At 1 April 2025 - Parental income abatement calculation - living at home rate
The gross rate of Student Allowance payable for students under 24, single, childless and living at home is abated (reduced) if the gross parental income exceeds the parental income threshold.
There are two separate abatement calculations, depending on the amount by which the parental income exceeds the annual parental income threshold. These abatement calculations will change every year as part of annual general adjustments.
Use either calculation 1 or 2 (not both). The calculations used below are as at 1 April 2025.
Calculation 1: Gross annual parental income exceeds the parental income threshold by up to $1,918.28 (or $36.89 a week)
When the gross parental income exceeds the parental income threshold by any amount up to $1,918.28, the Student Allowance (gross) payable is reduced as follows:
Parental income minus parental income threshold | = A (parental income that exceeds the parental income threshold) |
Multiply A by 0.3030303 (i.e. 30.30303%) (at 1 April 2025) | = B (amount the gross Student Allowance rate will be reduced) |
Student Allowance rate (gross) minus B | = C (Student Allowance rate (gross) payable after abatement, if any) |
Calculation 2: Annual parental income (gross) exceeds the parental income threshold by more than $1,918.28 (or $36.89 a week)
When the gross annual parental income is over the parental income threshold by more than $1,918.28 (or $36.89 a week), reduce the gross Student Allowance payment by the total sum of step 1 and 2:
Step 1: Multiply $1,918.28 (or $36.89 a week) by 0.3030303 (i.e. 30.30303%) = $581.29. Reduce the annual gross Student Allowance rate by $581.29, and
Step 2: Multiply the remaining amount of parental income that exceeds the parental income threshold (in excess of $1,918.28) by 0.2793296 (i.e. 27.93296%). Further reduce the annual gross Student Allowance rate payable by that amount (i.e. after applying the reduction in Step 1).
Example - Calculation 2: A student's parents have annual parental income of $90,507.43 (gross)
Calculation using gross annual figures | Calculation using average gross weekly figures | |
Parental income threshold (from 1 April 2025) | $69,935.32 | $1,344.91 |
Calculate if parental income over the threshold | $90,507.43 - $69,935.32 = $20,572.11 | $1,740.52 - $1,344.91 = $395.61 |
Calculation | Step 1: $1,918.28 x 0.3030303 = $581.29 | Step 1: $36.89 x 0.3030303 = $11.17 |
Step 2: $20,572.11 - $1,918.28 = $18,653.83 | Step 2: $395.61 - $36.89 = $358.72 | |
$18,653.83 x 0.2793296 = $5,210.56 | $358.72 x 0.2793296 = $100.20 | |
Student Allowance (gross) payment (from 1 April 2025) | $16,181.36 Less $581.29 (step 1) Less $5,210.56 (step 2) | $311.19 Less $11.17 (step 1) Less $100.20 (step 2) |
= $10,390.01 annual Student Allowance (gross) payable (after abatement) | = $199.80 weekly Student Allowance (gross) payable (after abatement) |
