Youth Allowance for students

Youth Allowance is the main Services Australia payment for full-time students aged 16 to 24. It is income-tested at both the student's level and at the parents' level (until the student is classified as independent).

Eligibility basics

To qualify for Youth Allowance as a student you must:

• Be a full-time student in an approved course (most degree, diploma and certificate-level study qualifies).
• Be aged 16 to 24.
• Meet the Australian residence rules.

Apprentices have their own variant (Youth Allowance for apprentices). The rules below cover the student variant.

Two means tests

Two tests run in parallel:

1. Parental income test. Until you are independent for Centrelink purposes, your parents' combined adjusted taxable income is tested. The cut-out moves each year with indexation, but as a rough guide the test starts reducing your payment once parental income passes about $62,634 and cuts the payment to zero in the high$150,000s, depending on how many siblings are also receiving payments.
2. Personal income test. Your own employment income above $542 per fortnight reduces your payment. You can also bank up to$13,016 in an income bank that lets you earn over the threshold without a reduction, useful in summer holiday work.

The thresholds are indexed each 1 January and 1 July. Always check Services Australia for the current numbers.

Becoming independent

Once you are classified as independent, the parental income test is removed. The main ways to be classified as independent are:

• You are 22 or older.
• You are or have been married, in a de facto relationship, or have a dependent child.
• You worked an average of 30 hours a week for 18 months in any two-year period.
• You earned at least 75% of the National Training Wage threshold within 14 months (rural workforce-independence rules).

Independence is a one-way switch. Once you qualify you do not go back to the parental income test.

What you get

Youth Allowance is a fortnightly payment. The rate depends on age, living arrangement and dependent status. Most students also qualify for Rent Assistance if they are not living with a parent.

A separate payment, the Tertiary Access Payment, exists for some regional and remote students moving away for study. Eligibility is narrower; check Services Australia.

This is general explanatory information. For advice on your circumstances, contact Services Australia.