Don’t stop your child’s Youth Allowance payment

A very important reminder has been issued by Services Australia to parents and guardians regarding their dependent child’s Youth Allowance payment. The agency, through Centrelink, has commenced its annual review of parental income, which is a mandatory process for calculating the correct payment rate for young people. If your child, who is under 21 and a dependent, has received a letter requesting your income details, it is crucial that you action this request by the specified deadline. Failure to provide this information in a timely manner will unfortunately lead to the suspension of your child’s Youth Allowance, which could leave them short of a quid when they need it for their studies or apprenticeship.

Detailed list of key announcement points

• The announcement was formally published by Services Australia (Centrelink) on 17 October 2025.
• The action is part of the yearly reassessment of the Parental Means Test for dependent Youth Allowance recipients.
• Letters requesting parental income details were generally sent out in September to the dependent child.
• The request for income details primarily applies to children who are 21 years of age or younger and classified as dependent for their Youth Allowance payment.
• The main party responsible for providing the income information is the parent or guardian, while the letter is addressed to the dependent child or their nominee.
• The specific deadline for submitting the required income information is printed clearly on the letter sent to the child.
• Failure to meet the stated deadline will result in the suspension of the dependent child’s Youth Allowance payment.
• Parents must use the One Time Access Code (OTAC) or Verification Code supplied in the letter to submit the details via the Advise Parental Income service.
• No action is required if the dependent child did not receive a letter, as Services Australia already has the necessary information for their review.
• The general contact number for the Youth and students line to discuss this matter is 132 490.
• Parents must provide a range of income components, including combined taxable income, fringe benefits, reportable super contributions, and total net investment losses.

Full explanation of the parental income review

For those receiving the Youth Allowance payment on behalf of a dependent child, the annual review of your income is a foundational requirement to maintain the payment. This process is absolutely essential as the Youth Allowance is a means-tested payment, meaning the amount your child is entitled to is directly impacted by the financial capacity of their family unit. The government uses the Parental Income Test to assess your family’s combined income, ensuring the support goes to those who genuinely need it most. This comprehensive assessment looks at your combined taxable income, along with things like tax-free pensions and benefits, total net investment losses, and reportable superannuation contributions.

The annual letters were distributed back in September, primarily to students and Australian Apprentices who are still considered dependent and are twenty-one or under. This is not just a routine check; it is the lynchpin of the payment calculation for the coming period. The reason for requesting the information online, often using an OTAC or Verification Code, is to streamline the process, allowing parents to securely and quickly provide the data needed to avoid any hiccups. To get the maximum rate of Youth Allowance, your parental income needs to be below a certain threshold (which is adjusted annually and depends on the number of other eligible children in your family). For more details on the importance of this, you can always check the original source announcement here: https://www.servicesaustralia.gov.au/dont-let-your-childs-youth-allowance-payment-stop. If your income has dropped significantly since the last tax year, you may be able to provide an estimate of your current year’s income instead, which could result in a higher payment rate for your young one. This is a chance to ensure your family is getting every dollar they are entitled to for their education or training journey. You can also explore further Centrelink services and advice on this page: https://medigosa.com/category/services-australia/.

How to update your parental income details

The process for providing your income details is straightforward, and the Services Australia online services make it a snap to complete:

1. Locate the letter: Ensure you have the letter that Services Australia sent to your dependent child in September. This letter contains the unique One Time Access Code (OTAC) or Verification Code you will need.
2. Access the service: Sign into your myGov account and navigate to your linked Centrelink online account, or use the Express Plus Centrelink mobile app.
3. Select the Advise Parental Income service: Use the service titled ‘Advise Parental Income’ within your Centrelink account.
4. Enter the code: Input the One Time Access Code or Verification Code from the letter to start the process.
5. Provide the details: Follow the prompts to provide your combined income information for the relevant tax year. This may include your taxable income, fringe benefits, and net investment losses.
6. Submit by the deadline: Complete and submit all information before the final date specified on the letter to avoid payment suspension. You can find more detail on the general process here: https://www.servicesaustralia.gov.au/updating-parental-income-details.

Community questions and answers on Youth Allowance

• Q: Who is considered a ‘dependent child’ for Youth Allowance? A: A dependent child is typically a young person who is not considered ‘independent’ under Centrelink rules, often under 22, living at home, and still reliant on parental support.
• Q: Why do I need to update my income details every year? A: Services Australia reassesses parental income annually to ensure your child’s Youth Allowance payment is correctly calculated based on your current financial situation, as the rate is subject to the Parental Means Test.
• Q: What happens if I miss the deadline in the letter? A: If you miss the final date for submission, your child’s Youth Allowance payment will be suspended until the required income details are provided.
• Q: My child is 22. Will I still need to provide my income? A: The letter was primarily sent to those whose dependent children are 21 or younger. Generally, once your child turns 22, they may be assessed as independent, or the dependency criteria change.
• Q: What income does the Parental Income Test include? A: It includes combined parental taxable income, tax-free pensions, fringe benefits, reportable superannuation contributions, and total net investment losses.
• Q: I am separated from my child’s other parent. Whose income is assessed? A: Services Australia assesses the income of the parent the child spends the most time living with. If time is equal, they assess the income of the parent the child nominates.
• Q: Can I submit a current income estimate instead of my tax return? A: Yes, if your income has significantly reduced since the last tax year, you can provide an estimate of your current financial year’s income. This may allow for a higher rate of payment for your child.
• Q: What is a One Time Access Code (OTAC)? A: An OTAC is a unique code printed on the Services Australia letter that allows a parent/guardian to securely access the ‘Advise Parental Income’ service online without needing their own Centrelink reference number.
• Q: How do I find the ‘Advise Parental Income’ service? A: This service is available within your myGov account after signing in and navigating to your linked Centrelink online account.
• Q: What is the minimum parental income threshold for Youth Allowance? A: The threshold for receiving the maximum rate varies; for context, it was around $62,634 in 2024. For income above this, the payment rate is reduced.
• Q: How does the Parental Income Test affect the payment amount? A: Once parental income exceeds the minimum threshold, the Youth Allowance rate is typically reduced by 20 cents for every dollar over the threshold.
• Q: What is the ‘Family Pool’ rule? A: The Family Pool rule takes into account other dependent children in the family (under 22) who are also getting an income-tested payment, which spreads the reduction amount across all eligible children.
• Q: Can my child still receive Youth Allowance if our income is high? A: Yes, there is a maximum parental income cut-off point (e.g., $160,000 plus $10,000 per additional eligible child) after which the payment stops entirely, but income above the lower threshold can still result in a partial payment.
• Q: What if I don’t have a myGov account? A: If you cannot submit online, you should call the Youth and students line on 132 490 to discuss alternative submission methods, such as an official form.
• Q: Does this annual review include the Maintenance Income Test? A: Yes, the Parental Means Test includes both the Parental Income Test and the Maintenance Income Test, which considers any child support or voluntary maintenance received.