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