Proposed changes to Youth Allowance
The Australian Government is proposing changes to Youth Allowance which would mean that more students will be eligible for support and more university students will receive scholarships to help with the costs of starting out and relocating for university.
Legislation to introduce the proposed changes to Youth Allowance
While legislation to give effect to the proposed reforms has already passed the House of Representatives, the Senate has not passed the legislation.
This means that the current arrangements and rules for Youth Allowance, Austudy and ABSTUDY remain in place. The Government has indicated that it intends to again seek passage of its reforms by the Senate in early in 2010.
Students who are in Year 12 in 2009 and are considering taking a gap year before commencing university should be aware that the current rules for Youth Allowance would change if the Government’s new legislation is approved.
Students can monitor progress on the proposed changes to student income support by visiting the Youth Allowance website. For information on current entitlements, students can contact Centrelink by phone on 13 24 90 or visit Centrelink’s website.
Proposed changes to eligibility criteria
Under the proposed new arrangements, students will no longer need to take a gap year to qualify for Youth Allowance as many will be eligible for Youth Allowance as dependents, based on their parents’ income.
These changes may affect you. To help you work out how much support you may be entitled to, check out 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.
Introduction of scholarships
Under the proposed changes, university students who are eligible for Youth Allowance, Austudy or ABSTUDY will be entitled to a Student Start-up Scholarship for each year of their course. The proposed changes would also mean dependent university students who have to relocate to study and are eligible for Youth Allowance or ABSTUDY will be entitled to also receive a Relocation Scholarship.
Proposed arrangements for Year 12 2008 school leavers
In addition, subject to the passage of the legislation, revised transitional arrangements will allow young people who completed Year 12 in 2008, took a ‘gap year’ in 2009 and who start university during 2010 until 31 December 2010 the opportunity to meet the current workforce participation criterion for independence under Youth Allowance and ABSTUDY. To be eligible, the young person would need to show that:
- they would be required to live away from home to study at university; or
- their combined parental income is less than $150 000 for the tax year.
To help you work out how much support you may be entitled to, check out the Student Assistance Estimator. For advice on current entitlements contact Centrelink by phone on 13 24 90 or visit Centrelink’s website.
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