After more than two years of lobbying by students, parents, education stakeholders, communities and the Coalition, the Gillard government today finally introduced legislative changes to make independent youth allowance fair for inner regional students.
“The government last week, at long last, agreed to ditch the 30 hour a week work rule for inner regional students and apply the exact same, and fairer criteria that applies to students in outer regional, remote and very remote areas. It introduced the Social Security Amendment (Student Income Support Reforms) Bill 2011 to make this happen into parliament this morning,” the Coalition’s Regional Education spokesperson, Senator Fiona Nash, said.
The bill seeks to, from 1 January 2012:
- Make changes to the criteria under which youth allowance recipients from Inner Regional Australia are considered to be “independent”;
- Adjusts the amount of the Relocation Scholarship - to $4000 in the first year of study, $2000 for each of the second and third year, and $1000 for any subsequent years - to eligible higher education students from regional or remote areas who are required to live away from home to study, in recognition of the multiple barriers and high costs faces by this group;* and
- Reduces the amount of the student Start-up Scholarship to $2050 for eligible students.**
The government’s also announced:
- A feasibility study into the merits of an income contingent loan scheme to help students who have to live away from home during clinical/practical placements;
- Triennial reviews of student income support reforms to gauge their effectiveness in reducing financial barriers to education for students in need; and
- An education strategy to ensure students and their families are aware of the financial assistance available for tertiary education.
Senator Nash said the Coalition will closely scrutinise the legislation.
“Labor has finally moved to fix their monumental stuff-up – it shouldn’t have made these unfair changes to independent youth allowance in the first place,” she said.
“Money will now be taken away from other youth allowance measures, or they will be delayed, which will affect many students. If this inept Labor government hadn’t wasted so much money through programs like the pink batts scheme they wouldn’t be having to disadvantage other students to pay for the changes.”
The bill will be considered and debated when parliament resumes next month.
*Relocation Scholarship
Eligible university students receiving student income support who have to relocate to study currently receive a Relocation Scholarship of $4124 in the first year and $1031 in subsequent years to assist with the costs of establishing accommodation. This amount is indexed each year. The new legislation seeks to adjust the scholarship to $4000 in the first year of study, $2000 for each of the second and third year, and $1000 for any subsequent year.
NOTE: students receiving independent youth allowance are NOT eligible unless disadvantaged by personal circumstances – see http://www.centrelink.gov.au/internet/internet.nsf/payments/relocation_scholarship.htm
**Student Start-up Scholarship
All university students receiving student income support receive a Student Start-up Scholarship for each year of their course, which is currently valued at $2194, and is indexed each year. The new legislation seeks to reduce the scholarship to $2050 from 1 January 2012.
Wednesday, September 21, 2011 10:20 PM
Hi Fiona,
Does these amendments affect students who finished year twelve in 2009?
Thanks,
Cait
Wednesday, September 21, 2011 11:16 PM
I have the same question as Caitlin, or will we, the class of 2009 never receive independent youth allowance?
Thank you for your time.
Brad
Thursday, September 22, 2011 11:10 PM
Reading the following information I don't think the 2009 and 2010 students will eligible for Independent youth allowance
SOCIAL SECURITY AMENDMENT (STUDENT INCOME SUPPORT REFORMS) BILL 2011
GENERAL OUTLINE
The Bill amends the Social Security Act 1991 to implement policy announced by the Government on 14 September 2011 following consideration of the recommendations of the Review of Student Income Support Reforms. The amendments remove the distinctions between Inner Regional and other regional and remote students for independent Youth Allowance as well as providing additional support for students from regional Australia who need to relocate to study.
The Bill has three principal measures.
The first measure changes the criteria under which youth allowance recipients from Inner Regional Australia are considered to be “independent”. The rate of youth allowance for independent recipients is not subject to a test for parental income, family actual means or family assets.
The arrangements for independence through the part-time and earnings workforce participation criteria available to young people from Outer Regional, Remote and Very Remote Australia will be extended to young people from Inner Regional Australia.
No person who is currently independent because of the existing workforce participation criteria will be affected by this change. In addition, no transitional or retrospective arrangements will be in place for young people who left secondary school in 2009 and 2010.
And yet...Senator Chris Evans provides a link on his media release to the DEEWR website for FAQ which states:
What about Inner Regional students who have already left school and been working?
Inner Regional students who left school 18 or more months ago may qualify under the new independence arrangements when they start from 1 January 2012. Employment undertaken over the period since leaving school will be taken into account, even if that work was done prior to 1 January 2012.
I hope this bill is closely scrutinised and not allowed to pass if the 2009/2010 cohort of students are not treated as fairly as all other regional students undertaking tertiary studies.
How ironic it will be if all the work put in by the students and parents of 2009/2010 students to overturn the disastrous Labor reforms to youth allowance does not benefit these students.
Friday, September 23, 2011 2:27 PM
Thanks Julie,
I have sent an email to our local MP, and have called Fiona Nash and Chris Evans offices. I hope more families stand up, this is so unfair and I will continue to ask the questions.
Fiona if you have more information I'd appreciate it, Thank you!
Friday, September 30, 2011 10:58 AM
Hi Fiona,
As per previous comments on your website re: new YA legislation, my daughter completed college in 2009, did a working gap year in 2010, and now has nearly finished 1st year Uni at Deakin Vic. She receives $19 f/n YA plus rent assistance as a dependent student, based on our family income. IF THE NEW AMMENDENTS WILL NOT ALLOW MY DAUGHTER TO RE-APPLY FOR YOUTH ALLOWANCE AS A INDEPENDENT STUDENT, THE NEW CHANGES ARE WORTHLESS TO US. PLEASE FIONA PERSIST, TO GET THE GOVERNMENT TO GET IT RIGHT THIS TIME. Our family is financially relying on my daughter receiving the full rate of YA & rent assistance next year.
Regards
Barry Direen
Monday, October 03, 2011 11:24 AM
Hi Fiona and readers again
An article by Colin Bettles written on 2 Oct 2011 includes the following statements:
Federal Tertiary Education Minister, Chris Evans, said the Bill’s introduction was part of a $265 million commitment outlined in the government’s response to the Review of Student Income Support Reforms.
Senator Evans said as a result of the changes, around 5500 students from inner regional areas would either be able to access payments or receive a higher rate of payment next year.
These comments sound promising for 2009/2010 graduates. :)
Sunday, November 27, 2011 10:57 PM
Why is Independent Youth Allowance still dependent on Parental Income??
When are we going to help our country students receive higher education with out this continual ignorance of their difficulties financially.
I have three children attending university and the financial drain this is placing on our family income is immense. This is with both parents working hard in the income range above the supposed magic figure of $150,000.
Sunday, November 27, 2011 11:13 PM
A good question Jenni. It flies in the face of the term "independent"
Wednesday, January 04, 2012 11:07 AM
Thanks for your comments.
Yes the changes do apply to 2009 and 2010 school leavers.
Jenni, the $150K parental income test does still appy. You and Julie make a valid point about the parental income test for independent youth allowance. Senator Nash is aware of these concerns and is keen to get feedback on how it's impacting students' ability in qualifying and affording a tertiary education.
Wednesday, January 04, 2012 11:07 AM
Thanks for your comments.
Yes the changes do apply to 2009 and 2010 school leavers.
Jenni, the $150K parental income test does still appy. You and Julie make a valid point about the parental income test for independent youth allowance. Senator Nash is aware of these concerns and is keen to get feedback on how it's impacting students' ability in qualifying and affording a tertiary education.