Income and assets tests for ABSTUDY
The amount of ABSTUDY you may get will depend on your personal circumstances.
ABSTUDY payments subject to an income and assets test
The following ABSTUDY payments are subject to an income and assets test:
- Living Allowance, including Rent Assistance, Remote Area Allowance and Pharmaceutical Allowance
- School Fees Allowance Group 2
All other ABSTUDY payments and allowances are not subject to an income and assets test.
If you are dependent
If you are 21 years of age or younger and do not meet any of the independence criteria, you are considered dependent. If you are dependent, we will use a personal income test and a parental income test to work out how much ABSTUDY you can get.
The amount you get each fortnight is worked out using either of these tests. The test that results in the lowest payment rate will apply.
If you are independent
If you’re applying for ABSTUDY, you’ll be considered either dependent or independent. If you are 22 years of age or older you are automatically considered independent. If you are 21 years of age or younger, you will only be considered independent if you have supported yourself through employment, have or have had a dependent child or meet certain other independence criteria.
If you are independent, your parents' or guardians’ income is not generally taken into account. It is only taken into account if you are from a regional or remote area and applying for independence under Regional or remote, worked part time and moving away from home to study. In this situation you may be eligible for ABSTUDY if your parents’ income is under $150,000.
Personal income test
A personal income test may be used to decide how much ABSTUDY Living Allowance you can get. We will use the personal income test if you are 16 years of age or older, or if you are an independent Australian Apprentice. The personal income test assesses your gross income.
We update the personal income test on 1 January, 20 March, and 20 September each year.
If you earn:
- less than $433 a fortnight, you will get the full payment
- between $433 and $519 a fortnight, we will reduce your payment by 50 cents for each dollar you earn over $433
- more than $519 a fortnight, we will reduce your payment by $43 plus 60 cents for each dollar you earn over $519
You can earn more without affecting your payment with Income Bank. You can save up credits in your Income Bank when you earn less than $433 in a fortnight. Students can save up to $10,800 in Income Bank credits each year. Apprentices can save up to $1,000 a year.
Read more about Income Bank.
Personal assets test
If you are an independent student or Australian Apprentice, assets you own can affect your payment. The asset limits will vary, depending on if you have a partner or own your own home. We will ask you to provide the current market value of your assets when you claim ABSTUDY Living Allowance. The personal assets test does not apply if your partner is on an income support payment.
Read more about assets and the asset test limits.
If you are in severe financial hardship but are not eligible for ABSTUDY because of the assets test, you may be paid under Asset Hardship provisions.
Parental income test
The parental income test applies to you if you are a dependent student or Australian Apprentice:
- 16 years of age or older, or
- 15 years of age or younger and approved to live away from home, and
- receive or are claiming ABSTUDY Living Allowance or School Fees Allowance Group 2
The parental income test will not apply to you if you are in state care, or your parents or guardians:
- receive an income support payment - this does not include Family Tax Benefit
- receive ABSTUDY Living Allowance, or
- have a Health Care Card
In 2016 we assess your parents’ or guardians’ taxable income for the 2014-15 tax year. If your parents' or guardians' taxable income for the 2014-15 tax year is $51,027 or less, this income test won’t affect the rate of ABSTUDY Living Allowance or School Fees Allowance Group 2 you may get.
If your parents or guardians earned more than $51,027 in the 2014-15 tax year, your rate of payment is reduced by 20 cents for every dollar over this amount depending on how many dependent children are in your family pool, as defined below. You can use the online rate estimator to work how much you may get based on your family circumstances.
The parental income test applies to the parents or guardians who you normally live with, or last lived with if you do not live with either parent or guardian. If you normally live with a step parent, their income will be included.
Parental income includes:
- combined parental taxable income
- reportable fringe benefits received from employers
- income from outside Australia
- reportable superannuation contributions, and
- total net investment losses such as negative gearing losses for that tax year
If your parent or guardian pays child support or maintenance for a former partner, this amount will be deducted from their income.
The family pool
The family pool is a term used to refer to the dependent children in your family who may affect your payment rate.
Your eligibility for ABSTUDY or the amount you get may be affected by your parents’ or guardians’ income. To work out what portion of their income affects your eligibility for payment, other dependent children 21 years of age or younger who are supported by the same income, are also considered. This is known as the family pool.
This means that when there is an additional dependent child or children in your family pool, you may become eligible for ABSTUDY or if you’re already getting ABSTUDY, your payment could increase. If a dependent child leaves your family pool, your payment may decrease.
Dependent children can be included in the family pool if:
- they are receiving Youth Allowance, ABSTUDY Living Allowance or income tested School Fees Allowance Group 2
- Assistance for Isolated Children Additional Boarding Allowance is being paid for them, or
- they are up to 19 years of age and, if 16 to 19 years of age, attending secondary school
If there is a shared care arrangement in place for a child in your family, this may also be taken into account.
Changes to your parents’ or guardians’ income
Your parents or guardians must tell us if there are any changes to their income. Sometimes, if there are changes in your parents’ or guardians’ income, your payment rate may change. It might also change if your siblings' circumstances change.
Where there has been a change in your parents’ or guardians’ income, the parental income test can be worked out on your parents’ current tax year. For example, if you study in 2016 and your parents’ income has significantly increased or decreased, your parents’ income for the 2015-16 tax year may be used.
Your parents or guardians must update their income every year. Read more about the annual parental income test reassessment.
Partner income test
The partner income test applies if you are an independent student or Australian Apprentice with a partner.
If you are 21 years of age or younger, we reduce your payment by 60 cents for every $1 your partner earns over the threshold. This threshold depends on your partner’s circumstances, for example, their age and if they receive a payment from us.
If you are 22 years of age or older, your partner can earn up to $938 a fortnight. We reduce your payment by 50 cents for every dollar over $938. If you have dependent children, your partner can earn more before it affects your payment. The amount depends on the child’s age and circumstances.
Use our online estimator to help you work out how much you might get.