Youth allowance changes

18 March 2010 Youth allowance changes

Changes in youth allowance agreed to in Federal Parliament this week will enable student assistance to flow to university students across the nation, but the changes fall well short of a good deal for regional students, Federal Member for Wide Bay Warren Truss said today.

The Liberal and National Parties succeeded in having the Rudd Labor Government's punitive retrospective changes to youth allowance eliminated.

"The Coalition also secured a commitment from the Government that will enable students in remote and outer regional towns to continue to be eligible for youth allowance by working 15 hours a week over two years, or earning $19,532 over an 18 month period," Mr Truss said.

"Unfortunately, the Labor Government has imposed new boundaries that exclude most Wide Bay students from this concession, and only those living in areas such as Kilkivan, Goomeri and Murgon will benefit from the change."

All other students will have to meet the new Rudd Government test to qualify for independent rate of youth allowance - 30 hours of work a week for 18 months over two years.

Mr Truss said the boundaries for the new test are illogical and will even split some small towns down the middle.

"Students living in Townsville, Cairns and Darwin will be assessed under the easier test; but those living in Maryborough, Gympie, Imbil, Pomona and Cooroy will be assessed under the old test. Mr Rudd says that it is easier to get a gap year job in Kin Kin or Tiaro than it is in Townsville or Cairns.

"The Rudd Government's map is proof that Labor does not have a clue about regional communities and the challenges facing students from regional areas."

Mr Truss said the Government had finally agreed to some concessions after months of intransigence on the part of Federal Education Minister, Julia Gillard.

"The concessions are an improvement compared to Labor's original proposal, but there is a long way to go to make the scheme fair.

"In spite of these changes most students who wanted to claim independent youth allowance in the future will miss out. Some may still qualify for youth allowance because of a more generous parental income test included in the new scheme. That is why a Coalition Government will review the criteria to address rural and regional inequity and ensure that young people who live outside of cities have access to higher education."

"Without the Coalition standing firm, these concessions would not have been achieved. Now scholarships, including vital relocation scholarships will be paid to students, but clearly there is more to be done."

Permanent Link: Youth allowance changes
Publish Date: 18 Mar 10