by Jennifer Anne, YAPA Policy & Training Officer
In response to an inquiry by the Senate Employment, Workplace Relations and Education Committee into the adequacy of student income support, YAPA developed three web-based forms that enabled people to submit their thoughts directly to the senate committee or anonymously to YAPA. Respondents ranged from school, TAFE, undergraduate and postgraduate uni Students, their parents, youth workers, TAFE teachers and ex-students. Via the three web based forms, we received nearly 70 submissions, including 11 submissions by members of the public to the Senate Inquiry itself, with the rest going towards informing our own submission.
Thank you to everyone who took the time to let us know their thoughts and experience, and to anyone who passed on information about this project. The Senate hands down its report on November 24 later this year - but in the meantime we hope to use the information we gathered to pressure federal government to makes significant changes to Centrelink policy. Our website will remain 'live', and we will continue to accept any stories or opinions anyone has on these issues.
We used the information gathered to inform a (quite lengthy) submission to the Senate - which will be available for anyone to read on the senate website www.aph.gov.au/senate/committee/eet_ctte/studentincome04/index.htm.
In general, people felt Centrelink benefits are inadequate, not surprising given that even the best case scenario for students places them more than 15% below the poverty line. Many students made comments about how they don't expect the government/public to fund their social life - just their basic needs (rent/food/utilities/healthcare/study expenses/clothing).
The inadequacy of study benefits means students have no financial back up for other basic services (most people mentioned health care).
Heaps of people compared studying benefits to unemployment benefits - and pointed out that studying is by its nature a more expensive situation. In some cases unemployment benefits are higher than study benefits (compare Youth Allowance for over 21s - $318 to the Newstart allowance - $389.20!). In our submission we also argued that, unlike unemployment, study by its very nature is a long-term situation. Full time study is rarely less than six months, and the average university degree is four years.
Students in almost all cases worked to supplement Centrelink benefits (or because they couldn't even qualify for benefits). Overwhelmingly, students felt that their hours of work negatively impacted on their study. Heaps of students have deferred studying in order to earn enough to qualify as 'financially independent' for the purposes of Youth Allowance.
We argued that full time study is directly comparable to full time work. Workloads are calculated to be equivalent to a 35 five-hour week. With student income support not adequate to cover basic living costs, students are forced to work beyond 'full time' hours just to make ends meet.
Most people thought that the 'age of independence' - 25 - is way too high. We argued that setting an age of independence at 25 is inconsistent with other law. Young people are entitled full adult citizenship rights at eighteen - they vote and stand for election at all levels of government and are added to the jury roll. They drive on our roads and are required to pay tax and can even serve in our armed forces, prior to turning eighteen.
Many people thought the parental income threshold is too low, and they thought it is unfair when it applies to young people who have moved out as their parent/s no longer support them. A number of responses from parents indicated that they are living in poverty trying to support themselves and their (adult) children.
In our submission we argued that the age of independence is based on the rationale that parents continue to support children financially as adult students. This may reflect a government preference for who should assume financial responsibility, but does not reflect the reality of who does assume financial responsibility.
In general people believed that access to education and access for disadvantaged groups is hugely dependent on the adequacy of student income support.
Many respondents were from rural/regional areas, indicating specific issues such as low availability of part-time/casual work to supplement benefits, lack of other supports, cost of living away from family and the travel costs associated with movement between regional areas and study centres.
We argued that students from all social, economic, cultural, ethnic and lifestyles backgrounds are struggling under the current system of study benefits. Real access to education is hardest for young people from low socio-economic backgrounds, for young people who have English as a second language, for young people from rural and remote areas, who have dependant children, who are indigenous or have a disability. These people are currently under-represented and under-supported in our education system at the higher secondary and tertiary levels.
Recommendations from YAPA's Submission
Increase the financial assistance available to all students. Study benefits need to be set at a level that is adequate to meet the average basic living costs of an adult. Preferably the additional study related cost unique to students should also be covered in this very basic payment. At the very least, student income support should be set at a level that places student above the poverty line; for example, current benefits should be set at $250 per week for single independent students.
Develop and adopt an in-principle statement recognising the unique nature of study, particularly in contrast to unemployment. Education is a long-term life situation that is crucially distinct from unemployment. Investing in students is, in very real terms, an investment in the future of our workforce and nation.
Increase the amount that students are allowed to earn before their benefit is reduced. Students should not have to undertake employment whilst they are already working full time towards educational qualifications. But until income support is adequate to cover their basic living costs, students should be able to supplement their payments without such severe financial penalty.
Make concessions available to all students on assistance benefits, regardless of level of support. The provision of in-kind financial support could greatly benefit many students. Health and travel concessions are already available to many recipients of government benefits. This benefit should be extended to all income supported students. Students should also be able to purchase textbooks and other study related equipment tax free, or at a tax discount.
Introduce an allowance or redemption system whereby students can purchase certain necessary study related goods up to a certain dollar amount per year. Education is dependent on adequate study resources, such as books, equipment and computing goods.
Lower the Age of Independence to 18 for all types of benefit. The age of independence should reflect other government policy and legislation, as well as the reality for many young people. Benefits should also be available to otherwise eligible students under 14 (the current minimum age) where they are undertaking accelerated tertiary education.
Increase the Parental Income Test Threshold . The threshold should be set at the median male average wage, currently around $33 000 p/a. The current threshold is too low, placing too high a burden on those least able to bear it - parents and students of low socio-economic status.
Remove course fees for all tertiary education. Recent increases in HECS must be reversed, and long term planning must aim for universal free education, at primary, secondary and tertiary level.
Increase specialist education services for indigenous Australians, particularly for the final years of secondary education. Appropriate education and educational facilities need to be provided to ensure that indigenous Australians can access education, and make good use of the study benefits specifically available to them.
Increase specialist education for people from Culturally and Linguistically Diverse backgrounds, including the provision of free English classes. The quality of education offered impacts on the accessibility of further education, and the real opportunities available to young people from CALD backgrounds.
Limitations of this information
Published: 2004
Applicable to: Australia.
To the best of our knowledge this is an accurate summary of the relevant facts at the time of publishing, without the assumption of a duty of care. We have no health, occupational health and safety, or legal qualifications, unless stated above. This information is general and should not be relied on as a substitute for legal or other professional advice. You should refer to any publications and authorities listed above and if necessary get qualified advice for your specific situation.
