Youth Allowance Changes to Benefit Cowper

August 9, 2010

More students will be able to claim Youth Allowance under the Coalition’s policy to extend a relaxed work test to the inner regional areas, The Nationals’ Federal Member for Cowper, Luke Hartsuyker, said today.

“This means the whole of the electorate of Cowper will be covered by the new work test and will totally reverse the damaging changes made by the Rudd-Gillard Government,” said Mr Hartsuyker.

“It recognises the difficulty young face in finding work in regional areas when they are trying to make a contribution to their family income and to their own study costs.”

For young people from rural areas who, because of the geographical location of their family home, are required to relocate for full-time study, more generous workforce participation criteria for independence will apply for Youth Allowance and ABSTUDY. This will be in addition to the option to qualify immediately through the parental income test.

From the beginning of academic year 2011, these young people will be able to qualify for independent youth allowance where:

• their family home is in a location categorised under the Australian Standard Geographical Classification (AGSC) as Inner Regional Australia, Outer Regional Australia, Remote Australia or Very Remote Australia; and
• their parents’ combined income is less than $150 000 per annum.

This means that students who elect to take a gap year and work between high school and starting tertiary studies will now again be able to qualify for the independent youth allowance.

Labor changed the rules for the Independent Youth Allowance leaving thousands of students without the opportunity to access tertiary education. Despite caving into pressure from the Coalition, Labor still left 20,000 students in inner regional areas disadvantaged.

If elected to Government, and in consultation with students, parents and school organisations, the Coalition will establish a new integrated program to support families with children forced to leave home for tertiary studies, especially from rural and regional areas. In the meantime, these new arrangements will ensure that regional students get a fair go from the education system.