Youth Allowance
One major issue that is currently affecting the South West is the proposed changes to the Centrelink benefit Youth Allowance.
What has been done (Press Releases, Speeches & Other)?
I encourage everyone who may be affected by these proposed changes to contact Centrelink to check their eligibility under the current criteria and the proposed criteria on 13 24 90. If you have trouble contacting Centrelink please contact my office for further assistance.
Current Update
The Youth Allowance proposed changes are titled Social Security and Other Leiglsations Amendment (Income Support for Students) Bill 2009.
The legislation is yet to be re-introduced into the Senate for debate which means that thousands of students throughout Australia who began studies for the first time, or again this year are without much needed financial assistance by way of scholarships in the form of the Commonwealth Scholarships, which were abolished early 2009 to make way for the new start-up and relocation scholarship, which are part of the legislation which has not been passed.
The Coalition, on numerous occasions, has suggested the Labor Government split the Bill allowing passage of the scholarships to be delivered to those who need them most, but for the other proposed changes to Youth Allowance to continue being debated.
The Coalition WILL NOT support legislation which:
1. Cutting the 'gap year' pathway to Independent Youth Allowance for students who must leave home to attend University, unless a realistic alternative provision is put in place;
I have received and continue to receive emails and calls on this issue - this is very important for students in the South West and throughout Australia. The gap year provision has often provided the only way many students could afford to attend university at all.
Removing the gap year provision and providing only one way for students to claim independent status by having to work 30 hours of work per week on average for an 18 month period is a major problem for regional and rural students.
Firstly, for young people, trying to find 30 hours of employment per week in the South West is extremely difficult and sometimes impossible, particularly for those who live in small towns. Also, the proposed 30 hours per week does not take into account the seasonal employment sectors such as tourism and agriculture in regional areas.
2. Legislation that is retrospective in it's effect:
On 26 August 2009, the Labor Government announced that the implementation date for the proposed changes would be pushed back from 1 January 2010, until 30 June 2010, to allow current gap year students to still qualify under the current Independent Criteria of earning a certain amount over an 18 month period. This is some good news for South West students who were very anxious about their 2010 higher education plans who were counting on Youth Allowance to help finance the move to Perth.
The Labor Government may have given with one hand but has taken with the other. To finance this push back they have pushed back the implementation of an increase in the income limit allowable for current Youth Allowance recipients, currently $236 to $400, from 1 January 2010 until 1 July 2012.
Overview
The release of the 2009/10 budget saw proposed changes to the current Youth Allowance legislation due to commence in January 2010. These changes will have an immense impact on regional students and whether they are able to attend a tertiary institute outside of the South West, often required by course availability.
I strongly encourage you to read through the information provided on the Department of Education, Employment and Workplace Relations(DEEWR) website and assess the affect the proposed changes will have on your specific circumstances.
Some of the proposed changes are listed below, as well as concerns raised by students and families;
Parental Income Test
From 1 January 2010, the Parental Income Test (PIT) threshold for students applying for Youth Allowance (YA) or ABSTUDY will be increased from $32,800 to $42,559 per annum to align with the Family Tax Benefit - Part A.
Workforce Participation Independence Criteria
Currently there are three elements to the workforce participation criteria for Youth Allowance and ABSTUDY:
1. Worked part-time for at least 15 hours a week for at least two years since leaving school;
2. Earned, in a 18 month period since leaving school, an amount equivalent to 75 per cent of the maximum rate of pay under Wage Level A of the Australian Pay and Classification Scale generally applicable to trainees (in 2009 this requires earnings of $19,532)
3. Worked full-time for at least 30 hours a week for at least 18 months during a two year period.
The new legislation will remove two of these current workforce participation criteria, and instead demand a new full time workforce participation criteria, that will require employment of at least 30 hours per week for at least 18 months during any period of two years since leaving school.
This means that students who are currently in their gap year will have to meet this new proposed criteria as they will be applying for Youth Allowance in 2010 under the new legislation. Most students would have already begun work but not the required 30 hours a week. This will set back their time limit to apply for Youth Allowance or ABSTUDY by another 6 months. Some students may not be able to receive payments now until May 2011.
For young people, trying to find 30 hours of employment per week in the South West is extremely difficult and sometimes impossible, particularly for those who live in small towns. Also, the proposed 30 hours per week does not take into account the seasonal employment sectors such as tourism and agriculture in regional areas.
Student Start-Up Scholarship
A Student Start-Up Scholarship of $2,254 in 2010 and indexed thereafter, will be provided as an entitlement to all university students receiving income support and those assisted under veterans' schemes. The allowance replaces the current Commonwealth Education Cost Scholarship (CECs).
Basically, regional students who qualify for Youth Allowance or ABSTUDY will receive this Scholarship. But should a student be ineligible for Youth Allowance or ABSTUDY he/she will also not have the opportunity for a Commonwealth Scholarship and therefore, will have to apply for very competitive scholarships at their designated tertiary institute.
Relocation Scholarship
From 1 January 2010, a Relocation Scholarship will assist Youth Allowance and ABSTUDY students at university who are dependants, who have to live away from the family home for study as well as independent students who are disadvantaged by personal and relationship circumstances. The Relocation Scholarship will provide $4,000 for students in their first year at university and $1,000 in each year thereafter and will be indexed. This will replace the Commonwealth Accommodation Scholarship (CAS).
Currently, any student can apply for the CAS. This will now be restricted only to those in receipt of Youth Allowance or ABSTUDY.
Also, the current CAS is around $4,300 per year for four years, over $17,200 in total. Under the new legislation, this will be cut back to only $7,000 over four years in total. So not only has the Government excluded regional students, but also short changed eligible Youth Allowance or ABSTUDY recipients.
What can I do?
Julia Gillard is the current Minister for Education, Employment and Workplace Relations and is the member responsible for the legislation. Please don't hesitate to contact Ms Gillard directly to express your deep concerns about the changes. Email and call her office explaining the real effects these changes will have on South West students and families.
Bombarding the Minister's office demanding answers will create pressure and hopefully amendments to the current proposed changes.
Another avenue is to voice your concerns at www.educationforaustralia.com.au like many other concerned parents and students.
What has been done?
Since the announcement of the changes in the May budget, the Coalition has been working towards amendments to the proposed legislation as the affects of some changes will be detrimental to South West students and families.
Coalition Members presented a 6500 signature petition, collected in ten days from around Australia, in Federal Parliament in early June opposing the proposed changes.
Malcolm Turnbull, then Leader of the Opposition, came to Bunbury on Monday 6 July 2009, and held a meeting with me to create some dialogue with parents and students about the issue. Over 150 concerned students and parents attended the meeting which allowed Mr Turnbull to hear first hand the negative affect these changes will have on regional and rural students.
Press releases:
Media Invited: Newton Moore students to voice concerns about Youth Allowance (8 June 2009)
Marino Backs Amendments to Youth Allowance (9 June 2009)
Tax Bonus Waste, Better Spent on Regional Students Higher Education (19 June 2009)
Marino Continues to Pressure Minister on Youth Allowance (23 June 2009)
Marino hosts Youth Allowance Forum with Turnbull in the South West (30 June 2009)
Senate Inquiry into Youth Allowance Changes (6 July 2009)
ABC Radio Interview with Glynn Greensmith, Nola and Malcolm (6 July 2009)
No Definitive Answers from the Government for South West Students ( 17 August 2009)
No WA Students Included in Youth Allowance Meeting (25 August 2009)
Back Flip on Youth Allowance not clear Cut (28 August 2009)
Youth Allowance Legislation Introduced but Amendments Still Needed (11 September 2009)
Youth Allowance Inquiry to Report Next Week (20 October 2009)
Coalition will stand up for Regional Students (18 February 2010)
Other Information:
Speeches: 4 June 2009, 25 June 2009, 13 August 2009, 19 August 2009, 26 October 2009, 24 February 2010
17 August 2009 - Malcolm Turnbull asks Minister Gillard about Youth Allowance in Question Time
Senate Inquiry
The Senate Committe for Rural and Regional Affairs and Transport began an Inquiry into Rural and Regional Access to Secondary and Tertiary Education Opportunities in June 2009. Submissions for the Inquiry closed on 7 August 2009.
The inquiry reported 18 December 2009, click here for the report.
As there were so many submissions relating specifically to the poposed Youth Allowance changes, the committee decided that these submissions and evidence will be used for an inquiry into the Social Security and Other Legislations Amendment (Income Support for Students) Bill 2009.
The Inquiry directly relating to the proposed changes reported on 27 October 2009, and you can view the report by clicking here.
Keep me Informed
If you would like to be kept informed of the progression of this issue, please email me at nola.marino.mp@aph.gov.au or fill in my online enquiry form to send me your details.