If you receive Youth Allowance or ABSTUDY and you are classified as dependent, pay close attention to any recent letter from Services Australia. Each September and November the agency contacts families to confirm parents’ or guardians’ income. This information is used to set your payment rate for the new year. If your family does not supply the figures by the stated date, your allowance can be suspended or stopped. The reminder is simple: if the letter arrived, it is time to act. If no letter arrived, you likely do not need to do anything because Services Australia already holds the information it needs.
This guide explains who must respond, the deadlines you must meet, how to submit income details using the one time code in the letter, what happens if you miss the cutoff, and how the parental means test works in 2025.
Why These Letters Matter
Youth Allowance and ABSTUDY use up to date income information to calculate your rate. For dependent students and apprentices, a parental means test applies. That means your payment can rise or fall depending on family income. The annual letter is the official request to refresh those figures. Without a response, Services Australia cannot confirm eligibility at your current rate, which triggers suspension or cancellation rules.
Quick Summary
Item |
Details |
|---|---|
What is happening |
Services Australia sends letters asking for parents’ or guardians’ income for dependent Youth Allowance and ABSTUDY recipients |
Who must act |
Dependent students and apprentices on Youth Allowance or ABSTUDY whose families received the letter |
Key deadlines |
Youth Allowance: respond by the due date in your letter or risk suspension, with a grace window until mid December. ABSTUDY: deadline is 31 December |
What if you miss it |
Youth Allowance can be suspended and then cancelled if no response by mid December. ABSTUDY can be reduced to zero after 31 December |
Current example rates |
Youth Allowance up to $663.30 per fortnight living away from home, up to $472.50 per fortnight living at home |
Parental income rule |
No change to your Youth Allowance in 2025 if parents’ or guardians’ income was $65,189 or less in 2023 to 2024, then a 20 cent taper for every dollar over |
Official site |
Deadlines And Consequences
Youth Allowance
- Due date: The specific date appears in your letter.
- If no response by the due date: Your payment can be stopped or suspended.
- Grace window: Your parents or guardians have until mid December to provide income details.
- If still no response by mid December: Your payment can be cancelled. Reinstatement later can take time and you may miss back payments if eligibility cannot be confirmed for the suspended period.
ABSTUDY
- Deadline: 31 December.
- If missed: Your ABSTUDY can be reduced to zero until the information is received and processed.
If circumstances genuinely prevent a timely response, you can contact Services Australia to request more time. Be ready to explain your reason and provide supporting details.
How To Submit Parents’ Or Guardians’ Income
- Locate the letter: It includes a one time code for your parent or guardian.
- Use the online link: Your parent or guardian uses the one time code to submit their income details securely.
- Confirm receipt: After submission, check your myGov or online account for confirmation and keep any reference number.
- If you did not receive a letter: You likely do not need to act, but you can still check your account or call to confirm.
- If the code is lost or expired: Contact Services Australia to request a replacement or an alternate method.
Tips for a smooth process:
- Double check names, dates of birth, and tax year figures before submitting.
- Ensure your banking and contact details are current.
- Keep scans or photos of documents for your records.
Youth Allowance At A Glance
- Who can get it: People aged 16 to 24 who are studying, in training, or working as full time apprentices or trainees.
- Payment examples: Up to $663.30 per fortnight if living away from home, and up to $472.50 per fortnight if living at home.
- Other rules: You must be an Australian resident and meet income and assets tests. Dependent students are also subject to the parental means test.
- Indexation timing: Student and apprentice rates are updated 1 January each year. Job seeker variants are indexed in March and September.
ABSTUDY At A Glance
ABSTUDY provides similar support for Aboriginal and Torres Strait Islander students and apprentices. The program includes living allowances, travel help for remote study, and other study related payments. If you receive the annual income letter, the same principle applies: respond by the deadline to avoid interruptions.
Understanding The Parental Means Test
For 2025, if your parents’ or guardians’ combined income was $65,189 or less in the 2023 to 2024 financial year, there is no change to your Youth Allowance due to the parental income test. Above that threshold, your rate reduces by 20 cents for every dollar over the amount. This taper ensures support goes to households with lower to middle incomes. Keep in mind that other factors can also affect your rate, including your own earnings, assets, siblings who are also dependent students, and whether you live at home or away.
Common Situations And What To Do
- No letter received: You do not need to act if no letter arrived. Services Australia already holds the required information.
- Parents separated or recently changed jobs: Submit the most accurate and up to date information. If the situation is complex, call for guidance.
- You believe you are independent: Independence changes how your rate is calculated. Check the criteria and provide evidence if your status has changed.
- You study away from home: Payment categories differ for living at home vs living away. Update your study and address details so your rate reflects your situation.
- You need more time: Call early to request an extension and explain your reason.
- Payment already suspended: Act quickly. Provide the requested information and confirm that it has been received. Ask if any back pay will apply after reinstatement.
Action Checklist
- Read your letter fully and note the due date.
- Use the one time code to submit parental income online.
- Confirm your bank details and contact information.
- Keep a record of the submission reference.
- If needed, call to request more time before the deadline.
- Recheck your myGov messages and payment summary after submission.
Summary Table
Aspect |
Details |
|---|---|
Who must respond |
Dependent Youth Allowance and ABSTUDY recipients whose families received the income letter |
Youth Allowance deadline |
Due date in your letter, with a grace window until mid December before cancellation |
ABSTUDY deadline |
31 December, or payment can be reduced to zero |
Key payment examples |
Up to $663.30 per fortnight living away from home, up to $472.50 living at home |
Parental income setting |
No change if parental income was $65,189 or less in 2023 to 2024, then a 20 cent taper above |
Where to act |
Use the one time code in the letter or contact Services Australia |
Official site |
Frequently Asked Questions
1) I get Youth Allowance but did not receive a letter. Do I need to do anything
No. If there is no letter, Services Australia already has the information it needs. Keep your contact and bank details current and monitor your account.
2) My parent cannot find the one time code. How can we send the income details
Contact Services Australia to request a replacement code or an alternate method. Submit as soon as possible to avoid suspension.
3) My payment was suspended because we missed the due date. Can I get back pay
Provide the required income information immediately. Back pay may be available once eligibility is confirmed, but it depends on timing and the reason for the delay.
4) What happens if my parents’ income rose above the threshold
Your rate will reduce by 20 cents for each dollar above $65,189 based on the 2023 to 2024 financial year. Check your updated rate after the submission is processed.
5) I receive ABSTUDY. What is my final date to submit parental income
You must provide the income details by 31 December. If you miss that date your ABSTUDY can be reduced to zero until the information is received.
Final Thoughts
The fastest way to protect your Youth Allowance or ABSTUDY is to respond to the annual letter on time. Use the one time code, submit accurate parental income information, and confirm that your account reflects the update. If you need more time, ask before the deadline. Staying on top of these steps helps you avoid suspension or cancellation and ensures your support continues without interruption.
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