House debates

Thursday, 13 October 2011

Bills

Social Security Amendment (Student Income Support Reforms) Bill 2011; Second Reading

1:34 pm

Photo of Sid SidebottomSid Sidebottom (Braddon, Australian Labor Party) Share this | Hansard source

It is always a pleasure to speak on financial support for our rural and regional students; indeed, for any students, for that matter. The legislation before us, the Social Security Amendment (Student Income Support Reforms) Bill 2011, is the result of a review which we made clear would occur when we introduced our previous youth allowance and student support reforms. The review was led by Professor Kwong Lee Dow. What we have before us today brings about changes to the former legislation, which was agreed to by both sides of this House, contrary to what you may hear from those opposite.

I noticed that the opposition spokesperson for education was very brief in discussing these changes, not so much to help the changes come through but loath to give any time to giving positive support to what has been a massive change in the provision of youth allowance and financial support to families in Australia. Most importantly, the changes, both previously and now, have led to a massive increase in the number of students and families that have been able to benefit from this financial support. That is a great story, a great message, a good narrative—and we have got it to tell. Of course, I would not expect the opposition spokesperson to share that good story, hence their very brief contribution to the debate on this legislation.

As a result of the changes I mentioned in response to the review, some 5,500 inner regional students will be able either to access independent youth allowance payments or, indeed, to receive a higher rate of payment. From 1 January 2012, to be eligible for independent youth allowance under the workforce participation criteria, regional students—and I come from a regional seat—will need to satisfy one of three elements. These are, to give examples: working full-time for an average of at least 30 hours a week for at least 18 months in a two-year period; or, secondly, working part time for at least 15 hours a week for two years since leaving school, provided that they need to relocate to study and the combined parental income is less than $150,000 per annum; or, thirdly, earning in an 18-month period since leaving school an amount equivalent to 75 per cent of the maximum rate of pay under the appropriate national training wage award, currently $21,009, or the rate as varied or replaced by Fair Work Australia, which you would expect, and provided that they need to relocate to study and the combined parental income is less than $150,000 per annum. Under the current system, inner regional students only qualified for independent youth allowance under the first of those three elements. Our changes today mean students from inner regional areas, such as those in my electorate, will have additional avenues to demonstrate independence and therefore qualify for independent youth allowance. In effect, it expands the options available to inner regional students to access youth allowance. The maximum rate for independent youth allowance is $388.70 a fortnight. Not only are we now including—

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