What is the Income Bank?
The Income Bank helps students and Australian Apprentices keep more of their payment when they earn money. In any fortnight you earn less than the income free area, the unused part is stored in your Income Bank. Later, when you earn more than the free area, you can draw on the Income Bank so less of your income counts against your payment.
The Income Bank builds up to a maximum balance. It is designed for students who earn little during term and more during holidays, so the income they earn in a busy period does not reduce their payment as much.
The Income Bank is for students and apprentices on Youth Allowance or Austudy. Job seekers on JobSeeker or Youth Allowance for job seekers get Working Credit instead, which works in a similar way.
How it affects your payment
The Income Bank changes how the income test affects student payments. Because you can store unused free area and use it later, a student who works a lot over the summer break can keep more of their payment than the plain fortnightly income test would allow.
It applies to Youth Allowance for students and Austudy. Services Australia tracks your Income Bank balance and uses it automatically when your income rises above the free area.
Example
Say you are a student who earns nothing during semester, so your Income Bank builds up. Over the summer holidays you pick up more shifts and earn well above the income free area. Your stored Income Bank is used to offset that income, so your payment is protected for longer than if you had no stored credit. Once the Income Bank runs out, the income test applies to any further earnings.
Income Bank in numbers
| Situation | Amount |
|---|---|
| Credit added in a fortnight with $300 of income | $239 |
| Credit added in a fortnight with no income | $539 |
| Maximum balance, students | $13,500 |
| Maximum balance, Australian Apprentices | $1,000 |
- A student earning $300 in a fortnight adds $239 to the Income Bank, $300 less than a fortnight with no income adds.
- A student's maximum balance of $13,500 is $12,500 more than an apprentice's; with no income it takes 26 fortnights to fill.
Related terms
Figures include every indexation up to 20 September 2026; each shows the date it took effect. Next scheduled indexation 1 January 2027. Source: DSS / Services Australia. Last checked 23 September 2026.