Budget 2008 - what it means for students

These changes include:

• The number of Bonded Merit Scholarships available has been increased, 500 more scholarships will be available to students – the total will now be 1,500 per year. 
• Student Allowance parental income thresholds will increase by 10% effective 1 January 2009 (It is already adjusted by CPI on 1 April each year).
• The age at which we parentally income test for Student Allowances will change from 16–24 to 16–23 years old from 1 January 2009.
• The maximum Student Loan Living Cost amount will increase to $155 per week from 1 January 2009 and will then be adjusted annually by the CPI process starting from 1 April 2009.

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What this means for students

Student Allowances

1. From 1 January 2009, there will be a 10% increase to the Student Allowance parental income thresholds. This means more students will be eligible for a Student Allowance and those currently receiving a parentally abated Student Allowance are likely to receive more money.

Parental income thresholds

The parental income threshold before abatement occurs will increase to approximately $50,318.32 on 1 January 2009.

Parental income cut out points will increase on 1 January 2009:

• from $71,280.88 to approximately $75,855.32 – if the student lives in the parental home
• from $77,663.36 to approximately $82,237.80 – if the student lives away from the parental home.
   

2. From 1 January 2009, the ages at which we parentally income test will change from 16-24 years to 16-23 years old. This is a significant change and will affect many different aspects of the Student Allowance eligibility criteria;

Parental income testing

• Parental income testing will only be required for those students who are under the age of 24 when they start study, excluding those who qualify for an Independent Circumstances Allowance or those who have a supported child(ren).
  

Supported children

• The definition of supported children will change to only include those children who are under the age of 24. The rest of the definition will remain the same.

 

Students with studying siblings

• Only the student’s studying siblings aged from 16-23 years of age on 1 January 2009 will be taken into account for the abatement of their parent’s income. This change will therefore exclude those studying siblings who are 24 years of age or older at the start of the student’s study.

Relationships

• Relationships will be recognised for Student Allowance purposes when both students are 24 years of age or over unless the client and their partner have dependent children in their care.

Bonded Merit Scholarships

From 1 January 2009 an additional 500 scholarships will be awarded to high achieving students through the Bonded Merit Scholarships. There will be no change to the current eligibility criteria and processes. There will be a total of 1,500 scholarships awarded in 2009.

 

Student Loan Living Costs

The Student Loan Living Cost component has been increased to a maximum of $155 per week from 1 January 2009 and will be adjusted annually through the CPI process from 1 April 2009.

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