Centrelink age limits questioned
Advocates want Centrelink to lower the age of independence for Youth Allowance from 22 to 18.
The proposed change is aimed at addressing the financial struggles faced by regional students, who must bear the additional cost of living away from home to pursue university education.
The Australian University Accord has published a report recommending strategies to enhance participation in tertiary education, spotlighting this issue.
Legal adulthood in Australia commences at 18, granting individuals rights such as driving, purchasing alcohol, and applying for credit.
Despite these responsibilities, the Centrelink system does not deem individuals independent until they reach 22, unless specific criteria are met.
Currently, to qualify for permanent independence under Centrelink's guidelines, one must have worked at least 30 hours a week for 18 months within a two-year period.
This condition often forces students into taking a gap year solely to meet the independence criteria, thereby delaying their education.
The Australian Universities Accord Final Report criticises the independence testing arrangements, stating they unfairly impact school leavers needing to relocate for studies.
Further compounding the issue is the parental income test for Youth Allowance eligibility.
For a full payment rate of $639 fortnightly, parental income must not exceed $62,634 annually. With each dollar earned above this threshold, the support payment reduces by 20 cents.
This system places a burden on students whose parents' income slightly surpasses the limit, leaving them without adequate support despite the necessity of relocation for education.
Addressing the call for change, Social Services Minister Amanda Rishworth has defended the current age of independence, citing the shared responsibility model of financial support encompassing parents, guardians, students, and the government.
While acknowledging the challenges, Rishworth pointed to the availability of financial assistance such as the Relocation Scholarship for regional students, which hinges on Youth Allowance or ABSTUDY eligibility.