CENTRELINK: What's new ? What is Changing?

You may be aware through media coverage that substantial changes to student income support have been mooted by the Federal Government over approximately the last 9 months. Student groups have lobbied for changes to the student income support system to make it more equitable, and to see the age of independence lowered. This has resulted in major changes to Youth Allowance (YA) and other student related payments.

Legislation was finally passed through parliament on the 17^th of March; the introduction of these changes will take some time and quite probably there will be future adjustments.

What we have outlined below is a basic precise of what is changing and when:

NOW:

• Age of Independence: The age of independence is going to be gradually reduced over the next 2 years from 25 to 22. From the 1^st of April 2010 students age 24 and over will be deemed independent. *
• If you receive an equity or merit based scholarship/s, up to the combined value of $6762 this will not effect your YA income. In other words you do not have to declare this as income.
• New scholarships called 'Student Start Up' will be available to some YA, AUSTUDY and ABSTUDY students. This Scholarship will be $650 in 2010 and will rise to the standard full rate of $1064 in 2011. A Relocation scholarship will also be available to those having to 'live away from home to study', who are on either YA or ABSTUDY. This scholarship is valued at $4000 for first year students, and $1000 for subsequent years. The old CECS, CLS and CAS scholarships will continue to be paid to those students already receiving them for the duration of their studies. More information can be found at -

http://www.centrelink.gov.au/internet/internet.nsf/individuals/new_scholarships.htm

From the 1^st of July 2010...

• The Parental Income Test threshold for Dependent** YA and ABSTUDY students will be raised from approximately $33,000 to approximately $44,000. A range of other things effect the actual amount and more specific detail is available at ...

http://www.centrelink.gov.au/internet/internet.nsf/individuals/change_pit.htm

• Dependent Youth Allowance and ABSTUDY students will only be subject to one income test, - either the Parental Means Test^[1] or the Personal Income Test^[2]. The way this will be applied is, the test which has the "greatest effect on your payment rate" will be used to work out your YA or ABSTUDY income. The personal income threshold for students will still be $236 per fortnight and $62 per fortnight for Youth Allowance jobseekers, but these changes technically mean you can earn above the $236 threshold.

• Further changes to the Independence criteria relating to workforce participation will be introduced. If you are already eligible for an independent rate of YA the changes won't effect you, but if you are newly applying you will now be expected to work an average of 30 hours per week for at least 18 months out of the previous 24 months. The only exception to this rule will be rural students http://www.centrelink.gov.au/internet/internet.nsf/individuals/change_independence.htm

• Rural Students will be able to continue to qualify under the old rules of earning approximately $19,500 in an 18 month period since leaving school IF they additionally meet the criteria for being classified as rural or remote students and their parent's combined income is less than $150,000 per annum. To be classified as rural or remote the student's 'family home' must be in a location classified as "Outer Regional Australia, Remote Australia or Very Remote Australia" in accordance with the Australian Standard Geographical Classification (- see details in link below.. .)

http://www.youth.gov.au/yamap.html

• There are also transitional arrangements in place for students who took a gap year in 2009 in order to qualify for an Independent rate of YA. You must however also 'need' to live away from home to study ( more than a 90 minute journey) and your parents combined income in 2008-09 must be less than $150,000

Important things to remember:

• v Remember, you must always report all changes in your income or circumstances to Centrelink.
• v You must remain a full time student to remain eligible for YA, ABSTUDY or AUSTUDY ; this generally means a minimum of 18 units over a year - at Adelaide University. There may be exceptions - but speak to us for detail.

If you need further information please contact :

The Education and Welfare Officers

Email:studentcare@adelaide.edu.au

Ph: 83035430 or go to

Or look at ...

The Centrelink website

http://www.centrelink.gov.au/internet/internet.nsf/home/index.htm

Please note the content of this article comes unashamedly largely directly from the Centrelink website and from the information provided to Universities by Universities Australia. Their website is; -

http://www.universitiesaustralia.edu.au/

If you think you might be eligible what should you do? Apply you can go online at .......and start the application process or alternately you can go into any Centrelink Office and ask for forms and or advice. You can also contact our Office and we will give you some idea...

* What is Independence? In short when you are deemed independent of your parents, their income is no longer assessed when determining your eligibility for student support . You can find the different categories of Independence listed on the Centrelink website - but please note the primary income related information is now on the front page and other sections may not yet be up- to- date.

**What is Dependence: Probably fairly obviously given what we have said above if you are deemed dependent on your parents you have not met one of the criteria for Independence and your parent's income and assets will be taken into account when assessing your eligibility for payment.