1 in 3 uni students experience serious financial hardship. Could concession cards for all help?

Last week, the peak body for Australian universities called on the federal government to introduce concession cards and further discounts to all domestic uni students.

Universities Australia says the measures would ease cost-of-living pressures for students. Under the proposal, international uni students would also receive public transport concessions.

It comes after the peak body released data in June showing, since 2021, students’ basic living expenses jumped by 29%. Universities Australia said this figure was “well above economy-wide inflation” of 24%.

How do concession cards work again?

Concession card holders in Australia need to meet certain eligibility requirements in order to receive them. These requirements might be based on low-income status, disability and age (for pensioners). There are also various concessions for veterans offering different benefits.

Concession card holders receive discounts, subsidised by government, for everyday necessities such as medicines, public transport and utility bills and, in some cases, for car registration.

Some domestic uni students qualify for concession benefits through Health Care cards, Austudy, ABSTUDY or Youth Allowance. However, enrolling in university alone does not mean a student qualifies for these discounts. For uni students, eligibility for public transport discounts also differs between states.

The reality for students

Many uni students have to juggle the costs of tuition, housing, transport and groceries usually while working casually or in a part-time role.

Research published in May found one in three surveyed Australian uni students experience serious financial hardship.

My research with colleagues published last month mirrors these findings.

We surveyed a nationally representative sample of 2,731 people aged 18–24 about their education, wellbeing and finances between 2021 to 2025. About 48% of participants were studying full time and 22% were part time in vocational education, university or another tertiary institution at the time.

Struggling to afford basics

In our survey, food insecurity surfaced as a major problem for young people. This is when someone cannot access affordable, nutritious and culturally appropriate food. The most common cause for food insecurity was a lack of money.

We found, on average, about one in five young Australians experienced food insecurity between 2021 and 2025 – most of whom were students.

Over the five years, respondents who said they couldn’t afford or access healthy or nutritious food fluctuated between 58% and 69%. More than 50% reported they had to skip meals and were worried they would not have enough food to eat. The proportion of young people who went without eating for a whole day ranged from 49% in 2021 to 42% in 2025.

About 82–90% of participants reported experiencing financial difficulty every year. Of course, these pressures are not confined to this age group, and can affect students of all ages.

Another 2026 Australian study surveying university staff showed they observed 51.5% of students going without medical treatment due to financial difficulties.

What is the government currently doing to help?

The government has taken some steps to help with uni costs already. It wiped $3 billion in student HECS-HELP debts and increased rent assistance in 2023 and again in 2024.

At the same time the Job-ready Graduates scheme, which came into effect in 2021, has increased the cost of law and business degrees and doubled the cost of arts degrees.

Easing debt is only one piece of the mosaic of financial distress experienced by many students. These measures don’t necessarily make university financially viable while students are studying.

Financial stress can make it too hard for students to attempt or finish their studies. The government recognises university course completions are associated with lower financial stress for students.

Should more domestic students receive support?

The Australian Institute of Health and Welfare estimated about 172,000 students aged between 16–64 received Youth Allowance, Austudy or ABSTUDY payments as of March 2025. The most recently published government data shows 1,086,789 domestic students were enrolled in higher education in 2024. This equates to just under 16% of domestic students receiving Youth Allowance, Austudy or ABSTUDY around this period.

While these initiatives offer students financial relief, it’s worth noting that payments are below the poverty line.

Youth Allowance and ABSTUDY are also subject to parental means-testing. This means if a student is classified as a dependent (typically under the age of 22), their parent or guardian needs to provide their income details in a claim.

This income becomes a factor in determining how much financial support the student can receive, or whether they’re eligible to receive anything. Students are exempted from parental means-testing if their guardians receive particular government allowances.

Usually, students need to be studying full time to receive Austudy and Youth Allowance benefits.

System not up to scratch

Some student unions argue parental means‑testing incorrectly assumes parents or carers have arrangements with their children to support them financially. While some experts say students whose parents earn just above the income threshold may lock them out of payments.

All of this suggests the overall system is inconsistently targeted and not addressing broader cost‑of‑living challenges.

What next?

Expanding concessions to university students will cost money – so far, Universities Australia has not put a price tag on this. So the challenge will be funding concessions in a fiscally-tight environment.

But the federal government’s 2024 Australian Universities Accord also outlines its goal to increase Australia’s tertiary education qualifications from 60% to 80% by 2050. This means we need to find ways to support more students to study.

To reach its target, the government may need to consider easing daily costs for uni students now and into the future.