Abstudy allowance up for students and apprentices

The Australian Government has announced a scheduled increase to the ABSTUDY Living Allowance rates for eligible Aboriginal and Torres Strait Islander students and Australian Apprentices. This boost to payments is due to commence on 20 September 2025 and is part of the regular Consumer Price Indexation (CPI) adjustment to social security payments, reflecting the higher cost of living across the nation. The adjustment is designed to offer greater financial relief, allowing recipients to better cover essential expenses such as rent, food, and study materials, thereby supporting their commitment to education and training. Current recipients do not need to take any action, as the updated rate will be applied automatically by Services Australia.

Key details of the ABSTUDY increase

• Announcement Authority: The Australian Government, administered through Services Australia (Centrelink).
• Effective Date of Change: The new indexed rates will be applied from 20 September 2025.
• Target Recipients: Aboriginal and Torres Strait Islander students and Australian Apprentices who are undertaking an approved course or training, usually full-time.
• Purpose of Increase: The adjustment is an indexation to keep pace with the rising cost of living, determined by the Consumer Price Index (CPI).
• Maximum Fortnightly Rate (Example): The maximum fortnightly rate for an Independent Single student aged 22 or over will increase to $793.60. This represents an increase of $12.50 per fortnight from the previous rate of $781.10.
• Other Rate Changes: Partnered recipients (aged 22+) will each be eligible for $726.50 per fortnight, an increase of $11.40.
• Income Free Area: The amount a single student can earn before their payment is reduced is also set to increase to $1,882.84 per fortnight.
• Action Required: No application is necessary for existing recipients; the update is administered automatically.
• Contact Information: For claim assistance or to check specific circumstances, students can call the ABSTUDY line (or another public-facing number, please check the Services Australia website for the most current number).

Full explanation of the government announcement

This indexation process is a standard but critically important mechanism the Australian Government employs to ensure social support payments remain fair and reasonable in the face of inflation and increasing costs of living. For the Aboriginal and Torres Strait Islander community, the ABSTUDY Living Allowance is a foundational payment designed to remove financial barriers that often prevent individuals from completing their educational or apprenticeship goals. By increasing the maximum payment to $793.60 per fortnight for eligible independent students aged 22 and over, Services Australia is making a further commitment to help ‘close the gap’ in educational outcomes.

The payment is available to those who are Australian citizens, normally living in Australia, and undertaking an approved course of study or an Australian Apprenticeship. It is paid on a fortnightly basis and is generally taxable, but it provides crucial assistance for day-to-day costs, enabling recipients to dedicate their attention to their studies rather than financial stress.

If you are a student or apprentice currently receiving ABSTUDY Living Allowance, you will see this increase reflected in your bank account from 20 September 2025 without needing to lift a finger. If you are not yet receiving ABSTUDY but are an eligible Aboriginal or Torres Strait Islander student, this boost makes the support package even more worthwhile. It is strongly encouraged to check your eligibility and apply as soon as possible via the Services Australia website through your myGov account, particularly if you are in higher education, a full-time apprentice, or a secondary student aged 16 or older.

The specific amount you receive will depend on your individual circumstances, including your age, living arrangements (such as living at home or away from home), and whether you have a partner or children. The September indexation is part of a twice-yearly review for recipients aged 22 or over, ensuring ongoing support is relevant to current economic pressures.

How to claim the ABSTUDY Living Allowance

Applying for ABSTUDY is primarily managed online through the Centrelink services linked to your myGov account. The process is designed to be as straightforward as possible to ensure you receive the financial support you are entitled to.

The general steps for new applicants are as follows:

1. Prepare Your Documents: Gather proof of your Aboriginal or Torres Strait Islander identity, Australian residency status, and current enrolment details for your approved course or Australian Apprenticeship.
2. Access myGov and Centrelink: Sign in to your myGov account. If you haven’t already, you must link the Centrelink service to your account.
3. Start a Claim: Navigate to the ‘Make a Claim’ section within Centrelink and select the application for the ABSTUDY Living Allowance.
4. Complete the Form: Fill out the application, providing all necessary personal, study, and financial information, including details about your parents’ income if you are under 22 and considered dependent.
5. Upload and Submit: Upload your supporting documents and submit the completed application. You can track the progress of your claim online through your myGov account.

If you are a secondary student aged 16 or older, you will generally need to claim the allowance yourself. If you are a parent or guardian of a younger school child, you can claim different ABSTUDY support payments, such as the School Term Allowance, on their behalf. If you require assistance with the claim process, you are encouraged to call the ABSTUDY line for guided support.

Community questions and answers on the ABSTUDY increase

• Q: When exactly does the ABSTUDY rate increase come into effect? A: The new rates will be effective from 20 September 2025.
• Q: Do I need to reapply to get the higher payment? A: No, if you are already a recipient of the ABSTUDY Living Allowance, the increase will be applied automatically.
• Q: Who is eligible for this ABSTUDY payment? A: You must be an Australian Aboriginal or Torres Strait Islander person, normally living in Australia, and undertaking an approved full-time course or Australian Apprenticeship.
• Q: What is the maximum new fortnightly payment rate? A: The maximum rate is $793.60 per fortnight, generally for Independent Single students aged 22 and over.
• Q: Why is the government increasing the payment? A: The increase is due to the twice-yearly indexation based on the CPI to help recipients manage the rising cost of living pressures.
• Q: Is ABSTUDY paid monthly or fortnightly? A: The Living Allowance is paid fortnightly.
• Q: Does the payment change if I am partnered? A: Yes, partnered recipients aged 22 and over will each receive a set rate, which is also increasing to $726.50 per fortnight.
• Q: Can I still earn income while receiving ABSTUDY? A: Yes, but your payment may be reduced if you earn above the income free area, which is also being increased to $1,882.84 per fortnight for single students.
• Q: Does the increase apply to school students as well? A: Yes, ABSTUDY has different rates based on age and living situation, and most categories of the Living Allowance are subject to the September indexation.
• Q: What is the increase amount for an Independent Single student aged 22 or over? A: Their payment is increasing by $12.50 per fortnight.
• Q: How do I prove I am an Aboriginal or Torres Strait Islander person for the claim? A: You need to provide appropriate documentation, usually including a letter confirming your identity and descent from an Indigenous organisation.
• Q: Where can I apply for ABSTUDY? A: The easiest way to apply is online through your myGov account linked to Centrelink.
• Q: Will this payment affect my Energy Supplement? A: No, the Energy Supplement is generally a separate payment that remains unchanged by the Living Allowance indexation.
• Q: I am a parent of a 17-year-old student; who claims the payment? A: If your child is 16 or older, they may need to claim the ABSTUDY Living Allowance themselves.
• Q: Is ABSTUDY Living Allowance taxable? A: Yes, the Living Allowance is generally a taxable payment.
• Q: Does ABSTUDY include help for books and study supplies? A: Yes, in addition to the Living Allowance, recipients may also be eligible for the ABSTUDY Incidentals Allowance, a one-off payment for study materials.
• Q: Can I get ABSTUDY if I am receiving another government payment for my studies? A: No, a key eligibility requirement is that you are not receiving another similar payment to assist with your study or apprenticeship.