The Law Handbook 2024

324 Section 5: Managing your money a young person is classified as dependent at home, or dependent and required to live away from home, or independent. Required to live away from home A young person (aged 16 to 21) is considered to be required to live away from home if they: • are not independent; • do not live at a parent’s home; and • need to live away from home for education, training or work, or their prospects are significantly increased if they live away from home, or because they need to live away from home because they are a new apprentice (s 1067D). Independent A young person is independent (s 1067A SS Act) if they: • are an orphan; • are a refugee not wholly or substantially dependent on someone else and without a parent living in Australia; • are self-supporting due to an employment history as defined in the legislation; • have an employment history as defined in the legislation, are unsupported, and are disadvantaged in relation to employment or education; • are or have been married, in a registered relationship, or in a de facto relationship for a year; • have a dependent child; • have parents who cannot exercise their responsibilities; • are in state care; • cannot live at home due to extreme family breakdown, serious risk to physical or mental wellbeing due to violence, sexual abuse or other unreasonable circumstances, lack of stable accommodation; and are not receiving continuous support, whether financial or other, from a parent, guardian or the state; • have a partial capacity to work (Youth Allowance (job seeker) only); • are aged 22 or older. Rate of allowance (Part 3.5 SS Act) The Youth Allowance is paid subject to: • the parental and personal means tests (if the per- son is not independent); or • the personal means test (if the person is independent and single); or • the partner and personal means tests (if the person is independent and a member of a couple). The parental means test applies to young people who are not independent, including those required to live away from home. The Youth Allowance reduces by 20 cents for every $1 the parent’s income exceeds a threshold ($58 108). This reduction is shared between others subject to this parental income test who receive specified payments. There is also an assets test and a family maintenance income test. Under the personal income test, the Youth Allowance for full-time students is reduced as the student’s income increases. However, the first $9174 of a merit and equity-based scholarship is exempt. A job seeker can earn $150 per fortnight and a student or Australian apprentice $480 per fortnight without affecting the Youth Allowance rate. The rate of reduction after that changes frequently; contact Centrelink for specific rates. New Youth Allowance (student) recipients can get a Student Start-up Loan (SSL). The SSL replaced the Student Start-up Scholarship. Currently the SSL is $2402 per annum and is paid in two instalments of $1201. The SSL is repayable under the same arrangement as HELP debts. Youth Allowance (student) recipients who are required to live away from home to study full-time may, in some circumstances, be eligible for a Relocation Scholarship of $5080 for their first year, and a reduced amount for further years (with the amount varying depending on their circumstances). The relocation scholarship is not available for students who move from one major city to another. (See also A Guide to Australian Government Payments for more information about Youth Allowance.) Compliance with mutual obligations requirements Some allowances and payments are conditional on recipients complying with job search obligations (‘mutual obligations’). These payments are known as ‘participation payments’ and generally include the JobSeeker Payment, but also Youth Allowance, the Parenting Payment, and the Special Benefit. A failure to comply with those mutual obligations can have consequences under the Targeted Compliance