Making the system fairer
Support to study
Ben has always had an interest in sports and leading a healthy lifestyle and has decided to combine these interests by pursuing a career as a sports physiotherapist. Ben is dependent on his parents and, based on their income, qualifies for Youth Allowance.
As a university student receiving Youth Allowance he will receive the Student Start-up Scholarship, worth $2,254 for each year of full-time study.
Ben is also aware that he can work part-time while studying to gain experience in his field, earning up to $236 a fortnight in 2010 and $400 a fortnight in 2011 before his payments are reduced. Ben is happy to have the opportunity to gain practical experience as he learns and hopes that this will improve his prospects after completing his degree.
Taking the tough decisions
In these difficult economic times, the Government understands the importance of supporting young people to enhance their skills for the future.
To support participation in higher education, particularly amongst low SES students, the Government will reform the student income support system to target greater assistance to those in need.
The Government is tightening the definition of independence to ensure that only students who have demonstrated genuine self support can qualify for Youth Allowance through workforce participation independence rules prior to turning 22 years of age.
From 1 January 2010, the workforce participation criteria will be limited to having worked full-time for at least 30 hours a week, for at least 18 months in the last 2 years. Students who have already met the workforce participation criteria, prior to 1 January 2010, will be unaffected. Other independence rules based on personal circumstances will not change.
The savings realised from tightening the workforce participation independence test will be reinvested to provide greater levels of support and more generous means testing arrangements for lower income students.
