Get ready for Youth Allowance changes in July

Northern Territory media release
Tuesday, 29 June 2010

Centrelink is encouraging students and their families to consider their options when further changes to Youth Allowance come into play from 1 July.

Centrelink Area Manager for the Northern Territory, Barbara Causon said from 1 July, a more generous parental income test (from $33,300 to $44,165) for dependent Youth Allowance and ABSTUDY customers will mean more students becoming eligible for payment.

"This aligns with the income threshold for Family Tax Benefit (Part A) and means around 68,000 more young people will now get Youth Allowance or ABSTUDY, while a further 34,600 existing customers will get a higher rate."

This month, more than 114,000 letters are being sent to Family Tax Benefit customers to explain that their family may be better off financially if their child chooses to claim Youth Allowance or ABSTUDY.

"It’s important to consider your family's situation and the available options. If you’re unsure, please talk to us," Ms Causon said.

"If you weren’t previously eligible for a student payment because your parents' income was too high, you should re-test your eligibility after 1 July 2010.

"From 1 July, the criteria that determines whether you can be granted Youth Allowance or ABSTUDY as an independent will change.

"A young person will be considered independent if they have worked, on average, 30 hours a week over a period of 18 months during any period of 2 years.

"However, there will be transitional arrangements to ensure students who took a gap year in 2009 are not disadvantaged by these changes," Ms Causon said.

Students and their families interested in finding out more about the changes can refer to changes to income support for students.

For more information, telephone the relevant Centrelink media contact.