Published: 29 March 2026

Austudy Payment Calculator: Financial Support for Mature Age Students

Returning to study as an adult can be both exciting and financially daunting. Whether you're upgrading your qualifications, switching careers, or finally pursuing that degree you always wanted, the Austudy Payment provides crucial financial support for Australians aged 25 and over who are studying full-time. Understanding exactly how much you can receive — and how part-time work affects your payments — is essential for planning your educational journey.

Unlike Youth Allowance, which is designed for younger students, Austudy recognises the unique challenges faced by mature age students who may have existing financial commitments like rent, mortgages, or family expenses. This guide walks you through everything you need to know about Austudy for the 2025-26 financial year, from payment rates and eligibility criteria to income tests and tax implications.

What Is the Austudy Payment?

Austudy is a fortnightly income support payment from Services Australia designed specifically for full-time students and Australian Apprentices aged 25 years or older. It recognises that mature age students often have different financial responsibilities compared to younger students, providing a safety net that helps cover living expenses while you focus on your studies.

To qualify for Austudy, you generally need to meet several criteria: be 25 years or older on the day you commence your course, be enrolled in an approved full-time course at an approved educational institution, meet residency requirements, and pass both income and assets tests. Unlike JobSeeker Payment, there's no requirement to look for work — the focus is entirely on supporting you to complete your studies.

Austudy is considered taxable income, which means you'll need to declare it when lodging your tax return. Services Australia reports these payments directly to the ATO, so they appear on your income statement alongside any wages you've earned during your studies. If you're working part-time while studying, using our Income Tax Calculator can help you understand how your combined income (Austudy plus wages) will affect your overall tax position for the 2025-26 financial year.

Austudy Payment Rates for 2025-26

Austudy Payment rates vary depending on your personal circumstances — whether you're single or partnered, have dependent children, and your living arrangements. These rates are indexed twice yearly (in March and September) to help keep pace with inflation and the cost of living. The figures below represent the approximate base rates for the 2025-26 financial year.

These figures represent the maximum base rates and don't include potential supplementary payments like Rent Assistance, Energy Supplement, or Pharmaceutical Allowance, which you may qualify for depending on your circumstances. Single students with children generally receive higher rates to help cover the additional costs of raising a family while studying. The exact rates change regularly, so always check servicesaustralia.gov.au for the most current figures.

Understanding the Income Test

One of the most important aspects of calculating your Austudy entitlement is understanding how the income test works. Many mature age students work part-time while studying to help make ends meet, and Austudy is designed to accommodate this with a gradual reduction system rather than an all-or-nothing cutoff.

Here's how the income test works for Austudy recipients in 2025-26: you can earn up to $531 per fortnight (the income free area) without any reduction to your payment. This is significantly higher than the JobSeeker income free area, recognising that students often need to work to support their studies. For every dollar you earn above $531 per fortnight, your Austudy Payment reduces by 50 cents. Your payment reaches zero once your income hits the upper threshold — approximately $1,387 per fortnight for singles without children.

For partnered individuals, the test considers your combined income with your partner. Your partner can have their own income without it affecting your Austudy Payment up to certain limits. If your partner is receiving their own income support payment, different rules apply. This means that if you're studying while your partner works, their income may affect your entitlement. Understanding these thresholds is crucial when deciding how many hours to work during semester breaks or whether to take on extra shifts during study periods.

Assets Test and How It Affects Your Payment

Beyond income, Services Australia also applies an assets test to determine Austudy eligibility. If your assets exceed certain limits, your payment may be reduced or stopped entirely, regardless of your income situation. The asset thresholds differ based on whether you own your home and whether you're single or partnered.

For homeowners in 2025-26, the asset threshold is approximately $314,000 for singles and $470,000 for couples combined. For non-homeowners, these thresholds are significantly higher — roughly $566,000 for singles and $722,000 for couples. Assets that count toward these limits include money in bank accounts, investments, superannuation (if you've reached pension age), and business assets. Your family home, regardless of its value, is exempt from the assets test, as is your course-related equipment like laptops and textbooks.

Most Austudy recipients don't hit these asset limits, but they can become relevant if you've received a redundancy payment, inheritance, or have substantial savings from previous employment. If you're approaching these thresholds, it may be worth seeking financial advice about how to structure your assets. And remember, even if assets affect your Austudy Payment, you might still qualify for other support like a Low Income Health Care Card or HECS-HELP for your tuition fees.

Additional Support: Rent Assistance and Supplements

Many Austudy recipients are eligible for additional payments that can significantly boost your overall support package. If you're renting privately and paying more than a minimum threshold in rent, you may qualify for Rent Assistance. This is particularly valuable for students living in major cities where rental costs can consume a large portion of your budget.

The maximum rate of Rent Assistance for single Austudy recipients without children is approximately $188 per fortnight as of 2025-26, though the exact amount depends on how much rent you pay. You need to pay more than $152.60 per fortnight in rent to receive any assistance, and the payment increases gradually until it reaches the maximum at around $372 per fortnight in rent. For families with children, both the thresholds and maximum rates are higher.

In addition to Rent Assistance, most Austudy recipients automatically receive the Energy Supplement (around $8.80 per fortnight for singles) and may qualify for the Pharmaceutical Allowance if you need regular medications. These smaller payments can add up and make a real difference to your weekly budget. When planning your finances, remember to factor in these supplementary payments alongside your base Austudy rate.

Tax Implications and Managing Your Finances

Understanding the tax implications of receiving Austudy is crucial for mature age students who may also be working part-time. As mentioned, Austudy is taxable income, but tax isn't automatically withheld from your fortnightly payment. This means if you also have employment income, you could end up with a tax bill at the end of the financial year.

If you're concerned about a potential tax bill, you have a couple of options. You can request that Services Australia withhold tax from your Austudy payments at a rate you specify, or you can set aside money yourself to cover any tax liability. The second option often makes sense if you're familiar with income tax brackets and can estimate your annual tax position. For the 2025-26 financial year, the tax-free threshold is $18,200, which means many students who only receive Austudy and work limited hours may not owe any tax at all.

Regarding Medicare Levy, Austudy recipients generally fall below the income thresholds that trigger the 2% levy. However, if you work part-time and your total income pushes you above the threshold (approximately $26,000 for singles in 2025-26), you may become liable for the Medicare Levy on your total income. Our Medicare Levy Calculator can help you estimate these costs based on your specific circumstances.

Balancing Work and Study: A Financial Strategy

Many mature age students find themselves walking a fine line between earning enough to live comfortably and maintaining their Austudy eligibility. The good news is that with the relatively generous income free area of $531 per fortnight, you can work a reasonable number of hours before your payment is affected. At the minimum wage of approximately $24.10 per hour (as of July 2025), you could work around 22 hours per fortnight without reducing your Austudy.

Some students choose to work intensively during semester breaks, banking hours when they don't have study commitments. While this can provide a financial buffer, be aware that Services Australia looks at your income as you earn it, so working extra hours during holidays will reduce or eliminate your Austudy for those fortnights. If you have a partner, their income situation also affects this calculation — a working partner might provide enough support that Austudy becomes less critical during your studies.

Once you complete your studies and return to full-time employment, it's important to review your overall financial picture. Your tax situation changes significantly when you move from receiving Austudy to earning a regular salary. Use our Take-Home Pay Calculator to see exactly what your net income will be after tax, and check our Superannuation Calculator to ensure your retirement savings are on track after your study period. If you're considering Salary Sacrifice arrangements with your new employer, understanding how these affect your taxable income becomes important for managing any existing HECS-HELP debt.

Key Takeaways

Understanding your Austudy entitlements helps you plan a realistic budget for your studies. Here are the essential points to remember:

• Austudy Payment rates vary based on your circumstances, with singles receiving approximately $693–$815 per fortnight depending on whether they have children (as of 2025-26)
• The income test is more generous than JobSeeker — you can earn $531 per fortnight before any payment reduction, with a gradual taper rate of 50% for income above that threshold
• You can work part-time while receiving Austudy, and many students work up to 20 hours per fortnight without affecting their payment
• Austudy is taxable income and must be declared in your tax return — consider requesting tax withholding if you're also working and concerned about year-end liabilities
• Rent Assistance can add up to approximately $188 per fortnight for eligible students, significantly boosting your overall support
• Assets tests apply, but most students don't reach the thresholds (approximately $314,000 for single homeowners)
• Supplementary payments like Energy Supplement and Pharmaceutical Allowance provide additional modest support

Whether you're currently receiving Austudy or planning to return to study, having accurate numbers helps you budget effectively and make informed decisions about part-time work. While Services Australia ultimately determines your exact entitlement, understanding the income tests, payment structures, and available supplements empowers you to maximise your support and focus on achieving your educational goals.