The Government's changes to student income support, announced in the Budget last week, will help to ensure public funding is targeted at those most in need, according to the Group of Eight.
Analysis of the 2009 Budget reveals that the changes to parental income tests and the treatment of equity scholarships will increase the number of low income students eligible for Youth Allowance and financial support from universities and private philanthropy.
"With a finite amount of public funding it is vital we target those students most in need," said Go8 Chairman, Professor Alan Robson.
"The Government has significantly increased the parental income test threshold for access to Youth Allowance. This measure will apply from January 2010 and will increase the number of eligible students by 17 per cent.
"For example, a family in which two students are living away from home will be able to earn up to $139,388 before those students lose their Youth Allowance payments. This represents almost double the allowable income under current arrangements.
"New start-up and relocation scholarships for all students on Youth Allowance will also make a big difference, especially for families in rural and regional areas.
"The Go8 particularly applauds the Government's decision to remove university and private equity scholarships from the income test.
"The Go8 has long advocated this measure. As far back as 2002 the Go8 highlighted the fact that treating equity scholarships as income was a major disincentive for their provision because most students on such scholarships would lose their Youth Allowance.
"I am confident this decision will result in a substantial increase in the number of university and private scholarships available to students from low income backgrounds," Professor Robson concluded.
Examples of Family Situations and Parental Income Test Cut-out Points
Parental Income Cut-out Points
Family Situation:
Number of children on Youth Allowance by Age
Current Arrangements
New Arrangements
1 Child aged 18 at home
$58,288
$74,419
1 Child aged 18 away from home
$71,532
$90,974
2 Children aged 16 and 17 at home
$57,794
$95,564
2 Children aged 17 and 19 at home
$59,936
$100,920
2 Children aged 18 and 20 at home
$62,080
$106,279
2 Children aged 17 and 21 away from home
$71,532
$139,388
2 Children aged 19 and 23 away from home
$75,324
$139,388
Source: Australian Government, Transforming Australia's Higher Education System, Fact Sheet 15 "Student Income Support, Parental Income Test", May 2009
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GROUP OF EIGHT | AUSTRALIA
The Government's changes to student income support, announced in the Budget last week, will help to ensure public funding is targeted at those most in need, according to the Group of Eight.
