As we move into 2026, many Australians receiving Centrelink support for study, training or job seeking will notice small but welcome adjustments to their payments. These changes come from the regular indexation process, which helps payments keep up with rises in living costs.
From 1 January 2026, rates for Youth Allowance, Austudy, ABSTUDY Living Allowance, and related supplements have gone up. The updates also cover income thresholds and parental means tests.
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Over one million people across the country benefit from these payments, including full-time students, apprentices, young job seekers and carers. The increases are automatic – you don’t need to do anything to get the higher amount in your next payment.
All details here come directly from official sources, including the Department of Social Services indexation schedule and Services Australia rate pages updated on 1 January 2026.
What These Youth and Student Payments Cover
These Centrelink payments provide essential financial help for younger Australians. Youth Allowance is mainly for those 24 and under who are studying full-time, doing an apprenticeship or looking for work if 21 or younger.
Austudy steps in for older students, typically 25 and above. ABSTUDY offers targeted support for Aboriginal and Torres Strait Islander students and apprentices.
Eligibility depends on factors like age, study load, residence status, personal income, assets and sometimes parental or partner income. Payments are fortnightly and taxable in most cases. You might also qualify for extras like Rent Assistance or the Energy Supplement.
Indexation in January each year focuses on these under-22 categories and certain allowances, based on Consumer Price Index (CPI) movements.
Updated Youth Allowance Rates from January 2026
Youth Allowance rates differ based on your age, whether you have children, if you’re partnered, and if you live at home or independently.
Key Maximum Fortnightly Rates
Here’s a breakdown of the main changes to maximum basic rates:
| Situation | Previous Rate (fortnightly) | Rate from 1 Jan 2026 | Increase |
|---|---|---|---|
| Single, no children, under 18, at home | $410.30 | $418.90 | $8.60 |
| Single, no children, 18 or over, at home | $472.50 | $482.40 | $9.90 |
| Single, no children, away from home (any age eligible) | $663.30 | $677.20 | $13.90 |
| Single, with children | $836.60 | $854.20 | $17.60 |
| Partnered, no children | $663.30 | $677.20 | $13.90 |
| Partnered, with children | $718.10 | $733.20 | $15.10 |
For those on long-term rates (such as certain older unemployed starting study):
- Single away from home: now $799.70 (up $16.40)
- Partnered, no children: now $733.20 (up $15.10)
Many recipients also get the Energy Supplement added on top – usually between $7 and $9 fortnightly, depending on your situation. For the latest full rates, check the official Youth Allowance payment page.
Income and Threshold Changes for Youth Allowance
Personal income free areas have increased, meaning you can earn a bit more before your payment starts to reduce:
- Income before reduction begins: now up to $539 fortnightly
- Point where payment reaches zero varies by situation, but generally higher now.
The parental income threshold for dependent claimants has risen to around $66,722 annually, helping more families keep full or partial payments.
Austudy Payment Updates for 2026
Austudy follows similar patterns to Youth Allowance but applies to those 25 and older.
Main maximum rates now include:
| Situation | Previous Rate | Rate from 1 Jan 2026 | Increase |
|---|---|---|---|
| Single, no children | $663.30 | $677.20 | $13.90 |
| Single, with children | $836.60 | $854.20 | $17.60 |
| Partnered, no children | $663.30 | $677.20 | $13.90 |
| Partnered, with children | $718.10 | $733.20 | $15.10 |
Long-term rates for eligible claimants are higher, reaching up to $799.70 for singles. Income tests align closely with Youth Allowance adjustments.
ABSTUDY Living Allowance Changes
ABSTUDY rates vary by age, study level and living arrangements. Some key updates:
- Away from home rates for most ages: now $677.20 (up $13.90)
- For masters or doctorate students: significantly higher at $1,316.20 (up $30.80)
- Younger tertiary students: smaller adjustments, such as under 16 from around $42.
Supplementary amounts like incidentals and school fees allowances have also seen minor lifts. Parental income tests match those for Youth Allowance.
For complete ABSTUDY details, refer to Services Australia resources.
Other Related Increases
- Youth Disability Supplement: Now $162.60 fortnightly (up $3.30)
- Carer Allowance: Also $162.60 fortnightly (up $3.30), supporting hundreds of thousands of carers
These small boosts add up over the year and reflect the government’s ongoing adjustments to social security.
How These Changes Are Calculated and Applied
Indexation ties directly to CPI figures, ensuring payments don’t lose value over time. Services Australia applies the new rates automatically from the first payment period in January. If your circumstances change – like starting part-time work or moving house – make sure to report it promptly through myGov to avoid any over or under payments.
Thresholds for personal and parental income have gone up too, which often means more people can receive the full rate or earn extra without losing support.
Checking Your Own Payment
The best way to see exactly how these changes affect you is to log into your myGov account linked to Centrelink. You can also use the payment finder tools on the Services Australia website or call the Youth and Students line for personalised advice.
For the full official list of indexed rates, visit the Department of Social Services indexation page.
These adjustments provide modest relief at a time when many households feel the pinch from everyday expenses. While not large individually, they help maintain the real value of support for education, training and caring responsibilities.
FAQs
When do the new Youth Allowance rates start in 2026?
The increased rates apply from 1 January 2026 and will appear in your first fortnightly payment after that date.
How much extra will a single student living away from home get on Youth Allowance?
The maximum basic rate rises by $13.90 to $677.20 fortnightly, plus any ongoing supplements.
Do I need to apply for the Carer Allowance increase?
No – the new rate of $162.60 fortnightly (up $3.30) is applied automatically if you’re already receiving it.
Ben Lee is a content writer specializing in government schemes and public benefit programs, delivering clear and up-to-date information to help readers understand eligibility, payments, and policy changes.