Centrelink payments for students, young people and carers rose from 1 January 2026, the first indexation round of the year. Youth Allowance and Austudy climbed to $677.20 a fortnight and Carer Allowance to $162.60, reaching more than a million recipients.
Key facts
| What changed | Before | Now |
|---|---|---|
| Youth Allowance / Austudy (single, away from home) | $663.30 | $677.20 |
| ABSTUDY (independent single, 16–21) | — | $677.20 |
| Carer Allowance | $159.30 | $162.60 |
| Student income-free area | — | $539/fortnight |
| Recipients affected | — | More than 1 million Australians |
What went up on 1 January
The Department of Social Services indexes a group of student and youth payments every 1 January, separate from the pension indexation cycle. This round lifted Youth Allowance, Austudy, ABSTUDY, Youth Disability Support Pension and Carer Allowance, along with the income tests that apply to them. Youth Allowance and Austudy's single, away-from-home maximum basic rate rose by $13.90 to $677.20 a fortnight, and ABSTUDY's independent single rate for those aged 16 to 21 moved to match it. Other categories — living at home, living away with dependents, or partnered — also moved, though by different dollar amounts, since each rate is indexed against the same movement in the Consumer Price Index but starts from a different base.
The Youth Disability Support Pension — the rate of Disability Support Pension paid to recipients under 21 — rose by up to $17.20 a fortnight, taking the rate for those living independently to $839.80. If you're not sure which category applies to you, your Centrelink online account shows your specific payment rate and the date it was last reviewed, rather than the general headline figures reported in the media.
Carer Allowance and student income tests
Around 680,000 people receiving Carer Allowance saw their fortnightly payment rise $3.30 to $162.60. Because Carer Allowance is a supplementary payment rather than an income-support payment, it can be paid on top of Carer Payment, a wage, or another Centrelink payment, and it isn't means-tested against the recipient's own income the way most other payments are — instead it's tied to the care needs of the person being cared for. Alongside the rate rises, the student and apprentice income-free area increased to $539 a fortnight, and the upper income threshold — the point where the taper steps up from 50 cents to 60 cents in the dollar — rose to $646.
These income test changes matter as much as the base rate rise for students working part-time. A higher income-free area means you can earn more before your payment starts reducing at all, and the higher taper thresholds mean more students juggling study and casual work stay eligible for at least a partial payment.
Why January is different from March and September
Age Pension, JobSeeker and other pension-type payments follow their own indexation timetable — 20 March and 20 September each year — so they weren't part of this round. January indexation instead targets younger claimants and carers, reflecting movements in the Consumer Price Index over the preceding six months. Family Tax Benefit and related family assistance payments follow a third cycle again, indexed each 1 July to align with the financial year. If you're on a pension-type payment, your next rate change lands on 20 March 2026; if you get family payments, see what changed from 1 July instead.
Checking your own rate
Exact rates vary by your living arrangements, whether you have dependents, and your own and your parents' income for many student payments. Log in to your Centrelink online account through myGov to see your updated rate and income test, and use our Centrelink income test guide to understand how earnings from part-time or casual work interact with your payment. It's worth checking your MyGov inbox for a formal letter confirming your new rate, since the exact figure that lands in your account can differ slightly from the headline numbers reported here if you receive supplementary payments like Rent Assistance or Pharmaceutical Allowance on top of your base rate.
What this means for your pay
If you combine a Centrelink payment with part-time or casual work, a small increase in your base rate can shift how much of your earnings get taxed away under the income test. Run your take-home pay through our take-home pay calculator to see what a shift change or extra hours actually nets you once both tax and the Centrelink taper are accounted for, and check the current thresholds on the Centrelink income test guide.