Moving away from home for university can be expensive, especially when you need to travel back and forth throughout the year. If you’re an Australian student receiving government payments, the Centrelink Fare Allowance could cover your travel costs completely. This program helps thousands of students save hundreds or even thousands of dollars annually on transportation between home and their place of study.
What is Centrelink Fare Allowance?
The Centrelink Fare Allowance is a government program that reimburses eligible students for travel expenses between their home and educational institution. Students on eligible Centrelink payments for at least three months a year can claim up to four flights per year, covering essential journeys throughout their academic year.
This allowance isn’t just about flights – you can use the allowance for air, ferry, coach, train, bus or a combination of these. The program recognizes that students need affordable ways to maintain connections with family while pursuing their education away from home.
Who Can Apply for Fare Allowance?
Basic Eligibility Requirements
To qualify for Centrelink Fare Allowance, you must meet these essential criteria:
- Be a tertiary student studying at an approved institution
- Currently receiving Youth Allowance, Austudy, or Pensioner Education Supplement
- Be living away from your family home to attend your course
- Be enrolled in full-time study (some exceptions apply for part-time due to disability)
Age and Residency Requirements
Must be aged 16 to 24 and studying full-time at an approved institution, be an Australian citizen, permanent resident, or hold an eligible visa, and meet the residency rules. International students on temporary visas typically don’t qualify for this support.
Payment Duration Matters
Your eligibility depends on how long you receive Centrelink payments:
- 3+ months of payments: Up to 4 journeys per year
- Less than 3 months: Up to 2 journeys per year
What Travel Does Fare Allowance Cover?
Types of Eligible Journeys
The Fare Allowance covers several travel scenarios:
- Start of year travel: Journey from home to your study location
- End of year return: Travel back home after completing studies
- Mid-year visits: Return trips home during semester breaks
- Course requirements: Travel for mandatory placements or field work
Approved Transportation Methods
Fares Allowance covers the cost of the least expensive and most available form of public transport in Australia. This includes:
- Domestic flights (most common for long distances)
- Train services
- Bus and coach travel
- Ferry services
- Connecting transport to airports or stations
Important: We may also cover the cost of standard baggage fees, and sometimes extra baggage for essential study equipment.
How Much Money Can You Save?
The Fare Allowance can provide substantial savings for students. Some fares between major Australian cities can exceed $1,000 one way, making this support incredibly valuable.
Real example: Lea used the program to claim a $600 flight from Sydney to Perth. Over a full year with multiple trips, students often save $2,000-$4,000 on travel expenses.
Payment Scheme Overview
| Eligibility Category | Maximum Journeys Per Year |
|---|---|
| Students on payments 3+ months | 4 eligible journeys |
| Students on payments less than 3 months | 2 eligible journeys |
| Covered Expenses | Details |
|---|---|
| Transport costs | Least expensive public transport option |
| Standard baggage | Included with transport booking |
| Connecting transport | Buses/trains to airports/stations |
| Essential study equipment | Extra baggage for required items |
How to Apply for Fare Allowance
Application Methods
You have two main options for claiming your Fare Allowance:
Option 1: Post-Journey Reimbursement
- Travel first, then claim expenses
- Complete the Claim for Fares Allowance – tertiary students only form (SY005)
- Submit within required timeframes with supporting documents
Option 2: Pre-Booking Through Centrelink
- We can pre-book your travel for you
- Contact Centrelink before your planned travel
- They arrange and pay for approved transportation directly
Required Documentation
When claiming reimbursement, you’ll need:
- Completed SY005 form
- Original receipts or tax invoices
- Travel itinerary showing dates and destinations
- Proof of your current Centrelink payments
- Evidence that travel was for approved purposes
Application Process Steps
- Confirm eligibility: Ensure you meet all criteria before traveling
- Plan your journey: Choose the most cost-effective public transport
- Keep all receipts: Save every document related to your travel
- Submit claims promptly: Don’t wait months to lodge your application
- Follow up: Check your claim status through myGov
Smart Tips for Maximizing Your Benefits
Booking Strategies
“It’s important to book early to control costs” as some fares can be significantly cheaper when purchased in advance. Compare prices across different transport modes – sometimes a combination of bus and train might be cheaper than flying.
What’s Not Covered
Understanding limitations helps avoid disappointment:
- Luxury or first-class travel options
- Private vehicle expenses (except in special circumstances)
- Travel for non-study purposes
- Accommodation costs during travel
- Meals and incidental expenses
Special Circumstances and Exceptions
Private Transport Approval
Where it’s not practical to use public transport, you can travel by private transport. This might apply when:
- You need to transport large study equipment
- No public transport serves your route
- You have mobility restrictions
Online and Distance Students
Students studying through distance education can still access Fare Allowance if they need to travel for mandatory course components like:
- Practical placements
- Laboratory sessions
- Examinations that must be completed in person
- Residential schools or intensive workshops
Common Mistakes to Avoid
Documentation Errors
- Not keeping original receipts
- Claiming ineligible travel types
- Missing application deadlines
- Incomplete form submissions
Planning Oversights
- Not checking eligibility before booking
- Choosing expensive travel options unnecessarily
- Forgetting to include connecting transport costs
- Not understanding the 3-month payment requirement
Getting Help and Support
Contact Information
For assistance with your Fare Allowance application:
- Youth and Students Line: Available for current payment recipients
- myGov account: Track application status and submit claims online
- Local Centrelink offices: Face-to-face assistance available
Appeals Process
You have the right to appeal our decision if your Fare Allowance claim is rejected. Understanding the appeals process ensures you can challenge decisions you believe are incorrect.
The Centrelink Fare Allowance remains one of the most valuable supports available to Australian students studying away from home. With proper planning and understanding of the requirements, you can significantly reduce your travel costs and maintain important family connections throughout your studies.
Frequently Asked Questions
Q: Can I claim Fare Allowance if I study online?
A: Yes, if you need to travel for mandatory course requirements like exams, practical placements, or residential components.
Q: How many times per year can I use this benefit?
A: Up to 4 journeys if you receive Centrelink payments for 3+ months, or 2 journeys if less than 3 months.
Q: Do I need to use the cheapest transport option available?
A: Yes, Fare Allowance covers the least expensive and most readily available public transport for your route.
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