ASG’s How to Survive Uni and TAFE 2012: without living on two-minute noodles Income Income Government support Government support This section will outline eligibility criteria for Youth Allowance, Austudy and ABSTUDY. It will also look at other associated Centrelink benefits such as Rental Assistance, Travel Allowance, Advance Payments and Health Care Card benefits. The information in this section is relevant to both VET and university students. ABSTUDY Finding your way around Centrelink rules and regulations can be challenging, but it is well worth the effort. Austudy It is important to remember that this section provides a summary of the main government benefits that are likely to be applicable to students, but it certainly isn’t the complete list. This information is as accurate as possible at the time of publication but you must always check with Centrelink to ensure you get the full support you are entitled to based on your circumstances. For more information on any of the benefits below, and its respective eligibility criteria, visit the Centrelink website at www.centrelink.gov.au or call them on 132 490. A word of caution Students must be enrolled in an approved course to be eligible for the Relocation and the Student Start-up scholarships. This generally means a course of higher education such as a bachelor degree at university. Check with Centrelink for more information. ABSTUDY is a scheme specifically for Indigenous Australian students. To be eligible for ABSTUDY, you can be either a part-time or full-time student, and can qualify for benefits to do Masters or Doctorate level courses. To be eligible for Austudy you must be 25 years of age or over when you start your course. Much of the following information covering Youth Allowance eligibility criteria and other Centrelink benefits also applies to Austudy students. Youth Allowance You need to be at least 16 years of age to be eligible (there are some exceptions to this if you are considered to be homeless and you should check with Centrelink). You need to be an Australian or New Zealand citizen, or hold a Permanent Resident visa (there are further restrictions for New Zealand citizens so check these with Centrelink). You also must be a full-time student, which is classified by Centrelink as being enrolled in an approved course and attending at least three quarters of what your institution deems as the normal full-time study load. ASG’s How to Survive Uni and TAFE 2012: without living on two-minute noodles | www.asg.com.au page | 28 Income Government support continued Independent versus Dependent allowance There are two types of allowance categories: Independent allowance and Dependent allowance; they affect students’ eligible for ABSTUDY and Youth Allowance. Independent allowance does not take parental income into consideration. Dependent allowance does. Most students commencing further study immediately after secondary school are considered ‘dependent’ by Centrelink. Centrelink has very precise rules to classify who they deem as ‘independent’ and ‘dependent’. Following is a short summary of these rules which will help you work out which category you fit into. Independent To be considered ‘independent’ you must fit into one of the following categories: You are an orphan You are a refugee without parents in Australia You are married or in a de-facto relationship for a period of at least 12 months You have a child You are in State Care or because of your age have left State Care You are at least 22 years old You are financially self-supporting—to qualify for this you will need to work full-time (an average of 30 hours a week) for at least 18 months over a two-year period. Your family home is in a ‘very remote’, ‘remote’, ‘inner‘ or ‘outer regional’ area as classified by the map that is accessible from www.youth.gov.au. Select your State or Territory and use the legend provided. In addition, the following four criteria must also be met: You must be a full-time student You must have needed to move away from home to study Your parents’ combined taxable income must also be less than $150,000, unless you are considered to be dependent on one parent, and You will also have to earn a nominated amount (currently $21,009) within an 18-month period or have worked 15 hours each week for two years from the time you leave secondary school. If you are a student who took a gap year and earned through employment in 2011, you might now be eligible and you should check this with Centrelink. Dependent If you are not ‘independent’, then you will be considered as ‘dependent’ on your parents’ income. You will be classified as either ‘dependent’, ‘living at home’ or ‘away from home’. Payments for dependent students will begin to be reduced when parents earn over the government nominated threshold. Check the Centrelink rate estimators to work out how much you might receive if eligible. Centrelink uses quite complicated formulae for determining eligibility in each category and the amount you will receive. Contacting Centrelink is really important. Both your parents’ incomes and assets are taken into ASG’s How to Survive Uni and TAFE 2012: without living on two-minute noodles | www.asg.com.au page | 29 Income Government support continued account, unless you are dependent on one parent. If either parent is on a Centrelink Health Care Card or pension, benefit or allowance from Family and Community Services or Veterans Affairs, their income may be disregarded. Whatever you believe your circumstances to be, it is important to apply for benefits in order to be certain of Centrelink’s policies and how they apply to your particular situation. Income and Youth Allowance While receiving Youth Allowance, you may work and earn up to $236 per fortnight before your allowance is affected. In July 2012 this amount will increase to $400 per fortnight. If you earn more than this amount there is a formula Centrelink uses to decrease your allowance. For more information refer to the Employment Options for Students section of this guide and of course, check with Centrelink. It may be that you would be better off to reduce your part-time work commitments. Youth Allowance is taxable income, so you need to be mindful that when it’s combined with your other earnings you don’t end up paying tax at the end of the financial year rather than receiving a refund. If you’re on a scholarship of any kind, check with Centrelink because sometimes income from scholarships can be counted as ‘earned’ and therefore taxable income. However, up to $7223 of government equity and merit scholarships will be considered as exempt from being considered as ‘earned’ income by Centrelink. Youth Allowance and other Centrelink benefits If you have to live away from home, you can apply for Rent Assistance. To determine your Rent Assistance amount, Centrelink will consider whether or not you share accommodation. Students who rent private accommodation are generally considered as sharing and the amount you receive will depend on what you pay in rent. If you live in university or commercial student accommodation, you are generally considered by Centrelink not to be sharing. Student Start-up Scholarships There has been a change to Start-up Scholarships starting 1 January 2012. The Start-up Scholarships will be slightly reduced from the 2011 amounts. Student Start-up Scholarships are for students studying in an approved course, and who are eligible for Youth Allowance, Austudy or ABSTUDY. In 2012 there will be an annual payment of $2050 per eligible student. It is paid in two instalments over the year of $1025 per instalment. Relocation Scholarships (for regional students) There has been a change to Relocation Scholarships commencing 1 January 2012. Relocation Scholarships are for students who are considered under Centrelink rules to be dependent and on Youth Allowance or ABSTUDY, and living away from home to study and are from a region classified as ‘Remote’, ‘Very Remote, ’Inner or Outer Regional’. Students fulfilling these criteria can be eligible in their first year of study for $4000 and $2000 in second and third years and $1000 in subsequent years. ASG’s How to Survive Uni and TAFE 2012: without living on two-minute noodles | www.asg.com.au page | 30 Income Government support continued Relocation Scholarships (for metropolitan students in major cities) If you are a full-time student from a major city eligible for Youth Allowance and have to live away from home to study, you may be eligible for a Relocation Scholarship of $4000 in your first year and $1000 in subsequent years. Rural Tertiary Hardship Fund The Australian Government has discontinued the Rural Tertiary Hardship Fund as of 1 January 2012. Fares allowance If you receive Youth Allowance and have to live away from home to study, you will generally be eligible for two return trips to and from your home and your place of study every year. You will be paid the equivalent of the public transport cost of the trip (in some cases the costs of airfares). You can also be paid in advance if you give Centrelink sufficient notice. Great tips Check with Centrelink regularly to ensure you get the right level of support you are entitled to. Visit www.centrelink.gov.au or phone 132 490. Apply for a Centrelink Health Care Card. Apply for Travel Allowance, even if it is not a big amount. Every dollar you are eligible for can help. Check out your rental assistance entitlement and make sure you have been given the correct amount. Your personal assets will affect your eligibility for assistance through Centrelink. Contact Centrelink to find out about the Liquid Assets Waiting Period before you apply for Youth Allowance. Apply for Youth Allowance as soon as you can. Advance payments If you receive Youth Allowance and need to access some of it as a lump sum, you may be able to claim an advance payment amount between $250 and $500. ASG’s How to Survive Uni and TAFE 2012: without living on two-minute noodles | www.asg.com.au page | 31 Income Scholarship support Scholarship support The key to accessing scholarship support is you. It’s up to you to explore the diversity of scholarships available and apply within the specified guidelines and timelines. Scholarship closing dates often fall before the notification of course places, so begin your investigations and submit your applications early in the academic year. There are many types of scholarships available to students in university and VET courses. Investigate the range of scholarships available through university or VET institutions, as well as those provided by government or linked to academic merit and achievement. Australian Government scholarships There are two Australian Government scholarships, the Student Start-up Scholarships and the Relocation Scholarships. These are paid to students who are eligible for Youth Allowance, ABSTUDY or Austudy. For the Student Start-up Scholarship, a total of $2050 is paid in two instalments over the year of $1025. For the Relocation Scholarships, a payment of $4000 is paid to eligible students in their first year of study, and $2000 in second and third years and $1000 in subsequent years. If you are a dependent student under the Centerlink rules and receiving Youth Allowance or ABSTUDY, and you are living away from home to study, you may also be eligible for the Relocation Scholarships. If you have to live and study away from home and are from a major city you may also be eligible for a Relocation Scholarship of $4000 in year one and $1000 in subsequent years. These two scholarships don’t apply to you if you are already receiving the Commonwealth Education Cost or Commonwealth Accommodation Scholarships. These are old Australian Government scholarships which have discontinued from the beginning of 2010, but are still paid out to students who were receiving them, and who continue to meet the requirements. For more information on the Student Start-up Scholarships and the Relocation Scholarships see the Government Support section of this guide. University scholarships Many Australian universities have created equity scholarships to assist rural and regional students, Indigenous students and students from non-English speaking backgrounds. You need to access each university’s website to find out which scholarships are available. It is essential that you check these out in advance as the closing dates are often linked to your university preferences. ASG’s How to Survive Uni and TAFE 2012: without living on two-minute noodles | www.asg.com.au page | 32 Income Scholarship support Great tips Make sure you know the application closing dates for all scholarships you want to apply for. Have character references (where required) ready to go with your application. Get advice from Centrelink if you are unsure whether your scholarship affects your Youth Allowance benefits. Scholarships look good on your resumé when you apply for a job. Always apply. Don’t assume you won’t get a scholarship. Apply early. Don’t use logic and wait until you get an offer of a place—it will be too late! Google ‘Australian Undergraduate Scholarships’ – you will be amazed at the number of scholarships on offer! ASG’s How to Survive Uni and TAFE 2012: without living on two-minute noodles | www.asg.com.au page | 33 Income Employment options for students Employment options for students Even if you are eligible for Youth Allowance, it is unlikely to be enough for you to live on. And although your parents often assist with study and living costs, many of you can help ease the financial burden of further study by working part-time. If your situation requires you to work part-time, be careful to balance your work commitments and studies so that your studies are not compromised. Remember that your studies must always be your top priority. Finding part-time employment that fits in with your study timetable is very important. Where to look for part-time work Almost all VET institutions and universities have career and part-time job placement services. You should check your university website for details on these services. The My Future website www.myfuture.edu.au also has helpful employment information. Many student jobs are found in the hospitality industry; particularly hotels, restaurants and bars. Having a certificate in the ‘Responsible Serving of Alcohol’ (RSA) and a certificate of ‘Food Handling’ can be an advantage as it may be a pre-requisite for working in the hospitality sector. These certificates can usually be completed at TAFE institutes or through a registered training organisation. A good place for more information on these courses is to visit the Consumer Affairs website for your state. It is also a good idea to complete these courses during semester breaks so you are one step ahead when applying for jobs. Income and Youth Allowance If you receive a Centrelink allowance, you should be aware that income from part-time employment may affect your Youth Allowance payments, particularly if you earn more than $236 a fortnight on a regular basis, so be careful and check. On 1 July 2012 this amount will increase to $400 a fortnight. You are required to inform Centrelink of your fortnightly earnings. During certain times of the year you may be able to earn more without it affecting your fortnightly allowance, for example, in semester and summer breaks. Contact Centrelink for more information on this. Great tips Prepare a resumé and have it ready to distribute to potential employers. Check your employment earnings and the possible impact on your Youth Allowance payments. Ensure you know Centrelink’s rules on income and how they might affect your situation. Check local VET providers that offer short certificate courses in ‘Responsible Serving of Alcohol’ and ‘Food Handling’. Don’t work for cash-in-hand. It’s illegal. Update your resumé, covering letter and references, and relate them to the jobs you want to target. Another useful way to get a part-time job is by doing a bit of ‘door-knocking’ at appropriate businesses and leaving copies of your resume. ASG’s How to Survive Uni and TAFE 2012: without living on two-minute noodles | www.asg.com.au page | 34 Income Loans for students Loans for students Student loans may be an alternative solution for assisting with tuition costs and living expenses while completing further education. But if you decide to take some time off after graduation for whatever reason, either to travel or you don’t get that job you hoped for, you might find that your repayment commitments are going to be difficult. This is another reason why you should be careful when taking out loans. VET and university student loans Most VET colleges and universities run a student loan scheme. These loans usually have very good terms and with little or no interest rate (as long as you repay on your agreed schedule). Institutions often have quite different rules, borrowing limits and repayment conditions. A good principle is to only borrow money if you really need to. Remember that all loans have to be repaid. Bank loans Quite a few major banks and credit unions have special loans for students and offer favourable terms, especially if you have a good academic record and have very good graduate employment opportunities. Check with individual banks or credit unions for more information. Remember that banks are more likely to provide loans to you in the final years of your course and if your academic record and employment opportunities are above average. Credit cards Used wisely, credit cards can help you smooth out the paying of your expenses to match your income. Unfortunately, many people use credit to spend above their means and fall into debt. This can create increased levels of stress for you long-term and mean that you end up paying back far more than your initial expenditure. Credit is best kept for emergency use or if you have the self-discipline to use it sensibly. Great tips Investigate all credit options thoroughly before making any commitments. Ensure you understand the credit terms. Borrowing money and taking out loans requires repayments, usually with an interest rate. Know whether you can afford to make loan repayments. Using credit cards is fine for emergencies, but if not used sensibly, can quickly get you into debt. ASG’s How to Survive Uni and TAFE 2012: without living on two-minute noodles | www.asg.com.au page | 35
© Copyright 2024