Youth Allowance

Changes to the independence criteria for Youth Allowance and ABSTUDY

This year there will be some changes to the way Centrelink works out if you are independent, including:

  • Reduction of the age of independence
  • Changes to the full-time work (30 hours a week) independence criterion
  • Arrangements for students who took a ‘gap year’ in 2009
  • Independence for students from outer regional, remote and very remote areas.

Reduction of the age of independence

If you receive Youth Allowance or ABSTUDY, you are considered to be independent when you turn 24 years of age. The age of independence will drop to 23 years in 2011 and to 22 years in 2012.

Changes from July 2010

Tightening the criteria for independence

From 1 July 2010, there will be changes to the rules that allow young people to demonstrate their independence by supporting themselves through paid employment (sometimes called the ‘gap year provisions’ or the ‘workforce participation criteria’).

If you have already been assessed as independent through paid employment and received Youth Allowance[1] or ABSTUDY[2] before 1 July 2010, you will not be affected by the changes.

Changes to the full-time work (30 hours a week) independence criteria

From 1 July 2010, you can be considered independent if you have supported yourself through full-time paid work of an average of 30 hours per week for at least 18 months during any period of 2 years.

Previously, you had to work ‘at least’ 30 hours per week to meet this independence criterion.

If you have not worked at least 30 hours per week for 78 weeks (that is, 18 months) within a 2-year period, the hours that you have worked can be averaged over periods of a maximum of 13 weeks.

This could mean, for example, that you could meet this independence criterion if:

  • for 19 periods of 4 weeks, you have undertaken at least 120 hours of work within each of these periods, or
  • for 6 periods of 13 weeks, you have undertaken at least 390 hours of work within each of these periods.

You cannot satisfy this independence criterion by working more hours for 12 months. You must be working ‘full-time’ for 18 months.

You will need to provide Centrelink with evidence of your working hours over the 18 months. This may be in the form of pay slips that show the number of hours you have worked, or letters from your employer/s stating the number of hours you worked for them each week. Centrelink will ask you to provide this evidence when you make a claim.

This change also applies to Disability Support Pension customers.

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Arrangements for 2009 ‘gap year’ students

There are transitional arrangements in place to ensure that students who took a gap year in 2009 can still be assessed as independent if, since leaving secondary school, you have either:

Between 1 July 2010 and 31 December 2010, these independence criteria will only be available to students who took a gap year in 2009 and who meet other conditions. You are considered a 2009 ‘gap year’ student if:

  • you completed secondary studies in 2008, and
  • you weren’t a full-time student in 2009 (that is, you took a gap year in 2009 to work and earn the amount required to meet the independence rules), and
  • throughout 2009 you intended throughout 2009 to commence full-time study in higher education in 2010, and
  • you will commence full-time study in an approved scholarship course between 1 January 2010 and 31 December 2010.

In addition to being a 2009 ‘gap year’ student, you must meet one of the following conditions:

  • you need to live away from your parents’ home on the day you commence full-time study in 2010 because it takes too long to travel from your parents’ home to your university or institution. This is measured by whether it takes more than 90 minutes to travel by public transport, including waiting and walking times, from your parents’ home to the institution. (Note: this does not mean that you need to travel by public transport), or
  • your parents’ combined income in the tax year ending 30 June 2009 was less than $150,000. This includes your parents’ taxable income, fringe benefits and any foreign income, net investment loss or reportable superannuation contributions. Your parents’ income in the tax year ending 30 June 2010 can be used if their income has changed substantially.

Approved scholarship course

An approved scholarship course is an accredited higher education course or preparatory course that is undertaken at a higher education institution.

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Changes from 2011

Independence for students from outer regional, remote and very remote areas

There will be arrangements in place from January 2011 to ensure that students from outer regional, remote and very remote areas can still be assessed as independent if, since they left secondary school, they have supported themselves through paid employment by either:

To be assessed as independent under these arrangements, you must be a full-time student and need to move away from home to study because your parents’ home is in an area considered to be outer regional, remote or very remote.

It is also a requirement that your parents earned less than $150,000 in the base tax year (for example, in May 2011, the base tax year is the year ending 30 June 2010) or the current tax year if their income has changed substantially.

The Australian Bureau of Statistics determines whether an area is considered to be Outer Regional Australia, Remote Australia or Very Remote Australia. For more information about locations classified as outer regional, remote or very remote refer to Youth.gov.au[4]

Related information

One Response to Youth Allowance

  1. Phillipa Condon says:
    November 18, 2010 at 10:10 am

    The information on this website is pertinent to those who are also on a Gap this year. I suggest you make an appointment with Centrelink to discuss your individual circumstances

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