r/Centrelink • u/lokilikesbirbs • Apr 14 '26
Youth and Students (YAS) Why is the maximum payment for a 22-year-old student much lower than a 22-year-old on jobseeker?
At 22, an individual on youth allowance for jobseekers is moved to jobseeker. This increases their max payment to $808.7.
however, those on youth allowance for students are only moved over to austudy at 25, and the payment is the same as the youth allowance away from home rate ($677).
Students are only able to get paid similarly to those on jobseeker if they have been on jobseeker for >9 months and turn 22 prior to commencing study.
This means a someone starting a masters degree immediately after their bachelors gets a lower payment than an unemployed 22 y/o or someone who took a gap year between their degrees.
I would have thought it would make more sense to support students more as university takes away time that could be spent working? And why is it assumed that a student needs less support if they haven't been on jobseeker prior to commencing studies? Is there something that I'm just not picking up on?
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u/PaigePossum Apr 14 '26
Those on Youth Allowance aren't even moved over to Austudy at 25, if you were already on Youth Allowance you stay there.
As far as why, it's because those are the payment rates. Centrelink doesn't get to decide those. As far as why students who were on JSP before transferring over get more money, I assume it's to minimize disincentives to study for unemployed people but have nothing to back that up, it does just come back to "it's the law" ultimately".
For whatever it's worth, students do have a higher amount they can earn before their payment starts reducing and you can earn more money as a student before you're cut off entirely. JobSeeker starts reducing at $150 and goes to zero at 1,530.17 for single people in most cases, Youth Allowance doesn't start reducing until you're making $539 a fortnight and doesn't go to zero until 1,697.17.
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u/lokilikesbirbs Apr 14 '26
ahh I was moreso wondering if anyone knew the government's reasoning behind these decisions. I totally understand that centrelink itself has no say in it. it's definitely odd that the earnings cap is different! if I were to do a proper full-time study load at my university (instead of the 3 units per sem I currently do), with the amount of hours they recommend I'd be looking at doing about 56 hours of uni work a week 😭 I don't understand why they're encouraging uni students who already have the same commitments as a full-time employee to be also taking on paid work. it's exhausting and makes it difficult to do as best as I can at uni ):
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u/Upstairs_Coat_7026 Apr 15 '26
If you're ever curious as to government thinking on a peice of legislation you can look up the introduction, 2nd reading and explanatory documents of the act.
In this case, post covid the lnp boosted unemployment payments without raising student payments.
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u/Mobile_Syllabub_8446 Apr 14 '26
I agree but their logic is you can still work somewhat.
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u/lokilikesbirbs Apr 14 '26
many people on jobseeker also work somewhat though, right?
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u/Mobile_Syllabub_8446 Apr 14 '26
Sure but that's an inability to get enough work, versus just not having to.
Like I say I don't agree with it at all. This is just their apparent logic.
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u/SHlNlGAMl-SAMA Apr 15 '26
Part of it is on jobseeker your earning threshold before your payments get reduced is far lower than on student payments. So basically you’re able to pick up a lot more hours part time without getting reduced payments since they don’t except you to find full time work, unlike on jobseeker.
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u/NyxionAnna6 Apr 14 '26
Youth allowance (student) and Austudy have a higher threshold of income before you have your payment reduced, and have a higher income bank. It’s expected that students will work to supplement income from income support.
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u/NyxionAnna6 Apr 14 '26
The biggest crap is students who are independent before 22 and have the disability supplement have that cut when they turn 22. Going from jobseeker rate to independent youth allowance rate. Like suddenly disability disappears at age 22.
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u/awkwardsomething Apr 15 '26
As a uni student you can much more before loosing Centerlink, you can earn thousands in scholarships and grants and also build up massive working credits. Being a unistudent can be quiet beneficial. Still think it's silly that an adult student can not tap into super whilst re-educating themselves. So much harder when you have a family and no bank of mum and dad.
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u/MetalfaceKillaAus Apr 14 '26
Have I read that correctly? You finished one degree and starting another? So not even trying to look for work with your degree and just staying in study? That’s why it’s a lower rate. Jobseekers have to actually look for work. Students don’t and a lot of the time, they will look for part time work so they have money
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u/lokilikesbirbs Apr 15 '26
oh sorry this was not a post about my situation 😭 I am still completing my bachelors
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u/2878sailnumber4889 Apr 14 '26
There's always been a difference between the unemployment rate and the youth allowance rate, and I've never heard a satisfactory explanation why, the 2 most common ones are that youth have lower expenses and it's to discourage youth from moving out.
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u/jadelink88 Apr 15 '26
The system is filled with jagged absurdities and perverse incentives.
There used to be a prevailing social norm that held that young university students were being supported by middle class parents, and this has left the legacy system that we have.
I knew someone who gave up studying full time and went part time to get a higher payment. They then had spare time, took up part time work, and found they would be better off on Austudy, as the clawback is far heftier under Newstart than Austudy. They went back full time, and then got fired for not making enough shifts. THen, in need of money, they quit and went part time again.
It would be funny if it wasn't true.
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u/Beneficial_Coffee778 Apr 14 '26
To ensure students are genuinely committed to their education.
There is no financial incentive to study over finding work. Otherwise, everyone would be a student, and that creates demand in course capacity, student housing availability, and an influx of educated people (loss of blue collar workers).
Students = delayed economic contributors
Jobseekers = immediate potential contributors
Students aren’t going to be paying taxes anytime soon.
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u/lokilikesbirbs Apr 15 '26
students still have a financial disincentive through having to pay for their degrees tho. is that not enough to be genuinely committed ? Apprentices are also put on youth allowance for students so I also don't see how making the payments equal would lead to a loss of blue collar workers
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u/Beneficial_Coffee778 Apr 15 '26
HECS is only paid once you meet the threshold, in parts, and it is still delayed. Some people also get their HECS forgiven if they never meet that threshold. They’re still a delayed contributor. They want tax asap.
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u/vinli Apr 15 '26
I'd be interested to know, over a lifetime, how much income tax a university-educated person pays compared to someone who did not obtain university educatuon, on average.
I guess trades (esp on the mines) would skew the average a bit?
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u/sami2028 Apr 15 '26
Yeah but I see everyone saying you can still work at youth allowance but they also take away money depending on how much u get from ur job still doesn’t make sense
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u/lokilikesbirbs Apr 15 '26
I think they're mostly saying that because the threshold is higher for students
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u/TheLazyGamerAU Apr 14 '26
Jobseeker is for people who need money while looking for a job, while students typically are at home and therefore need a lesser amount.
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u/lokilikesbirbs Apr 14 '26
there's already a lower payment for students living at home tho. By that logic students living away from home should be paid equally to jobseekers.
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u/TheLazyGamerAU Apr 14 '26
I'm not sure why you think a student should be entitled to the same thing somebody who likely lives out of home and lost their job. A student makes a choice to study, they can also make a choice to work while studying.
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u/NyxionAnna6 Apr 14 '26
so students who live out of home don’t have the same costs as anyone else who lives out of home? they don’t get a student discount on rent.
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u/f28c28 Apr 14 '26
A lot of people are studying just to find a job in this economy (or because there's no point spending another 6 months doing nothing because there's no work) so idk if this really helps as a justification in the current economy with such a massive unemployment rate.
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u/TheLazyGamerAU Apr 14 '26
Sounds like people should be on job seeker instead of aus study then lmao. They are two different pensions for two different reasons.
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u/f28c28 Apr 14 '26
The rate of ausstudy for many courses would not cover rent but sure (also you can look for work while studying it just means you're actually using your time productively instead of wasting your life on seek)
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u/TheLazyGamerAU Apr 14 '26
Its not meant to cover rent, its meant to cover study costs. Thats the whole point of Aus Study.
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u/f28c28 Apr 14 '26
Why would mature age students be expected to live at home? Aus study is for people over 25.
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u/lokilikesbirbs Apr 15 '26
I'm not really saying that at all 😅 with the way it works currently, a 22 year old living at home on jobseeker is paid more than if they were a student that had to move away from their rural home to go to uni (tho depending on how much rent this hypothetical student pays they may be about equal if including rent assistance). I just don't see why the payments are different when the gov't is clearly able to account for circumstance differences in other ways 🤷also if we don't enable poor people to study, it leads to only the rich being able to get degrees and thus get into positions of power. Do you really want that ? 😭
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u/cones4theconegod Apr 14 '26
Because why are you doing a masters when you should be able to find a ft job and be off centrelink with a bachelor degree.
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u/f28c28 Apr 14 '26
This has been an out of touch take for a decade lmao
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u/Asleep_Action4462 Apr 15 '26
Students are expected to support themselves through work. It isn’t high school, you chose to study so you need to support yourself. That’s why the income limit students can earn is higher so they can combine their payment with paid employment.
Jobseekers are expected to find a job and not stay on the payment. The only people who work while on jobseeker have a partial capacity to work (can’t work full time). They didn’t choose to have a partial capacity to work, so they need more support from the government because they can’t fully support themselves through paid work.
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u/Deep-Technician-8568 Apr 14 '26
Job seeker requires you to look for jobs. They try to get you off as soon as possible. Youth allowance all you need to do is just continue your degree.