1943

Commonwealth Financial Assistance Scheme introduced

The scheme was authorised under the defence powers of the Commonwealth. The scheme was administered by the Universities Commission that had been created in 1942. The Universities Commission regulated the numbers of students to be admitted to university especially in faculties considered most important for the war effort: medicine, dentistry, engineering, science, agriculture and veterinary science. Financial assistance was mainly provided to students in those faculties but a limited number were provided to students in other faculties.

Eligible students received payment of all university fees and assistance with living costs; subject to a means test on student and parental income. Living allowances were paid at a maximum at-home rate of up to £104 per annum or a maximum away-from-home rate of £143 per annum. The maximum rates were paid where the student’s adjusted family income did not exceed £250 per annum. Adjusted family income included the taxable income of the student and their parents, less £50 for each dependent child aged under 16 years. For every £10 of income above £250 pounds, assistance was reduced by £5.4s. An additional allowance of £10 per annum was paid for the cost of necessary equipment. The value of any other scholarship received was deducted from the living allowance paid. There was also prohibition on part-time work while studying.

Students receiving assistance were expected to undertake some form of national service for three years after graduation.

Annual Report of the Universities Commission for 1943

National Security (Universities Commission) Regulations, 1943.

1944

Assistance was extended to selected students studying dentistry, engineering, science and architecture in technical colleges and women studying social studies at some universities.

Annual Report of the Universities Commission for 1944

1945

Assistance was extended to students at country technical colleges in Victoria.

At the end of World War II, the scheme was continued for five years while discussions with the states were conducted to determine the form of a permanent scheme. The scheme became known as the Interim Financial Assistance Scheme. Wartime reservation of places in university was ended and students had free choice of course. Numbers of students assisted were still limited.

Annual Report of the Universities Commission for 1945

Commonwealth Scholarship Annual Report 1960

1946

The Constitution was amended to give specific power to the Commonwealth to assist students as part of a broader extension of powers over social services.

Constitution Alteration (Social Services) 1946 (Cth).

TH Kewley, Social Security in Australia 1900-1972, 2nd edn, Sydney University Press, Sydney 1973, pp. 180-185.

1947

The scheme was governed by regulations made under the Education Act 1945.

Annual Report of the Universities Commission for 1946

Universities Commission (Financial Assistance) Regulations, 1946.

1949

The living allowance, where adjusted family income exceeded £250 per annum, was reduced to £4 for every £10 of excess income.

Assistance was provided to education students for the first time.

Annual Report of the Universities Commission for 1948

1951

Commonwealth Scholarship Scheme introduced

Selection for a Commonwealth Scholarship Scheme scholarship was based on academic merit. Scholarships were available for students resident in Australia, who were not under a bond (to work for an employer) and were enrolled in approved courses including all first degree courses, certain diploma courses, teachers college courses, certain diploma courses at technical colleges, certain other professional courses such as pharmacy and physiotherapy and combined university courses such as arts/diploma of education and arts/law.

Open entrance scholarships were for students aged under-21 years except for certain courses where the age limit was 25 years. A small number of mature age scholarships were reserved for those aged 25 to 30 years. Later year scholarships could also be awarded to students who were part way through their course of study.

Benefits were paid for the minimum duration of the course. Benefits included payment of compulsory fees without a means test; travel allowances at the beginning and the end of each academic year for those living away from home; a means tested living allowance at either an at-home rate or an away-from-home rate; and dependents allowances where appropriate.

Maximum living allowance was £130 per annum if living at home and £195 if not living at home. Male Total Average Weekly Earnings in 1943 were £6.4 per week (£333.9 per annum). These maximum amounts were payable if the adjusted family income did not exceed £400 per annum. Adjusted family income was the total taxable income of the student and their parents, from the previous financial year, with a deduction of £100 for the family’s first dependent child under 16 years and £50 for each additional dependent child. The maximum allowance was reduced by £3 for every £10 of excess income. Students could have continuing income of £1.10s.0d per week before that income reduced their living allowance by 66.3 per cent. Income from other scholarships or approved employment up to £0.10s.0d per week was also allowed (£1.10s.0d per week in the long vacation).

Mature age students received the living away from home rate free of a parental income test. Married students received an allowance for a wife (£1.4s.0d per week) and their first child (£0.9s.0d per week). The spouse’s income was taken into account in the income test. Married students could also have an income of up to £3 per week before their living allowance was reduced.

Partial reimbursement of travel costs at the beginning and end of the course and during vacations was provided.

The scheme was administered by state education departments with policy determined by the Commonwealth Scholarship Board.

3,000 new scholarships were awarded each year. In 1951 4,701 students already studying at eligible institutions received scholarships.

Annual Report of the Universities Commission 1949 and 1950

Commonwealth Scholarship Regulations, 1951.

1952

From July the amount of income from other scholarships and employment permitted before living allowances were reduced was doubled to £1 during term and short vacation time and £3 during long vacations.

Annual Report of the Universities Commission 1951

1953

Wife allowance was increased to £1.11s.0d per week.

Annual Report of the Universities Commission 1952

Open entrance scholarships could now be awarded to students aged 21 to 24 in special cases.

Annual Report of the Universities Commission 1953

1954

All students aged 25 or more were treated as mature age students and paid the living away from home rate free of a parental income test.

Students bonded to a State Education Department ceased to be eligible for scholarships.

Annual Report of the Universities Commission 1953

1955

Open entrance scholarships could now be awarded to students aged up to 25 years and in any year of study.

Married women under-21 were now able to compete for scholarships on the same basis as single women but single women were given preference where applicants were aged 21 or more.

The definition of adjusted family income was changed. All student income was treated separately. Permissible student income was now set at £1.10s.0d per week during the academic year and £3 per week during the long vacation. For mature age students the limits were £2.5s.0d per week (single) and £4.10s.0d per week (married).

Students of any age could be treated as independent of their parents if they had maintained themselves for five continuous years prior to applying for a scholarship (including any periods of full-time study).

Where a student had a sibling who was a full-time student at an approved institution their living allowance was reduced by £3 for every £15 of adjusted parental income in excess of £600.

Universities Commission Annual Report 1954

1956

All married students were treated as mature age students irrespective of their age.

Annual Report of the Universities Commission 1955

1957

Income from employment in the long vacation was disregarded when assessing living allowances.

Annual Report of the Universities Commission 1957

Commonwealth Scholarship Regulations (Amendment), 1956.

1958

Permissible income before the living allowance was reduced was increased to £2 per week for students.

Annual Report of the Universities Commission 1957

Commonwealth Scholarship Regulations (Amendment), 1958.

1959

The deduction for dependent children from adjusted family income was increased to £150 for the first child and to £75 for others.

Living allowance was reduced by £2 for every £10 of excess income up to £1,350 of adjusted family income. Income above that amount continued to reduce living allowance by £3 in each £10 of excess income.

Annual Report of the Universities Commission 1958

Commonwealth Scholarship Regulations (Amendment), 1959.

1960

The £1,350 income test threshold was increased to £1,440.

For a married male student with a non-student wife, the living allowance and the wife allowance were income tested separately against half the couples combined income.

Commonwealth Scholarships Board Annual Report 1959

Commonwealth Scholarships and Awards Regulations (Amendment), 1960.

From July, Citizen Military Force pay was not assessed as income for the income test.

Commonwealth Scholarships Board Annual Report 1961

1961

The number of new scholarships was increased to 4,000 each year.

Commonwealth Scholarships Board Annual Report 1960

1962

The £1,440 income test threshold was increased to £1,700.

Permissible income was increased to £2.10s.0d per week for students (£3 for independent students) before the living allowance was reduced.

The deduction from adjusted parental income for dependent children was changed to £150 for all children.

Where a student had a sibling who was a full-time student at an approved institution, their living allowance was reduced by half the usual taper rate. If there were three or more siblings the taper rate used was divided by the total number of children (e.g. where there are three such students the rate of taper is one third the normal rate).

Commonwealth Scholarships Board Annual Report 1962

Commonwealth Scholarships and Awards Regulations (Amendment), 1962.

1965

Commonwealth Technical Scholarships and Commonwealth Secondary Scholarships introduced

The Commonwealth Technical Scholarship Scheme was introduced to provide 2,500 new scholarships each year for students studying technical certificate courses. All full-time scholarship holders received a living allowance of $200 per annum plus a textbook and equipment allowance and up to $150 for compulsory fees. Part-time scholarship holders received $100 per annum plus assistance with fees.

The Commonwealth Secondary Scholarship Scheme was introduced to provide 10,000 new scholarships each year to assist students to complete the final two years of secondary school. Selection was based on examinations and school assessments. All scholarship holders received living allowance of $200 per annum plus a textbook and equipment allowance and up to $150 for compulsory fees.

Department of Education and Science Report for 1967 and 1968, Canberra 1969.

The £1,700 income test threshold was increased to £2,000.

The dependent wife allowance was increased to £1.19s.0d per week.

Commonwealth Scholarships Board Annual Report 1964

Commonwealth Scholarships and Awards Regulations (Amendment), 1964.

1966

Commonwealth University Scholarships and Commonwealth Advanced Education Scholarships introduced

The Commonwealth University Scholarship Scheme and the Commonwealth Advanced Education Scholarship Scheme replaced the Commonwealth Scholarship Scheme. They operated under the same provisions as the Commonwealth Scholarship Scheme of earlier years. The Commonwealth administered the Advanced Education Scholarships directly while the University Scholarships continued to be administered by the states. New scholarships granted each year increased to 6,000 for university students and 1,000 for advanced education students.

Commonwealth Scholarships Board Annual Report 1965 and 1966

Commonwealth Scholarships and Awards Regulations (Amendment), 1966.

1967

The upper age limit for mature age scholarships was no longer enforced.

The period of self-support that qualified a student for independent status was reduced to three years.

The total number of scholarships awarded was increased to 8,000.

Permissible income for dependent students was increased to $312 per annum and for independent students to $364 per annum.

The income test threshold for maximum living allowance was increased from $2,000 to $2,200. The $4,000 income test threshold (at which the abatement rate increased from $2 to $3 for every $10 of excess family income) was increased to $4,400.

The adjustment to adjusted family income for dependent children was applied to children under to the age of 21 rather than under the age of 16.

Commonwealth Scholarships Board Annual Report 1966

Commonwealth Scholarships and Awards Regulations (Amendment), 1966.

1968

The Commonwealth Department of Education and Science took over full administration of the Commonwealth University Scholarship Scheme from state education departments.

The maximum living allowance rate for students living away from home was increased by $1 per week (from $852.80 to $904.80 per annum).

The allowance for the first dependent child of married students was increased to $1.50 per week and extended to all dependent children.

The maximum living allowance income test threshold was increased from $2,200 to $2,300.

Commonwealth Scholarships Board Annual Report 1967

Commonwealth Scholarships and Awards Regulations (Amendment), 1967.

1969

The number of university scholarships granted annually was increased to 9,500 and the number of advanced education scholarships increased to 1,500.

The income test for dependent students was changed so that the abatement rate was $2 for every $10 of excess income between $2,500 and $5,000. For excess income above $5,000 the abatement rate was $3 for every $10.

Commonwealth Scholarship Board Annual Report 1968

Commonwealth Scholarships and Awards Regulations (Amendment), 1969.

1970

Mature age awards were limited to applicants aged over 30 years. Other scholarships were made available to anyone under 30.

Dependent child allowances were increased to $2.50 per week. Dependent wife allowances were increased to $3.90 per week.

The number of university scholarships was increased by 2,000 and the number of advanced education scholarships by 1,000.

Commonwealth Scholarship Board Annual Report 1969

Commonwealth Scholarships and Awards Regulations (Amendment), 1970.

1971

The number of university scholarships granted annually was increased by 1,000.

Commonwealth Scholarship Board Annual Report 1970

1972

The number of advanced education scholarships granted annually was increased to 4,000.

Commonwealth Scholarship Board Annual Report 1971

1973

The number of advanced education scholarships granted annually was increased to 6,000 and the number of university scholarships granted each year was increased to 14,500.

The adjustment to adjusted family income for a dependent child was increased to $450 and the age limit for dependent children was increased to 25.

Student employment income was disregarded under the income test. Other income was disregarded if below $20 per week. Spouse income below $4,200 per annum was disregarded.

The wife allowance was replaced with a dependent spouse allowance of $8 per week available to both male and female students. Dependent child allowance was increased to $4.50 per week.

Fares allowances were increased to cover the full cost of the fare.

Commonwealth Scholarship Board Annual Report 1972

Commonwealth Scholarships and Awards Regulations (Amendment), 1972.

Commonwealth Scholarships and Awards Regulations (Amendment), 1973.

The Commonwealth Secondary Scholarship Scheme was renamed the Commonwealth Senior Secondary Scholarship Scheme and the annual number of scholarships awarded each year was increased from 10,000 to 25,000. A basic allowance of $150 per annum and additional means tested allowance of up to $250 per annum were provided to scholarship holders.

Department of Education and Science Report for 1972, Canberra 1973.

1974

Tertiary Education Assistance Scheme introduced

Secondary Allowances Scheme introduced

An interim Tertiary Allowance Scheme commenced in January. It became the Tertiary Education Allowances Scheme after 14 October when the Student Assistance Act 1973 commenced.

The Commonwealth University, Advanced Education and Technical Scholarship Schemes were abolished. Fees for universities, colleges of advanced education and technical colleges had been abolished in 1973.

The new schemes provided means tested grants free of competitive entry requirements for students undertaking approved courses at universities, colleges of advanced education, technical colleges and other institutions. No limit was placed on the number of students who could be assisted.

Living allowances were paid to full-time students considered dependent on their family, subject to a parental means test. In families with one student, when adjusted family income exceeded $5,300 per annum, annual living allowance was reduced by $2 for every $10 of excess income up to $10,600 and $3 for every $10 of excess income above that amount. In families with two eligible students each living allowance was reduced at half the rate set out above. If there were three or more eligible students in a family the living allowances were reduced at one third, one quarter and so on of the above rate depending on the number of students in the family.

Dependant student income above $1,500 during the academic year was also assessed under the means test.

Adjusted Family Income was the gross income of both parents in the financial year prior to the year of study less income tax deductions and $450 for each dependent child or full- time student apart from the student being assisted, and any bonded students.

Students considered independent of their families were paid living allowances with a personal means test only. Those considered independent, and not subject to the parental means test, were those who were aged over 25 years; had been married or had been in a de facto relationship for two years; were orphans or state wards; or, had been self-supporting for two of the last five years. Where their income exceeded $1,500 during the academic year their living allowance was reduced by $1 for every $1.50 of excess income. The income of a spouse was not assessed until it exceeded $5,300 per annum.

The maximum annual rates were $850 for those living at home and $1,400 for those living away from home or independent. Incidental allowances and travel allowances were also available. Dependent allowances were also provided for dependent spouses and children.

The Secondary Allowances Scheme provided, subject to a family means test, for students enrolled in the final two years of secondary schooling. No limit was placed on the number of students who could be assisted. Maximum allowance was paid if adjusted family income did not exceed $5,300. Payment was reduced by $1 for every $5 of excess income.

Student Assistance Act 1973

Student Assistance Regulations, 1974.

1975

No new awards of Senior Secondary Scholarships were made from 1975

The Adult Secondary Education Assistance Scheme was introduced for mature age students undertaking full-time final year matriculation studies. They received the same benefits as students under the Tertiary Education Assistance Scheme. Qualifying students had to be 19 years of age or older and have had a substantial break from secondary schooling.

Student Assistance Act 1973

Student Assistance Regulations, 1974.

1977

Eligibility for independent status on the grounds of two years self-support was limited to those who had been full-time in the workforce including periods registered as unemployed.

A higher income threshold of $4,850 was introduced for single independent students with dependents.

Student Assistance Regulations (Amendment), 1976.

1982

Qualification for independent status on the grounds of participation in a de facto relationship was ended.

Student Assistance Regulations (Amendment), 1981.

1986

From July it became possible to qualify for the independent rate on the grounds of homelessness.

Student Assistance Regulations (Amendment), 1986.

1987

Austudy introduced

The Tertiary Education Assistance Scheme, the Secondary Allowances Scheme and the Adult Secondary Education Assistance Scheme were all combined in a new payment system called Austudy.

Most provisions of the older Tertiary Education Assistance Scheme continued under Austudy with the following major changes.

Assistance was payable to students from the age of 16 years while studying secondary or tertiary courses. Study had to be full-time in secondary school or at least three quarters of a full-time workload in other cases. Concessions existed for students facing unusual situations or dealing with disability or illness. Assistance was normally payable for the minimum duration of a course and could only be provided for one course at each level of studies (secondary, undergraduate, postgraduate or technical). There were many exceptions to these basic rules to take account of complex situations.

Living allowances were paid at rates that varied according to the age of the recipient and whether they were living at home, away from home or were independent. Rates for dependent students were set at the same level as comparable junior rates of unemployment payments.

Independent status was available where a student was or in some cases had been:

• 25 years of age
• married
• a ward of the state
• living in a facto relationship and had a dependent child
• employed full-time (25 or more hours per week) for two years of the last three years (including periods registered with the Commonwealth Employment Service, in receipt of a pension or benefit, incapacity preventing work and on paid leave)
• an orphan or parental support was unavailable due to mental illness, imprisonment or missing parents
• a refugee without parents in Australia, or
• homeless for six weeks.

Incidentals Allowance was abolished and an allowance was introduced to meet the cost of the newly introduced Higher Education Administration Charge.

Dual eligibility for social security or veterans’ pensions and benefits and student living allowances was ended. Recipients of Supporting Parent’s Benefit, Widow Pension Class A, Invalid Pension or Carers’ Pension who otherwise qualified for Austudy were eligible for an education supplement of $15 per week.

Student Assistance Regulations (Amendment), 1986.

1988

Dependent child allowance ceased to be payable under Austudy. It was replaced with Family Allowance Supplement which was provided by the Department of Social Security.

The workforce participation requirement for independent status was changed from two years of work in the last three to three years of work in the last four.

The definition of income for adjusted family income was changed from gross income to taxable income as assessed at the end of the most recent financial year.

Student Assistance Regulations (Amendment), 1987.

1989

Students with dependent children became eligible for independent status.

New Zealand citizens needed to be permanently settled in Australia and have lived in Australia continuously for at least 6 months to qualify for Austudy.

An assets test was introduced. Parental assets above $300,000 precluded the payment of Austudy. For independent students, assets above $127,000 for partnered students and $89,250 for single students precluded the payment of Austudy. There was a fifty per cent discount on the value of assets for assets of a business or farm in which the owner worked. Thresholds were indexed to the CPI annually in January.

A new rate was introduced to align Austudy rates for older students with adult rates of unemployment benefit. Special rates were introduced for:

• students who had transferred from a social security pension or benefit and were aged 21 years or more
• migrant students aged 21 years or more studying English as a second language
• students with a dependent child
• married students with a dependent spouse and
• de facto married students with a dependent spouse who otherwise qualify as independent.

These rates varied according to whether the student was dependent, independent, living at home or away from home. Single parents received a higher rate of $7,104 per annum.

General secondary students became eligible for an away from home rate of payment.

Allowance rates and the adjusted family income level used in the income test were indexed to the CPI annually in January.

Student Assistance Regulations (Amendment), 1988.

Student Assistance Regulations (Amendment), 1988.

1990

Payments to reserve defence force members were excluded from student income assessments.

Student Assistance Regulations (Amendment), 1990.

1991

The threshold for the spouse income test was reduced from $18,150 to $12,150.

A new higher rate of $6,341 per annum was introduced for independent students who were married with children.

Modified progress and workload rules were introduced for severely disabled students.

AUSTUDY Regulations, 1990.

1992

The adult secondary student category was merged with the general secondary student category to form one secondary student category.

AUSTUDY Regulations (Amendment), 1991.

1993

The Austudy/Abstudy Supplement was introduced. It was a student loan scheme. Students who qualified for student assistance (category 1) could forgo part or all of their entitlement in exchange for a loan of up to $4,000 per annum on the basis of one dollar of payment for two dollars of loan. Students who did not qualify for payment due to the parental income test but whose parental income was less than $50,000 per annum (category 2) could access a loan of up to $2,000 per annum.

The loans were provided by the Commonwealth Bank. The loans were interest free but the amount was adjusted annually in line with the CPI. Repayments commenced after five years if the student’s taxable income had reached a threshold comparable to average weekly earnings. The loan could be paid back early with a fifteen per cent discount.

Student Assistance Amendment Act 1992

The age of independence was reduced to 24 years.

AUSTUDY Regulations (Amendment), 1992.

1994

The age of independence was reduced to 23 years.

Fringe benefits paid to a student’s parents or spouse were included in the calculation of adjusted family income.

The parental and spouse income tests no longer applied where a parent or spouse had a Health Care Card.

AUSTUDY Regulations (Amendment), 1993.

1995

The age of independence was reduced to 22 years.

The value of rental property loss tax deductions were added in to adjusted family income for the parental and spouse income tests.

Rent Assistance was payable for homeless students.

AUSTUDY Regulations (Amendment), 1994.

1996

The Actual Means Test was introduced. It applied where taxable income was not a reliable indicator of actual means due to complex financial arrangements. The test considered expenditure and savings instead of taxable income.

AUSTUDY Regulations (Amendment), 1995

1997

The age of independence was increased to 25 years.

AUSTUDY Regulations (Amendment), 1996.

A two year waiting period was introduced for migrants arriving in Australia after 1 January 1997.

Social Security Legislation Amendment ( Newly Arrived Resident’s Waiting Periods and Other Measures) Act 1997

1998

Youth Allowance and Austudy Payment introduced

Youth Allowance replaced Austudy for students aged under 25 years and a number of social security payments for young people: Youth Training Allowance; Newstart and Sickness Allowances for people aged less than 21 years; and Family Allowances for secondary students aged 16 to 18 years. Youth Allowance became the payment for most young people needing income support, whether studying or unemployed (young people with long term disabilities still received Disability Support Pension).

Youth Allowance was a social security payment. This meant that for the first time student income support was administered by the Department of Social Security.

Students undertaking full-time study aged 16 to 24 years were eligible. They could remain on Youth Allowance after turning 25 if they were still doing the same course. Full-time study meant being enrolled at an approved institution and undertaking at least 75 per cent of a full-time workload.

People studying part-time and working part-time or looking for work aged 18 to 20 years were also eligible.

The rate of Youth Allowance depended on a personal means test and a parental means test.

Full-time students could earn up to $230 per fortnight and still receive the full rate. Income over $230 but below $310 reduced payment by fifty cents for every dollar of income. Income above $310 reduced payment by seventy cents for every dollar of income. An income bank allowed students to accumulate any unused portions of their fortnightly free area of $230 up to a maximum of $6,000. This bank was then depleted at times of higher earnings such as periods of vacation employment.

A personal assets test could also be applied. Asset limits were $121,000 for a single independent student and $172,250 for a partnered independent student.

The parental means test was applied where the student was not independent. Students whose parents received certain social security income support payments or Abstudy were exempt from the parental means test. The means test had three parts:

• a family assets test restricted eligibility to students whose families had less than $407,250 of assets (fifty per cent discount applied to business or farm assets)
• an income test and
• a family actual means test, where taxable income was not a reliable guide to a family’s means due to the possible use of tax minimisation.

Under the income test family taxable income above $23,400 per annum reduced payment by 25 per cent of the excess income. Where there were other dependent children aged up to 25 years the threshold was increased by $3,700 for each non-student aged 16–25 years; by $1,200 for the first child aged under-16 years and $2,500 for each additional child aged under-16 years; and, by $7,400 for each additional student aged 16–25 years.

In most cases the taxable income used was that assessed in the financial year ending before the academic year began. Certain amounts were added to or deducted from taxable income. They included maintenance income paid or received, employer provided fringe benefits, non-taxable foreign income and net passive business losses.

Students could be classed as independent of their parents where they:

• had a dependent child
• had been married or in a de facto relationship (for 12 months or more)
• had worked full-time (at least 30 hours per week) in Australia to support themselves for at least eighteen months in the previous two years
• had worked part-time (at least 15 hours per week) for at least two years since leaving school
• were a refugee, ward of the state, orphan or homeless
• had earned at least $13,800 over 18 months since leaving school
• were 25 years of age or
• had parents who could not exercise their responsibilities or it was unreasonable for them to live at home.

Rates of payment varied according to the dependency status of the student, their previous income support history, whether they were living at home or away from home and any special circumstances relating to whether they had dependents of their own and whether they were able to have parental support. Rates were indexed annually.

Students receiving Youth Allowance could also be eligible for Fares Allowance, Rent Assistance and Remote Area Allowance.

A Student Loan Scheme was introduced into the Social Security Act for Youth Allowance and Austudy Payment students. It was much the same as the scheme that existed under Austudy. Loans could be up to $7,000 per annum for category one students or $2,000 per annum for category two students.

Austudy Payment replaced Austudy for students aged 25 years or more. The new payment mainly continued the provisions of Austudy for older students. However, as part of the Social Security Act it was structured in a similar way to other social security benefits.

It differed from Youth Allowance in that it was only for students and treated all recipients as independent. The basic rates were the same as for Youth Allowance but there were no at-home rates. Austudy Payment recipients were not eligible for rent assistance.

Social Security Legislation Amendment (Youth Allowance) Act 1998

2000

Students claiming independent status on the basis of having worked full-time for at least eighteen months could meet this requirement in any two year period, not just the two years immediately prior to claiming Youth Allowance. In addition full-time employment outside of Australia could count towards this requirement.

Youth Allowance Consolidation Act 2000 | Bill Homepage

The rates of Youth Allowance and Austudy Payment were increased in July as part of the compensation for the introduction of the Goods and Services Tax.

2001

The proportion of the assets of a business that could be disregarded under the family assets test was increased from 50 per cent to 75 per cent.

Family and Community Services (2000 Budget and Related Measures) Act 2000 | Bill Homepage

2005

From July eligibility for Youth Allowance was extended to apprentices.

Social Security Amendment (Extension of Youth Allowance and Austudy Eligibility to New Apprentices) Act 2005 | Bill Homepage

2008

Eligibility for Youth Allowance and Austudy Payment was extended to students doing certain masters by coursework degrees.

Recipients of Austudy Payment were made eligible for Rent Assistance.

Social Security Legislation Amendment (2007 Budget Measures for Students) Act 2007 | Bill Homepage

2010

The age of eligibility for independence was reduced to 24 years from April.

From July the independence criteria based on working full-time for 18 months in a two year period was adjusted so that full-time work had to be for an average of 30 hours per week rather than at least 30 hours per week.

The means test was changed so that only one income test was applied when determining a rate of payment. Whichever test gave the lowest rate was applied. Previously the family income test or the actual means test and the personal income test could both be applied.

The parental income test threshold was changed to be the same as that which applied for Family Tax Benefit Part A in January of each year. This increased the threshold to $44,165 in July 2010.

The taper rate at which excess income under the income test reduced entitlement was changed to 20 per cent from 25 per cent. The reduction was apportioned between each dependent student income support recipient in the family.

A Student Start-up Scholarship was introduced from April. It was paid in six monthly instalments to all full-time students who qualified for Youth Allowance or Austudy Payment. The amount of the scholarship in 2010 was $650. In 2011 the rate was to be $1,064. The rate was to be indexed to the CPI in January each year.

A Relocation Scholarship was introduced from April. It was paid to dependent students who needed to live away from home and independent students who were disadvantaged by personal circumstances and unable to live at home. The scholarship was $4,000 for the initial relocation and $1,000 for each other year living away from home.

Merit and equity based scholarships up to $6,762 per annum were exempt from the income test.

Social Security and Other Legislation Amendment (Income Support for Students) Act 2010 | Bill Homepage

2011

The age of eligibility for independence was reduced to 23 years.

Independent status through either working part-time (at least fifteen hours per week) for at least two years since leaving school, or earning at least 75 per cent of Wage level A of the National Training Wage schedule included in a modern award over 18 months since leaving school was limited to students who:

• had a family home located in an area classified under the Australian Standard Geographical Classification as outer regional, remote or very remote Australia
• were required to live away from home
• were undertaking full-time study, and
• had a combined parental income for the relevant tax year less than $150,000.

The Rural Tertiary Hardship Fund was established to provide $3,000 one off grants to non-metropolitan students commencing a bachelor degree and experiencing severe financial hardship.

Social Security and Other Legislation Amendment ( Income Support for Students) Act 2010 | Bill Homepage

2012

Students aged 16 to 17 years ceased to be eligible for Youth Allowance unless they were independent, required to live away from home or already receiving Youth Allowance. Family Tax Benefit part A became the primary payment for students in this age group.

Families, Housing, Community Services and Indigenous Affairs and Other legislation Amendment (Election Commitments and Other Measures) Act 2011 | Bill Homepage

The age of eligibility for independence was reduced to 22 years.

Social Security and Other Legislation Amendment ( Income Support for Students) Act 2010 | Bill Homepage

The limitation of access to independent status based on being self-supporting through employment introduced in 2011 were eased by allowing students from inner regional areas to use those criteria, provided they met the other conditions set out in the 2011 entry above.

The rate of the Relocation Scholarship was adjusted to provide a higher rate for students from regional Australia. All eligible students received $4,000 in the first year of living away from home. Regional students received $2,000 in the second and third years and $1,000 in subsequent years. Non-regional students received $1,000 in each year after the first. The rate was indexed to the CPI from 2013.

The rate of the Start-up Scholarship was set at $1,025 for each six monthly payment. The rate was not indexed.

The personal income test free area for Youth Allowance and Austudy Payment was increased from $236 to $400 per fortnight from July. The threshold was indexed to the CPI annually from January 2013. The maximum balance in the student income bank was increased from $6,000 to $10,000 from July and indexed to the CPI from January 2013.

The Rural Tertiary Hardship Fund was abolished from the end of 2011.

Social Security Amendment (Student Income Support Reforms) Act 2011 | Bill Homepage

From May as part of the compensation package for the introduction of a carbon pricing mechanism recipients of pensions, other income support payments and family payments were paid a lump sum Clean Energy Advance equivalent to 1.7 per cent of the rate of each payment in advance of the commencement of the carbon pricing mechanism. Some Youth Allowance and Austudy Payment recipients received two Advance payments—one covering the entire 2012–13 financial year and one in July 2013 to cover the period 1 July 2013 to 31 December 2013.

After the mechanism was in place a Clean Energy Supplement was paid either fortnightly or quarterly to provide ongoing compensation for the impact of the carbon pricing mechanism. The supplement was paid to Youth Allowance and Austudy Payment recipients from 1 January 2014. The supplement was set at 1.7 per cent of the rate of each payment and was indexed to maintain its real value.

Clean Energy (Household Assistance Amendments) Act 2011 | Bill Homepage

2013

Income Support Bonus was introduced for eligible income support payment recipients, including Austudy Payment and Youth Allowance recipients. A tax free, means test free payment of $105 for single persons ($87.50 partnered) was paid twice yearly in March and September. The Bonus was indexed to the CPI twice yearly in March and September.

Social Security and Other Legislation Amendment (Income Support Bonus) Act 2013 | Bill Homepage

2014

Access to Youth Allowance and Austudy Payment was extended to more students studying for a masters program by coursework.

Student Assistance (Education Institutions and Courses) Amendment Determination 2013 (No. 1)

From September the Clean Energy Supplement was renamed the Energy Supplement and ceased to be indexed.

Social Security and Other legislation Amendment (2014 Budget Measures No. 6) Act 2014 | Bill Homepage

2015

Students relocating between major cities were no longer eligible for the Relocation Scholarship.

Portability of student payments for up to six weeks while overseas was limited to absences for the purposes of seeking medical treatment or attending to an acute family crisis. Absences for study purposes were unaffected by this change.

From July indexation of the assets test limits was paused for two years.

Social Security and Other legislation Amendment (2014 Budget Measures No. 6) Act 2014 | Bill Homepage

2016

The Student Start-up Scholarship was replaced by a Student Start-up Loan. The loan was income contingent and repayment was only required once the student’s Higher Education Loan Programme debt was repaid. Students could take up to two loans of $1,025 per annum. The amount of the loans was indexed from 2017. Students who had already received a Student Start-up Scholarship could continue to receive them while they continued to receive student payments.

Labor 2013-14 Budget Savings (Measures No. 2) Act 2015 | Bill Homepage

The family assets test and the family actual means test were no longer applied.

From July all Family Tax Benefit part A children in the family of a Youth Allowance student were taken into account when calculating the rate of Youth Allowance, not just those who were aged 16 years or more and at secondary school.

Parental income test exemptions were aligned with those for Family Tax Benefit part A.

The treatment of maintenance income was changed to match that which applied to Family Tax Benefit part A.

Social Security Legislation Amendment ( More Generous Means Testing for Youth Payments) Act 2015 | Bill Homepage

In December the Income Support Bonus was abolished.

Minerals Resource Rent Tax Repeal and Other Measures Act 2014 | Bill Homepage

2017

From July Student Start-up Scholarships were abolished.

Budget Savings (Omnibus) Act 2016 | Bill Homepage

From July Youth Allowance and Austudy recipients who were partnered to certain income support recipients were no longer exempt from the benefit assets test.

Social security means test rules for assessing interests in trusts and companies were extended to independent Youth Allowance and Austudy Payment recipients.

Periodic gifts from immediate family members were no longer included as income under the personal income test.

Tax free pensions and benefits will be included in the definition of parental income for the income test to bring it into line with the FTB income test.

Social Services Legislation Amendment (Simplifying Student Payments) Act 2017 | Bill Homepage

2018

The independence criteria which required a person from a regional or remote area with parental income of below $150,000 per annum, to support themselves by earning at least $24,042 (2016-17) in an 18 month period will be amended to reduce the period to 14 months. Under this new criteria, it is possible for a person to finish school in November, take a gap year and start university in February, 14 months later.

Social Services Legislation Amendment (Simplifying Student Payments) Act 2017 | Bill Homepage

Indexation of income test free areas and means test thresholds will be paused for three years.

Social Services Legislation Amendment Act 2017 | Bill Homepage

2019

From 1 January 2019, all students receiving income support will be automatically issued with a Health Care Card.

Social Services Legislation Amendment (Simplifying Student Payments) Act 2017 | Bill Homepage