Minister for Education, Julia Gillard, today continued to negotiate with Senators to attempt to secure the passage of the Youth Allowance bill so 150 000 students gain certainly and can benefit from new scholarships in 2010.
Ms Gillard said the Government has offered to set up a Rural Tertiary Hardship Fund worth $20 million to help prevent the barriers to rural and regional students attending university.
The Government has already agreed to the creation of the rural and regional taskforce should the legislation pass following constructive negotiations with the Australian Greens and Senator Nick Xenophon. The taskforce would consider how the fund could be delivered from 2011 once the existing transition arrangements have ended.
The Government has acted reasonably and has moved to support current gap year students. Earlier negotiations with the Greens and Senator Xenophon have led to substantial changes which would have meant that all students currently on a gap year would be eligible for the existing independence test, except those students who plan to live at home with parents earning over $150 000 a year.
Senator Fielding has indicated he still cannot support the bill and so along with the Liberal and National parties has consigned students to further uncertainty over the summer and has punished the 150 000 students who would have received a scholarship in 2010.
The Rural Tertiary Hardship Fund would be in addition to the relocation scholarships worth $4 000 in the first year of study, and $1 000 every subsequent year for students who choose to move to study.
All university students who receive Youth Allowance would also be eligible for $2 254 annual scholarships ($1 434 in 2010), taking the total scholarship for rural students potentially $6254 in their first year of study over and above their fortnightly youth allowance.
Rural students will also benefit from the increased parental income tests as families from rural and regional areas on average have lower incomes than students from urban areas. More than 100 000 students across Australia would either get increased Youth Allowance or Youth Allowance for the first time.
Ms Gillard said the Government is committed to bringing in these changes in the first sitting of the Parliament in 2010 in order to bring these 150 000 scholarships to students, and students considering taking gap year in 2010 should consider the Government’s proposed legislation before making a decision about their future.
All State and Territory Education and Training Ministers, all independents in the House of Representatives, every university group and the National Union of Students have all called on the Federal Opposition to pass the Government’s Youth Allowance changes.
Key elements of the proposed Labor changes include:
- All students who receive Youth Allowance will receive a
$2 254 start up scholarship every year ($1 434 in 2010).
- The parental income test will be raised so that families with two children studying away from home can earn more than $140 000 before their allowance is cut completely.
- Students who choose to move to study may be eligible for an additional relocation scholarship, worth $4 000, in the first year of study and $1 000 each subsequent year.
- From 1 July 2012, students will be able to earn $400 a fortnight (up from $236) without having their payments reduced.
- The age of independence will reduce progressively from 25 years to 22 years by 2012, which will se an estimated 7 600 new recipients of the independent rate of allowance.