Centrelink While Studying 2026: Youth Allowance vs Austudy vs ABSTUDY

Centrelink offers three main payments for full-time students, and the one you should apply for depends on your age, background, and circumstances. Here's the simplest way to work it out: **Are you of Aboriginal or Torres Strait Islander descent?** If yes → apply for ABSTUDY.

What actually happens: ABSTUDY generally offers the same rates as Youth Allowance or Austudy, but includes additional benefits like away-from-home allowances, travel assistance, and school fees assistance. You can receive ABSTUDY at any age. **Are you under 25?** If yes → apply for Youth Allowance (student). Youth Allowance is for full-time students aged 16 to 24 (you must apply before turning 25, but can continue receiving it until you finish your course or turn 25, whichever comes first). **Are you 25 or over?** If yes → apply for Austudy.

Austudy is for full-time students aged 25 and over. There's no upper age limit. The rates for Youth Allowance and Austudy are very similar, and both are subject to similar income and assets tests. The main difference is that Youth Allowance for under-22s may be subject to the parental income test (unless you're classified as independent), while Austudy is never subject to a parental income test because you're over 25. Worth double-checking.

If you're under 22 and applying for Youth Allowance as a student, your parents' income and assets are normally taken into account. This can significantly reduce or eliminate your payment if your parents earn a combined income above approximately $58,108 per year. However, you can be classified as "independent" — which means your parents' income is not considered — if you meet any of these criteria: **Age-based independence:** - You're 22 or older (automatic independence for Youth Allowance) **Workforce independence:** - You've earned at least $32,400 (approximately — check current threshold) in an 18-month period through employment. This can include multiple jobs and doesn't need to be continuous. **Relationship-based independence:** - You're (or have been) married or in a registered relationship - You've a dependent child **Other independence grounds:** - You've been in state care (foster care or similar) at any time - Your parents can't exercise their responsibilities (e.g., they're deceased, missing, in prison, or have a serious medical condition) - You've been self-supporting for at least 14 months since leaving school - You're a refugee who arrived in Australia without a parent - You live in an area classified as unreasonable to live at home If you're close to the $32,400 workforce independence threshold, it may be worth working a few extra months before applying for Youth Allowance. Once you're classified as independent, the parental income test no longer applies, and your payment is based solely on your own income and assets.

If you're under 22 and not classified as independent, your Youth Allowance is affected by your parents' combined income and assets. **Parental income test:** - Parental income free area: approximately $58,108 per year (combined parental income). Below this, there's no reduction to your Youth Allowance. - For each dollar of parental income above the free area, your payment reduces by 20 cents for one student child, or the reduction is spread across multiple student children. - If your parents have other dependent children, the free area increases by approximately $5,000 per additional child. **Parental assets test:** - If your parents' combined assets (excluding the family home) exceed the assets threshold, your Youth Allowance may be reduced or eliminated. **Family pool:** If you've siblings also receiving Youth Allowance, the parental income reduction is shared among all of you.

This means each of you has a smaller individual reduction. The parental income test uses your parents' taxable income from the most recent tax year. If their income has dropped significantly since then (for example, due to redundancy or retirement), you can request a current income assessment to use their actual current income instead. IMPORTANT: the parental income test does NOT apply if you're 22 or over, or if you've been classified as independent. If you're 22 to 24, you receive Youth Allowance assessed only on your own income — your parents' finances are irrelevant.

Here's the thing. All rates below are per fortnight and include the Energy Supplement. Rates are current as of March 2026. **Youth Allowance (student) — under 18, living at home:** approximately $345.80/fn **Youth Allowance (student) — under 18, living away from home:** approximately $621.80/fn **Youth Allowance (student) — 18+, living at home:** approximately $415.50/fn **Youth Allowance (student) — 18+, living away from home:** approximately $621.80/fn **Austudy (25+) — single, no children:** approximately $621.80/fn **Austudy (25+) — single, with children:** approximately $672.40/fn **Austudy (25+) — partnered:** approximately $566.70/fn **ABSTUDY (Living Allowance):** ABSTUDY rates mirror Youth Allowance/Austudy rates depending on your age and circumstances, but may include additional components like School Fees Allowance, travel assistance, and away-from-home benefits. **Rent Assistance (on top of base rate):** If you pay rent and live away from home, you can receive Rent Assistance of up to $188.20 per fortnight for singles.

Rent Assistance is not payable if you live in a share house with a parent, even if you pay them rent. With maximum Rent Assistance, a single student living away from home could receive approximately $810 per fortnight ($621.80 + $188.20).

As of 1 January 2026, the income free area for student payments increased to $539 per fortnight. This means you can earn up to $539 per fortnight from part-time or casual work before your Youth Allowance, Austudy, or ABSTUDY starts to reduce. For every dollar you earn above $539 per fortnight, your payment reduces by 50 cents.

This means your payment cuts out entirely when your fortnightly income reaches approximately $1,783 per fortnight (depending on your exact rate and circumstances). The $539 income free area is considerably higher than it was a few years ago, reflecting government recognition that students need to work to survive. At $539 per fortnight, you could work approximately 25 to 30 hours per fortnight at a casual retail or hospitality rate without any reduction to your payment. **Income bank:** Student payments also have an income bank system. If you earn less than $539 in a fortnight, the unused portion accumulates in your income bank (up to a maximum of approximately $11,000).

You can then use this bank to offset a higher-earning fortnight — for example, during university holidays when you might work more hours. Example: if you don't work for 4 fortnights, you accumulate $2,156 in your income bank ($539 x 4). Then if you work full-time during the mid-semester break and earn $1,500 in one fortnight, the first $539 is your regular free area and the remaining $961 is offset by your income bank, so your payment is not reduced at all. This system is designed so that students who work seasonally or intermittently are not penalised for having uneven income patterns.

Let's break this down. To receive Youth Allowance (student), Austudy, or ABSTUDY Living Allowance, you must be studying a full-time approved course. But what counts as full-time? **The 75% rule:** You must be enrolled in at least 75% of the normal full-time study load for your course.

For most university courses, a full-time load is 4 subjects per semester, so 75% means at least 3 subjects per semester. If your university measures in credit points (for example, 48 credit points per year is full-time), you need at least 36 credit points per year (75% of 48). **Reduced study load (below 75%):** In some circumstances, you can study at less than 75% and still receive payment: - You've a disability or medical condition that prevents full-time study (requires medical evidence) - You've caring responsibilities - You're in your final semester and only need one or two subjects to complete your degree **Approved courses:** Your course must be approved for student payments. This includes most courses at universities, TAFEs, and registered training organisations. It covers bachelor degrees, diplomas, certificates, and some postgraduate coursework degrees.

Research-only higher degrees (like a PhD by research) may not be covered — check with Centrelink. **Progress requirements:** You must be making satisfactory progress in your course. If you fail more than half your subjects in a semester, Centrelink may review your eligibility. If you've a valid reason for the failure (illness, family crisis), provide evidence when asked. You must also notify Centrelink immediately if you withdraw from subjects, change courses, or drop below 75% study load.

Failing to do so can result in a debt.

In addition to your regular student payment, you may be able to access these additional supports: **Student Start-up Loan (SSL):** A voluntary, interest-free loan of approximately $1,114 per semester (twice per year, totalling approximately $2,228 per year). The SSL is paid automatically at the start of each semester if you've opted in.

Quick reality check. It's repaid through the tax system once your income exceeds the HELP repayment threshold (approximately $54,435 per year), at the same time as any HECS-HELP debt. Because it's interest-free and repayment is income-contingent, it's generally worth taking if you need the money. To opt in, log in to your Centrelink online account and look for the Student Start-up Loan option under your student payment details. **Relocation Scholarship:** If you're a dependent student who needs to move away from your family home to study (for example, from a regional area to a capital city), you may be eligible for a Relocation Scholarship. This is worth up to approximately $4,916 in your first year and $2,458 in subsequent years.

Eligibility is based on the distance between your family home and your educational institution. **Fares Allowance:** If you need to travel between your family home and your place of study at the start and end of each semester, Centrelink may reimburse the cost of the cheapest practical mode of transport (usually economy bus or train). **Health Care Card:** All Youth Allowance, Austudy, and ABSTUDY recipients receive an automatic Health Care Card, which provides cheaper prescriptions, bulk-billed GP visits, and state concessions on public transport, energy bills, and other costs. These additional benefits can add up to several thousand dollars per year on top of your base payment. Make sure you're accessing everything you're entitled to. Keep that in mind.