HELP Repayments and Overseas Obligations: What’s Changing for 2026

The Australian Government has made significant changes to the HELP (HECS) repayment system from the 2025–26 income year. These changes will flow through to 2026 tax returns and apply equally to Australians living overseas.

For expats and globally mobile clients, this is one of the more meaningful shifts in recent years. While the headline messaging is that repayments are becoming fairer, the practical impact depends heavily on income levels and residency position.

A higher repayment threshold

The first key change is the increase in the minimum repayment threshold.

From the 2025–26 income year, compulsory HELP repayments generally do not begin until repayment income exceeds $67,000.

This is a material increase from prior years and means many lower and middle income earners will see reduced compulsory repayments, or no repayment obligation at all.

For Australians overseas, the same threshold applies based on worldwide income, not just Australian-sourced income.

A shift to marginal repayment rates

The second major change is how repayments are calculated.

Previously, HELP repayments were calculated as a flat percentage of total repayment income once a threshold was exceeded. This often created a cliff effect where a relatively small increase in income could trigger a significantly larger repayment.

From 2025–26 onwards, the system moves to a marginal repayment model.

This means:

no repayment applies on the first $67,000 of repayment income
repayment rates only apply progressively to income above the thresholds
most taxpayers will see smoother and often lower repayment outcomes

For many individuals in the middle-income range, the new system is expected to reduce compulsory repayment amounts compared to prior years.

A 20% reduction in HELP balances

Separately, the Government has implemented a one-off 20% reduction to HELP and other student loan balances.

This reduction applies automatically to debts that existed as at 1 June 2025.

For many taxpayers, this will have a meaningful long-term impact by:

reducing future indexation
shortening repayment periods
lowering total lifetime repayments

In practice, for some individuals this debt reduction may have a greater financial impact than the repayment threshold changes themselves.

New overseas travel notification requirements

One of the less publicised but important developments is the increased focus on overseas compliance.

If you have a HELP debt and intend to leave Australia for more than 6 months, you are required to notify the ATO of your overseas travel. This is generally completed through your myGov account.

Importantly, this notification requirement applies regardless of whether:

you expect to earn above the repayment threshold, or
you believe you will remain an Australian tax resident

While Australians overseas have long been required to report worldwide income for HELP purposes, the ATO is now placing greater emphasis on upfront travel notification and ongoing overseas reporting obligations.

This gives the ATO significantly greater visibility over individuals departing Australia for extended periods.

HELP obligations continue even if you are a non-resident

A common misconception is that becoming a non-resident for Australian tax purposes removes HELP repayment obligations.

This is not the case.

If you:

have a HELP debt, and
are overseas for more than 6 months

you generally still need to:

notify the ATO of your overseas travel
report your worldwide income annually
make compulsory repayments where your worldwide income exceeds the repayment threshold

This applies even where:

your foreign employment income is not taxable in Australia, or
you would not otherwise need to lodge an Australian tax return

In other words, HELP operates under a separate framework to ordinary Australian income tax residency rules.

Example: Australian living overseas with a HELP debt

Consider the following example.

Sarah:

moved to the United States in August 2025
has a remaining HELP debt of $38,000
earns the equivalent of AUD $140,000 working overseas
is a non-resident of Australia for tax purposes

Despite being a non-resident, Sarah is still required to:

notify the ATO that she has moved overseas
report her worldwide income annually
calculate any compulsory HELP repayment based on her global income

Her US salary is included in determining her HELP repayment obligation, even though that income may not otherwise be taxable in Australia.

Under the new system:

the first $67,000 of repayment income does not trigger repayment
repayment rates apply progressively above the thresholds
the repayment outcome is generally smoother than under the prior rules

Foreign currency and global income considerations

For expats, foreign currency translation can also become important.

Foreign income must generally be translated into Australian dollars for HELP reporting purposes. Exchange rate movements alone may affect:

whether the repayment threshold is exceeded
which repayment bracket applies
the size of the compulsory repayment

This is particularly relevant for Australians earning foreign currency salaries, bonuses or equity-based compensation packages.

Increased ATO visibility

Historically, some Australians living overseas were simply unaware of their ongoing HELP reporting obligations.

However, the combination of:

overseas travel notification requirements
increased international data sharing
improved ATO data matching capabilities

means the ATO now has significantly greater visibility over Australians living and working overseas.

As a result, we expect the ATO to continue focusing on overseas HELP compliance moving forward.

Final thoughts

The 2026 HELP changes are broadly favourable for many taxpayers. Higher thresholds and marginal repayment rates reduce the burden on lower and middle income earners, while the 20% debt reduction provides immediate relief for many Australians with outstanding student debt.

For expats, however, the core principle remains unchanged. HELP obligations continue to apply based on worldwide income, even where an individual is a non-resident for Australian tax purposes.

What has changed is the level of visibility and compliance focus.

Australians moving overseas should ensure they understand:

their reporting obligations
how worldwide income is calculated
the interaction between foreign income and HELP repayments
the requirement to notify the ATO before extended overseas travel

Failing to address these issues early can create unexpected liabilities and compliance problems later on.

Contact Us

If managing your financial affairs across borders is starting to feel overwhelming, you’re definitely not alone. It’s a complex space, and having the right support can make all the difference. At Atlas Wealth Group, we specialise in supporting Australian expats with cross-border tax planning, superannuation, and wealth management. Contact us to arrange a consultation with a qualified adviser who specialises in Australian expat financial planning to get personalised guidance tailored to your circumstances.

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Disclaimer: This article is intended for informational purposes only and does not constitute legal or financial advice. Individuals should consult licensed professionals when seeking guidance regarding their financial circumstances.