The Australian Government is changing student income support - Youth Allowance, Austudy and ABSTUDY - to create a fairer system for more students and to ensure increased support for those who need it most. Legislation to give effect to the reforms to student income support was passed by the Parliament on 18 March 2010 and the first of the reforms will come into effect from 1 April 2010.
The changes will particularly benefit students from low socio economic backgrounds and students who have to move away from home to study, including rural and regional students. The changes support the Government’s target that by 2025, 40 per cent of 25 to 34-year-olds will hold a bachelor degree or higher and give more people a chance to participate in higher education.
Information on the reforms and implementation dates is detailed below and in individual fact sheets.
More students will be eligible for Youth Allowance
Parental Income threshold raised
From 1 July 2010, the Parental Income Test threshold for students to receive the maximum rate of Youth Allowance or ABSTUDY will increase from the current $33 300 to $44,165. This means that more students will be entitled to Youth Allowance and many students already on Youth Allowance will receive more support.
For example, the parental income cut-out point for a family with two children aged 18 and 20 at home will increase from around $63 000 to over $108 000 and the cut-out point for a family with two children aged 18 and 20 and living away from home will increase from around $80 000 to over $142 000.
These changes may affect you. To help you work out how much support you may be entitled to, go to the Student Assistance Estimator. The Estimator allows young people to enter their parents' income level and family type to gain an estimate of the level of support they might expect to receive under the proposed changes.
Age of Independence lowered
The age of independence will reduce from 25 to 22 years, meaning more students will be eligible for Youth Allowance. This will be phased in, so that the age of independence will reduce to 24 years from 1 April 2010, 23 years from 1 January 2011 and 22 years from 1 January 2012.
Personal Income Test threshold raised
The personal income threshold will rise from $236 to $400 per fortnight so that students receiving support will be able earn up to $400 per fortnight without having their payments reduced.
From 1 July 2012, students receiving support will be able to retain more of their student income support payments.
Support for Masters Students
From 1 January 2012, students enrolled in all masters by coursework programs will be eligible to apply for Youth Allowance.
More students will receive scholarships
Student Start-up Scholarship
All university students receiving student income support will receive a Student Start-up Scholarship for each year of their course. In 2010 this will be valued at $1300 increasing to over $2128 in 2011.
Relocation Scholarship
Eligible university students receiving student income support who have to relocate to study will receive a Relocation Scholarship of $4000 in the first year and $1000 in subsequent years to assist with the costs of establishing accommodation.
Increased support for the students who need it the most
Workforce Participation Criterion for Independence
A young person will be required to work full time for a minimum of an average of 30 hours a week for at least 18 months in a two-year period to demonstrate financial independence through workforce participation. This will ensure that support is targeted to students genuinely in need of assistance. No existing recipient will be disadvantaged by this change. Many students no longer eligible under the changed criterion will be automatically eligible as a result of the increased parental income test. Commencement date for this measure is 1 July 2010.
In addition, transitional arrangements will allow most young people, who completed Year 12 in 2008 and took a ‘gap year’ in 2009, the opportunity to meet the existing workforce participation criterion for independence by 31 December 2010, if they commenced university in 2010 and need to live away from home or their parents’ income is less that $150,000.
From 1 January 2011, the three elements of the workforce participation criterion for independence will apply for young people from rural areas who are required to relocate to study because of the geographic location of their family home. These young people will be able to qualify for payment by meeting any of the three elements of the workforce participation criterion for independence, including via earnings accrued over a period of at least 18 months since leaving school, where:
- their family home is in a location categorised under the Australian Standard Geographical Classification (AGSC) as Outer Regional Australia, Remote Australia or Very Remote Australia, and
- their parents’ income is less than $150 000 per annum.
To find out if your home town is classified as Outer Regional, Remote or Very Remote, visit the Youth.Gov.Au website and then on your state or territory and use the legend provided.
| New Student Start-up Scholarship |
1 April 2010 |
| New Relocation Scholarship |
1 April 2010 |
| Lowering the age of independence |
1 April 2010 – from 25 years to 24 years
1 January 2011 –from 24 years to 23 years
1 January 2012 –from 23 years to 22 years |
| Exempting Equity and Merit-based scholarships from means testing |
1 April 2010 |
| Raising the Parental Income Test threshold |
1 July 2010 |
| Tightening of the workforce participation criterion |
1 July 2010 |
| Workforce participation criteria for rural students |
1 January 2011 |
| Extending student income support to masters by coursework program |
1 January 2012 |
| Raising the Personal Income Test threshold |
1 July 2012 |
For more detailed information on the changes, please see the fact sheets below:
For further advice on entitlements contact Centrelink on 13 24 90 or visit Centrelink.