Centrelink Relocation Scholarship

1. What Is the Centrelink Relocation Scholarship?

The Centrelink Relocation Scholarship is a lump-sum payment from the Australian Government (Services Australia) provided to eligible students who must relocate away from their family home to undertake approved full-time study. This financial support is intended to help with additional living costs such as rent, travel, and study materials when relocating for education.

It’s available only for students who receive Youth Allowance or ABSTUDY Living Allowance and meet specific relocation criteria.

This is not a traditional merit scholarship like those universities offer — it is a student support payment connected to Centrelink benefits, and mentioned here for educational and guidance purposes, helping students understand eligibility, amounts, and how to access the benefit.

2. Eligibility Requirements

To qualify for the Centrelink Relocation Scholarship, you must meet the following conditions:

A. Be a Recipient of Youth Allowance or ABSTUDY

You must be receiving at least some payment from:

Youth Allowance (as a student), or
ABSTUDY Living Allowance (for Aboriginal and Torres Strait Islander students),

AND be enrolled in an approved full-time course.

Note: You need to receive at least $1 of Youth Allowance or ABSTUDY Living Allowance to be eligible.

B. Be Required to Move Away From Home to Study

The core requirement is that you must be living away from your family home for study purposes and either:

Moving to or from a regional or remote area, or
Doing an approved regional or remote placement as part of your course.

Regional or Remote — Areas are defined by the Australian Statistical Geography Standard (ASGS). If you’re unsure whether your hometown or university location qualifies as regional/remote, you can check the Student Regional Area Search tool on the official Services Australia website.

C. Must Be Studying an Approved Course

The relocation must be connected to:

A recognised higher education (e.g., university), or
A preparatory course that qualifies for Youth Allowance or ABSTUDY.

D. Dependent vs Independent Students

Both dependent and some independent students can qualify — but independent status is determined differently for Youth Allowance/ABSTUDY and must be assessed separately.

3. Who Can Get the Relocation Scholarship

Centrelink outlines eligibility in detail. You might receive the Relocation Scholarship if:

You’re a dependent student or
An independent student for special reasons (e.g., unable to live at home due to hardship, orphan, refugee status, or in care).

You cannot get the Relocation Scholarship if:

You’re not receiving Youth Allowance or ABSTUDY;
Your family home and study location are both in major cities;
You’re already receiving certain other comparable payments (e.g., accommodation scholarships paid by other programs); or
You’ve reached an age of independence under certain criteria without having received the relocation payment before.

4. How Much You Can Get (Payment Rates)

Standard Rates (from 1 January 2026)

The amount you receive depends on whether your:

family home is in a regional or remote area, and
course location is in a regional or remote area.

Here’s a breakdown:

If Your Family Home Is in a Regional/Remote Area

First year: $5,707
Second & third years: $2,854 per year
Fourth year and beyond: $1,425 per year

**If Your Family Home Isn’t Regional but Your Course Is**

First year: $5,707
Subsequent years: $1,425 per year

Important Notes

The payment is annual and paid once a year.
Amounts are indexed by the Australian Government and may change each financial year.

5. How and When the Payment Is Made

Automatic Assessment & Application

In most cases, you don’t need to submit a separate application for the Relocation Scholarship if you’ve already applied for and received Youth Allowance or ABSTUDY. The Centrelink system will assess your eligibility automatically based on your current details.

However, there are a few cases where additional documents may be required, such as:

Regional placements, or
Changes in address or study location since your initial claim.

If Centrelink believes you are eligible, they will notify you and may ask you to:

Complete a Verification of Campus form (if required);
Get your study provider to fill in campus details;
Submit any requested documents online or at a Centrelink service centre.

Notification

Services Australia may send you a letter or message if action is needed — always read these carefully and respond by the due date.

6. How to Apply and Update Your Details

👉 Apply for Youth Allowance or ABSTUDY first:
You must first apply for Youth Allowance or ABSTUDY through the official Services Australia portal:

🔗 Apply or manage your claim: https://www.servicesaustralia.gov.au

When filling out the application:

Be accurate about your address before relocation;
List your new study location;
Understand that Centrelink will use this information to assess your Relocation Scholarship eligibility.

👉 If your circumstances change:
After applying, if you move again or change your study location or course, you must update your details with Centrelink as soon as possible.

📍 You can update this via:

Your myGov account;
The Centrelink Online portal;
Or by visiting a service centre.

7. Conditions, Reporting and Change of Circumstances

Reporting Changes

It’s crucial to report any changes that might affect your eligibility. These include:

A new address or change in family home situation;
A change in your study load or course;
Ending your studies.

Failure to update can lead to:

Overpayments;
Repayment obligations;
Suspension or cancellation of your benefit.

Overpayments & Repayment

If you receive money you weren’t eligible for (e.g., you stop studying), Centrelink can require repayment. Always notify them promptly to reduce risk.

8. Tax Considerations

Scholarship or relocation payments can have tax implications. The taxation of Centrelink payments is governed by Australian taxation law.

While there are community experiences suggesting that the Relocation Scholarship may not be taxable in some cases, this can vary depending on other income you receive.

📌 Always check with the Australian Taxation Office (ATO) or a registered tax professional for specific guidance on whether your Relocation Scholarship must be reported in your tax return.

Common Misconceptions and Clarifications

Let’s dispel some common myths:

❌ Misconception: You can apply separately for a “Centrelink Relocation Scholarship” outside Youth Allowance

Fact: There’s no standalone application; eligibility is assessed through your Youth Allowance/ABSTUDY claim.

❌ Misconception: It’s a “free cash scholarship with no conditions”

Fact: It’s a government support payment tied to eligibility criteria that must be continuously met.

❌ Misconception: Everyone relocating to study gets it

Fact: Only those with:

Youth Allowance or ABSTUDY;
Moving to/from regional areas;
Meeting study rules.

10. Real-World Examples

Here are two scenarios to illustrate:

Example 1: Regional Student Moving to University

Sarah lives in a regional town and gets Youth Allowance. She moves to a city university for full-time study.

She receives $5,707 in her first year to help cover extra costs.
She continues to live away and receives reduced amounts in later years.

Example 2: Regional Placement or Overseas Study

David is undertaking a regional placement as part of his degree. Centrelink assesses his relocation details and may ask for a Verification of Campus form to confirm eligibility.

11. Frequently Asked Questions (FAQ)

Q1. Is the Centrelink Relocation Scholarship taxable?
A: Taxability depends on your overall income situation. Consult the ATO or a tax professional.

Q2. Do I need to apply separately?
A: No — it’s tied to your Youth Allowance/ABSTUDY claim.

Q3. What if I change my study location mid-year?
A: Update your details with Centrelink immediately to ensure correct assessment.

Q4. Can I get it if I relocate within major cities?
A: No — both home and course must not be classified as major city moves.

Q5. What if I finish or drop out of my course?
A: Notify Centrelink immediately. Overpayment may result if study ceases.

12. Final Tips and Best Practices

✅ Keep Centrelink updated about your current address.
✅ Make sure you’ve lodged Youth Allowance or ABSTUDY correctly.
✅ Use an official Centrelink online account at https://www.servicesaustralia.gov.au.
✅ Ask Centrelink directly if you’re unsure about eligibility.