Ausstudy/youth allowance/chanes (1 Viewer)

[davidbarnes]

I'm currently taking a gap year off before university next year and have a couple of question's about Ausstudy/Youth Allowance/ the thing where you work for a year and earn 18,000 in 12 months or so to qualify. However I have heard that this has changed with this years federal budget. Has these changes been bought into effect immediately; i.e. where does it leave though who are currently taking a gap year and working? Thanks for the help.

 

[izzy88]

ah i don't think the legislation has passed through yet. But yes- the government is intending on getting rid of the 18grand/18month independence test.

The intention of the government is that the changes would come into effect january 1 2010. So if the government gets its way you will be ineligible to claim youth allowance under the independence test of work 18grand/18 months (because you can't claim youth allowance until you've left school for 18 months which takes you to july 2010).

It has been getting a bit of media attention- so if you're lucky the government might back down on when it comes into affect to give the gap year people a chance but who knows at this point.

 

[Graney]

The changes didn't take effect immediately. It was proposed the income based test for eligibility you're talking about, would be removed at the end of the year, 1st january 2010.

The coalition and the greens have both stated they are going to block the changes. It has to pass through the senate. Don't worry, labor won't get it through in it's current form.

Keep your ear to the ground for updates. My belief is there'll be a compromise, where it's phased out over a number of years. Whatever happens, you won't lose eligibility at the end of the year, as labor were proposing.

It's closer to $19'000 now and it's over 18 months.

 

[Miner]

Keep your ear to the ground for updates. My belief is there'll be a compromise, where it's phased out over a number of years. Whatever happens, you won't lose eligibility at the end of the year, as labor were proposing.

It's closer to $19'000 now and it's over 18 months.

I hope there will be a compromise but certainly wouldn't be holding my breath. There are two seperate issues being fought out with regard to these changes. The first is whether the date of effect should be changed for current gap year students, and the second is the equity issue for rural and regional students. The changes have already been referred to the Rural and Regional Affairs and Transport Senate Committee for enquiry into the effect of the changes on rural and regional students. This committee has until late August to report its findings to the Senate.

Be aware that all the Labor Govt will have to do is offer an acceptable compromise on some other priority issue to the Greens and Independents and the legislation will pass the senate. It wouldn't be the first time the senate has backed down. The Independent senators and the Greens are acknowledging now that the new criteria is good for city based students, the fight is really about how it fits the country-based students.

The changes have been discussed briefly by the Senate Education Committee where it has been made very clear the Govt is not going to back down. It is obvious that they want no workforce participation criteria to exist. They have also clarified that the relocation scholarship will NOT be available to Independent students who qualified for independent status under workforce participation criteria.

The current income required is $19,532. This amount is indexed and will rise again in Sept or October. Expect it to exceed $20,000 before the year is out.

i.e. where does it leave though who are currently taking a gap year and working? Thanks for the help.

Keep working for now because until the leguslation has been tabled it can neither be voted in or amended.

The parental income limits have become far more generous so many will now qualify for at least part payments that in the past they couldn't qualify for. If all else fails then you'll have two years in which to rack up 78 weeks worth of payslips that show you've worked a minimum 30 hours in the week.