Centrelink $1,321 cash boost for Australians : Official announcement

The Australian Government’s Services Australia has officially opened applications for the 2025 Student Start-up Loan (SSL) program, providing eligible Australian citizens with the opportunity to receive financial assistance biannually.

Students currently receiving Youth Allowance, Austudy, or ABSTUDY Living Allowance may qualify for a loan of $1,321 in both January and June. This tax-free loan aims to help with educational costs, transportation, and living expenses.

However, Services Australia urges applicants to fully understand the financial impact of taking out this loan. The loan requires repayment of both the principal amount and indexation, which may grow over time, similar to the HECS-HELP system that many Australians have found challenging.

Repayment Details:

Loan repayments begin once the borrower’s income surpasses a certain threshold, with deductions taken directly from their salary. Each year, on June 1, the outstanding balance is adjusted for inflation through annual indexation.

Recent changes to legislation have introduced a more favorable indexation method, using the lower of the Consumer Price Index or the Wage Price Index. As a result, the rate has been reduced to 4% for 2024 and 3.2% for 2023, compared to 4.7% and 7.1% in previous years.

Eligibility Criteria:

To apply, students must:

• Be current recipients of Youth Allowance, Austudy, or ABSTUDY Living Allowance
• Submit applications during the designated loan periods
• Apply at least 35 days before their course completion
• Be enrolled in eligible degree or diploma programs
• Attend an approved institution listed on the National Register of Higher Education Providers

The loan periods run from January 1 to June 30 and July 1 to December 31. For new students, the loan is disbursed with their next scheduled student payment after the course begins.

Services Australia encourages applicants to carefully consider their long-term financial situation and explore alternative options, such as no-interest loans for smaller expenses.