The Senate Inquiry into the proposed changes to Youth Allowance has recommended the government establish a Tertiary Access Fund and retain aspects of the independence criteria by which students currently access the allowance.
National Senator Fiona Nash who chaired the inquiry said sending a child to university could cost a rural family up to $25,000 a year and the proposed legislation presented “a real barrier” to tertiary education for students from the bush. “It is a shocker,” she said.
“In terms of rural and regional student access there is nothing... it just doesn’t stack up.
“It’s an absolute dog’s breakfast...they just don’t get it,” she said.
Many of the 12,000 rural and regional students accessing independent youth allowance do so by taking a gap year, getting a job and earning a fixed amount of income in 18 months.
This year the figure was about $18,000 but the Government’s proposed rules would scrap the ‘fixed income’ option leaving students who wanted to receive youth allowance by being declared independent just one avenue: working a minimum of 30 hours per week for 18 months.
This has led to an outcry from country students who believe finding a job that offers 30 hours per week in what are often drought-affected towns is unlikely and the Opposition has called on the Government to keep the ‘fixed income’ criteria.
The senate committee received hundreds of submissions including some from students about to do their Higher School Certificate. Trangie’s Amelia Haigh was one student who took her case to Canberra to appear in front of the inquiry.
With only two exams left Ms Haigh said she was pleased with the report handed down by the inquiry but was not convinced the Government would accept any of the recommendations.
“A lot of the evidence... supported the one thing, in the end it was good they came to a consensus,” she said.
Ms Haigh is hoping some of the recommendations lead to a “compromise for something” more equitable for rural students.
During the inquiry Ms Haigh, who attends school in Orange, said she wanted to be independent from her parents, but finding work during a time of drought could prove difficult.
“I really need to be independent. I am going to take a year off and have seasonal jobs lined up for the first three months. All these jobs are elsewhere. I am willing to pay for the transport and accommodation costs associated with them, but job security - getting a definite 30 hours a week -i s a major concern for me because around my area there is not much on offer. Because of the drought people are not taking on workers,” she told the committee.
According to Ms Nash, Ms Haigh’s evidence at the inquiry, which features in the report, was pivotal in allowing the politicians to comprehend how the changes would impact students.
“They were fantastic... they put their cases so clearly and related it to present circumstances which were reflective of thousands of other students,” Ms Nash said.
“It made a real difference in terms of the understanding of the committee.”
Minister for Education Julia Gillard has responded to critics of the scheme arguing the tightening of the independence criteria is balanced by an increase in the parental income threshold.
“Under the proposed reforms, the main way of qualifying for Youth Allowance and ABSTUDY will be through the Parental Income Test,” a spokesperson for the minister said.
“Rural students in particular will benefit from this change as we know that average family incomes in the bush are well below average incomes in the city. “
Ms Nash argued many rural students would still fail to meet the criteria because of the means testing on farm assets which she said, may look impressive on paper, but don’t necessarily translate into income especially during drought.
However the government spokesperson said that the 75 per cent discount on farm assets as part of the Family Assets Test for Youth Allowance would continue to apply.
“This means that for farming families, Youth Allowance is obtainable with assets up to the value of $2.286 million, net of debt and excluding the value of the principal family home and up to two hectares of surrounding land,” she said.
“ABARE farm survey data shows that the net value of the median family farm is well below this amount. “
Ms Nash said regional students weren’t asking for a handout but said the government was “absolutely responsible for ensuring the equity of access.”
“I think the key thing to come out of the inquiry is the inequity to access to education between rural and regional students and students in metropolitan areas,” she said.
Email a friend
Favourites
Del.icio.us
Facebook
Digg
StumbleUpon
MySpace
Reddit
Newsvine
LinkedIn
Kwoff
Twitter