Finishing up year 12 is a massive achievement, and the Australian Government, through Services Australia, is putting a fair bit of money on the table to help young Aussies who are heading into further education or an apprenticeship. The main goal of this initiative is to ease the financial pressure on students and apprentices so they can focus on their studies at university or TAFE, or on their trade training. The key payments are Youth Allowance and Austudy, which are means-tested and designed to cover living expenses. There are also specific payments for apprentices, for those who need to move for study, and for Aboriginal and Torres Strait Islander students, ensuring a comprehensive safety net is available.
Key financial support details
The Australian Government provides a suite of payments and loans administered primarily by Centrelink (part of Services Australia) to support students and Australian Apprentices. The following are the critical details:
- Primary Payments: The two major income support payments for tertiary education are Youth Allowance (for students and Australian Apprentices aged 24 and younger) and Austudy (for students and Australian Apprentices aged 25 and older).
- Youth Allowance Eligibility (After Year 12): You must be one of the following: 18 to 24 and studying full-time; 16 to 17, studying full-time and either independent or needing to live away from home; or 16 to 17, studying full-time and have completed year 12 or equivalent. You must also be doing a full-time course or Australian Apprenticeship.
- Payment Rates Update: Maximum fortnightly payment rates are generally updated on 1 January each year.
- Example Youth Allowance Maximum Fortnightly Rates (from 1 January 2025):
- Single, no children, younger than 18, living at home: $410.30.
- Single, no children, 18 or older, living away from home: $663.30.
- A couple, with no children: $663.30.
- Means Testing: Both Youth Allowance and Austudy are subject to income and assets tests, including a parental means test for dependent students.
- ABSTUDY: A specific group of payments tailored to assist Aboriginal and Torres Strait Islander students and apprentices with their study costs.
- Tertiary Access Payment (TAP): A one-off payment of up to $5,000 to help students from regional or remote areas with the cost of moving for tertiary study in the year immediately following Year 12.
- Australian Apprentice Training Support Payment (AATSP): Direct financial support for eligible Australian Apprentices commencing in priority occupations. Full-time apprentices can claim up to a maximum of $5,000 over a two-year period; part-time apprentices up to $2,500. This payment applies to those who commenced or recommenced on or after 1 July 2024.
- Australian Apprenticeship Support Loan (AASL): A loan of up to $25,983 (for 2025–2026) over the life of an apprenticeship. A 20% discount is applied on the total loan amount upon completion of the qualification. Repayment is via the Australian Taxation Office (ATO) once income reaches the minimum threshold.
- Student Start-up Loan (SSL): A voluntary, optional loan available up to twice a year for eligible higher education students.
Full explanation of the government announcement
The Australian Government recognises that transitioning from school to higher education or an apprenticeship often involves significant financial strain, particularly concerning living costs, materials, and potential relocation. This package of payments is designed to provide a solid foundation of financial support to ensure that all Australians, regardless of their background, have a fair go at getting a post-school qualification. This support is mainly delivered through Services Australia (Centrelink) and covers a breadth of circumstances.
The main player in this space is Youth Allowance for students and Australian Apprentices. If you are 24 or under and are enrolled in full-time study at a university or TAFE, or are undertaking a full-time Australian Apprenticeship, this is your primary income support. For those who are a bit older, say 25 or over, the comparable payment is Austudy. These payments are not a ‘dole’ payment; they are structured financial assistance aimed at encouraging skills and future workforce capacity. The amount you receive is worked out through a comprehensive means-test, which considers your own income and assets, and if you are dependent, your parents’ or guardians’ income and assets are also factored in. It is critical to apply early, even before your course officially commences, to avoid any undue delays in receiving your first payment.
For those embarking on a trade, the support is just as robust. Australian Apprentices starting in priority occupations can snag the Australian Apprentice Training Support Payment (AATSP), providing up to five grand to help with essentials like tools and general living costs during the first two years. Moreover, the Australian Apprenticeship Support Loan (AASL) is available, which is a significant loan to help with expenses, and the best part is that you get a 20% discount on the debt once you successfully finish your trade. These are brilliant incentives to get into the trades, which are the backbone of our economy. You can find more detail on all these supports at the Services Australia website.
There is also targeted assistance, such as the Tertiary Access Payment (TAP), a one-off payment of up to $5,000 for people from regional or remote areas who need to move for their study. This is an absolute lifesaver for young folks from the bush who are heading to the big smoke for uni or TAFE. Similarly, ABSTUDY is there to provide cultural and financial support for Aboriginal and Torres Strait Islander students and apprentices. You should check your eligibility for these targeted payments as they can make a substantial difference to your finances. We encourage all eligible school leavers to check their circumstances and apply. Get on the front foot and see what you can claim! You can read more on other government assistance on Government Services at medigosa.com.
How to claim student or apprentice payments
To successfully claim an Australian Government student or apprentice payment, such as Youth Allowance, it is best to follow a structured process:
- Check Eligibility: Use the Services Australia Payment Finder tool (which can be accessed via your myGov account) to see which payment you are most likely to be eligible for, based on your age, living arrangements, study or apprenticeship status, and income.
- Gather Documents: Collect all required documentation, which typically includes proof of identity, tax file number (TFN), bank details, income and assets details (yours and your parents’/guardians’ if you are dependent), and confirmation of enrolment or apprenticeship details.
- Create a myGov Account: If you do not have one already, create a myGov account and link it to Centrelink (Services Australia). Most claims are now lodged online.
- Lodge the Claim: Complete the application form for the relevant payment (e.g., Youth Allowance) through your Centrelink online account via myGov. Make sure all questions about your circumstances are answered truthfully and accurately.
- Submit Supporting Documents: Upload or provide any requested supporting documents to Services Australia as soon as possible to ensure your claim can be processed efficiently.
- Report Changes: Once approved, you must keep Services Australia informed of any changes to your circumstances, such as income, assets, study load, or living situation, to ensure you continue to receive the correct payment rate.
Q&A for students and apprentices
- Q: Who is Youth Allowance for?
A: It is financial assistance for full-time students and Australian Apprentices aged 24 or younger. - Q: What if I’m 25 or older and studying?
A: If you are 25 or over and studying full-time or doing an Australian Apprenticeship, you should apply for Austudy. - Q: Do I have to be studying full-time to get Youth Allowance?
A: Generally, yes, you must be studying full-time or doing a full-time Australian Apprenticeship, though there are exceptions for concessional study loads if you have a disability or due to other specific circumstances. - Q: How does the parental means test work?
A: If you are a dependent student, your parent’s or guardian’s income and assets will be assessed to determine if you are eligible for the payment and how much you can get. - Q: Are the student payments taxable?
A: Yes, Youth Allowance for students and Australian Apprentices is a taxable Centrelink payment, and you may have to pay income tax on it. - Q: Can I get a higher payment rate if I move out of home?
A: Yes, you may be eligible for a higher rate of Youth Allowance if you need to live away from your parents’ home to study or do your Australian Apprenticeship. - Q: What is the Tertiary Access Payment (TAP)?
A: It’s a one-off payment of up to $5,000 for students who move from a regional or remote area to study in the year after completing Year 12 or an equivalent. - Q: What is the Australian Apprentice Training Support Payment (AATSP) for?
A: It provides direct financial support for eligible Australian Apprentices starting in priority occupations, offering up to $5,000 over two years for full-time apprentices. - Q: When did the AATSP payment start?
A: It is for Australian Apprentices who commenced or recommenced their apprenticeship on or after 1 July 2024. - Q: What is the Australian Apprenticeship Support Loan (AASL)?
A: It is a voluntary loan of up to $25,983 (for 2025–2026) over the life of an apprenticeship, which is repaid via the ATO once your income is high enough. - Q: Do I have to pay back the full AASL amount?
A: No, if you successfully complete your qualification, you will receive a 20 per cent discount on the total loan amount. - Q: Is there any extra support for study costs?
A: Yes, you may be eligible for the Pensioner Education Supplement (PES) and the Education Entry Payment, which is a once-a-year payment when you start studying, provided you get an eligible payment from Services Australia. - Q: How do I apply for these payments?
A: You can claim online through your Centrelink online account, which is accessed via your myGov account. - Q: What if I am an Aboriginal or Torres Strait Islander student?
A: You should look into ABSTUDY, which is a tailored group of payments to assist Aboriginal and Torres Strait Islander students and apprentices. - Q: What is the Student Start-up Loan?
A: It is an optional, voluntary loan of a set amount that can be paid up to twice a year for eligible higher education students. - Q: What do I need to prepare before claiming?
A: It is best to check your eligibility, gather details on your income and assets, and have your enrolment or apprenticeship details ready. - Q: Can I get help with travel costs for my study?
A: Yes, the Fares Allowance may help with travel costs between your home and your place of study.
