Student Loan Repayment Threshold for Australia (2026 Update)
Australia is classified as a Band G country. This means your repayment threshold is generally the same as the UK, but calculation methods differ.
Thousands of UK graduates move to Australia for the lifestyle, but many forget that the Student Loans Company (SLC) tracks you worldwide. Because Australia has a high cost of living, it sits in the highest repayment band.
1. Australia is "Band G" (Highest Tier)
The SLC adjusts thresholds based on the cost of living in your destination country using Price Level Indices (PLIs). Australia consistently ranks in Band G.
For Plan 2 borrowers in Band G, the threshold matches the UK threshold.
🇦🇺 Australia Thresholds (Apr 2026 Estimates)
*Note: Thresholds are set annually on April 6th. You repay 9% of earnings above these amounts.
2. How Repayment Works Down Under
Unlike in the UK, repayments are not deducted automatically from your Australian salary (PAYG). You must manage this manually:
- Step 1: Complete an Overseas Income Assessment Form online via your SLC account.
- Step 2: Provide evidence of your Australian income (payslips or contract).
- Step 3: The SLC calculates a monthly repayment amount in GBP.
- Step 4: You set up a direct debit or monthly transfer (e.g., using Wise or Revolut to save on fees).
3. The "Fixed Arrears" Trap
If you fail to send evidence of your income, the SLC will not assume you are unemployed. Instead, they will charge you a "Fixed Monthly Arrear" based on Band G, which is significantly higher than what most people would pay.
Current Band G Default Payment: Approximately £246 - £300 per month (depending on the plan).
Important Warning
Currency fluctuations affect you. The SLC sets the exchange rate (AUD to GBP) once a year. If the AUD weakens significantly against the GBP, your repayment burden in Australian Dollars will increase.