Group of Eight (Go8) Vice-Chancellors call on the Senate to pass the Government’s student income support legislation when Parliament sits next week.

“The Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 will realise important changes to student income support announced in the 2009 Budget,” said Go8 Chair, Professor Alan Robson.

“The Government’s changes to parental income tests and the treatment of equity scholarships will increase the number of students from low and middle income families eligible for Youth Allowance and financial support from universities and private philanthropy.

“Under the proposed new parental income test, a family in which two students are living away from home will be able to earn up to $140,729 before those students lose their Youth Allowance payments. Currently Youth Allowance for such a family would cut out completely at an income of just under $80,000.

“At the same time loopholes in the current legislation allow students from high-income families to access the full rate of Youth Allowance.

“With a finite amount of public funding it is vital we target those students most in need,” said Professor Robson.

“New start-up and relocation scholarships for all students on Youth Allowance will make a big difference for 150,000 students who have not been eligible for such support before, especially for families in rural and regional areas.

“The Go8 particularly applauds the Government’s decision to remove university and private equity scholarships from the income test. As far back as 2002 the Go8 highlighted the fact that treating equity scholarships as income was a major disincentive for their provision because most students on such scholarships would lose their Youth Allowance.

“The Go8 recognises that the Opposition has tried to listen to students and its rural and regional MPs. However, the Opposition’s amendments are funded by permanently cutting the new Start-Up scholarships which will leave 150,000 students worse off.

“Permanently cutting scholarship funds for a large number of students in need in order to fund a Gap Year for a small number of wealthier students should not be an acceptable solution to the Senate,” Professor Robson concluded.

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Source: Group of Eight news centre