Sorry you are having such a hard time.
I'm not very familier with centrelink polices, but I know when I was about 16 I initially had youth allowance paid into my account. I was a bit of a brat and didn't use it appropriately so my mum called up centrelink and complained and had it put into her account instead. They didn't even consult me at all so I'm assuming it was within my mother's rights to request the change. I was living with her and doing VCE too like your child. This was only about 5 years ago. Might be worth calling them? Apologies if you have already done this.
In regards to your childrens' lack of respect for you and your finances...have you sat down and had a proper chat with them about what is and isn't affordable? Will they even give you the time of day to do this? If they are pocketing the youth allowance, they should be paying for their own books/stationary/tutoring. Can I ask...why are you paying for these things? I would putting a stop to paying for all the extras. You mention them needing "clothes and things desperately" - was it really that desperate? If so, get in touch with the local salvos and they can really help you out. Hopefully your kids will then really get the picture.
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