The Labor Government’s lack of understanding of the impact of changes to the independent Youth Allowance were apparent during today’s Senate Inquiry into the Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009.
Senator Fiona Nash is chair of the Rural and Regional Affairs and References Committee, which is holding the inquiry. She said the submission and evidence from the Department of Education, Employment and Workplace Relations, lacked detail particular regarding the discrepancies between the effects on metropolitan students and those in regional Australia.
“It costs between $15,000 and $20,000 for regional families to send a child away to university, every year, but at least 13,000 are going to miss out on any independent Youth Allowance. The Department’s submission put the case that under the proposed changes students will no longer feel compelled to take a gap year in order to become eligible for income support but will be able to access income support immediately as a result of the changes to the Parental Income Test.
“However, students from high schools in Orange appeared before the committee and said they would not receive any assistance under that test. They made the point that there were nine full-time jobs suitable for school leavers advertised recently. With about 300 students in the area soon to graduate from Year 12, the ability to find permanent work for at least 30 hours a week is going to be impossible for many of those who were planning a gap year and under the new rules, a gap of two years.
“As the Department itself said, 30 per cent of students who formally defer a university offer to take a gap year never return to study. Regional students must not suffer career disadvantage because of their postcodes.”
Information about today’s inquiry and the bill is available at:
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