Centrelink opens up $1321 Student Start-up Loan applications

Applications are now open for young Aussies to get a tax-free $1321 cash boost, but there’s a catch.

Young Aussies taking on study can now apply for a tax-free $1321 cash boost, but there’s a catch.

Centrelink has opened up the January-June window for applications for the Student Start-up Loan, which offers eligible Aussies a $1321 cash payment to help them with study supplies, travel expenses and living payments.

But it is a loan, and not a free payment, which means students need to pay back the amount over time.

It is also indexed, which means the original $1321 could rise to a larger amount based on changes to cost of living.

“You’ll need to pay back the amount you borrow plus indexation,” Services Australia states.

Applications are now open for the Student Start-up Loan. Picture: NewsWire / Nicholas Eagar

“Over time this can add up to a lot of money.

“You should think about how this will impact you in the long term before you get one.”

In 2024, the indexation rate was 4 per cent, while in 2023 it was 3.2 per cent.

Students pay back the money through their tax returns.

“You must start making payments through your tax return when your income reaches a certain amount,” Services Australia said.

“You can also make extra voluntary payments to pay your loan off sooner.

“When you make a compulsory payment to the ATO through your tax return, you will pay a percentage of your income.

“The rate you pay depends on how much income you get.”

Students can apply for the loan twice a year for two loan periods: January 1 to June 30 and July 1 to December 31.

The payment runs alongside other support payments like Youth Allowance and Austudy.

Originally published as Centrelink opens up $1321 Student Start-up Loan applications