1. For the year ended 30 June 2017 and onwards, taxpayers with a HELP or TSL debt are required to declare to the ATO their worldwide income regardless of their Australian tax residency status.
2. This can be done either by utilising the ATO’s online myGov services (by 31 October each year) or by engaging the services of an Australian tax agent.
3. If your income exceeds the threshold, the ATO will issue you with an “overseas levy” notice.
4. If you already live overseas and have a HELP debt you should notify the ATO as soon as possible. You should also self-assess your worldwide income for each tax year from 1 July 2017 and submit this via MyGov.

Penalties can apply for those who continue to avoid the recovery program. If you don’t disclose your income information, the ATO can issue fines up to $3,600 when you return to Australia.