More generous means testing arrangements for youth payments from January 1, 2016 will give Forde families better opportunities to support their children from school to further study.
The Federal Government will remove the Family Asset Test and Family Actual Means Test from the Youth Allowance Parental Income Test to provide a more generous means testing arrangement.
Member for Forde, Bert van Manen MP said the 2015-16 Budget measure ensured the assessment of a young person’s access to Youth Allowance would be based on a fairer measure of family income than the current system.
“Removing the Family Asset Test will allow families with dependent children in Forde to qualify for Youth Allowance for the first time and access average annual payments of more than $7000 a year,” Mr van Manen said.
“The removal of the Family Actual Means Test will also see more families with dependent children receive Youth Allowance for the first time and increased payments for some existing students in Forde by approximately $2000 a year.
“The changes exempt farming families in Forde from having their farm assets count towards the Family Asset Test for assessing Youth Allowance.”
Mr van Manen said from July 1, 2016 the Government would be changing Youth Allowance parental income testing arrangements to include all Family Tax Benefit children in the family pool.
The current test only includes dependent children over 16.
These changes will see:
- Some working families in Forde with dependent children in both the Family Tax Benefit and youth payment systems eligible for an average increase in payment of $43 per fortnight ($1118 per annum)
- Some Forde families who currently miss out on youth payments due to higher taper rates will be eligible for an average payment of around $50 per fortnight ($1300 per annum)
“Simplifying the parental means test will provide additional assistance for working families in Forde to support their children making the transition from school to further study,” Mr van Manen said.
“These changes are great news for local families, boosting the number of families we assist, the level of that assistance, encouraging more young people into study to build their careers, develop economic opportunities and contribute to our economy.”