Youth and Study Payment Guides — Youth Allowance, Austudy and ABSTUDY

Centrelink administers several income support payments to help young Australians and students meet living costs while studying or looking for work. The main payments are Youth Allowance, Austudy and ABSTUDY — each targeting different groups with different eligibility rules, rates and conditions.

Understanding which payment you’re eligible for and how the income and assets tests work helps you maximise your entitlements while studying.

Youth Allowance

Youth Allowance is the main Centrelink payment for young Australians aged 16–24. It has two streams:

• Students and apprentices: Full-time students in an approved course or undertaking an Australian Apprenticeship
• Job seekers: Young people looking for work (subject to mutual obligation requirements)

Eligibility for Youth Allowance

Youth Allowance rates (FY2025–26 — fortnightly)

Rates are current as at March 2026. Check Services Australia for the latest rates.

An Energy Supplement is also payable on top of these base rates.

“Away from home” rate

The higher “away from home” rate is available to students who must live away from their parental home in order to study — for example, if the course is not available in their hometown, or if the student can demonstrate they are unable to live at home due to extreme circumstances.

The parental income test

Dependent students (generally those who have not met the independence criteria) are subject to the parental income test. Their parents’ adjusted taxable income is assessed, and Youth Allowance is reduced or cancelled if it exceeds the relevant threshold.

The base parental income threshold is approximately $62,634 per year (FY2025–26) — above this, Youth Allowance begins to reduce. The reduction depends on the number of dependent children and the amount of income above the threshold.

Independence criteria

Students who meet the independence criteria are assessed on their own income and assets only — not their parents’. Independence can be established if you:

• Are aged 22 or over
• Have worked full-time for at least 18 months in the previous 2 years (at least 30 hours per week)
• Are married or in a registered de facto relationship
• Are a parent (biological or adoptive)
• Have been in state care or been assessed as having a special family circumstance
• Have been self-supporting without access to parental financial support for at least 18 months

The independence criteria are assessed when you apply. If you don’t qualify initially, you may qualify later — for example, once you turn 22.

Student income test

While studying, you can earn income without fully losing your payment. The student income bank allows you to earn more during low-income periods (e.g., semester breaks) and carry unused income bank credits forward.

The base income-free area is $480 per fortnight. Unused income bank credits (up to $12,000 per year) allow you to earn more in some fortnights without reducing your payment.

Satisfactory progress requirement

To remain eligible, you must maintain satisfactory academic progress in your course. Centrelink requests evidence from your institution at the start of each study period. Failing too many subjects, withdrawing from courses repeatedly, or not progressing through your course at a normal rate can result in Youth Allowance being suspended.

Austudy

Austudy is designed for students and Australian Apprentices aged 25 and over who are in full-time study or a full-time apprenticeship. It is not subject to the parental income test — your own income and assets are assessed, not your parents'.

Austudy eligibility

• Aged 25 or over
• Enrolled full-time in an approved course (TAFE, university, registered training organisation, or Australian Apprenticeship)
• Australian resident
• Meet the Austudy income and assets test

Austudy rates (FY2025–26)

The rates are the same as the independent/partnered Youth Allowance rates.

Austudy income test

The Austudy income test works similarly to Youth Allowance — there is an income-free area with an income bank that accumulates credits during periods of low or no income and is drawn down during higher-income periods.

Study requirements

Austudy recipients must study full-time and maintain satisfactory progress. The definition of full-time study depends on the course and institution — typically at least 75% of the normal study load.

ABSTUDY

ABSTUDY (Aboriginal and Torres Strait Islander Study Assistance) provides financial assistance for Aboriginal and Torres Strait Islander students and apprentices of all ages.

ABSTUDY scope

ABSTUDY is available for a wider range of study types than Youth Allowance or Austudy, including:

• Primary and secondary school students (including away-from-home allowances for students in remote areas)
• Vocational training and TAFE courses
• University studies
• Australian Apprenticeships
• Certain other approved training programs

ABSTUDY awards and allowances

ABSTUDY is structured differently to Youth Allowance and Austudy — instead of a single payment, it has multiple “awards” covering different student types:

Additional ABSTUDY assistance

Beyond income support, ABSTUDY can also cover:

• Away from home allowance — for students who must live away from their usual home to study
• Fares allowance — for students who must travel to attend their institution
• Incidentals allowance — for course-related costs (materials, equipment)
• Dependant-related allowances — for students with dependants

How to apply for ABSTUDY

ABSTUDY is claimed through Services Australia (Centrelink) via phone (1800 132 317), in person at a Centrelink service centre, or in some cases online through myGov.

Reporting Requirements for All Three Payments

All three payments require recipients to:

• Report income fortnightly: Any income from part-time or casual work must be reported to Centrelink each fortnight via the myGov app or phone. The student income bank tracks how much you’ve earned and carries forward unused credits.
• Confirm study status: At the start of each study period, Centrelink will request confirmation of your enrolment and course load. Your institution may provide this automatically, or you may need to provide a certificate of enrolment.
• Report changes in circumstances: Changes in living arrangements, relationship status, income, or study load must be reported promptly.

Failure to report accurately can result in overpayments that must be repaid, and deliberate non-disclosure is subject to penalty.

Frequently Asked Questions

Can I work while receiving Youth Allowance or Austudy? Yes. Both payments have an income test with a free area and an income bank. Part-time or casual work during semester (or holidays) won’t necessarily reduce your payment — the income bank allows you to earn more without affecting your payment as long as unused credits are available.

What if I defer my studies? If you defer (take a leave of absence approved by your institution), you are generally not eligible for the student stream of Youth Allowance or Austudy during the deferral period. You may be able to apply for the job seeker stream if you are looking for work during the deferral.

Can I get Youth Allowance and work part-time at a supermarket? Yes — many students do exactly this. Report your income each fortnight. The income bank means that income earned during lower-income fortnights doesn’t necessarily reduce your payment as long as you have income bank credits available.

Is ABSTUDY means-tested on parental income? ABSTUDY has its own means testing rules, which differ from Youth Allowance. Some ABSTUDY awards are not means-tested, or have different thresholds. Contact Centrelink (1800 132 317) or the ABSTUDY Smart Centre for specific information.

What’s the difference between Austudy and Youth Allowance for students? Age is the primary difference — Youth Allowance for students is for those under 25; Austudy is for those aged 25+. Austudy is not subject to parental income testing. Rates are similar for equivalent situations.

Guides in This Section

• Youth Allowance — Rates, Eligibility and Income Test
• Austudy — For Students Aged 25 and Over
• ABSTUDY — Support for Aboriginal and Torres Strait Islander Students

For full eligibility details and to apply, visit Services Australia or call 132 490 (students) or 1800 132 317 (ABSTUDY).

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