What changes are being made to Youth Allowance (Other)?

From 1 July 2009 young people who are claiming Youth Allowance without Year 12 or equivalent will be assessed against new participation rules.

Young people claiming Youth Allowance who don’t have year 12 or an equivalent qualification will need to:

• participate in education and training full-time; or
• participate (generally this will be for 25 hours a week) in part-time study or training, in combination with other approved activities, until they attain Year 12 or an equivalent Certificate Level II qualification.

Why is the Australian Government making these changes?

The Australian Government is making these changes because people with a Year 12 or equivalent qualification are more likely to go on to further education, less likely to be unemployed and more likely to get jobs with higher earnings, which can provide better opportunities for them and their family.

These new participation rules will apply up to the age of 21, or until the young person gets a Year 12 or equivalent qualification.

When will the changes take place to Youth Allowance (other)?

The changes will apply to all young people without Year 12 or an equivalent qualification claiming Youth Allowance from 1 July 2009 and to existing Youth Allowance recipients without Year 12 or the equivalent who are not full-time students from 1 January 2010. The new requirements will be progressively implemented for this group between January and July 2010.

What are the requirements for a young person who has obtained Year 12 or the equivalent qualification?

This group of young people are not affected by the changes to Youth Allowance (other).  However, they will need to provide Centrelink with evidence of their qualification within 28 days of claiming Youth Allowance (other).  If this evidence if not provided, Centrelink may decide that the young person must meet the new participation requirements.

What about families who get Family Tax Benefit (Part A) for their children?

From 1 January 2010 the same conditions as above must be met if parents of under 21 year olds wish to receive Family Tax Benefit (Part A). Further information on changes to Family Tax Benefit (Part A) is available from the Department of Families, Housing, Community Services and Indigenous Affairs. 

Can young people undertake the education or training part-time?

Under the new rules, to receive Youth Allowance young people under 21 years of age without Year 12 or equivalent will need to:

• participate in education and training full-time; or
• participate (generally for 25 hours a week) in part-time study or training, in combination with other approved activities, until they attain Year 12 or an equivalent Certificate Level II qualification. 

If the education or training is part time, then additional activities will generally be required.

Additional approved activities may include things like paid employment, voluntary work or participation in a youth transitions program.

Job Services Australia will help young people to prepare a written pathway plan which includes (generally) 25 hours of activities per week, including a part time study or training component, and will ensure they have the help they need to meet their requirements.

Young people who choose to do an approved full-time course of study will generally qualify for Youth Allowance (Student), but if the course is short (up to 12 months long) and full-time they can stay on Youth Allowance (Other). Young people undertaking an apprenticeship may qualify for Youth Allowance (Apprentice).

What if a young person doesn’t want to undertake education or training?

If a young person without Year 12 or an equivalent qualification, is capable of participating in a program of study or training and other approved activities, but does not agree to do so, Youth Allowance (Other) will generally not be payable.

A young person who does not qualify for income support (‘non-allowee youth’) can continue to volunteer for employment services with Job Services Australia. This includes young people who may be precluded from receiving Youth Allowance due to their parents’ income, as well as young people without Year 12 who do not participate in study or training under the new rules.

What about young people with complex needs or who experience multiple disadvantage?

The arrangements will be flexible for young people with complex needs or experiencing multiple disadvantage who are unable to meet the new participation requirements.

Centrelink and Job Services Australia will help young people work out the best activities for their circumstances.  For example, young people with multiple barriers such as homelessness or substance abuse issues may be referred to Stream 4 employment services which will provide intensive assistance tailored to the needs of each individual young person.  This assistance will not include a study or training activity if it is not appropriate.

Similarly, young people with a partial capacity to work will have their hours of participation tailored to their assessed capacity. For example, they may only have to undertake part-time study or training to meet their participation requirement. If eligible, young people can also meet their requirements by participating in Disability Employment Services or vocational rehabilitation.

Where a young person is able to study, but cannot immediately start study at the Year 12 or equivalent (Certificate II) level, other courses such as literacy training may be undertaken initially, with the aim of then moving towards Year 12 or equivalent qualifications.

Where do the education or training places come from?

Job Services Australia providers can help young people access education and training programs to improve their skills, including places in the Government’s $2 billion Productivity Places Program.

Young people will also be able to approach Registered Training Organisations (RTOs), including secondary schools and TAFEs, which offer government-subsidised qualifications, to enrol in a course. Enrolment will be subject to admission requirements and course availability.

Young people who are temporarily unable to access a study or training place, for example, where a course may not be available for some weeks, may be temporarily exempted from the study or training requirement, if they agree to enrol at the earliest opportunity.

If there are any up front costs for the course, who will pay these costs?

For young people who access a Productivity Places Program course, the costs are fully met by the Government.

For those courses that do not fall under the Productivity Places Program, additional forms of support may be available to help with the costs of study. For example, Job Services Australia providers will have the discretion to help with course costs through the Employment Pathway Fund.

Over the period 1 January 2009 to 30 June 2010 recipients of Youth Allowance (Other) who commence full time study or training may be eligible for the Education Entry Payment of $208 and the $950 Training and Learning Bonus.