New allowance hits youth

Issue 

By Sean Healy

After a back-flip by Senator Brian Harradine, the Coalition's proposed common youth allowance is now likely to be passed by federal parliament, despite opposition from student and welfare organisations.

The common youth allowance will roll Austudy, youth unemployment benefits and several other benefits into a single benefit.

Unemployed people under 18 will have their benefits cut altogether; those between 18 and 20 will be subject to a parental means test which will cut into their benefits if their parents earn as little as $23,400 per year; and up to 33,250 young people will receive smaller benefits.

The government's "sweetener" — giving Austudy recipients access to rent assistance — will be of marginal benefit. Rent assistance will be paid only to those students who have to live away from the family home because of work or study. Many students won't qualify, and many young unemployed people currently receiving rent assistance may have their benefits cut.

The aim of the allowance is to reduce the total benefits paid by the government and force young people into greater dependence on their families; it rolls all the worst aspects of the different benefits into one.

The government was able to guarantee Harradine's support for the allowance by "promising" tax relief to families to lessen the allowance's impact. Given the government's record on keeping promises, this seems a long shot.

Labor, the Australian Democrats and the Greens all have amendments to make in the Senate. However, Labor's relate only to specific measures in the allowance, leaving the unequal nature of Austudy and unemployment benefits untouched.

The Greens and Democrats have introduced amendments which would lower the age at which Austudy recipients are considered "independent" from 25 to 18.

Opposition to the common youth allowance and the need for a decent, guaranteed minimum income for all young people will be a major focus of students' campaigns this year. These demands will also be prominent in the April 1 national day of student and staff action on the universities.

[Sean Healy is the national coordinator of Resistance.]

If you like our work, become a supporter

Green Left is a vital social-change project and aims to make all content available online, without paywalls. With no corporate sponsors or advertising, we rely on support and donations from readers like you.

For just $5 per month get the Green Left digital edition in your inbox each week. For $10 per month get the above and the print edition delivered to your door. You can also add a donation to your support by choosing the solidarity option of $20 per month.

Freecall now on 1800 634 206 or follow the support link below to make a secure supporter payment or donation online.