1 August 2017
PDF version [422KB]
Dale
Daniels
Social Policy Section
Introduction
The Australian Government commenced providing financial
support to students during World War II. This program, initially intended to
ensure an adequate supply of trained defence personnel, developed into the
current system of income support provided to students and apprentices.
Currently the Department of Social Services administers a number of payments
for students. Prior to 1998, these payments were administered under the
education portfolio. This paper provides a short history of the development of
these payments, a chronology of changes to each payment, information on the
number of recipients of these payments, and on payment rates and means tests.
The paper is a reference tool for those needing to locate
specific changes quickly and place them in their chronological context, rather
than a definitive history of income support for student in Australia. Schemes
providing support for postgraduate students, students who are veterans or the
child of a veteran, or Indigenous students are not addressed in this paper. It
also does not provide detailed information on the availability of, and
eligibility conditions for, present day social security benefits for students.
For this information see the Department of Human Services (DHS) website.[1]
The date from which measures have taken effect has been used
to mark changes rather than the date the legislation was passed. Minor changes
and small administrative and technical modifications have not been included.
Rates of payment are generally not given in the chronology
text but can be found in the accompanying tables. In the text, imperial
currency is used for payments prior to 1966 and decimal currency is used from
that date, reflecting the legislation and commentary at the time. In the tables
decimal currency is used throughout for comparison purposes.
This
chronology is one of several produced by the Parliamentary Library dealing with
the history of social security payments. Other titles in the series are:
A brief history of student income support
The first Commonwealth Government assistance for university
students across the nation was introduced in 1943.[5]
The Commonwealth Financial Assistance Scheme was introduced to address a
perceived shortage of university educated people in a range of scientific
fields needed for the war effort. It did this by providing financial assistance
to prevent poorer students from dropping out of university due to financial
pressures. The wartime student assistance was authorised under the defence
power of the Commonwealth in the Constitution.[6]
The demands of post-war reconstruction and the need to
reintegrate returned servicemen and women meant that the student assistance
provided in wartime continued to be needed after the end of hostilities. As a
result, the scheme was extended for five years after the end of hostilities.
In 1946 a constitutional amendment was passed that greatly
increased the Australian Government’s power in relation to social services.[7]
Benefits to students were included in a long list of assistance measures that
were now explicitly Commonwealth responsibilities. The Menzies Government used
this power to establish the Commonwealth Scholarship Scheme starting in January
1951. Scholarships were awarded on the basis of academic merit and paid the
fees of all recipients without a means test. Living allowances were means
tested. The rationale behind the scheme was focused on promoting participation
of the most capable students rather than promoting broader participation in
tertiary education.[8]
As tertiary education expanded during the following two
decades, the number of scholarships on offer increased, particularly after the establishment
of Colleges of Advanced Education in the mid-1960s. Separate scholarship
schemes were established for secondary, technical college, advanced education
and university students.
After the election of the Whitlam Government in 1972,
university fees were abolished and student assistance was reformed so that any
full-time student could receive assistance provided they qualified under a means
test. Three schemes were introduced for secondary, adult secondary and tertiary
students. The competitive scholarship nature of earlier student assistance schemes
was removed. The rationale for assistance was now about reducing significant
financial barriers to study and promoting broader participation.
In 1987, the Hawke Government introduced a single payment
for students called Austudy to replace the three schemes introduced by the
Whitlam Government. The new scheme provided assistance based on age rather than
the level of study undertaken. The rates of assistance for students and young
unemployed people were aligned to reduce disincentives to study. This resulted
in improved rates of assistance for students. University fees were reintroduced
in 1989 with the Higher Education Contributions Scheme (HECS) but payment could
be deferred until the student’s income reached a certain level.
In 1998, the Howard Government introduced a single Youth
Allowance to provide income support for all young people whether studying or
seeking employment. The objective was to simplify assistance and further reduce
disincentives to study by applying similar means tests to jobseekers and
students. Students over 25 years of age were assisted through the separate
Austudy Payment.
In 2010, the Gillard Government introduced changes to Youth
Allowance to improve rates of assistance and ease means tests for students. Access
to independent status was tightened to ensure that only students genuinely
financially independent of their parents could gain assistance free of the
parental means test. The changes were a response to the findings of the Bradley
Review of higher education.[9]
Targeting assistance to disadvantaged groups was the objective. However, access
for people in regional and remote areas continued to be an issue. Further
adjustments to assistance levels and means testing have occurred over the
following five years with these two objectives being the rationale for change.
Note on
sources and further reading
In addition to Australian Government budget papers,
departmental annual reports and social security legislation (and the associated
Bills Digests), the following publications have been used in the preparation of
this paper:
-
Australian Bureau of Statistics (ABS), Year Book Australia,
cat. no. 1301.0, ABS, Canberra, various years.
-
D Bradley, P Noonan, H Nugent and B Scales, Review of
Australian higher education: final report, (Bradley Review), Department of
Education, Employment and Workplace Relations (DEEWR), Canberra, 2008.
-
B Chapman, Austudy: towards a more flexible approach: an
option paper, (report prepared for the Department of Employment, Education
and Training), Australian Government Publishing Service (AGPS), Canberra, 1992.
-
KL Dow, Review of student income support reforms, DEEWR,
Canberra, 2011.
Trends in
recipient numbers
The number of recipients of student income support payments
as at June each year since 1943 is shown in Table 1 (1943–1998) and Table 2
(1999–2015).
Table
1: Number of recipients of income support payments for students, 1943–1998
Year(a) |
Tertiary students receiving living
allowances(b) |
Secondary students receiving living
allowances(c) |
Adult Secondary students receiving
living allowances(c) |
1943 |
1 623 |
|
|
1944 |
1 794 |
|
|
1945 |
2 029 |
|
|
1946 |
2 023 |
|
|
1947 |
1 996 |
|
|
1948 |
1 908 |
|
|
1949 |
1 873 |
|
|
1950 |
1 579 |
|
|
1951 |
2 180 |
|
|
1952 |
2 308 |
|
|
1953 |
2 547 |
|
|
1954 |
2 700 |
|
|
1955 |
2 698 |
|
|
1956 |
2 487 |
|
|
1957 |
2 257 |
|
|
1958 |
2 664 |
|
|
1959 |
3 745 |
|
|
1960 |
4 179 |
|
|
1961 |
4 389 |
|
|
1962 |
5 209 |
|
|
1963 |
5 858 |
|
|
1964 |
6 828 |
|
|
1965 |
7 835 |
16 040 |
|
1966 |
9 000 |
15 777 |
|
1967 |
10 338 |
19 326 |
|
1968 |
10 309 |
19 437 |
|
1969 |
12 700 |
19 562 |
|
1970 |
14 800 |
19 572 |
|
1971 |
16 800 |
19 576 |
|
1972 |
17 400 |
19 498 |
|
1973 |
24 700 |
34 213 |
|
1974 |
75 069 |
55 866 |
|
1975 |
67 173 |
31 924 |
|
1976 |
82 922 |
14 668 |
|
1977 |
86 271 |
15 098 |
|
1978 |
88 719 |
19 865 |
|
1979 |
83 617 |
21 549 |
|
1980 |
81 915 |
23 508 |
|
1981 |
79 475 |
25 271 |
|
1982 |
76 795 |
25 346 |
|
1983 |
86 527 |
47 861 |
|
1984 |
85 893 |
58 112 |
|
1985 |
93 726 |
62 257 |
|
1986 |
98 161 |
67 762 |
|
1987 |
107 627 |
77 208 |
3 693 |
1988 |
137 833 |
142 155 |
5 715 |
1989 |
141 662 |
148 999 |
6 642 |
1990 |
152 779 |
178 220 |
8 118 |
1991 |
183 314 |
209 178 |
12 274 |
1992 |
216 808 |
241 652 |
|
1993 |
232 221 |
236 938 |
|
1994 |
252 571 |
225 686 |
|
1995 |
267 800 |
213 400 |
|
1996 |
276 600 |
204 600 |
|
1997 |
270 400 |
201 000 |
|
1998 |
256 800 |
201 200 |
|
Sources: Annual reports of the Universities Commission
1943 to 1959; annual reports of the Commonwealth Scholarship Board 1959 to 1973;
reports on the Operation of the Student Assistance Act 1974 to 1994; annual
Reports of the Department of Education, Training and Youth Affairs 1995 to 1998.
Notes:
(a) numbers assisted during
the year 1943 to 1950, number assisted at 31 October 1951 to 1958, at 30
September 1959 to 1961, at 30 June from 1962 to 1987, an aggregate of students
assisted during the year from 1988 to 1998.
(b) numbers receiving
living allowances who received Commonwealth Scholarships, Commonwealth
University Scholarships or Commonwealth Advanced Education Scholarships 1951 to
1973; Tertiary Education Assistance Scheme 1974 to 1986; and Austudy 1987 to
1997. Figures for 1966 to 1973 are estimates.
(c) adult secondary
students included with secondary students from 1992.
Table 2: Number of recipients of income
support payments for students, 1999–2015(a)
Year |
Youth Allowance (Student) recipients |
Austudy Payment recipients |
1999 |
314 301 |
47 170 |
2000 |
314 918 |
42 838 |
2001 |
313 796 |
41 992 |
2002 |
313 112 |
41 187 |
2003 |
304 491 |
38 779 |
2004 |
296 560 |
35 026 |
2005 |
285 383 |
31 174 |
2006 |
271 408 |
27 728 |
2007 |
264 008 |
27 869 |
2008 |
256 634 |
28 776 |
2009 |
278 664 |
34 175 |
2010 |
297 023 |
37 342 |
2011 |
325 224 |
39 213 |
2012 |
271 472 |
41 042 |
2013 |
247 656 |
46 039 |
2014 |
241 670 |
48 197 |
2015 |
231 018 |
47 569 |
2016 |
226 515 |
48 910 |
Sources: Department of Family and Community Services (department
name varies over time), Income
Support Customers: a statistical overview,
1999 to 2013, from 2002 accessed 11 August 2016; Department of Social
Services (DSS), DSS
Payment Demographic Data, data.gov.au
website, 2014 to 2016.
Notes: (a) number of recipients at the end of June
each year.
Maximum rates and means test
thresholds
Table 3: Maximum rates and means test thresholds for the
Financial Assistance Scheme and Commonwealth Scholarships, 1943–1973(a)
Academic year
of effect(b) |
Maximum Living
Allowance |
Adjusted family income |
At home |
Away from home |
£ per annum |
1943 |
104.00 |
143.00 |
250.00 |
1947 (July) |
117.00 |
156.00 |
250.00 |
1949 |
130.00 |
169.00 |
250.00 |
1951 |
130.00 |
195.00 |
400.00 |
1952 |
149.50 |
214.50 |
450.00 |
1953 |
169.00 |
240.00 |
550.00 |
1954 |
169.00 |
240.00 |
600.00 |
1958 |
195.00 |
299.00 |
650.00 |
1959 |
221.00 |
338.00 |
675.00 |
1960 |
221.00 |
338.00 |
720.00 |
1961 |
234.00 |
364.00 |
720.00 |
1962 |
247.00 |
383.50 |
850.00 |
1965 |
260.00 |
396.50 |
1 000.00 |
$ per annum |
1967 |
559.00 |
852.80 |
2 200.00 |
1968 |
559.00 |
904.80 |
2 300.00 |
1969 |
559.00 |
984.00 |
2 500.00 |
1970 |
620.00 |
1 000.00 |
2 650.00 |
1971 |
700.00 |
1 100.00 |
2 800.00 |
1972 |
700.00 |
1 100.00 |
3 100.00 |
1973 |
800.00 |
1 300.00 |
4 200.00 |
Sources: Annual reports of the Universities Commission 1943 to
1959; annual reports of the Commonwealth Scholarship Board 1959 to 1973.
Notes:
(a) see
chronology below for details of rates and means tests.
(b) years
where no rates changed are not shown.
Table 4: Maximum rates and means test thresholds for the Tertiary Education
Assistance Scheme, 1974–1986
Academic year
of effect |
Maximum Living
Allowance |
Adjusted family income
$pa |
Income test free
amount for student income $pa |
At home $pa |
Away from home $pa |
Independent $pa |
Dependent spouse $pw |
Dependent child $pw |
1974 |
850 |
1 400 |
1 400 |
8.00 |
5.00 |
5 300 |
1 500 |
1975 |
1 000 |
1 600 |
1 600 |
10.00 |
6.00 |
6 300 |
1 500 |
1975(Nov) 9((nov)(nov) |
1 000 |
1 600 |
1 600 |
15.00 |
7.00 |
6 300 |
1 500 |
1976 |
1 000 |
1 600 |
1 600 |
15.00 |
7.00 |
7 600 |
1 500 |
1977 |
1 250 |
1 976 |
2 236 |
29.00 |
7.50 |
8 200 |
1 500 |
1978 |
1 250 |
2 075 |
2 348 |
31.40 |
7.50 |
8 700 |
1 500 |
1979 |
1 523 |
2 348 |
2 348 |
31.40 |
7.50 |
8 700 |
1 500 |
1980 |
1 523 |
2 348 |
2 348 |
31.40 |
7.50 |
9 400 |
1 500 |
1981 |
1 675 |
2 583 |
2 583 |
42.70 |
10.00 |
10 312 |
2 000 |
1982 |
1 675 |
2 583 |
2 583 |
42.70 |
10.00 |
11 034 |
2 000 |
1983 |
2 010 |
3 100 |
3 100 |
42.70 |
10.00 |
12 248 |
2 000 |
1984 |
2 110 |
3 255 |
3 255 |
42.70 |
10.00 |
12 983 |
2 000 |
1985 |
2 321 |
3 581 |
3 581 |
42.70 |
14.00 |
14 281 |
2 000 |
1986 |
2 477 |
3 821 |
3 821 |
42.70 |
16.00 |
14 995 |
2 000 |
Source: Reports of the Operation of the Student
Assistance Act, 1974 to 1986.
Notes: see chronology below for details of rates and
means tests. ‘Pa’ is per annum, ‘pw’ is per week.
Table 5: Maximum rates and means
test thresholds for Austudy, 1987–1997, $ per annum
Academic year
of effect |
Maximum Living
Allowance |
Adjusted family income |
Family assets test threshold |
At home |
Away from home,
Independent |
16-17 years old |
18+ years old |
Special rate |
16-17 years old |
18+ years old |
Special rate |
1987 |
2 607 |
2 868 |
- |
2 821 |
4 171 |
- |
15 745 |
- |
1988 |
2 614 |
3 137 |
- |
3 974 |
4 768 |
- |
16 000 |
- |
1989 |
2 792 |
3 353 |
3 979 |
4 244 |
5 094 |
6 049 |
16 950 |
300 000 |
1990 |
3 003 |
3 608 |
4 281 |
4 959 |
5 483 |
6 505 |
18 150 |
322 750 |
1991 |
3 235 |
3 887 |
4 609 |
5 339 |
5 905 |
7 003 |
19 300 |
347 500 |
1992 |
3 354 |
4 031 |
4 779 |
5 537 |
6 123 |
7 260 |
20 700 |
359 250 |
1993 |
3 384 |
4 070 |
4 993 |
5 587 |
6 179 |
7 506 |
21 150 |
367 150 |
1994 |
3 449 |
4 148 |
5 089 |
5 694 |
6 296 |
7 649 |
21 300 |
369 350 |
1995 |
3 508 |
4 219 |
5 176 |
5 791 |
6 403 |
7 779 |
21 660 |
375 630 |
1996 |
3 666 |
4 409 |
5 409 |
6 052 |
6 691 |
8 129 |
22 650 |
393 750 |
1997 |
3 780 |
4 546 |
5 577 |
6 240 |
6 898 |
8 381 |
23 350 |
405 960 |
Source: Report of the Operation of the Student
Assistance Act, 1987 to 1997.
Note: see chronology below for details of rates and
means tests.
Table 6: Maximum rates and means
test thresholds for Youth Allowance and Austudy, 1998–2015 (a)
Academic year
of effect |
Maximum basic rates ($ per fortnight) |
Adjusted Family Income ($ pa) |
Family Assets test
Threshold ($) |
At home |
Away from home |
Long term income
support recipient |
Sole parent |
Partnered + dependent |
16-17 |
18+ |
At home |
Away from home |
1998 (July) |
145.40 |
174.80 |
265.50 |
214.60 |
322.40 |
347.80 |
291.60 |
23 400 |
407 250 |
1999 |
146.40 |
176.00 |
267.40 |
216.10 |
324.70 |
350.20 |
293.60 |
23 550 |
410 000 |
2000 |
148.00 |
177.90 |
270.30 |
218.50 |
328.30 |
354.10 |
296.80 |
23 800 |
414 500 |
2000 (July) |
153.90 |
185.00 |
281.10 |
227.20 |
341.40 |
368.30 |
308.70 |
24 388 |
424 750 |
2001 |
158.80 |
190.90 |
290.10 |
234.50 |
352.30 |
380.10 |
318.60 |
25 150 |
438 250 |
2002 |
165.10 |
198.60 |
301.70 |
243.90 |
366.40 |
395.30 |
331.30 |
26 650 |
464 500 |
2003 |
169.70 |
204.20 |
310.10 |
250.70 |
376.70 |
406.40 |
340.60 |
27 400 |
477 500 |
2004 |
174.30 |
209.70 |
318.50 |
257.50 |
386.90 |
417.40 |
349.80 |
28 150 |
490 500 |
2005 |
178.70 |
214.90 |
326.60 |
263.90 |
396.60 |
427.80 |
358.50 |
28 850 |
502 750 |
2006 |
183.20 |
220.30 |
334.70 |
270.50 |
406.50 |
438.50 |
367.50 |
29 550 |
515 250 |
2007 |
190.50 |
229.10 |
348.10 |
281.30 |
422.80 |
456.00 |
382.20 |
30 750 |
535 750 |
2008 |
194.50 |
233.90 |
355.40 |
287.20 |
431.70 |
465.60 |
390.20 |
31 400 |
547 000 |
2009 |
203.30 |
244.40 |
371.40 |
300.10 |
451.10 |
486.60 |
407.80 |
32 800 |
571 500 |
2010 |
206.30 |
248.10 |
377.00 |
304.60 |
457.90 |
493.90 |
413.90 |
33 300 |
580 000 |
2011 |
212.70 |
255.80 |
388.70 |
314.00 |
472.10 |
509.20 |
426.70 |
45 114 |
598 000 |
2012 |
220.40 |
265.00 |
402.70 |
325.30 |
489.10 |
527.50 |
442.10 |
46 355 |
619 500 |
2013 |
223.00 |
268.20 |
407.50 |
329.20 |
495.00 |
533.80 |
447.40 |
47 815 |
627 000 |
2014 |
226.80 |
272.80 |
414.40 |
334.80 |
503.40 |
542.90 |
455.00 |
48 637 |
642 000 |
2015 |
233.60 |
281.00 |
426.80 |
344.80 |
518.50 |
559.20 |
468.70 |
50 151 |
661 250 |
2016 |
237.10 |
285.20 |
433.20 |
350.00 |
526.30 |
567.60 |
475.70 |
51 027 |
|
2017 |
239.50 |
288.10 |
437.50 |
353.50 |
531.60 |
573.30 |
480.50 |
51 903 |
|
Source:
DHS, Guide to Australian Government payments, DHS, Canberra, 1999 to 2016, editions from 2009 available online.
Notes: see chronology below for details of rates and
means tests. ‘Pa’ is per annum.
Chronology of payments to students
Table 7: Commonwealth Financial Assistance Scheme, 1943 to
1951; Commonwealth Scholarship Scheme 1951 to 1973
Milestones |
Details
|
1943
Commonwealth Financial Assistance Scheme introduced
|
The scheme was authorised under the defence powers of the
Commonwealth. The scheme was administered by the Universities Commission that
had been created in 1942. The Universities Commission regulated the numbers
of students to be admitted to university especially in faculties considered
most important for the war effort: medicine, dentistry, engineering, science,
agriculture and veterinary science. Financial assistance was mainly provided
to students in those faculties but a limited number were provided to students
in other faculties.
Eligible students received payment of all university fees
and assistance with living costs; subject to a means test on student and
parental income. Living allowances were paid at a maximum at-home rate of up
to £104 per annum or a maximum away-from-home rate of £143 per annum. The
maximum rates were paid where the student’s adjusted family income did not
exceed £250 per annum. Adjusted family income included the taxable income of
the student and their parents, less £50 for each dependent child aged under 16
years. For every £10 of income above £250 pounds, assistance was reduced by £5.4s.
An additional allowance of £10 per annum was paid for the cost of necessary equipment.
The value of any other scholarship received was deducted from the living
allowance paid. There was also prohibition on part-time work while studying.
Students receiving assistance were expected to undertake
some form of national service for three years after graduation.
Annual Report of the Universities Commission for 1943
National Security
(Universities Commission) Regulations, 1943.
|
1944
|
Assistance was extended to selected students studying
dentistry, engineering, science and architecture in technical colleges and
women studying social studies at some universities.
Annual Report of the Universities Commission for 1944
|
1945
|
Assistance was extended to students at country technical
colleges in Victoria.
At the end of World War II, the scheme was continued for
five years while discussions with the states were conducted to determine the
form of a permanent scheme. The scheme became known as the Interim Financial
Assistance Scheme. Wartime reservation of places in university was ended and
students had free choice of course. Numbers of students assisted were still
limited.
Annual Report of the Universities Commission for 1945
Commonwealth Scholarship Annual Report 1960
|
1946
|
The Constitution was amended to give specific power to the
Commonwealth to assist students as part of a broader extension of powers over
social services.
Constitution
Alteration (Social Services) 1946 (Cth).
TH Kewley, Social Security in Australia 1900-1972, 2nd
edn, Sydney University Press, Sydney 1973, pp. 180-185.
|
1947
|
The scheme was governed by regulations made under the Education
Act 1945.
Annual Report of the Universities Commission for 1946
Universities
Commission (Financial Assistance) Regulations, 1946.
|
1949
|
The living allowance, where adjusted family income
exceeded £250 per annum, was reduced to £4 for every £10 of excess income.
Assistance was provided to education students for the
first time.
Annual Report of the Universities Commission for 1948
|
1951
Commonwealth Scholarship Scheme introduced
|
Selection for a Commonwealth Scholarship Scheme scholarship
was based on academic merit. Scholarships were available for students resident
in Australia, who were not under a bond (to work for an employer) and were
enrolled in approved courses including all first degree courses, certain
diploma courses, teachers college courses, certain diploma courses at
technical colleges, certain other professional courses such as pharmacy and
physiotherapy and combined university courses such as arts/diploma of
education and arts/law.
Open entrance scholarships were for students aged under-21
years except for certain courses where the age limit was 25 years. A small
number of mature age scholarships were reserved for those aged 25 to 30 years.
Later year scholarships could also be awarded to students who were part way
through their course of study.
Benefits were paid for the minimum duration of the course.
Benefits included payment of compulsory fees without a means test; travel
allowances at the beginning and the end of each academic year for those
living away from home; a means tested living allowance at either an at-home
rate or an away-from-home rate; and dependents allowances where appropriate.
Maximum living allowance was £130 per annum if living at
home and £195 if not living at home. Male Total Average Weekly Earnings in
1943 were £6.4 per week (£333.9 per annum). These maximum amounts were
payable if the adjusted family income did not exceed £400 per annum. Adjusted
family income was the total taxable income of the student and their parents, from
the previous financial year, with a deduction of £100 for the family’s first
dependent child under 16 years and £50 for each additional dependent child.
The maximum allowance was reduced by £3 for every £10 of excess income.
Students could have continuing income of £1.10s.0d per week before that
income reduced their living allowance by 66.3 per cent. Income from other
scholarships or approved employment up to £0.10s.0d per week was also allowed
(£1.10s.0d per week in the long vacation).
Mature age students received the living away from home
rate free of a parental income test. Married students received an allowance
for a wife (£1.4s.0d per week) and their first child (£0.9s.0d per week). The
spouse’s income was taken into account in the income test. Married students
could also have an income of up to £3 per week before their living allowance
was reduced.
Partial reimbursement of travel costs at the beginning and
end of the course and during vacations was provided.
The scheme was administered by state education departments
with policy determined by the Commonwealth Scholarship Board.
3,000 new scholarships were awarded each year. In 1951
4,701 students already studying at eligible institutions received
scholarships.
Annual Report of the Universities Commission 1949 and
1950
Commonwealth
Scholarship Regulations, 1951.
|
1952
|
From July the amount of income from other scholarships and
employment permitted before living allowances were reduced was doubled to £1
during term and short vacation time and £3 during long vacations.
Annual Report of the Universities Commission 1951
|
1953
|
Wife allowance was increased to £1.11s.0d per week.
Annual Report of the Universities Commission 1952
Open entrance scholarships could now be awarded to
students aged 21 to 24 in special cases.
Annual Report of the Universities Commission 1953
|
1954
|
All students aged 25 or more were treated as mature age
students and paid the living away from home rate free of a parental income
test.
Students bonded to a State Education Department ceased to
be eligible for scholarships.
Annual Report of the Universities Commission 1953
|
1955
|
Open entrance scholarships could now be awarded to
students aged up to 25 years and in any year of study.
Married women under-21 were now able to compete for
scholarships on the same basis as single women but single women were given
preference where applicants were aged 21 or more.
The definition of adjusted family income was changed. All
student income was treated separately. Permissible student income was now set
at £1.10s.0d per week during the academic year and £3 per week during the
long vacation. For mature age students the limits were £2.5s.0d per week
(single) and £4.10s.0d per week (married).
Students of any age could be treated as independent of
their parents if they had maintained themselves for five continuous years
prior to applying for a scholarship (including any periods of full-time
study).
Where a student had a sibling who was a full-time student
at an approved institution their living allowance was reduced by £3 for every
£15 of adjusted parental income in excess of £600.
Universities Commission Annual Report 1954
|
1956
|
All married students were treated as mature age students
irrespective of their age.
Annual Report of the Universities Commission 1955
|
1957
|
Income from employment in the long vacation was
disregarded when assessing living allowances.
Annual Report of the Universities Commission 1957
Commonwealth
Scholarship Regulations (Amendment), 1956.
|
1958
|
Permissible income before the living allowance was reduced
was increased to £2 per week for students.
Annual Report of the Universities Commission 1957
Commonwealth
Scholarship Regulations (Amendment), 1958.
|
1959
|
The deduction for dependent children from adjusted family
income was increased to £150 for the first child and to £75 for others.
Living allowance was reduced by £2 for every £10 of excess
income up to £1,350 of adjusted family income. Income above that amount
continued to reduce living allowance by £3 in each £10 of excess income.
Annual Report of the Universities Commission 1958
Commonwealth
Scholarship Regulations (Amendment), 1959.
|
1960
|
The £1,350 income test threshold was increased to £1,440.
For a married male student with a non-student wife, the
living allowance and the wife allowance were income tested separately against
half the couples combined income.
Commonwealth Scholarships Board Annual Report 1959
Commonwealth
Scholarships and Awards Regulations (Amendment), 1960.
From July, Citizen Military Force pay was not assessed as
income for the income test.
Commonwealth Scholarships Board Annual Report 1961
|
1961
|
The number of new scholarships was increased to 4,000 each
year.
Commonwealth Scholarships Board Annual Report 1960
|
1962
|
The £1,440 income test threshold was increased to £1,700.
Permissible income was increased to £2.10s.0d per week for
students (£3 for independent students) before the living allowance was
reduced.
The deduction from adjusted parental income for dependent
children was changed to £150 for all children.
Where a student had a sibling who was a full-time student
at an approved institution, their living allowance was reduced by half the
usual taper rate. If there were three or more siblings the taper rate used
was divided by the total number of children (e.g. where there are three such
students the rate of taper is one third the normal rate).
Commonwealth Scholarships Board Annual Report 1962
Commonwealth
Scholarships and Awards Regulations (Amendment), 1962.
|
1965
Commonwealth Technical Scholarships and Commonwealth
Secondary Scholarships introduced
|
The Commonwealth Technical Scholarship Scheme was
introduced to provide 2,500 new scholarships each year for students studying
technical certificate courses. All full-time scholarship holders received a
living allowance of $200 per annum plus a textbook and equipment allowance
and up to $150 for compulsory fees. Part-time scholarship holders received $100
per annum plus assistance with fees.
The Commonwealth Secondary Scholarship Scheme was introduced
to provide 10,000 new scholarships each year to assist students to complete
the final two years of secondary school. Selection was based on examinations
and school assessments. All scholarship holders received living allowance of
$200 per annum plus a textbook and equipment allowance and up to $150 for
compulsory fees.
Department of Education and Science Report for 1967 and
1968, Canberra 1969.
The £1,700 income test threshold was increased to £2,000.
The dependent wife allowance was increased to £1.19s.0d
per week.
Commonwealth Scholarships Board Annual Report 1964
Commonwealth
Scholarships and Awards Regulations (Amendment), 1964.
|
1966
Commonwealth University Scholarships and Commonwealth
Advanced Education Scholarships introduced
|
The Commonwealth University Scholarship Scheme and the
Commonwealth Advanced Education Scholarship Scheme replaced the Commonwealth
Scholarship Scheme. They operated under the same provisions as the
Commonwealth Scholarship Scheme of earlier years. The Commonwealth
administered the Advanced Education Scholarships directly while the
University Scholarships continued to be administered by the states. New
scholarships granted each year increased to 6,000 for university students and
1,000 for advanced education students.
Commonwealth Scholarships Board Annual Report 1965 and
1966
Commonwealth
Scholarships and Awards Regulations (Amendment), 1966.
|
1967
|
The upper age limit for mature age scholarships was no
longer enforced.
The period of self-support that qualified a student for
independent status was reduced to three years.
The total number of scholarships awarded was increased to
8,000.
Permissible income for dependent students was increased to
$312 per annum and for independent students to $364 per annum.
The income test threshold for maximum living allowance was
increased from $2,000 to $2,200. The $4,000 income test threshold (at which
the abatement rate increased from $2 to $3 for every $10 of excess family
income) was increased to $4,400.
The adjustment to adjusted family income for dependent
children was applied to children under to the age of 21 rather than under the
age of 16.
Commonwealth Scholarships Board Annual Report 1966
Commonwealth
Scholarships and Awards Regulations (Amendment), 1966.
|
1968
|
The Commonwealth Department of Education and Science took
over full administration of the Commonwealth University Scholarship Scheme
from state education departments.
The maximum living allowance rate for students living away
from home was increased by $1 per week (from $852.80 to $904.80 per annum).
The allowance for the first dependent child of married
students was increased to $1.50 per week and extended to all dependent
children.
The maximum living allowance income test threshold was
increased from $2,200 to $2,300.
Commonwealth Scholarships Board Annual Report 1967
Commonwealth
Scholarships and Awards Regulations (Amendment), 1967.
|
1969
|
The number of university scholarships granted annually was
increased to 9,500 and the number of advanced education scholarships
increased to 1,500.
The income test for dependent students was changed so that
the abatement rate was $2 for every $10 of excess income between $2,500 and
$5,000. For excess income above $5,000 the abatement rate was $3 for every
$10.
Commonwealth Scholarship Board Annual Report 1968
Commonwealth
Scholarships and Awards Regulations (Amendment), 1969.
|
1970
|
Mature age awards were limited to applicants aged over 30
years. Other scholarships were made available to anyone under 30.
Dependent child allowances were increased to $2.50 per
week. Dependent wife allowances were increased to $3.90 per week.
The number of university scholarships was increased by
2,000 and the number of advanced education scholarships by 1,000.
Commonwealth Scholarship Board Annual Report 1969
Commonwealth
Scholarships and Awards Regulations (Amendment), 1970.
|
1971
|
The number of university scholarships granted annually was
increased by 1,000.
Commonwealth Scholarship Board Annual Report 1970
|
1972
|
The number of advanced education scholarships granted
annually was increased to 4,000.
Commonwealth Scholarship Board Annual Report 1971
|
1973
|
The number of advanced education scholarships granted
annually was increased to 6,000 and the number of university scholarships
granted each year was increased to 14,500.
The adjustment to adjusted family income for a dependent
child was increased to $450 and the age limit for dependent children was
increased to 25.
Student employment income was disregarded under the income
test. Other income was disregarded if below $20 per week. Spouse income below
$4,200 per annum was disregarded.
The wife allowance was replaced with a dependent spouse
allowance of $8 per week available to both male and female students.
Dependent child allowance was increased to $4.50 per week.
Fares allowances were increased to cover the full cost of
the fare.
Commonwealth Scholarship Board Annual Report 1972
Commonwealth
Scholarships and Awards Regulations (Amendment), 1972.
Commonwealth
Scholarships and Awards Regulations (Amendment), 1973.
The Commonwealth Secondary Scholarship Scheme was renamed
the Commonwealth Senior Secondary Scholarship Scheme and the annual number of
scholarships awarded each year was increased from 10,000 to 25,000. A basic
allowance of $150 per annum and additional means tested allowance of up to
$250 per annum were provided to scholarship holders.
Department of Education and Science Report for 1972,
Canberra 1973.
|
Table 8: Tertiary Education Allowances
Scheme and Secondary Allowances Scheme, 1974–1986; Austudy 1987–1998; and Youth
Allowance and Austudy Payment, from 1998–
Milestones |
Details
|
1974
Tertiary Education Assistance Scheme introduced
Secondary Allowances Scheme introduced
|
An interim Tertiary Allowance Scheme commenced in January.
It became the Tertiary Education Allowances Scheme after 14 October when the Student
Assistance Act 1973 commenced.
The Commonwealth University, Advanced Education and
Technical Scholarship Schemes were abolished. Fees for universities, colleges
of advanced education and technical colleges had been abolished in 1973.
The new schemes provided means tested grants free of
competitive entry requirements for students undertaking approved courses at
universities, colleges of advanced education, technical colleges and other
institutions. No limit was placed on the number of students who could be
assisted.
Living allowances were paid to full-time students
considered dependent on their family, subject to a parental means test. In
families with one student, when adjusted family income exceeded $5,300 per annum,
annual living allowance was reduced by $2 for every $10 of excess income up
to $10,600 and $3 for every $10 of excess income above that amount. In
families with two eligible students each living allowance was reduced at half
the rate set out above. If there were three or more eligible students in a
family the living allowances were reduced at one third, one quarter and so on
of the above rate depending on the number of students in the family.
Dependant student income above $1,500 during the academic
year was also assessed under the means test.
Adjusted Family Income was the gross income of both
parents in the financial year prior to the year of study less income tax
deductions and $450 for each dependent child or full- time student apart from
the student being assisted, and any bonded students.
Students considered independent of their families were
paid living allowances with a personal means test only. Those considered
independent, and not subject to the parental means test, were those who were aged
over 25 years; had been married or had been in a de facto relationship for two
years; were orphans or state wards; or, had been self-supporting for two of
the last five years. Where their income exceeded $1,500 during the academic
year their living allowance was reduced by $1 for every $1.50 of excess
income. The income of a spouse was not assessed until it exceeded $5,300 per
annum.
The maximum annual rates were $850 for those living at
home and $1,400 for those living away from home or independent. Incidental
allowances and travel allowances were also available. Dependent allowances
were also provided for dependent spouses and children.
The Secondary Allowances Scheme provided, subject to a
family means test, for students enrolled in the final two years of secondary
schooling. No limit was placed on the number of students who could be
assisted. Maximum allowance was paid if adjusted family income did not exceed
$5,300. Payment was reduced by $1 for every $5 of excess income.
Student
Assistance Act 1973
Student Assistance
Regulations, 1974.
|
1975
|
No new awards of Senior Secondary Scholarships were made
from 1975
The Adult Secondary Education Assistance Scheme was
introduced for mature age students undertaking full-time final year
matriculation studies. They received the same benefits as students under the
Tertiary Education Assistance Scheme. Qualifying students had to be 19 years
of age or older and have had a substantial break from secondary schooling.
Student
Assistance Act 1973
Student Assistance
Regulations, 1974.
|
1977
|
Eligibility for independent status on the grounds of two
years self-support was limited to those who had been full-time in the
workforce including periods registered as unemployed.
A higher income threshold of $4,850 was introduced for single
independent students with dependents.
Student Assistance
Regulations (Amendment), 1976.
|
1982
|
Qualification for independent status on the grounds of participation
in a de facto relationship was ended.
Student Assistance
Regulations (Amendment), 1981.
|
1986
|
From July it became possible to qualify for the
independent rate on the grounds of homelessness.
Student Assistance
Regulations (Amendment), 1986.
|
1987
Austudy introduced
|
The Tertiary Education Assistance Scheme, the Secondary
Allowances Scheme and the Adult Secondary Education Assistance Scheme were
all combined in a new payment system called Austudy.
Most provisions of the older Tertiary Education Assistance
Scheme continued under Austudy with the following major changes.
Assistance was payable to students from the age of 16
years while studying secondary or tertiary courses. Study had to be full-time
in secondary school or at least three quarters of a full-time workload in
other cases. Concessions existed for students facing unusual situations or
dealing with disability or illness. Assistance was normally payable for the
minimum duration of a course and could only be provided for one course at
each level of studies (secondary, undergraduate, postgraduate or technical).
There were many exceptions to these basic rules to take account of complex
situations.
Living allowances were paid at rates that varied according
to the age of the recipient and whether they were living at home, away from
home or were independent. Rates for dependent students were set at the same
level as comparable junior rates of unemployment payments.
Independent status was available where a student was or in
some cases had been:
-
25 years of age
-
married
-
a ward of the state
-
living in a facto relationship and had a dependent child
-
employed full-time (25 or more hours per week) for two years of
the last three years (including periods registered with the Commonwealth
Employment Service, in receipt of a pension or benefit, incapacity preventing
work and on paid leave)
-
an orphan or parental support was unavailable due to mental
illness, imprisonment or missing parents
-
a refugee without parents in Australia, or
-
homeless for six weeks.
Incidentals Allowance was abolished and an allowance was
introduced to meet the cost of the newly introduced Higher Education Administration
Charge.
Dual eligibility for social security or veterans’ pensions
and benefits and student living allowances was ended. Recipients of
Supporting Parent’s Benefit, Widow Pension Class A, Invalid Pension or
Carers’ Pension who otherwise qualified for Austudy were eligible for an
education supplement of $15 per week.
Student Assistance
Regulations (Amendment), 1986.
|
1988
|
Dependent child allowance ceased to be payable under Austudy.
It was replaced with Family Allowance Supplement which was provided by the
Department of Social Security.
The workforce participation requirement for independent
status was changed from two years of work in the last three to three years of
work in the last four.
The definition of income for adjusted family income was
changed from gross income to taxable income as assessed at the end of the most
recent financial year.
Student Assistance
Regulations (Amendment), 1987.
|
1989
|
Students with dependent children became eligible for
independent status.
New Zealand citizens needed to be permanently settled in
Australia and have lived in Australia continuously for at least 6 months to
qualify for Austudy.
An assets test was introduced. Parental assets above
$300,000 precluded the payment of Austudy. For independent students, assets
above $127,000 for partnered students and $89,250 for single students
precluded the payment of Austudy. There was a fifty per cent discount on the
value of assets for assets of a business or farm in which the owner worked.
Thresholds were indexed to the CPI annually in January.
A new rate was introduced to align Austudy rates for older
students with adult rates of unemployment benefit. Special rates were
introduced for:
-
students who had transferred from a social security pension or
benefit and were aged 21 years or more
-
migrant students aged 21 years or more studying English as a
second language
-
students with a dependent child
-
married students with a dependent spouse and
-
de facto married students with a dependent spouse who otherwise
qualify as independent.
These rates varied according to whether the student was
dependent, independent, living at home or away from home. Single parents
received a higher rate of $7,104 per annum.
General secondary students became eligible for an away
from home rate of payment.
Allowance rates and the adjusted family income level used
in the income test were indexed to the CPI annually in January.
Student Assistance
Regulations (Amendment), 1988.
Student Assistance
Regulations (Amendment), 1988.
|
1990
|
Payments to reserve defence force members were excluded
from student income assessments.
Student Assistance
Regulations (Amendment), 1990.
|
1991
|
The threshold for the spouse income test was reduced from
$18,150 to $12,150.
A new higher rate of $6,341 per annum was introduced for
independent students who were married with children.
Modified progress and workload rules were introduced for
severely disabled students.
AUSTUDY Regulations, 1990.
|
1992
|
The adult secondary student category was merged with the
general secondary student category to form one secondary student category.
AUSTUDY Regulations
(Amendment), 1991.
|
1993
|
The Austudy/Abstudy Supplement was introduced. It was a
student loan scheme. Students who qualified for student assistance (category
1) could forgo part or all of their entitlement in exchange for a loan of up
to $4,000 per annum on the basis of one dollar of payment for two dollars of
loan. Students who did not qualify for payment due to the parental income
test but whose parental income was less than $50,000 per annum (category 2)
could access a loan of up to $2,000 per annum.
The loans were provided by the Commonwealth Bank. The
loans were interest free but the amount was adjusted annually in line with
the CPI. Repayments commenced after five years if the student’s taxable
income had reached a threshold comparable to average weekly earnings. The
loan could be paid back early with a fifteen per cent discount.
Student
Assistance Amendment Act 1992
The age of independence was reduced to 24 years.
AUSTUDY Regulations
(Amendment), 1992.
|
1994
|
The age of independence was reduced to 23 years.
Fringe benefits paid to a student’s parents or spouse were
included in the calculation of adjusted family income.
The parental and spouse income tests no longer applied
where a parent or spouse had a Health Care Card.
AUSTUDY Regulations
(Amendment), 1993.
|
1995
|
The age of independence was reduced to 22 years.
The value of rental property loss tax deductions were
added in to adjusted family income for the parental and spouse income tests.
Rent Assistance was payable for homeless students.
AUSTUDY Regulations
(Amendment), 1994.
|
1996
|
The Actual Means Test was introduced. It applied where
taxable income was not a reliable indicator of actual means due to complex
financial arrangements. The test considered expenditure and savings instead
of taxable income.
AUSTUDY Regulations
(Amendment), 1995
|
1997
|
The age of independence was increased to 25 years.
AUSTUDY Regulations
(Amendment), 1996.
A two year waiting period was introduced for migrants
arriving in Australia after 1 January 1997.
Social Security
Legislation Amendment ( Newly Arrived Resident’s Waiting Periods and Other
Measures) Act 1997
|
1998
Youth Allowance and Austudy Payment introduced
|
Youth Allowance replaced Austudy for students aged under
25 years and a number of social security payments for young people: Youth
Training Allowance; Newstart and Sickness Allowances for people aged less
than 21 years; and Family Allowances for secondary students aged 16 to 18
years. Youth Allowance became the payment for most young people needing
income support, whether studying or unemployed (young people with long term
disabilities still received Disability Support Pension).
Youth Allowance was a social security payment. This meant
that for the first time student income support was administered by the
Department of Social Security.
Students undertaking full-time study aged 16 to 24 years
were eligible. They could remain on Youth Allowance after turning 25 if they
were still doing the same course. Full-time study meant being enrolled at an
approved institution and undertaking at least 75 per cent of a full-time
workload.
People studying part-time and working part-time or looking
for work aged 18 to 20 years were also eligible.
The rate of Youth Allowance depended on a personal means
test and a parental means test.
Full-time students could earn up to $230 per fortnight and
still receive the full rate. Income over $230 but below $310 reduced payment
by fifty cents for every dollar of income. Income above $310 reduced payment
by seventy cents for every dollar of income. An income bank allowed students
to accumulate any unused portions of their fortnightly free area of $230 up
to a maximum of $6,000. This bank was then depleted at times of higher
earnings such as periods of vacation employment.
A personal assets test could also be applied. Asset limits
were $121,000 for a single independent student and $172,250 for a partnered
independent student.
The parental means test was applied where the student was
not independent. Students whose parents received certain social security
income support payments or Abstudy were exempt from the parental means test.
The means test had three parts:
-
a family assets test restricted eligibility to students whose
families had less than $407,250 of assets (fifty per cent discount applied to
business or farm assets)
-
an income test and
-
a family actual means test, where taxable income was not a
reliable guide to a family’s means due to the possible use of tax
minimisation.
Under the income test family taxable income above $23,400
per annum reduced payment by 25 per cent of the excess income. Where there
were other dependent children aged up to 25 years the threshold was increased
by $3,700 for each non-student aged 16–25 years; by $1,200 for the first child
aged under-16 years and $2,500 for each additional child aged under-16 years;
and, by $7,400 for each additional student aged 16–25 years.
In most cases the taxable income used was that assessed in
the financial year ending before the academic year began. Certain amounts
were added to or deducted from taxable income. They included maintenance
income paid or received, employer provided fringe benefits, non-taxable
foreign income and net passive business losses.
Students could be classed as independent of their parents
where they:
-
had a dependent child
-
had been married or in a de facto relationship (for 12 months
or more)
-
had worked full-time (at least 30 hours per week) in Australia to
support themselves for at least eighteen months in the previous two years
-
had worked part-time (at least 15 hours per week) for at least
two years since leaving school
-
were a refugee, ward of the state, orphan or homeless
-
had earned at least $13,800 over 18 months since leaving school
-
were 25 years of age or
-
had parents who could not exercise their responsibilities or it
was unreasonable for them to live at home.
Rates of payment varied according to the dependency status
of the student, their previous income support history, whether they were
living at home or away from home and any special circumstances relating to
whether they had dependents of their own and whether they were able to have
parental support. Rates were indexed annually.
Students receiving Youth Allowance could also be eligible
for Fares Allowance, Rent Assistance and Remote Area Allowance.
A Student Loan Scheme was introduced into the Social
Security Act for Youth Allowance and Austudy Payment students. It was
much the same as the scheme that existed under Austudy. Loans could be up to
$7,000 per annum for category one students or $2,000 per annum for category
two students.
Austudy Payment replaced Austudy for students aged 25
years or more. The new payment mainly continued the provisions of Austudy for
older students. However, as part of the Social Security Act it was
structured in a similar way to other social security benefits.
It differed from Youth Allowance in that it was only for
students and treated all recipients as independent. The basic rates were the
same as for Youth Allowance but there were no at-home rates. Austudy Payment
recipients were not eligible for rent assistance.
Social Security
Legislation Amendment (Youth Allowance) Act 1998
|
2000
|
Students claiming independent status on the basis of
having worked full-time for at least eighteen months could meet this
requirement in any two year period, not just the two years immediately prior
to claiming Youth Allowance. In addition full-time employment outside of
Australia could count towards this requirement.
Youth Allowance
Consolidation Act 2000 | Bill
Homepage
The rates of Youth Allowance and Austudy Payment were
increased in July as part of the compensation for the introduction of the
Goods and Services Tax.
|
2001
|
The proportion of the assets of a business that could be
disregarded under the family assets test was increased from 50 per cent to 75
per cent.
Family and
Community Services (2000 Budget and Related Measures) Act 2000 | Bill
Homepage
|
2005
|
From July eligibility for Youth Allowance was extended to
apprentices.
Social Security
Amendment (Extension of Youth Allowance and Austudy Eligibility to New
Apprentices) Act 2005 | Bill
Homepage
|
2008
|
Eligibility for Youth Allowance and Austudy Payment was
extended to students doing certain masters by coursework degrees.
Recipients of Austudy Payment were made eligible for Rent Assistance.
Social Security
Legislation Amendment (2007 Budget Measures for Students) Act 2007 | Bill
Homepage
|
2010
|
The age of eligibility for independence was reduced to 24
years from April.
From July the independence criteria based on working
full-time for 18 months in a two year period was adjusted so that full-time
work had to be for an average of 30 hours per week rather than at least 30
hours per week.
The means test was changed so that only one income test
was applied when determining a rate of payment. Whichever test gave the
lowest rate was applied. Previously the family income test or the actual
means test and the personal income test could both be applied.
The parental income test threshold was changed to be the
same as that which applied for Family Tax Benefit Part A in January of each
year. This increased the threshold to $44,165 in July 2010.
The taper rate at which excess income under the income
test reduced entitlement was changed to 20 per cent from 25 per cent. The
reduction was apportioned between each dependent student income support
recipient in the family.
A Student Start-up Scholarship was introduced from April.
It was paid in six monthly instalments to all full-time students who
qualified for Youth Allowance or Austudy Payment. The amount of the
scholarship in 2010 was $650. In 2011 the rate was to be $1,064. The rate was
to be indexed to the CPI in January each year.
A Relocation Scholarship was introduced from April. It was
paid to dependent students who needed to live away from home and independent
students who were disadvantaged by personal circumstances and unable to live
at home. The scholarship was $4,000 for the initial relocation and $1,000 for
each other year living away from home.
Merit and equity based scholarships up to $6,762 per annum
were exempt from the income test.
Social Security
and Other Legislation Amendment (Income Support for Students) Act 2010
| Bill
Homepage
|
2011
|
The age of eligibility for independence was reduced to 23
years.
Independent status through either working part-time (at
least fifteen hours per week) for at least two years since leaving school, or
earning at least 75 per cent of Wage level A of the National Training Wage
schedule included in a modern award over 18 months since leaving school was
limited to students who:
-
had a family home located in an area classified under the
Australian Standard Geographical Classification as outer regional, remote or
very remote Australia
-
were required to live away from home
-
were undertaking full-time study, and
-
had a combined parental income for the relevant tax year less
than $150,000.
The Rural Tertiary Hardship Fund was established to
provide $3,000 one off grants to non-metropolitan students commencing a
bachelor degree and experiencing severe financial hardship.
Social Security
and Other Legislation Amendment ( Income Support for Students) Act 2010
| Bill
Homepage
|
2012
|
Students
aged 16 to 17 years ceased to be eligible for Youth Allowance unless they
were independent, required to live away from home or already receiving Youth
Allowance. Family Tax Benefit part A became the primary payment for students
in this age group.
Families,
Housing, Community Services and Indigenous Affairs and Other legislation
Amendment (Election Commitments and Other Measures) Act 2011 | Bill
Homepage
The age of
eligibility for independence was reduced to 22 years.
Social Security
and Other Legislation Amendment ( Income Support for Students) Act 2010
| Bill
Homepage
The limitation of access to independent status based on
being self-supporting through employment introduced in 2011 were eased by
allowing students from inner regional areas to use those criteria, provided
they met the other conditions set out in the 2011 entry above.
The rate of the Relocation Scholarship was adjusted to
provide a higher rate for students from regional Australia. All eligible
students received $4,000 in the first year of living away from home. Regional
students received $2,000 in the second and third years and $1,000 in
subsequent years. Non-regional students received $1,000 in each year after
the first. The rate was indexed to the CPI from 2013.
The rate of the Start-up Scholarship was set at $1,025 for
each six monthly payment. The rate was not indexed.
The personal income test free area for Youth Allowance and
Austudy Payment was increased from $236 to $400 per fortnight from July. The
threshold was indexed to the CPI annually from January 2013. The maximum
balance in the student income bank was increased from $6,000 to $10,000 from
July and indexed to the CPI from January 2013.
The Rural Tertiary Hardship Fund was abolished from the
end of 2011.
Social Security
Amendment (Student Income Support Reforms) Act 2011 | Bill
Homepage
From May as part of the compensation package for the
introduction of a carbon pricing mechanism recipients of pensions, other
income support payments and family payments were paid a lump sum Clean Energy
Advance equivalent to 1.7 per cent of the rate of each payment in advance of
the commencement of the carbon pricing mechanism. Some Youth Allowance and
Austudy Payment recipients received two Advance payments—one covering the
entire 2012–13 financial year and one in July 2013 to cover the period 1 July
2013 to 31 December 2013.
After the mechanism was in place a Clean Energy Supplement
was paid either fortnightly or quarterly to provide ongoing compensation for
the impact of the carbon pricing mechanism. The supplement was paid to Youth
Allowance and Austudy Payment recipients from 1 January 2014. The supplement
was set at 1.7 per cent of the rate of each payment and was indexed to
maintain its real value.
Clean Energy (Household Assistance Amendments)
Act 2011 | Bill Homepage
|
2013
|
Income Support Bonus was introduced for eligible income
support payment recipients, including Austudy Payment and Youth Allowance
recipients. A tax free, means test free payment of $105 for single persons
($87.50 partnered) was paid twice yearly in March and September. The Bonus
was indexed to the CPI twice yearly in March and September.
Social Security
and Other Legislation Amendment (Income Support Bonus) Act 2013 | Bill
Homepage
|
2014
|
Access to Youth Allowance and Austudy Payment was extended
to more students studying for a masters program by coursework.
Student Assistance
(Education Institutions and Courses) Amendment Determination 2013 (No. 1)
From September the Clean Energy Supplement was renamed the
Energy Supplement and ceased to be indexed.
Social Security
and Other legislation Amendment (2014 Budget Measures No. 6) Act 2014
| Bill
Homepage
|
2015
|
Students
relocating between major cities were no longer eligible for the Relocation
Scholarship.
Portability
of student payments for up to six weeks while overseas was limited to
absences for the purposes of seeking medical treatment or attending to an
acute family crisis. Absences for study purposes were unaffected by this change.
From July
indexation of the assets test limits was paused for two years.
Social Security
and Other legislation Amendment (2014 Budget Measures No. 6) Act 2014
| Bill
Homepage
|
2016
|
The Student
Start-up Scholarship was replaced by a Student Start-up Loan. The loan was
income contingent and repayment was only required once the student’s Higher
Education Loan Programme debt was repaid. Students could take up to two loans
of $1,025 per annum. The amount of the loans was indexed from 2017. Students
who had already received a Student Start-up Scholarship could continue to
receive them while they continued to receive student payments.
Labor 2013-14
Budget Savings (Measures No. 2) Act 2015 | Bill
Homepage
The family
assets test and the family actual means test were no longer applied.
From July
all Family Tax Benefit part A children in the family of a Youth Allowance
student were taken into account when calculating the rate of Youth Allowance,
not just those who were aged 16 years or more and at secondary school.
Parental
income test exemptions were aligned with those for Family Tax Benefit part A.
The
treatment of maintenance income was changed to match that which applied to
Family Tax Benefit part A.
Social Security
Legislation Amendment ( More Generous Means Testing for Youth Payments) Act
2015 | Bill
Homepage
In December
the Income Support Bonus was abolished.
Minerals
Resource Rent Tax Repeal and Other Measures Act 2014 | Bill
Homepage
|
2017
|
From July
Student Start-up Scholarships were abolished.
Budget Savings
(Omnibus) Act 2016 | Bill
Homepage
From July
Youth Allowance and Austudy recipients who were partnered to certain income
support recipients were no longer exempt from the benefit assets test.
Social security
means test rules for assessing interests in trusts and companies were extended
to independent Youth Allowance and Austudy Payment recipients.
Periodic
gifts from immediate family members were no longer included as income under
the personal income test.
Tax free
pensions and benefits will be included in the definition of parental income
for the income test to bring it into line with the FTB income test.
Social Services
Legislation Amendment (Simplifying Student Payments) Act 2017 | Bill
Homepage
|
2018
|
The
independence criteria which required a person from a regional or remote area
with parental income of below $150,000 per annum, to support themselves by
earning at least $24,042 (2016-17) in an 18 month period will be amended to
reduce the period to 14 months. Under this new criteria, it is possible for a
person to finish school in November, take a gap year and start university in
February, 14 months later.
Social Services
Legislation Amendment (Simplifying Student Payments) Act 2017 | Bill
Homepage
Indexation
of income test free areas and means test thresholds will be paused for three
years.
Social Services
Legislation Amendment Act 2017 | Bill
Homepage
|
2019
|
From 1
January 2019, all students receiving income support will be automatically
issued with a Health Care Card.
Social Services
Legislation Amendment (Simplifying Student Payments) Act 2017 | Bill
Homepage
|
[1].
Department of Human Services (DHS), ‘Students
and trainees’, DHS website.
[2]. D Daniels, Social
security payments for the aged, people with disabilities and carers 1901 to
2010, Background note, Parliamentary Library, Canberra, 21 February
2011.
[3]. D Daniels, Social
security payments for people caring for children, 1912 to 2008: a chronology,
Background note, Parliamentary Library, Canberra, 29 January 2009.
[4]. C Ey, Social
security payments for the unemployed, the sick and those in special
circumstances, 1942 to 2012: a chronology, Background note,
Parliamentary Library, Canberra, 4 December 2012.
[5]. This section
summarises the highlights from the chronological tables below.
[6]. DP Mellor, The
Role of Science and Industry, Australia in the War of 1939-1945, Series 4
Civil, volume 5, Australian War Memorial, Canberra, 1958, pp.197-198.
[7]. The amendment
was made by the Constitution
Alteration (Social Services) 1946 (Cth).
[8] DP Mellor, The
Role of Science and Industry, Australia in the War of 1939-1945, Series 4
Civil, volume 5, Australian War Memorial, Canberra, 1958, pp.197-198
[9]. D Bradley, P
Noonan, H Nugent and B Scales, Review
of Australian higher education: final report, (Bradley Review),
Department of Education, Employment and Workplace Relations (DEEWR), Canberra,
2008.
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