Student Allowance is a weekly payment from StudyLink (a service of Work and Income / MSD) for eligible full-time students. 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 and independent criteria aren’t met).
Student Allowance pays approximately $245–$345/week depending on your living situation (at home vs independent/flatting). Eligibility requires NZ citizenship/residency, full-time study at an approved institution, being under the parental income threshold (if under 24 and not meeting independent criteria), and your own income being below the abatement threshold. Apply through StudyLink online.
Student Allowance Rates (2026 Approximate)
Rates are adjusted periodically by MSD. Always verify current rates at studylink.govt.nz.
| Living Situation | Approximate Weekly Rate |
|---|---|
| Living with parents | ~$245–$265/week |
| Living away from home (flatting/boarding) | ~$320–$345/week |
| Married/civil union or with dependent children | Higher rates apply; contact StudyLink |
Note: Student Allowance is treated as taxable income and is subject to PAYE if it exceeds the income threshold over the year.
Eligibility Criteria
To receive Student Allowance, you must:
- NZ citizen or permanent resident living in NZ
- Enrolled full-time at an approved tertiary institution (universities, polytechnics/Te Pūkenga, some wānanga and PTEs)
- Age: Under 40 (older students have different rules — contact StudyLink)
- Pass the parental income test if you are under 24 and don’t meet independent student criteria
- Pass your own income test — your income must be below the abatement point
Parental Income Test
If you are under 24 and do not meet the “independent student” criteria, StudyLink looks at your parents’ combined income:
- Below a threshold (approximately $55,000–$60,000 combined): Full allowance may be available
- Above the threshold: Allowance reduces on a sliding scale
- Above an upper threshold (~$90,000–$100,000+): No Student Allowance is payable
These thresholds are confirmed annually by StudyLink. The income-testing of parents is a point of frustration for many students — if your parents earn a good income but don’t financially support you, you may not qualify despite genuine need.
Independent Student Criteria
You may be assessed independently of your parents’ income if you:
- Are 24 or older
- Have been in full-time paid work for 2 years or more since leaving secondary school
- Have been in a relationship (married, civil union, or de facto) for 2 or more years
- Have a dependent child
Meeting independent criteria means the parental income test does not apply.
Your Own Income and Abatement
You can earn up to an income threshold while receiving Student Allowance. Above this, your allowance reduces. The abatement works as follows (approximate, verify with StudyLink):
- Below ~$216/week: Allowance unaffected
- $216–$395/week earned: Allowance reduces by 70 cents per dollar earned above $216
- Above $395/week earned (approx): Allowance reduces to nil
If you earn inconsistent income (varying hours), StudyLink uses a rolling calculation based on your reported earnings. You must report any changes to income within 5 days.
What Student Allowance Does and Doesn’t Cover
| Covers | Doesn’t Cover |
|---|---|
| Weekly living costs | Tuition fees |
| Rent (partially) | Course materials |
| Food and household basics | Transport (specifically) |
Most students combine Student Allowance + Student Loan (for fees, and optionally living costs) + part-time earnings.
How to Apply
- Go to studylink.govt.nz
- Log in with your RealMe account (or create one)
- Apply for “Student Allowance” — the form collects your enrolment details, bank account, and parent/partner income information
- Processing typically takes 2–4 weeks
- Payments begin backdated to your application date once approved
Apply before your semester starts — processing delays mean late applications forfeit payments for those weeks.
Tax on Student Allowance
Student Allowance is taxable income in NZ. StudyLink applies the “M” tax code unless you advise otherwise. If you have other income sources (part-time job, etc.), ensure your combined income is being taxed correctly — you may need to use a secondary tax code for your employer.
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 assessed regardless of whether parents actually provide financial support. If you believe you meet independent student criteria, apply on that basis. Otherwise, the system requires the parental income test.
Can I get Student Allowance for a postgraduate degree?
Student Allowance is generally available for postgraduate study (Honours, Masters, PhD) if you meet the eligibility criteria. Some study types and programmes may have different rules — verify with StudyLink.