Julia Gillard listens to gap year student concerns

The Minister for Education, Julia Gillard, today met with students from around Australia to discuss the Government’s proposed changes to Youth Allowance.

Students, including many accompanied by their local MPs, attended from around Australia from the electorates of the Member for Eden Monaro Mike Kelly, Member for Braddon Sid Sidebottom, Member for Corangamite Darren Cheeseman, Member for Ballarat Catherine King, Member for Bass Jodie Campbell, Member for Solomon Damian Hale, Member for Capricornia Kirsten Livermore and Member for Lyne Rob Oakeshott.

Also invited were Chair of Universities Australia, Professor Peter Coaldrake, President of the Council of Australian Postgraduate Associations, Nigel Palmer and the National Union of Students National President, David Barrow.

The students took the opportunity to discuss the effect the changes were having including on those people who have taken a gap year in 2009 and were in the transition between the two systems.

Ms Gillard said the discussions were helpful and would help inform the Government about any changes that might be needed before the legislation was introduced into the Parliament in September.

Under the proposed new scheme changes more than 100,000 students would be better off as the Parental Income Test is raised and new scholarships are introduced. The more generous Parental Income Test will mean that students will no longer need to take a gap year in order to be eligible for assistance.

For example, under the new system the maximum family income that families with two dependent university students that are living away from home can receive support is $140,729. This compares to $79,011 under the old system.

Studies show that around 30 per cent of gap year students choose not to commence their university studies.

Under the proposed changes, around 150,000 students would also receive a $2,254 per year start-up scholarship to assist with expenses at the beginning of each academic year and more than 14,000 students who are required to move to study would be eligible to receive an additional relocation scholarship of $4,000 in their first year, and $1,000 each subsequent year.

Together with the changes to the Parental Income Test, the Rudd Government will ensure more students receive Youth Allowance and more students will receive more assistance to study.