Repaying from Australia
Moving to Australia is a popular choice for UK graduates. Here is how your student loan repayments work when you are earning Australian Dollars (AUD).
Band Classification & Thresholds
Australia is typically classified in Band F or Band G by the Student Loans Company, reflecting its relatively high cost of living.
This means your repayment threshold will be similar to, or slightly higher than, the UK threshold.
- Plan 2 Example: If the UK threshold is approx £27,295, the Australian threshold might be around £28,000 - £34,000 equivalent (depending on the specific Price Level Index for the year).
- Currency Fluctuations: SLC sets the exchange rate once a year (usually in April). If the GBP weakens against the AUD, your Australian salary will be worth more in Pounds, potentially pushing you further over the repayment threshold.
How to Pay
You cannot usually pay via the Australian tax system (ATO). You must pay SLC directly.
Payment Methods
- International Payment Services: SLC partners with services like Flywire or Convera. You pay in AUD, and they convert and send GBP to SLC. This is often the easiest method.
- Direct Debit (UK Bank): If you still have a UK bank account, you can maintain a Direct Debit. You would need to transfer your AUD earnings to your UK account (using a service like Wise or Revolut) to cover the monthly bill.
✅Tax Year Differences
The Australian tax year runs from July 1st to June 30th, whereas the UK tax year is April to April.
When SLC asks for evidence (usually annually), they may ask for your most recent payslips (e.g., the last 3 months) rather than a full tax return if the dates don't align. Be prepared to provide your most recent cumulative payslip.
What if I don't pay?
If you ignore SLC's requests for information, they will apply a Fixed Monthly Repayment for Band F/G, which is significant (often £200-£400+ per month depending on your plan).
Australia and the UK have data-sharing agreements. While SLC might not automatically see your ATO data, it is risky to assume you can "disappear" down under.