Student Allowance NZ: Eligibility, Rates and How to Apply

Student Allowance is a weekly payment from StudyLink (part of the Ministry of Social Development) for eligible students, usually those studying full-time. Unlike a student loan, it does not need to be repaid. However, it is income-tested (both your own income and your parents’ income if you’re under 24 with no children).

Student Allowance Rates

Rates are adjusted periodically by MSD. Always verify current rates at studylink.govt.nz.

Rates for students with a partner depend on your and your partner’s income; see StudyLink’s rates page.

Note: Student Allowance is taxable income, and tax is deducted from each payment before you receive it. The amount depends on the tax code you choose.

Eligibility Criteria

To receive Student Allowance, you generally need to meet these criteria:

1. NZ citizen, or ordinarily resident in NZ with at least 3 years living in NZ and at least 3 years on a residence class visa (other residency criteria exist)
2. Enrolled full-time with an approved education provider in NZ, in an approved course (undergraduate level 7 or below, or a Bachelor degree with honours)
3. Age: In most cases 18 to 65 (16 to 17 in some circumstances; contact StudyLink)
4. Pass the parental income test if you are under 24 and don’t have children (it may not apply if you have no relationship with your parents)
5. Your own income can reduce the payment once it passes a weekly threshold

Parental Income Test

If you are under 24 and don’t have children, StudyLink looks at your parents’ income (it may not be considered if you have no relationship with your parents):

• Up to a threshold (about $72,109 a year combined, before tax): your parents’ income does not reduce your rate
• Above the threshold: the rate you get goes down
• Above an upper limit (about $131,670 a year combined before tax if you live with your parents, about $141,452 if you don’t): no Student Allowance is payable

These thresholds are confirmed annually by StudyLink.

When Parents’ Income Is Not Counted

Your parents’ income is not counted if you:

• Are 24 or older
• Have no relationship with your parents (their income may not be considered)
• Have a dependent child

In these cases the parental income test does not apply. If you have a partner and are both over 24, or you support a child, your partner’s income is considered instead.

Your Own Income and Abatement

You can earn up to an income threshold while receiving Student Allowance. Above this, your allowance reduces. Your own income affects your payment as follows (weekly, before tax):

• Up to $284.70 a week: allowance unaffected
• Above $284.70 a week: allowance reduces cent for cent (by $1 for each $1 earned over $284.70)
• The allowance reaches nil once the income over $284.70 a week equals your before-tax payment (for example, a before-tax rate of $435.67 reaches nil at $720.37 a week)

If your hours vary, enter your income for each Monday to Sunday week; the amount you declare continues every week until you tell StudyLink it has changed or stopped. You need to report income by the Sunday of the week you earn it, not the week you are paid.

What Student Allowance Is For

Student Allowance is a weekly payment that can help with your living expenses while you study. You don’t have to pay it back.

How to Apply

1. Go to studylink.govt.nz
2. Log in with your RealMe account (or create one)
3. Apply for “Student Allowance”, the form collects your study details, bank account, IRD number, and (if you are under 24) your parents’ income; a partner completes a separate form
4. Processing time varies: providers usually can’t confirm study details until about six weeks before a course starts
5. Payments start in the second week of your course; if you apply after your course starts, you get a back payment to the date you applied

Apply as early as you can: if you apply after your course starts, payments can only start from the date you submit your application.

Tax on Student Allowance

Student Allowance is taxable income in NZ. You choose your tax code for your Student Allowance. The “M” code applies where the allowance is your highest or only income. If you have other income sources (part-time job, etc.), ensure your combined income is being taxed correctly, the code for each income depends on which is your main income (a secondary code goes on the smaller one), and a Student Loan needs a code with the SL repayment code.

At year end, IRD may issue a tax refund or bill depending on your total annual income across all sources.

Frequently Asked Questions

What if my parents earn good money but don’t support me?
This is a common frustration. Under current rules, parental income is usually still counted even if your parents don’t give you financial support, but it may not be considered if you have no relationship with your parents. If you can’t live with or be supported by your parents, or have no relationship with them, apply online as usual and complete the Independent Circumstances Allowance application form that StudyLink provides. Otherwise, your parents’ income is considered if you are under 24 and have no children.

Can I get Student Allowance for a postgraduate degree?
For postgraduate study, Student Allowance is only available if you are studying a Bachelor degree with Honours and meet the other criteria; Masters and PhD study are not covered. Some study types and programmes may have different rules, verify with StudyLink.

Related Guides

• Student finances hub NZ
• NZ student loans guide
• Managing money as a student
• Part-time work at university NZ