Qualifying as Independent for Youth Allowance
Current Payment Rates:
Independent Away From Home rate: $562.80 per fortnight
Independent At Home (Accommodated) rate: $389.40 per fortnight
Being independent means Centrelink only considers your assets and income, plus Rent Assistance, not your parents’ income. Your assets threshold is $280,000 if you are a homeowner or $504,500 if you are not. Some categories of independence (e.g., UTLAH) are reviewable by Centrelink. That is, they will periodically check that you are still eligible.
There are a few ways you can qualify as independent.
Independent: By Age
You are automatically considered independent from the day you turn 22. Apply a few weeks beforehand.
Independent: Special Circumstances
- you are a refugee; or
- you are an orphan; or
- you are, or have been, in state care; or
- you have, or have had a dependent child; or
- your parent(s) cannot exercise their responsibilities.
Independent: Employment
If you have worked an average of 30 hours a week over 14 months in the last 2 years, you can demonstrate independence for YA. You must have evidence of the number of hours worked, e.g., pay slips or letter from your employer. Remote and Regional Students can claim independence based on their income and hours work. To establish whether you are a remote or regional student, do the Student Regional Area Search.
INCOME CRITERIA For Remote and Regional Students
Remote and Regional students can apply for independence based on employment in two ways:
1. Remote & Regional Students: Income
- You’re a very remote, remote, outer regional or inner regional area student; and
- your parent(s) earnt less than $160 000 in the last tax year; and
- you must leave the family home to study at university because it is more than 90 minutes away by public transport; and
- left school at least 18 months ago; and
- earnt the amount of gross income (before tax) from paid employment specified below, within an 18 month period or less. (It can be any 18 month period and you do not need to have earnings in every month.)
You will need to have proof of earnings, such as Tax Payment Summaries or Group Certificates and/or pay slips, showing gross amounts. The gross amount is indexed approximately annually and must be at least:
- $26,550, if the18 month period starts between 1 July 2019 and 31 January 2021
- $26,936, if the 18 month period starts between 1 February 2021 and 31 October 2021
- $27,608, if the 18 month period starts between 1 November 2021 and 30 June 2022
For other periods calculate 75% of the National Training Wage for that period. If you have not been out of school for 18 months or earned enough money yet, keep this information in mind and try to plan your employment around it. Bear in mind that the amount you need to earn may increase.
2. Remote & Regional Students: Work
- You’re a very remote, remote, outer regional or inner regional area student; and
- your parent(s) earnt less than $160 000 in the last tax year; and
- you must leave the family home to study at university because it is more than 90 minutes away by public transport; and
- you have worked at least 15 hours per week for at least 2 years since leaving school.
Independent: Relationship
If you are or have been in a Youth Allowance Couple you are considered independent. That is, you are legally married and living together; or in a de-facto relationship, including living together, for a continuous period of at least 12 months.
When deciding if you are a YA couple, Centrelink will consider:
- shared finances and property;
- the nature of the household;
- social and public aspects of your relationship;
- sexual relationship;
- the nature of your commitment to each other; and
- your children.
Your partner’s income and assets can affect your Centrelink payment. See the SRC's information on the Effect of Relationships on Centrelink payments.
Independent: ‘Unreasonable to Live at Home’ (UTLAH)
If you have already moved out of your parent(s) home and can demonstrate it is ‘unreasonable’ for you to live with your parent(s), Centrelink will consider you independent. Three forms need to be completed for UTLAH. One by you, one by a parent (not always possible), and one by a third party. Centrelink will probably ask to contact your parent(s), but you can instruct them not to if you believe contact could put you in danger. Your application is confidential, only when you give explicit permission can they contact your parent(s). The third party should be aware of your family life and could include a counsellor, doctor, police office, teacher, religious leader, grandparent, adult relative or - as a last resort - friend.
What is “Unreasonable”?
A student is independent if they cannot live at the home of either or both of their parents because:
(i) of extreme family breakdown or other similar exceptional circumstances; or
(ii) it would be unreasonable to expect them to do so as there would be a serious risk to their physical or mental well-being due to violence, sexual abuse, or other similar unreasonable circumstances; or
(iii) the parent(s) are unable to provide the person with a suitable home owing to a lack of stable accommodation.
The student must not be receiving continuous support, whether directly or indirectly, and whether financial or otherwise, from a parent of the student, or from another person who is acting as the person’s guardian on a long-term basis.
What is extreme family breakdown?
Extreme family breakdown does not refer to the “normal” differences that young people have with their parent(s). For the purposes of Centrelink there are a few indicators of extreme family breakdown including:
- other family members experiencing documented behavioural or health problems (e.g., letter from doctor, or police) that can be attributed to the breakdown of the family relationship; or
- specialised intervention has been unsuccessful for substance abuse or anti-social behaviour; or
- there is evidence of a threat to their (or another family member’s) emotional or physical well-being if they were to continue living at that home; or
- the student has tried, unsuccessfully, to resolve the issues through a counsellor or mediator.
Other circumstances that may qualify for extreme family breakdown are deliberately not listed in the legislation, leaving it open to interpretation by Centrelink. For example, your circumstances may be considered evidence of extreme family breakdown if your parent(s):
- engage in criminal activity or substance abuse; or
- do not provide you with adequate food, clothing, shelter, hygiene and/or medical attention; or
- disallow you to study.
Extreme family breakdown is deemed not to have occurred if your parent(s) disapprove of your relationships or lifestyle choices (e.g., religion, sexuality), unless this brings a threat to your physical or emotional wellbeing.
Important Notice and Disclaimer: This information does not constitute legal advice. Check with a caseworker for the most up-to-date information. Do not accept verbal advice by itself from any source including Centrelink. Get a decision in writing. Without this subsequent appeals or backdating are at risk.
Information updated on 02/03/23