Big changes for students in new support package

Press, 28 November 1988, Page 38

Big changes for students in new support package

By

JENNY LONG

education or training. A feature of the new system is that some payments require parental income to be tested. The payments vary according to the age of the student, and according to their parents’ income (for those aged under 20). Application for Family Support should be made to the Inland Revenue Department. For students, payments next year are to be made fortnightly by most institutions, and by direct credit to students’ bank accounts. The payment period is from the start of the

course to the end of the course. Application forms should be available at schools and tertiary institutions by December. To calculate the amount that a student will receive next year, use table 1. Use either table 2 or 3, as appropriate, to calculate the amount of targeted, or income-tested assistance you will receive. The figures quoted in table 1 are all for single students. Other conditions could apply for married students, or those with dependants, for example. All allowances will be introduced from January

1, 1989, except for those marked *, which will begin on April 1. The Education Department has set up a special Youth Allowances Implementation team, which can answer questions from the public. The telephone number is Wellington 732-220. The team is preparing information booklets and application forms for distribution to schools and tertiary institutions. The Student Allowances section, Education Department, Box 1379, Wellington, will answer written queries.

The youth support package to be introduced next year makes sweeping changes to the level of Government support for tertiary students. Some secondary-school pupils, through extra payments to their parents, will get more financial support. Seen by the Government as an encouragement to study, when fully implemented the new system will remove the anomaly of the present system, of the unemployed being paid more than those who are in

(1) $ll and $22 payable only if student has completed four years secondary education. (2) Access and unemployed payments will not be targeted in 1989. Targeting begins 1990-91. Rates for 18 and 19 year old access and unemployed will be changed in the long-term to be more in line with tertiary students. (3) Likely in the long-term that these students will qualify for tertiary allowances.

Key: FB/FS; family benefit and eligible for family support. (The parents of a 15-year-old will get $6 a week from family benefit for each child of that age who is a pupil, unemployed or on an Access course.) In 1989, parents of 15 and 16-year-old secondary school pupils will also receive an “enhanced” family support payment of $36 a week regardless of the child’s position in the family. (Previous payment was $16.) ♦For allowances paid from April 1, 1989. All

others from January 1, 1981. T: parental income tested, (see table 2 or 3 to calculate the approximate amount you will receive.) acc: accommodation benefit. Payable to tertiary students, aged 16 to 19, and secondary pupils, aged 18 to 19, required to live away from home to attend their courses. Also available to tertiary and secondary students, aged 20 and over, who choose to live away from home. Calculated on a regional basis. Likely that those sharing flats will receive

up to $l7 a week, those in hostels between $8 and $25 a week. tr: transport allowance; a 75 per cent subsidy on weekly transport costs over $2O (by the cheapest means) for those 16 to 19-year-old tertiary students living at home. Maximum allowance $2O a week. A non-taxable allowance. Circumstances Independent circumstances allowance: of $lOB a week is available for 16 to 19-year-old tertiary students and 18 and 19-year-old secondary pupils who are unable to rely on parental support

because of sexual abuse, physical violence or other exceptional circumstances. Students must establish that it would be impossible for them to be financially dependent on their parents because their physical or mental wellbeing would be at risk. Those who have lived away from home, and been in the paid workforce for at least two years can also qualify, and the parental income test would be waived for those who qualify. Note: All figures are in April, 1988, terms, and are after-tax amounts.

The maximum rates of $lOB (required to live away from home) and $B6 (at home) are available to young people whose parent(s) gross income is $5OO or less per week. After this, the allowance reduces at $1 in $4 to $65 for 18-19 year olds required to live away from home and $43 for 18-19 year olds living at home.

age Secondary at home away from 15 FB/FS FB/FS 16-17 $ FB plus enhanced FS* (3) FB plus enhanced FS* (3) 18-19 43 plus 43T 65 plus 43T plus acc (Students must turn 18 before Jan 1, 1989, to qualify) 20T $$ 86 108 plus acc Tertiary at home away from FB/FS FB/FS 80T plus tr plus $11 (1) 80T plus acc plus $22 (1) 43 plus 43T plus tr 65 plus 43T plus acc 86 108 plus acc Unemployed at home FB/FS* 80T plus acc (2) 108T plus acc (2) 134 plus acc away from FB/FS* 80T plus acc (2) 108T plus acc (2) 134 plus acc Access at home FB/FS* 80T plus acc (2) 108T plus acc (2) 134 plus acc away from FB/FS* 80T plus acc (2) 108T plus acc (2) 134 plus acc

Entitlement 16-17‘ year olds Youth Parents’ (gross) income allowance Weekly Annual per week $ $ $ under 360 under 18,720 80 380 19,760 75 400 20,800 70 420 21,840 65 440 22,880 60 460 23,920 55 480 24,960 50 500 26,000 45 520 27,040 40 540 28,080 35 560 29,120 30 580 30,160 25 600 31,200 20 620 32,240 15 640 33,280 10 660 34,320 5 680 35,360 0 over 680 over 35,360 0 The maximum rate of $80 is available to young people whose parent(s) gross income is $360 or less per week. After this, the allowance reduces at $1 in $4. 18-19 year olds Youth Parents’ (gross) income allowance Weekly Annual At home Away $ $ $ $ under 500 under 26,000 86 108 520 27,040 81 103 540 28,080 76 98 560 29,120 71 93 580 30,160 66 88 600 31,200 61 83 620 32,240 56 78 640 33,280 51 73 660 34,320 46 68 680 35,360 43 65 over 680 35,360 43 65