Centrelink Payments for Students

This information is intended to serve as a general guide to Centrelink payments for students. For specific information contact an SRC caseworker. If you are unsure about whether you are eligible for a payment, you should always apply. Email yourself receipt numbers of any conversations you have with any Centrelink staff at any time, together with a brief description of what you spoke about, so that you have a record in future if you need it.

There are three main fortnightly Centrelink payments for full-time students:

Youth Allowance (student) – For students under 25 years old, whether “independent” or “dependent”.

Abstudy – For Aboriginal and/or Torres Strait Islander students.

Austudy – For students 25 years and over (at the time you apply). You are automatically considered “independent”. To get any payment you need to first “qualify” then be “payable”.

Qualifying

A student must be full-time, studying 75% or more of a HECs load for a “teaching period”. The first teaching period starts at the beginning of January and finishes at the end of June, which includes the summer intensives and first semester. The second teaching period starts at the beginning of July and finishes at the end of the year, which includes the winter intensives plus second semester. A student must also:

• Be a citizen or resident of Australia for at least 2 years, with no indication that they will not remain a resident, and in Australia at the time of making a claim.
• Study an approved course, e.g., all undergraduate degrees and some Masters degrees at the University of Sydney.
• (For Austudy) Not have completed a doctorate.
• Have assets that do not exceed $314,000 (for a homeowner) or $566,000 for a non-homeowner) (or higher under special circumstances ).
• Not exceed the “allowable time”. This is normally the minimum time to complete the current course plus one semester. Austudy also looks at study in past degrees at the same level, e.g., both Bachelors degrees. Part-time study (less than 75%) is counted as half a semester when calculating allowable time. Sometimes failed subjects may be exempt from being counted where there have been “special circumstances”.

Students who are part-time due to circumstances outside of their control, e.g., subjects not offered, may qualify for YA (Jobseeker) or JobSeeker Payment. Students who are too unwell to study full time may be eligible for Youth Allowance (temporary incapacity) or Sickness Allowance (Austudy). Students with a disability may be eligible for a reduced study load or in some circumstances, the Disability Support Pension, with a Pensioner Education Supplement.

Payability

To be considered “independent” by Centrelink a student must either:

• Be 22 years or more for Youth Allowance, or 25 years or more at the time of applying for Austudy. If a student is receiving Youth Allowance and turns 25 years, they continue receiving Youth Allowance.
• Be “unreasonable to live at home” because the relationship with their parent/s or other member of the house, has broken down. It may also be considered “unreasonable to live at home” due to extreme circumstances, including physical, emotional, or sexual violence, perpetrated to someone in the home.
• Have worked at least 30 hours a week on average over 18 months in any previous 2 year period.
• Be classified as an “inner regional, outer regional, remote or very remote student” who has either:
  • earnt over $31,663 from paid employment over any consecutive 14 month period since leaving school (less for periods before Jan 2020 ), or
  • worked at least 15 hours per week for at least two years since leaving school.
  • have parent/s who earnt less than $160,000 (higher if there are more children in the family) in the last tax year and leaves the family home because it is more than 90 minutes away from university by public transport 
• Have been married, in a registered relationship, or in a de-facto relationship for more than 12 months. (Having a partner may mean that your partner’s income and assets will be assessed)
• Be an orphan, have been in state care, or be a refugee.
• Have parent/s who cannot exercise their responsibilities
• Have or have had a dependent child

If a student is not considered “independent” by Centrelink they are “dependent”, and their parent/s income and assets are assessed for payability, even if the student does not receive any support from their parent/s. Centrelink will assess the parent/s income using the Parental Income Test, and the student’s income using the Personal Income Test and will use whichever is greater.

MAXIMUM RATES PAID

Circumstances and income determine the amount of the payment. The maximum rates per fortnight are:

• $455.20 for the “at home” or “accommodated” rate (living in your parent/s home); or
• $639.00 for the “away from home” rate (“independent” or “dependent” but unable to study while living at home because of the study space or the distance from campus)

Rent Assistance

Students on the “away from home” rate may also be eligible for an additional Rent Assistance payment of $149.00 per fortnight. This is added to Youth Allowance, Austudy or Abstudy – not paid on its own. It is not available to students who rent from their parent/s.

The Income Tests

Students who are “independent” and have no “partner” are assessed using the Personal Income Test. Students who are “independent” with a “partner” are assessed on both incomes using the Partner Income Test and the Personal Income Test. Students who are “dependent” are assessed on either a Parental Income Test or their Personal Income Test, whichever is greater.

THE PERSONAL INCOME TEST 

Centrelink understands many students work more during holidays and the Student Income Bank (SIB) is designed to average out the impact of earnings. Each fortnight $509 is added to the SIB. If the amount of income earned in that fortnight is equal to or less than the SIB, there is no reduction to the Centrelink payment. The new SIB balance is the original SIB minus the income earned in that fortnight. If the amount of income earned in that fortnight is more than the SIB, the SIB balance becomes zero. The reduction of Centrelink payment is based on the amount of income earned minus the SIB. Payments are reduced by $0.50 for each dollar of gross income over $509, up to $610 per fortnight. Gross income over $610 per fortnight reduces payments by $0.60 for every dollar. If a student earns more than $1292.17 for the “at home rate” or $1602.50 for the “away from home” rate, they will not receive a Centrelink payment for that fortnight. The maximum the SIB   can accumulate to is $12,700.

THE PARTNER INCOME TEST

If a partner’s income exceeds the “partner income free area”, the student’s payment will be reduced. The “partner income free area” is $1,244 per fortnight if the partner is aged under 22yrs or $1,368 per fortnight if the partner is 22yrs or over. The amount of partner income that exceeds the “partner income free area”, reduces the student’s payment by $0.60 per dollar. This figure increases if the partner has dependent children and different rules apply if the partner receives a pension.

THE PARENTAL INCOME TEST

Centrelink assesses the parental income of “dependent” students. Income can include combined parental taxable income, income from overseas, adjusted fringe benefits, maintenance payments from a former partner and net passive business losses. If parental income in the current tax year changes by 25% or more, Centrelink may use an estimate for the current year. Centrelink will not look at parental income for the period when one parent has a designated income support payment from Centrelink, or holds a Low Income Health Care Card. Where parents are separated, the student is only considered “dependent” on the parent they live with, or last lived with, and sometimes any new partner that parent has.

There is no impact on the Youth Allowance payment if the If combined parental income is less than $62,634 a year. Each dollar of a higher amount will reduce the payment by 20 cents. For example, if your combined parental income is $63,134 per year, your payment will reduce by $100 (500 x 20 cents). If you have siblings who also received a payment that is subjected to the parental income test (e.g., Youth Allowance or Family Tax Benefit), the reduction is shared across each student’s payment. For example, if you and your sister were both getting Youth Allowance the 20 cent reduction becomes a 10 cent reduction per dollar over $62,634.

PAYMENT START DATE

It usually takes Centrelink many weeks to assess applications, but they will pay a lump sum back to the date of application if you qualify and are payable at that date. Students may face further delays in payments due to “Waiting” or “Penalty Periods”. These are also calculated from the date of application. The most common waiting period is the Liquid Assets Waiting Period. If a student has $5,500 or more in liquid assets (e.g., cash, trust funds, shares), their payment is delayed one week for every $500 over $5,500, to a maximum of 13 weeks. A student’s liquid assets can be reduced by the amount of their immediate study expenses.

Other Payments

STUDENT START-UP LOAN

The Student Start-Up Loan is an optional loan of $1,273 for students available twice a year. Loans are tax-free and are repaid through the same system as HECS. They are interest-free, however, they are subject to indexation under the same arrangement as HECS.

RELOCATION SCHOLARSHIP

If you are moving from a “regional” or “remote area to study you may be eligible for a Relocation Scholarship. You must also be a dependent full-time student receiving Youth Allowance or Abstudy, where you could receive $5,385 in your first year, $2,693 in your second and third years, and $1,345 in subsequent years.

TERTIARY ACCESS PAYMENT

This is a one-off payment to help with the cost of moving, for all “regional” and “rural” students, not just those receiving Youth Allowance, provided your parental income is less than $250,000. The payment is up to $5,000 depending on where you have moved from. This payment is available to students, and

FARES ALLOWANCE

If you are receiving Youth Allowance, Austudy or Pensioner Education Supplement, and you are dependent but living away from your home, or independent but living away from your partner or child, to study, may be eligible for a payment that is the equivalent of the cheapest reasonable form of transport to and from home twice a year. Students who are independent because they turned 22 years old, who were dependent and living away from home in the year before may also be eligible.

PENSIONER EDUCATION SUPPLEMENT

If you are receiving a Disability Support Pension or some other pension payments, you may be eligible for an education supplement of up to $62.40 per fortnight.

Figures correct at 1 November 2024.

Do you need more help or advice?

If you need more advice about your specific situation, contact an SRC Caseworker by completing the contact form (below)

This information does not constitute legal advice. Seek qualified professional advice before making decisions about educational, financial, migration or legal matters. This information can change from time to time. Check for the most up-to-date information. Do not accept verbal advice by itself from any source including Centrelink. Get a decision in writing and ask for a receipt number for any telephone or in person conversation. Without this subsequent appeals or backdating are at risk.

Information updated 01/11/24 (CL-PAY)