Allowances & Payments
Centrelink has a range of options to support students. The various options are designed to assist different groups and have different requirements and rates of pay.
Youth Allowance: The most commonly received benefit for university students. It provides assistance to students aged between 16 and 24.
Austudy Payment: Support for students aged 25 and over.
Newstart: Support for jobseekers, including part time students.
Abstudy: Support for indigenous students.
Pensioner Education Supplement (PES): Additional support for pensioners with education expenses.
Other Payments: Including the Advance Loan, Rent Assistance, and Fares allowance.
top of pageYouth Allowance
Youth Allowance is a government income support scheme for young people including students under the age of 25 years. Students are usually considered dependents of their parents and any Youth Allowance is based on the parents' financial situation. It is possible for a student to be classified as independent which means that the parent’s financial situation is not taken into account.
Youth Allowance - Dependent
(1) The Standard Rate applies to students who live at home or students who do not qualify for the away from home rate.
(2) The Special Rate is higher than the standard rate. The Special Rate applies to students who are single, over 21 and:
i. are a migrant enrolled in an English as a Second Language program, or;
ii. on the first day of a new course have been receiving a benefit, pension or allowance from Centrelink for 6 out of the last 9 months (A student may also be eligible if they are resuming a course they began before turning 21)
(3) Away from Home Rate is a higher rate of pay that also attracts rent assistance. If a student lives away from home, the Away from Home Rate does not automatically apply. A student must have a legitimate reason for moving away from the parental home. Not all reason are accepted.
Warning - The Away from Home rate still depends on parental income.
Youth Allowance – Independent
If a student is considered independent, their parent’s assets and income are not tested. It is possible for a student to remain living at home and be paid an allowance. However, there are two rates of pay - students living at the parental home, and students not in the parental home, If classified as independent, a student can move out of the parental home at any stage without the need to provide Centrelink with a reason. The “away from home” rate of pay then applies and it is possible to apply for rent assistance.
If you are 25 years or more when you commence full time study or you first apply after your 25th birthday you will be automatically considered 'independent' under Austudy Payment.
Austudy Payment
Austudy Payment provides assistance to full time students aged 25 years and older who are undertaking an approved course of education. All students are automatically independent and there is no parental test of any sort. There is a partner and personal income and assets test
Newstart
Newstart Allowance is a Centrelink payment paid to people who are:
• aged 21 or over and under Age Pension age
• unemployed
• prepared to enter into, comply with or vary an existing activity agreement, and
• satisfy the Activity Test.
Part-time students can be considered for Newstart Allowance.
Abstudy
ABSTUDY is the Aboriginal and Torres Strait islander Study Assistance Scheme. ABSTUDY helps Aboriginal ands Torres Strait Islander people who want to stay at school or go on to further studies. ABSTUDY is available for the full range of courses available at tertiary level including Masters and Doctorate study.
Pensioner Education Supplement (PES)
Students who are receiving certain pensions and allowances are eligible for a pension supplement per fortnight and an annual education entry payment of $208. The amount depends on workload. The maximum amount is $62.40 per fortnight.
Other payments
Advance Loan
If you are eligible for some Centrelink payments, you can arrange for an advance loan of between $250 and $500 to be advanced as a lump sum payment to help you meet living costs or unexpected expenses. This Advance Loan must be repaid by direct deduction from your fortnightly allowance over the next six months. No interest is payable.
Rent Assistance
Rent Assistance is available for Youth Allowance recipients who live away from home. Students must be eligible for at least some living allowance to get Rent Assistance. How much you get depends on how much rent you pay and whether or not you live alone or share.
Fares Allowance
A Fares Allowance is payable to dependent (or married) students who live away from home. This allowance will pay the equivalent of 4 one-way trips between the student's home and their place of study per year. The student must apply by March 31 of the following year.
Information about other payments, such as the mobility allowance, and carers allowance as well as a range of services specifically for students is available on the Centrelink website.
Studying Overseas / Leaving the Country / Exchange
Some Centrelink payments can continue for a while if you are overseas. If you are overseas for a holiday, there is a maximum time for payment of 15 weeks. Going overseas as part of your course is different .Studying overseas is acceptable as long as it is part of the Australian course. The away from home rate applies and rent assistance may be payable for a period of up to 13 weeks if you continue to pay rent on your accommodation in Australia. Check with Centrelink for details. Leaving the country is a notifiable event (even if only for a one week holiday). If you are in receipt of a Centrelink payment, you are required to notify Centrelink before departure.
Requirements and tests
Your eligibility and level of financial support will often depend on your situation, and there are a number of requirements and conditions which are important to consider:
Academic requirements: what course can be studied? What should your work load be? Is part-time study allowed?
Parental Income and Assets: How your parents' income and assets will affect your allowance.
Personal Income and Assets: How your income and assets will affect your allowance.
Partner income and assets How your partners income and assets affect your payments
Tax and Government Assistance: Do you need to pay tax on your allowance?