What is What is the parental means test??

The parental means test is used for young people who are treated as dependent on their parents. It reduces the young person's payment based on their parents' income. It mainly applies to Youth Allowance and ABSTUDY for people under 22.

If your parents' combined income is over a yearly threshold, your payment reduces. The idea is that parents with higher incomes are expected to give some support, so the payment steps back as parental income rises.

The parental means test only applies while you are treated as dependent. If you are assessed as independent, for example because of your age, your work history or your circumstances, the parental means test does not apply and only your own income is tested.

How it affects your payment

The parental means test is the main reason two young people on the same basic rate can receive very different amounts. One whose parents earn under the threshold may get the full rate, while one whose parents earn more gets a reduced payment.

It applies on top of the young person's own income test. Both their parents' income and their own income can reduce the same payment. Austudy, which is for students aged 25 and over, has no parental means test.

Example

Suppose you are 19, living at home and studying, and treated as dependent. Your own income is small, so your income test alone would leave your payment untouched. But if your parents' combined income is over the yearly threshold, the parental means test reduces your Youth Allowance. A classmate whose parents earn less might get the full rate for the same study load.

Related terms

• Adjusted taxable income
• Income free area

Rates current as of 17 July 2026. Source: DSS / Services Australia. Last checked 17 July 2026.