ABSTUDY living allowance rate up for students

The Australian Government has announced that the ABSTUDY Living Allowance will be seeing an increase for eligible students and apprentices across the country. This adjustment, managed by Services Australia, is a result of the regular Consumer Price Indexation (CPI) process to help support the cost of living for recipients. The good news is that those currently receiving the payment do not need to take any action, as the rate adjustment will be processed automatically into their accounts from 20 September 2025, provided their individual circumstances still qualify them for the allowance.

Key announcement details

• The ABSTUDY Living Allowance is increasing for certain students and apprentices.
• The reason for the rate rise is the Consumer Price Indexation (CPI) adjustment.
• The rate increase will be effective from 20 September 2025.
• Recipients of the ABSTUDY Living Allowance will have their payments automatically updated; no action is required on their part.
• The increase applies depending on the individual’s circumstance.
• The government agency responsible is Services Australia.
• The increase aims to assist Aboriginal and Torres Strait Islander Australians with their living and study costs.
• The announcement was published on 20 September 2025.
• The document control number is QC 83148.

Full explanation of the government announcement

For our valued Aboriginal and Torres Strait Islander students and apprentices, Services Australia has confirmed an uplift in the ABSTUDY Living Allowance. This is a crucial step the government takes regularly to ensure financial support keeps pace with the general cost of living here in Australia. As prices for essential items and services naturally creep up over time, indexing these support payments, through what we call Consumer Price Indexation or CPI, is vital. It means your payment, which is already helping you with accommodation, books, and day-to-day essentials while you study or train, will be adjusted to have the same purchasing power as before.

We reckon this automatic adjustment will make a difference, especially with the pressures everyone is feeling at the moment. It is particularly important for those who have had to relocate to study or those with dependants. If you are currently getting the ABSTUDY Living Allowance, you do not need to do a thing. Your payment rate will be looked at against the new indexed rates and the increase, where applicable to your personal situation, will start coming through from 20 September 2025. You can check the specifics on the new rates and how the payment works in general by looking at the Services Australia ABSTUDY page.

Now, if you are a student or apprentice and you are of Aboriginal or Torres Strait Islander descent, but you are not yet receiving ABSTUDY, or if you want to know more about different payments you may be eligible for, have a squiz at additional information about Services Australia support payments. It is worth your time to check, as this support can be life-changing, allowing you to focus on your education and training without the constant worry of money. The whole point of ABSTUDY is to encourage greater educational and career outcomes for all Aboriginal and Torres Strait Islander people.

How to: Checking your new abstudy rate

While the increase is automatic, you will naturally want to check your new payment rate. Here is how you can confirm the change and manage your payment details:

1. Wait until after 20 September 2025, as this is the date the new rates come into effect.
2. Log in to your Centrelink online account through myGov.
3. Navigate to your ‘Payments and Claims’ section and check your next scheduled payment amount.
4. Look for the notification within your online account or a letter from Services Australia which confirms the new rate following the CPI indexation.
5. If you have any queries about the new rate or believe you have not received the correct adjustment, you should contact Services Australia directly by phone or by visiting a Centrelink service centre. Remember to have your Customer Reference Number (CRN) handy when you call.

Community Q&A on the ABSTUDY increase

• Q: When exactly will my ABSTUDY Living Allowance increase take effect? A: The increase will start from 20 September 2025.
• Q: Do I need to contact Centrelink to get this increase? A: No, the rate increase is automatic; you do not need to contact Services Australia or submit a new claim.
• Q: Why is the payment increasing? A: The increase is due to the regular Consumer Price Indexation (CPI) process, which adjusts payment rates to keep up with the cost of living.
• Q: Does this rate rise apply to all ABSTUDY payments? A: The announcement specifically refers to the ABSTUDY Living Allowance for students and apprentices. Other components may have different indexation dates.
• Q: I am an apprentice; will I get the increase? A: Yes, the Living Allowance increase applies to both eligible students and apprentices.
• Q: How will I know what my new rate is? A: Services Australia will inform you through a letter or an update in your Centrelink online account accessed via myGov.
• Q: What if I do not see the increase in my payment after the date? A: If you are eligible and do not see the change, you should contact Services Australia to discuss your specific circumstances.
• Q: Does this change the eligibility rules for ABSTUDY? A: No, the eligibility criteria for ABSTUDY itself remain the same; this is just a rate adjustment.
• Q: Is this a one-off payment or an ongoing rate increase? A: This is an adjustment to your ongoing payment rate, not a one-off lump sum.
• Q: Do I have to be a full-time student to get the increased rate? A: The ABSTUDY rules for your particular study load (full-time or part-time) still apply for Living Allowance eligibility.
• Q: Will my ABSTUDY supplement loan also increase? A: The announcement refers only to the Living Allowance rate; information on other payments like the Student Start-up Loan or ABSTUDY Supplement Loan would be separate.
• Q: Will my Youth Allowance or Austudy payment also increase on this date? A: This announcement is only for ABSTUDY; other payments like Youth Allowance or Austudy have their own separate indexation schedules.
• Q: What if I am turning 22 soon, will my rate change? A: ABSTUDY has different rates for those under and over 22, so any age-related rate changes are separate from this CPI indexation.
• Q: I am receiving an income-tested ABSTUDY payment; will my personal income affect the increase? A: Your payment is still subject to the existing income and assets tests, but the base rate used to calculate your payment will be the new, higher indexed rate.
• Q: Who should I contact if I have further questions? A: You can contact Services Australia directly by calling the ABSTUDY line or by visiting a Centrelink service centre.
• Q: Does the ABSTUDY Schooling rate also increase? A: The announcement specifically mentions the Living Allowance for students and apprentices, which usually applies to post-secondary education and full-time apprenticeships.