The Answer
🎂
Youth Allowance stops, car insurance drops, and your health insurance loading clock is ticking in Tasmania.
What Changes at 25
| Area | Change |
|---|---|
| Youth Allowance | No longer eligible — you may move to JobSeeker Payment |
| Car insurance | Premiums typically drop — insurers consider you lower risk |
| CTP / Green Slip | May decrease (age is a rating factor in TAS) |
| Super | Your fund can now take out default insurance (life + TPD). Check your policy and premiums. |
| Health insurance | You have 6 years until the Lifetime Health Cover loading kicks in at 31. Consider getting hospital cover now. |
| Car hire | Most companies drop the under-25 surcharge |
Action Items
- Check your super balance and consolidate if you have multiple funds
- Review your super insurance — default cover may not be enough, or may be eroding your balance
- Start thinking about health insurance before you turn 31
- If you're still studying, check whether you're now eligible for Austudy instead of Youth Allowance
- Get car insurance quotes — your premiums should be lower now
Frequently Asked Questions
Does car insurance get cheaper at 25?
Generally yes. Most insurers consider drivers over 25 lower risk, which reduces premiums. Shop around for a better deal.
Do I need health insurance at 25?
Not yet legally, but getting hospital cover before 31 avoids the Lifetime Health Cover loading (2% per year past 30). Starting at 25-30 means you'll never pay the loading.
What Changed
Apr 2026
Verified for Tasmania