Youth Allowance

In the May 2009 Federal Budget the Labor Government announced changes to Independent Youth Allowance.

The Coalition fought hard for substantial concessions for young people throughout Australia. However, the Labor Government implemented the changes to Independent Youth Allowance as of 1 July 2010. This created additional barriers for regional and rural student's access to a tertiary education.

Arbitrary lines on a map now define which students come under which Independent Youth Allowance criteria. To qualify for Independent Youth Allowance, students living in Inner Regional areas are now FORCED to work 30 hours per week for a MINIMUM of 18 months out of two years, which is extremely difficult in small towns and communities. As a result, students are being FORCED to take two gap years to qualify for Independent Youth Allowance.

I need your help to continue the fight to the Labor Government to allow Inner Regional students access to the original three Independent Youth Allowance criteria, the same way Outer Regional students can.

Please read through the information below about Independent Youth Allowance and to find out how you can help create equity for regional students in your area.

Background

Before Labor Government Changes

After Labor Government Changes

Electorates with Inner Regional Areas

What this means for regional students?

Motion into the House of Representatives

Coalition Election Promise 2010

Private Senators Bill

HOW YOU CAN HELP!

Petition

The information below is all contained in the attachment below including Dependent Youth Allowance Income Rates. Please feel free to pass it on.

Youth Allowance Information

BACKGROUND

What is Youth Allowance?

Youth Allowance is the Commonwealth payment made to students to assist them in meeting living and education costs when studying or undertaking training.

There are two forms of Youth Allowance; Dependent and Independent.

Dependent

• The student's parental income is below the allowable income threshold, so the student is eligible for full or part payment (sliding scale)

• The Dependent Rate, for a student, makes the young person automatically eligible for the Start-Up Scholarships worth $1,064 per semester

• Should the Dependent student need to relocate for study, they can also receive the Relocation Scholarship worth $4,000 initially and $1,000 thereafter.

Independent

• If a student's parental income is too high, the student is only able to claim Independent Youth Allowance by fulfilling the Independent Workforce Participation Criteria.

You may wish to check the Centrelink website for further information http://www.centrelink.gov.au/internet/internet.nsf/payments/youth_allow.htm

Independent Youth Allowance is the type of Youth Allowance that has been altered and therefore discussed below.

Before the Labor Government's changes to Independent Youth Allowance

Previously there were three Workforce Participation Criteria ANY student could fulfil to claim the Independent Rate of Youth Allowance;

1. You have worked an average of 30 hours per week for 18 months out of two years

2. You have worked part-time (at least 15 hours a week) for at least 2 years since leaving school, or

3. You have been out of school for at least 18 months and have earned at least 75% of the maximum rate of pay under Wage Level A of the Australian Pay and Classification Scale in an 18-month period (around $19,500).

After the Labor Government's changes to Independent Youth Allowance

There are two different sets of criteria depending on where a student lives. The classifications are based on the Australian Standard Geographical Classification (ASGC) Map. An area can be classified as Major Cities, Inner Regional, Outer Regional, Remote and Very Remote.

Major Cities and Inner Regional students

As a result of Labor's changes, there is now only one Workforce Participation Criteria to fulfil to claim the Independent Rate of Youth Allowance;

1. A student must work an average of 30 hours per week for 18 months out of two years (these hours are calculated in 13 week periods which means a student MUST work at least 390 hours each 13 weeks).

Outer Regional, Remote and Very Remote students

These students are able to fulfil the three original Workforce Participation Criteria. But, Criteria 2 and 3 are providing;

- Their Parental Combined Income is less than $150,000, and

- They must relocate to study

Electorates with Inner Regional Areas

Ballarat, Corangamite, Forrest, Lyne, Paterson,

Barker, Corio, Franklin, Lyons, Pearce,

Bass, Cowper, Fraser, Macarthur, Port Adelaide,

Bendigo, Cunningham, Gilmore, Mackellar, Richmond,

Berowra, Dawson, Gippsland, Macquarie, Riverina,

Blair, Denison, Grey, Maranoa, Robertson,

Bowman, Dickson, Groom, Mayo, Ryan,

Braddon, Dobell, Hinkler, Mcewen, Throsby,

Brand, Eden-Monaro, Hume, Mcmillan, Wakefield

Calare, Fadden, Hunter, Mcpherson, Wannon,

Calwell, Fairfax, Indi, Mitchell, Wide Bay,

Canberra, Farrer, Kingston, Murray, Wright,

Canning, Fisher, La Trobe, New England,

Capricornia, Flinders, Lalor, Newcastle,

Casey, Flynn, Lindsay, Page,

Charlton, Forde, Longman, Parkes,

What this means for regional students?

• Finding full time employment in regional areas and small communities is often very difficult

• The legislation does not take into account seasonal employment sectors such as tourism and agriculture in regional areas, creating further barriers for regional students

• Regional students face significantly increased costs associated with relocating for study

• Many regional students have no choice but to relocate to study

• If the Labor Government implements my Motion, Inner Regional students are able to access the monetary based Workforce Participation Criteria and will only have to take 12 months gap, rather than 18 months to two years. This shorter timeframe encourages more students to return to study

• Australia's geography and demography pose heavy challenges for regional families, especially as they move beyond the rich educational experience offered by country school to secondary or tertiary education in the larger cities

• Students from regional areas are less likely to finish Year 12 than their metropolitan counterparts and are significantly under-represented in tertiary education

• Students from regional areas are much less likely to achieve a tertiary qualification

• Inner Regional students who wish to be Doctors have 6 years of study ahead of them, and should NOT have to have two years gap (medicine does not have mid year intake) just to become Independent, halting their important studies. Similarly with Engineering and Dentistry.

Motion into the House of Representatives

On 28 October 2010 a Motion I introduced in to the House of Representatives was passed 74-70 with the support of five Independents. All Labor Members and Greens Member, Adam Bandt, voted AGAINST my Motion.

The Motion I introduced and subsequently passed called:

That the House:

1. requires the government:

(a) Urgently introduce legislation to reinstate the former workplace participation criteria for independent youth allowance to apply to students whose family home is located in inner regional areas as defined by the Australian Bureau of Statistics instrument Australian Standard Geographical Classification;

(b) Appropriate funds necessary to meet the additional cost of expanding the criteria for participation, with the funds to come from the Education Investment Fund; and

2. Send a message to the Senate acquainting it of this resolution and request that it concur.

My Motion, if it were implemented, would allow up to an additional 20,000 students throughout Australia from Inner Regional areas, to be eligible for the Independent Rate of Youth Allowance under the original criteria, providing the Parental Combined Income is less than $150,000.

Coalition Election Promise 2010

• Under the Coalition's $1 billion Regional Education Fund we committed to finance Inner Regional students being classified the same as outer regional, remote and very remote students

• This would have allowed all rural and regional students to access all three workforce participation criteria for the Independent Rate of Youth Allowance (providing their Parental Combined Income is less than $150,000, and the young person is living away from home to study).

Private Senator's Bill in the Senate

In parallel to my Youth Allowance Motion, a Private Bill, was introduced into the Senate on Thursday 28 October 2010. Unfortunately Labor and Green Senators along with Independent Senator, Nick Xenophon, refused to debate the Bill, instead opting to hold an inquiry.

On 17 November 2010 the Senate referred the Bill to the Senate Education, Employment and Workplace Relations (EEWR) Legislation Committee for inquiry and report. Report date is 9 February 2011.

The EEWR Legislation Committee is inquiring into the Social Security Amendment (Income Support for Regional Students) Bill 2010. This is the bill that seeks to extend youth allowance payments to eligible students whose family home is located in "inner regional Australia".

How you can help!

Sign up at my website so you can be kept up to date via email on the progression of this issue www.nolamarino.com.au

1.. Write a letter or send an email