Youth Allowance
What is Youth Allowance?
Youth Allowance provides assistance for young people who are studying full-time, undertaking a full-time Australian
Apprenticeship or training and/or looking for work. It may also provide assistance for young people who are ill or
temporarily incapacitated.
Youth Allowance allows young people to stay on the one payment as they move between looking for work, studying,
training or undertaking an Australian Apprenticeship as long as obligations are met.
Who can get Youth Allowance?
You may get Youth Allowance if you:
• are 16 to 24 years of age (or 15 years of age if considered independent), and studying full-time in an approved
course at an approved institution. Approved courses generally include secondary education courses, undergraduate
courses, associate diplomas and some other diplomas, TAFE courses and some post-graduate courses. Since 1
January 2008 certain Masters courses that are required for professional entry have also been approved, or
• are 16 to 24 years of age and a full-time Australian Apprentice (or 15 years of age if considered independent), or
• are 16 to 20 years of age (or 15 years of age if considered independent) and have not completed Year 12 or attained
an equivalent Certificate Level II or above qualification and are undertaking:
– full-time study, or
– part-time study and other approved activities for at least 25 hours per week, or
– have a temporary exemption from the Activity Test (for example due to illness), or
• are 16 to 20 years of age (or 15 years of age if considered independent) and have completed Year 12 or attained an
equivalent Certificate Level II qualification and are:
– actively looking for suitable work, or
– undertaking a combination of approved activities such as part-time work and training, or
– have a temporary exemption from the Activity Test (for example due to illness)
• are under 21 and are the principal carer of a dependent child between six and 15 years of age if partnered or
between eight and 15 if single, are actively looking for suitable work or undertaking approved activities such as
part-time work (including self employment), study, voluntary work (in some circumstances), or a combination of
these activities, or have a long- or short-term exemption from the Activity Test, or
• are 25 years of age and over and a full-time student or Australian Apprentice, if you were getting Youth Allowance
immediately before turning 25 and are still studying the course or doing an Australian Apprenticeship*, and
• are an Australian resident**, and
• have been in Australia as an Australian resident for at least 104 weeks (there are some exceptions), and
• are in Australia on the day you claim Youth Allowance.
* Full-time students and Australian Apprentices 25 years of age and over can apply for Austudy—see the Austudy
brochure.
**For more information on residence requirements see Centrelink—the basics.
Note: the minimum age at which you are eligible to receive Youth Allowance may vary depending on the
minimum school leaving age in your state or territory.
Note: information from Australia’s immigration department may be used in assessing your claim and can be used to
assess ongoing entitlement.
What if I am under 18 and I want to leave school?
You are usually required to be in full-time education, undertaking a full-time Australian Apprenticeship or training in
order to qualify for Youth Allowance, although some exemptions apply.
If you are not studying or undertaking a full-time Australian Apprenticeship and you are receiving Youth Allowance,
you must show Centrelink you are actively looking for work by meeting the participation and Activity Test
requirements. If you do not have a Year 12 Certificate or an equivalent qualification (Certificate Level II or above)
you will generally be expected to undertake full-time study, or study/training and other approved activities for at least
25 hours per week to meet the Activity Test. However, if you have a short-term illness or injury that prevents you
from studying full-time or fulfilling your obligations as an Australian Apprentice, you still may be able to get Youth
Allowance for the period of the illness or injury.
The school leaving age and any post compulsory education period in your state or territory may affect your eligibility
for Youth Allowance.
What if I am under 21 and have not completed Year 12 or attained an equivalent
qualification?
If you are under 21 years of age and have not completed Year 12 or attained an equivalent Certificate Level II or
above qualification, you can generally satisfy the Activity Test by undertaking the required number of hours of
activity per week through participation in:
• one or more approved courses of education or training, or
• a combination of one or more approved courses of education or training, and
• one or more other activities that the Secretary considers suitable.
Note: If you have not completed Year 12 or attained an equivalent qualification, job search activities will not satisfy
your Activity Test requirements.
Note: The ‘required number of hours’ of activity per week is 25 or such other number as the Secretary considers
appropriate.
What if I am over 21?
If you are 21 to 24 years of age and a full-time student or Australian Apprentice, you can claim Youth Allowance. If
you were receiving Newstart Allowance and decide to study full-time, you can only claim Youth Allowance if your
course lasts longer than 12 months.
If you are over 21, and not a full-time student or Australian Apprentice, you will need to claim Newstart Allowance.
For more information see the Looking for work? booklet at www.centrelink.gov.au or call 13 2850.
What if I am over 25 and a full-time student?
If you are 25 or over, you can only receive Youth Allowance if you:
• were receiving Youth Allowance immediately before your 25th birthday, and
• continue to study the same course or continue to undertake the same Australian Apprenticeship.
Other full-time students or apprentices 25 years of age or over can apply for Austudy. For more information see the
Austudy brochure at www.centrelink.gov.au or call 13 2490.
When can I start getting Youth Allowance?
You must submit your Youth Allowance claim within 14 days of first making contact with Centrelink and, if you are
eligible, your payment may start from the date of your first contact.
Note: if you are not a full-time student or an Australian Apprentice, you will need to arrange an interview with
Centrelink to see if you are eligible.
Your payment may start later if:
• you have liquid assets (for example money in the bank or cash) worth more than $2500 (if you are single), or
$5000 (if you have a partner or child)
• you have had a lump sum compensation payment (for example insurance payouts for damages)
• you have not been in Australia as an Australian resident for 104 weeks (there are some exceptions)
• you or your partner receive a payment for leave entitlements or a redundancy payment
• you or your partner ceased seasonal, contract or intermittent work in the six months prior to claiming and earned
money above a certain level from that work
• you voluntarily left employment, or were dismissed from employment due to misconduct (this only applies to job
seekers), or
• your course start date is after you lodge your claim.
How much Youth Allowance can I get?
The amount of Youth Allowance you receive depends on whether:
• your, your parents’/guardians’ or your partner’s income and assets are above a certain amount, see ‘What are the
rules about income and assets?’ in this brochure
• you are independent, see ‘What if I am independent?’ in this brochure
• you have to live away from your permanent home, see ‘Away From Home rate’ in this brochure
• you are a member of a couple
• you have children, and/or
• you are single, with dependent child/ren and are a registered and active foster carer, relative (non-parent) caring under
a court order, home educator or distance educator, or if you have a large family.
Note: if you are under 18 years of age, your payment will usually be paid to one of your parents. You will need to
inform Centrelink which parent is to receive your payment.
For more information about how much Youth Allowance you can receive, see the Youth Payment Rates factsheet.
Youth Disability Supplement
Youth Disability Supplement is payable to Youth Allowance customers under 21 years of age who have been
assessed as having partial capacity to work.
Youth Disability Supplement is added to the rate of Youth Allowance and the rate payable cannot exceed the rate
payable to those over 21 years of age on Newstart Allowance.
What are the rules about income and assets?
Parental Means Test
The Parental Means Test measures whether your parents can financially support you while you are a student or
looking for work. The Parental Means Test has three parts.
Family Assets Test
The Family Assets Test looks at your family’s assets, including the value of goods, cars, boats, furniture, investments,
money, real estate, personal property, and so on.
The family home is not included in the Parental Assets Test and the value of farm or business assets is discounted by
75 per cent.
Parental Income Test
Parental income includes:
• your parents’ combined taxable income
• any maintenance payments they receive (any maintenance paid during the tax year is deducted from their taxable
income amount)
• the value of employee fringe benefits they receive
• any income from a country other than Australia, and
• business losses (including negatively geared property and shares).
Family Actual Means Test
The Family Actual Means Test measures what some families spend and save over a certain amount of time, that is,
their actual means.
The Family Actual Means Test only applies if your parents:
• are self-employed or a partner in a partnership
• have claimed a business loss
• have an interest in a trust or company
• are business migrants, or
• have foreign income or assets worth $2500 or more.
For more information about the Parental Means Test, see the Annual Reassessment for Youth Allowance and
ABSTUDY brochure, visit www.centrelink.gov.au or call 13 2490.
Are there some cases when the Parental Income Test does not apply?
The Parental Income Test does not apply when, for instance:
• your parents are receiving income support payments from the Australian Government to support your family
• your parents are receiving Exceptional Circumstances Relief Payment (ECRP)
• either parent has a Health Care Card, or
• you are independent, see ‘What if I am independent?’ in this brochure.
What if my parents’ income and assets change?
If your Youth Allowance is assessed under the Parental Means Test, your parents’ income will be reviewed
(reassessed) each year. These reviews start in September each year. Centrelink will send you a form asking for your
parents’ income details for the financial year that just ended. This information is used to make sure that you receive
the correct amount of Youth Allowance in the next calendar year (1 January–31 December).
For more information about reviews, see the Annual Assessment for Youth Allowance and ABSTUDY brochure.
What if I am independent?
If you can demonstrate you are independent of your family, the Parental Means Test will not apply to you. You are
considered independent if:
• you are 23 years of age or older
• you are assessed as having a partial capacity to work (job seeker only)
• you are, or have been legally married or in a registered relationship
• you are, or have been living with another person in a de facto relationship for 12 months or more
• you have been living with another person in a
de facto relationship for six months or more which ended because your partner died or because of domestic
violence
• you have, or have had, a dependent child
• you are a refugee, an orphan, or are (or have been) in state care
• your parent/s are unable to exercise their parental responsibilities because they are in a nursing home, are mentally
incapacitated, cannot be located or are in prison, or
• it is unreasonable for you to live at home because:
– there is extreme family breakdown
– there is a serious risk if you continue to live in the parental home
– you are consistently deprived of basic necessities such as food, water, clothing, power, shelter or sleep
– your health and well-being are seriously threatened by drug or alcohol abuse, criminal or illegal activities or
there is violence in the home
– your parent/s are unable to provide a suitable home because they lack stable accommodation.
Note: in some cases you can still be considered independent, for instance if you are particularly disadvantaged or you
have some other exceptional circumstances. For more information call 13 2490, or if you are an Australian
Apprentice call 13 3633.
Have you supported yourself through paid employment?
If you have supported yourself by working full-time in paid employment for 18 months in a 2 year period in one or
more jobs then you may be considered independent for Youth Allowance or ABSTUDY. Full-time means you have
worked 30 hours per week averaged over periods no greater than 13 weeks,
From 1 January 2011, if you are a full-time student and you need to live away from home because your parents’
home is in an area considered to be outer regional, remote or very remote according to the Australian Standard
Geographical Classification, you may also qualify for independence if you:
• have worked part-time (at least 15 hours a week) for at least two years since leaving school, or
• have been out of school for at least 18 months and have earned at least 75 per cent of the maximum rate of pay
under Wage Level A of the transitional Australian Pay and Classification Scale or the relevant modern award
generally applicable to trainees in an 18-month period.
In addition to meeting one of these independence criteria, your parents’ annual income must be less than $150 000 in
the applicable tax year.
Note: there are other situations where you can be considered independent, for instance if you are particularly
disadvantaged or you have some other exceptional circumstances. For more information call 13 2490, or if you are
an Australian Apprentice call 13 3633.
Personal Income Test
Centrelink applies the Personal Income Test each fortnight to the amount of money you earn. If you earn any money
at all, you must tell us. You must also tell us the hours you have worked each fortnight. If you receive Youth
Disability Supplement you must advise Centrelink when you work 30 hours or more per week. You must also report
your regular earnings. If you do not tell us when you work more than 30 hours a week you may have to pay back
some or all of your payments. You may also have to pay an additional recovery fee.
Personal Assets Test
The Personal Assets Test only applies if you are independent. The assets limits will vary, depending on whether or
not you have a partner or own your own home.
Partner Income Test
If your partner’s income is above a certain amount, their earnings can also affect your payment. The amount of Youth
Allowance you receive can also depend on whether your partner receives a payment from Centrelink and how old
they are.
Note: Centrelink matches information with the Australian Taxation Office to confirm the income details for you,
your partner and your parents.
Can I get any extra benefits if I receive Youth Allowance?
Away From Home rate
If you depend on your parents financially, but have to live away from home to look for work or while you are
training, studying or undertaking an Australian Apprenticeship, you may be able to receive the Away From Home
rate. This is a higher amount of Youth Allowance. If you are independent you may receive this rate if you are not
living with your parents.
Rent Assistance
As well as the Away From Home rate, you may be able to receive Rent Assistance.
Fares Allowance
If you are a tertiary student and you have to live away from your permanent home to study you may be eligible for
Fares Allowance.
Fares Allowance may help with the cost of travel from your home to your educational institution to start your course,
and from your educational institution to your home when you finish or discontinue studies for the year. You may also
be entitled to Fares Allowance for one return trip between your educational institution and your home during the
study year. External students may be eligible for Fares Allowance for one return trip during the study year if they
have to attend a compulsory residential component of their course.
Lump sum advances
You may be able to receive an Advance Payment or a Special Employment Advance on your Youth Allowance of
up to $500. This is ‘paid back’ by deductions from your allowance over the following six months.
You can receive an Advance Payment and Special Employment Advance if you:
• have been receiving a payment from Centrelink for at least three months before applying (in some cases, you can
get an advance sooner)
• do not owe any money to the Australian Government that is being paid back from your Youth Allowance
• have not received an Advance Payment within the last 12 months (to get Advance Payments only), and
• you are able to repay the Advance Payment or Special Employment Advance from your fortnightly payment
without suffering financial hardship.
Note: if your Youth Allowance stops before you have repaid your advance, you still have to pay the money from the
advance back to Centrelink.
For more information about what else you can receive see the Studying or training? booklet.
Student Start-Up Scholarship
Students may be eligible to receive a Start-Up Scholarship to assist with up-front costs associated with participation
in their course of study.
It is available to full-time students who are undertaking qualifying studies at a higher education institution. This
includes universities and other non-university higher education providers. Both dependent and independent students
can receive the Start–Up Scholarship.
Relocation Scholarship
This is available to dependent Youth Allowance students who are undertaking full-time qualifying studies at a higher
education institution and who need to live away from home to study. It is also available to some independent students
who are disadvantaged by their personal circumstances.
Does an absence from Australia affect Youth Allowance?
If you are a full-time student you may still continue to receive Youth Allowance for up to 13 weeks if you leave
Australia temporarily (for example for a holiday during your semester breaks). You may also continue to receive
Youth Allowance if you leave Australia to study at an institution in another country with the study counting towards
your Australian course. Australia’s immigration department may advise Centrelink if you leave or return to Australia.
This information will be updated as changes occur and may automatically affect your entitlements. All customers
must notify Centrelink of plans to travel outside Australia or their Youth Allowance may be stopped.
What is considered full-time or part-time study?
Full-time study
For Youth Allowance, full-time study means:
• your course attracts an equivalent full-time student load (EFTSL) of 0.375 or more in a teaching period
• your course is considered full-time by the institution where you are studying
• you are doing at least 75 per cent of the full-time workload, or
• if none of these apply, you are undertaking at least 15 contact hours per week.
You may also be considered a full-time student if your minimum workload is no less than 66 per cent of the normal
full-time workload because of:
• the institution’s normal requirements for the course
• a specific direction in writing from your deputy principal, academic registrar or equivalent officer, or
• a written recommendation from your deputy principal, academic registrar or equivalent officer for academic or
vocational reasons.
Note: if you are under 21 years and have not completed Year 12 or attained an equivalent qualification then you will
generally be expected to undertake study or training or other activity to the extent of 25 hours per week to meet the
Activity Test.
Part-time study
For Youth Allowance, part-time study means:
• you have a study load less than 75 per cent of a full-time workload, and
• you need to enter an Employment Pathway Plan and undertake other activities to make up a full-time workload (for
example Jobsearch).
How long can I take to finish a course?
If you are a secondary student, there is no limit to the time you can take to complete a course, as long as you remain a
full-time student. However, you cannot usually get Youth Allowance for more than two attempts at Year 12 unless
you can establish that a previous attempt failed as a result of circumstances beyond your control.
If you are studying a tertiary level course, you will need to finish your course within the allowable time for the course
you are doing. For a course that usually takes:
• one year or less, your allowable time is twice the length of the course
• more than one year to finish, and the subjects are semester based, your allowable time is the length of the course
plus six months
• more than one year to finish, and one of your current subjects is year based, your allowable time is the length of the
course plus one year.
What if I do not follow the rules for Youth Allowance?
Youth Allowance is a payment to assist you while you are studying, training or looking for work. If you do not meet
your study requirements, other Activity Test requirements or attend an interview when requested to do so by either
Centrelink or an employment services provider, your payment may stop.
If you are a student
If you are a student, you need to respond to Centrelink letters and attend interviews where applicable. If you do not,
and you do not have a reasonable excuse for failing to meet your requirements, you may get a participation failure.
If you are studying at school, you may be asked to enter into an Activity Agreement if you have more than five
unapproved absences in a term. If you continue to have excessive unapproved absences, and you do not have a
reasonable excuse for doing so, you may receive a participation failure.
Three or more participation failures within a 12-month period may result in an eight-week non-payment period.
If you are looking for work
You need to:
• go to all appointments with Centrelink or other providers, or tell us in advance if you cannot make it, and
• read all mail from Centrelink, or other providers, and respond if the mail asks you to do something, and
• enter into an Employment Pathway Plan if asked to do so, and
• if you have an Employment Pathway Plan, take steps to meet the terms of this plan.
If you are a job seeker and receive a Centrelink payment you must meet your Activity Test or participation
requirements to get your payment.
If you are unable to attend an appointment or activity you must contact the organisation that arranged the
appointment or activity to advise why you are unable to attend. If you do not contact them beforehand, your income
support payment may be reduced, or stopped, even if you have a good reason for not being able to turn up. If you
repeatedly don’t turn up to your appointments or activities, you may be asked to attend a Comprehensive Compliance
Assessment, and you may incur a serious failure if you are found to have been persistently not meeting your
requirements. You may also incur a serious failure if you refuse a suitable job offer and you do not have a valid
reason.
The penalty for a serious failure is an eight week non-payment period.
Do I have to pay tax on my payment?
Youth Allowance is counted as part of taxable income.
If you receive any other income like wages or a salary, you may have to pay some tax on your payment.
If you want tax taken out of your allowance, call Centrelink on 13 2850 or if you are an Australian Apprentice, call
13 3633. To find out how much tax you should have taken out, call the Australian Taxation Office on 13 2861.
If my situation changes, what do I need to tell Centrelink?
To make sure Centrelink pays you the correct amount of Youth Allowance, you need to tell Centrelink within 14 days
if you:
• change your address
• change your institution, course or study load
• stop studying
• stop being an Australian Apprentice
• are an Australian Apprentice and your Australian Government registration identification number is suspended
• are an Australian Apprentice and you start to receive or have been receiving the Living Away From Home
Allowance paid by Australian Apprenticeship Centres
• receive a payment for leave entitlements or a redundancy payment
• earn any income (or your partner earns any income)
• change your hours worked (or your partner changes hours worked)
• acquire an illness, injury or disability or the condition of an existing illness, injury or disability changes
• start working full-time
• become separated from your partner or you find a new partner
• leave, or intend to leave Australia temporarily or permanently
• have a dependent child whose circumstances change
• are a dependant (for Centrelink purposes), and:
– your parents start or stop receiving Centrelink payments
– your parents’ income changes, for example they start or stop work or get a pay rise
– you have dependent brothers or sisters whose circumstances change
– you have been living away from home and move back to your parents’ home.
Changes in sibling circumstances
Changes in the circumstances of any siblings also receiving Youth Allowance, ABSTUDY (living allowance) or
Assistance for Isolated Children (additional boarding allowance) may impact on your eligibility and rate of payment. It
is important to check with Centrelink when sibling circumstances change.
Example
Taylor is 19 years old and studying away from home at university. She claims Youth Allowance and is rejected due to
her parents’ income being too high at $95 000. Taylor’s brother Caleb then turns 16 and claims Youth Allowance.
Under the parental income test both Taylor and Caleb can now receive Youth Allowance and Taylor is also eligible
for scholarship payments for her university study. If Taylor then ceases study and stops receiving Youth Allowance,
her brother will no longer be eligible for payment.
Note: a complete list of all the things you need to tell us is on the back of the letters Centrelink sends to you.
What if I do not tell Centrelink when my circumstances change?
If you are getting Youth Allowance and you do not tell Centrelink if your circumstances change, then your Youth
Allowance payment may be delayed, or you may be paid the incorrect amount.
If you are paid too much, this could result in a debt, which you will have to repay. In some circumstances you may
also have to pay an additional recovery fee.
Note: to tell Centrelink about any changes as soon as possible, and for more information about how your payments
may be affected, call 13 2490, or visit a Centrelink Customer Service Centre.
How to contact us
To find out more about the payments and services you may be eligible for, visit www.centrelink.gov.au or contact us
in any of the following ways.
By phone
Planning to study or undertake training (or currently studying or undertaking training) 13 2490
Looking for work (under 21)
Youth Allowance
Austudy
Pensioner Education Supplement
ABSTUDY 13 2317
Payments for Australian Apprentices 13 3633
Assistance for Isolated Children 13 2318
Indigenous Call Centre 13 6380
Looking for work (21 and over) 13 2850
Are you a farmer or self-employed
Needing help in a crisis
Recently moved to Australia
Planning for or needing help in retirement 13 2300
Needing help after someone has died
Someone who is ill, injured or has a disability 13 2717
Caring for someone who is frail aged, ill or who has a disability
Parent or guardian 13 6150
Drought Assistance 13 2316
TTY* enquiries Freecall™ 1800 810 586
Centrelink International Services 13 1673
For information about claiming a payment from a country other than Australia and about claiming an Australian
payment while outside Australia
Calling from outside Australia +61 3 6222 3455
You can reverse the charges
Foreign Income Exchange Line Freecall™ 1800 050 041
If you get income from a country other than Australia
To speak to Centrelink in a language other than English 13 1202
Centrelink Business Hotline 13 1158
Customer Relations Freecall™ 1800 050 004
Suggestions, complaints or compliments
TTY* Customer Relations Line Freecall™ 1800 000 567
*TTY is only for people who are deaf or have a hearing or speech impairment. A TTY phone is required to use this
service.
Australian Government Services Fraud Tip-off Line 13 1524
Financial Information Service Seminar bookings 13 6357
Financial Information Service 13 2300
In person
When you visit a Centrelink Customer Service Centre you will be referred to an appropriate Customer Service
Adviser. Appointments can also be arranged.
In writing
Our contact address is on every letter we send you, or refer to the White Pages for the address of your nearest office.
Self Service
We continue to increase the number of ways that you can contact and do business with us. A growing number of our
services are available online and over the phone. Centrelink Self Service is a quick and convenient way to report,
update or view your personal details without having to speak to a Centrelink Customer Service Adviser or visit a
Centrelink Customer Service Centre.
Online Services—are secure, convenient and protect your privacy. Some of the options that make it easier to do
business with us:
• check when Centrelink will pay you
• check appointment details
• check reporting dates
• claim for a payment.
Phone Self Service—provides you with a convenient way to do some of your Centrelink business.
• Call 13 6240—to access a range of phone services.
• Call 13 3276—(13 EARN)—to report fortnightly employment income (if eligible).
For more information about reporting requirements visit www.centrelink.gov.au
Centrelink Online Letters—give you the choice to view some letters from Centrelink online rather than having
them sent to your postal address.
Centrelink Electronic Message Reminder Service—is a free personalised reminder service that sends a text
message or email to remind you about appointments and lodgment dates.
For more information about Centrelink Self Service visit www.centrelink.gov.au
Disclaimer
The information contained in this publication is intended only as a guide to payments and services. It is your
responsibility to decide if you wish to apply for a payment and to make an application, with regard to your particular
circumstances.
This information is accurate as at July 2011. If you use this publication after that date, please check with us that the
details are current.
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