Lower the Age of Independence for Youth Allowance to 18

Author: Sue Hwang | Publish date: 15/08/2024

Problem Identification: 

In Australia, the age of independence is set at 22 for students seeking Youth Allowance (YA). 

A survey by the National Union of Students (NUS) found that a lack of financial support prevented young people from entering university, embarking on a full course load, and even resulted in young people withdrawing altogether. 

Students under the age of 22, who are ineligible for full rates of YA, may be at risk of experiencing student poverty, which can have adverse effects on their mental and physical well-being.

Context: 

YA for students and Australian apprentices is a Federal support payment for those aged 16 to 24, who are studying or completing an Australian apprenticeship, full-time. 

The age of independence, set out by the Social Security Act 1991, is currently 22 years old. Students under the age of independence are given dependency status. Dependency status can influence an applicant’s YA eligibility, and rate of payment, through their parental/guardians’ income. If the parent/guardian earns over a certain threshold, the student will not be eligible to receive YA. Individuals under the age of 22 must then seek independence and meet strict independence testing criteria, such as demonstrating at least 30 hours of employment a week in a two-year period. This appears to disadvantage school leavers who must relocate for study, with some young students having to delay or forgo university to work, in order to receive YA.

The NUS has called for lowering the age of independence to 18 so that, ‘students [can] have access to financial support,...[have] a fulfilling educational experience, and lead a healthy life.’ Lowering the age could better support 18-21 year olds to meet basic living expenses and to continue to study, without having to prioritise employment over university.

NUS reported that over 70% of students find it difficult to juggle study and work. Being unable to access YA payments also had a detrimental impact on students’ financial wellbeing, mental health, housing stability, and educational experiences. 

Australia has amended the age of independence seven-times. Most recently, the age of independence was reduced from 25, under the Gillard Government in 2013, when it was acknowledged that lowering the age would help target the most disadvantaged groups.

Solution Identification: 

Amend section 1067A and 1067B of the Social Security Act 1991 (Cth), so omit '21' and substitute with '18' to lower the age of independence. 

This could allow 18-21 year olds to access YA payments earlier, minimising the risk of student poverty and its impacts, and supporting young students to pursue and complete their studies.

Advice:

The Minister for Social Services should amend the Social Security Act 1991, section 1067A and 1067B to lower the age of independence at the next opportunity.

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Public Support: 

1. Foundation for Young Australians

2. National Union of Students

Where to go to learn more: 

1. National Union of Students Locked Out of Youth Allowance Report - https://changetheage.asn.au/wp-content/uploads/2022/10/Locked-out-of-youth-allowance-student-poverty-and-centrelink-in-Australia-1.pdf 

2. ABC’s report on students locked out of Centrelink, forced into gap year to qualify for Youth Allowance - https://www.abc.net.au/news/2022-11-05/calls-to-lower-age-of-independence-for-country-kids/101595216 

Human Perspective: 

Jack, a 20-year-old university student, had to move out of home and relocate to Hobart to pursue his studies. He reports having to juggle multiple jobs to support himself and put food on the table while studying, as he is financially independent from his parents and unable to access YA payments due to his parents earning above Centrelink’s income thresholds.

‘Ty’, 23 years old, recalls their experience prior to receiving YA. ‘Living in metro Melbourne for university, I was constantly struggling to afford basic living expenses. Due to violence in the home, I was no longer in contact with my parents, and Centrelink’s independence requirements made it unsafe and very difficult for me to prove my independence. I had to resort to dumpster diving for food, and had to sell a lot of my things to afford to pay rent while studying. It was incredibly stressful and detrimental to my mental and physical health, and my grades definitely suffered.’

‘Mel’  grew up in a rural town in New South Wales, and recalls her disappointment in being ineligible to receive YA at the age of 18 after finishing high school. ‘I worked really hard to be accepted into my dream degree at university. However, as there is no university in my town, I had no choice but to relocate to Sydney to pursue my studies. My parents are farmworkers and cannot afford to financially support me, so I must provide for myself in Sydney. The cost of living is expensive in Sydney with rent on campus exceeding $500 per week. Despite working part-time, I could not afford this and was therefore unable to go to university. Instead I had to take a gap year and work a couple of jobs to be eligible for YA under the independent criteria. If the Age of Independence was lowered I could be supported in my studies and would’ve graduated with a Bachelor's degree by now.’

To protect the anonymity of those involved, this is a fictionalised account drawn from an amalgamation of real-life stories, experiences, and testimonials gathered during the research process for this brief. Any resemblance to actual individuals is purely coincidental.

Conflict of interest/acknowledgment statement: 

N/a.

Support 

If your organisation would like to add your support to this paper, or suggest amendments, please email Info@foreaustralia.com. 

Reference list: 

National Union of Students & Foundation for Young Australians. (2022). Locked out of Youth Allowance: Student Poverty and Centrelink in Australia [Review of Locked out of Youth Allowance: Student Poverty and Centrelink in Australia]. https://changetheage.asn.au/wp-content/uploads/2022/10/Locked-out-of-youth-allowance-student-poverty-and-centrelink-in-Australia-1.pdf 

Youth Allowance for students and Australian Apprentices - Services Australia. (n.d.). https://www.servicesaustralia.gov.au/youth-allowance-for-students-and-australian-apprentices 

Dependent or independent - Services Australia. (n.d.). https://www.servicesaustralia.gov.au/dependent-or-independent-for-youth-allowance-student-or-australian-apprentice?context=43916#:~:text=When%20you're%20independent%2C%20your,they%20don't%20support%20you.&text=If%20you're%2022%20or%20older%20we'll,treat%20you%20as%20permanently%20independent.

Social Security Act 1991. (2024). https://www.legislation.gov.au/C2004A04121/latest/text 

Department of Education & Department of Education, Employment and Workplace Relations. (2008). Review of Australian Higher Education Final Report (pp. 1–304) [Review of Review of Australian Higher Education Final Report]. Australian Government. https://www.voced.edu.au/content/ngv%3A32134 

Miolin, L. (2024, April 2). Centrelink’s age of independence causing “real inequity” between city and regional students. ABC News. https://www.abc.net.au/news/2024-04-03/centrelink-independence-rules-for-uni-students-call-for-rethink/103604156  

Daniels, D. (2013). Student income support: a chronology. Parliamentary Library Research Paper Series 2017-18. https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1718/Chronology/StudentIncomeSupport