Youth Allowance changes cause chaos

20 May 2009 Media release

More than 30,000 young people will be negatively affected by the tightening of the criteria for establishing independence under the Youth Allowance, Christopher Pyne, Shadow Education Minister said today.

"Many young people currently working for a year in an effort to meet the criteria to receive Youth Allowance next year will have their plans for future study thrown into disarray by changes which take effect from the start of next year," Mr Pyne said.

Until now, a student was "independent", if they worked 15 hours per week for two years, or earned $19,532 over 18 months.

In this Budget, the Government has abolished these categories. Youth Allowance will no longer be available for a student under 22 years old unless their parents' combined income is less than $42,560, or alternatively, unless the student has worked full time for two years.

"The Youth Allowance is a vital avenue of income support for students. The expenses involved in pursuing further study, particularly if students are forced to move away from home, are extremely high," Mr Pyne said.

"Parents understand that it is considerably more difficult for young people from regional areas who often do not have the option to stay with their parents or relatives while studying," he said.

It seems that despite Kevin Rudd's rhetoric about supporting working families, and giving everyone a fair go, Labor doesn't seem to care about the difficulties confronting students from rural and regional areas in particular.

Many young people in the regional areas may opt not to pursue further study, purely because they can not afford to do so. This is an enormous failure for a Government who claims they want to increase university attendance, particularly from disadvantaged groups."

"I'd urge all young people to post their concerns on www.educationforaustralia.com.au, the Coalition's education policy forum," Mr Pyne said.