Some people are entitled to various forms of income support from the government. This includes people who are unable to work due to sickness, old age, or disability. It also includes students who are studying full-time in an approved course or doing an Australian Apprenticeship.
An income support payment from the government is called an allowance or pension. It is provided by the Department of Human Services, through the Centrelink program. Eligibility for income support depends on the circumstances of the individual.
For students engaged in full-time study or an Australian Apprenticeship, the government offers three main types of regular payment that can be used to cover day-to-day expenses while studying or training:
Government allowance | Description |
---|---|
Youth Allowance | Full-time students, under $25$25 years of age, studying an approved course or doing an Australian Apprenticeship |
Austudy | Full-time students, aged $25$25 years or older, studying an approved course or doing an Australian Apprenticeship |
ABSTUDY | Aboriginal or Torres Strait Islander students, studying an approved course or doing an Australian Apprenticeship |
There are additional allowances students can claim to help cover specific costs like travel fares and rent assistance.
The table below shows some of the other types of income support provided by the government:
Government allowance or pension | Description |
---|---|
Age pension | People who have reached the pension age |
Disability support pension | People with a permanent condition that prevents them from working |
Family tax benefit | Assists families with the cost of raising children |
Newstart Allowance | Unemployed people aged $22$22 or over who are looking for work |
Sickness Allowance | People unable to work or study temporarily because of illness, injury or disability |
Government allowances and pensions come with a set of eligibility criteria that an applicant must meet before they can receive any payments. These could include being a certain age, earning less than a certain amount, or being enrolled in an approved course.
Tables, like those in the worked examples below, are used to determine how much government income support a person is entitled to receive.
The following table is used to determine the maximum amount of Youth Allowance available each fortnight for students and Australian Apprentices.
Table 1: Youth Allowance (2018-19) | |
---|---|
Your circumstances | Your maximum fortnightly payment |
Single, no children, younger than $18$18, and live at your parent’s home | $\$249.20$$249.20 |
Single, no children, younger than $18$18, and need to live away from your parent's home to study, train or look for work | $\$455.20$$455.20 |
Single, no children, $18$18 or older and live at parent’s home |
$\$299.80$$299.80 |
Single, no children, $18$18 or older and need to live away from parent’s home |
$\$455.20$$455.20 |
Single, with children |
$\$596.50$$596.50 |
Member of a couple, with no children |
$\$455.20$$455.20 |
Member of a couple, with children | $\$499.90$$499.90 |
Use table 1, to answer the following questions:
Solution:
Our aim is to match the individual's circumstances with the appropriate row in table 1.
Students who are studying full-time or doing an Australian Apprenticeship, may also be earning an income from a part-time job or some other means. In these situations, the student's Youth Allowance payments will be reduced according to table 2, below. Note that all income earnings in the table are fortnightly amounts.
Table 2: Impact of Earnings on Youth Allowance for Students and Australian Apprentices (2018-19) | |||
---|---|---|---|
Your situation | If you earn between $\$437$$437-$\$524$$524 your fortnightly payment reduces by: | If you earn more than $\$524$$524 your fortnightly payment reduces by: | Your payment reduces to $\$0$$0 once your incomes exceeds: |
Single, under $18$18, living at home | $50$50 cents for each dollar you earn over $\$437$$437 | $43.50$43.50 plus $60$60 cents for each dollar you earn over $\$524$$524 | $\$873.74$$873.74 |
Single, over $18$18, living at home | $50$50 cents for each dollar you earn over $\$437$$437 | $\$43.50$$43.50 plus $60$60 cents for each dollar you earn over $\$524$$524 | $\$958.84$$958.84 |
Single, or in a couple, no children, living away from home. |
$50$50 cents for each dollar you earn over $\$437$$437 | $\$43.50$$43.50 plus $60$60 cents for each dollar you earn over $\$524$$524 | $\$1221.84$$1221.84 |
In a couple with children |
$50$50 cents for each dollar you earn over $\$437$$437 | $\$43.50$$43.50 plus $60$60 cents for each dollar you earn over $\$524$$524 | $\$1297.50$$1297.50 |
Single with children | $50$50 cents for each dollar you earn over $\$437$$437 | $\$43.50$$43.50 plus $60$60 cents for each dollar you earn over $\$524$$524 | $\$1461.00$$1461.00 |
Use table 1 and table 2, to answer the following question:
Jennifer is $20$20 years of age, has no children and is living away from home. She is training for an Australian Apprenticeship and is entitled to Youth Allowance. She also works part-time in a hairdressing salon.
Solution:
Reduction in Youth Allowance | $=$= | $43.50+\left(750-524\right)\times0.60$43.50+(750−524)×0.60 |
$=$= | $43.50+\left(226\times0.60\right)$43.50+(226×0.60) | |
$=$= | $43.50+135.60$43.50+135.60 | |
$=$= | $\$179.10$$179.10 | |
Youth Allowance received | $=$= | maximum Youth Allowance$-$−reduction |
$=$= | $455.20-179.10$455.20−179.10 | |
$=$= | $\$276.10$$276.10 |
Marge is $25$25, a single parent and is undertaking a full-time apprenticeship as a hairdresser.
She is checking her eligibility for Austudy in the table given.
Eligibility basics
|
Your situation | The highest payment per fortnight is |
---|---|
single, no children | $\$455.20$$455.20 |
single, with children | $\$596.50$$596.50 |
In a couple, no children | $\$455.20$$455.20 |
In a couple, with children | $\$499.90$$499.90 |
How much would her maximum Austudy payment be each fortnight?
Give your answer to two decimal places.
Marge is living with her parents, aged $20$20, working part-time, and seeking full-time work. She earns $\$218$$218 a fortnight.
She is checking her eligibility for Youth Allowance.
Eligibility basics
|
Your circumstances | Your maximum fortnightly payment |
---|---|
Single, with no children, younger than $18$18 years, and living at parental home | $\$249.20$$249.20 |
Single, with no children, younger than $18$18 years, and required to live away from parental home to study undertake training or look for work | $\$455.20$$455.20 |
Single, with no children, $18$18 years or older and living at parental home | $\$299.80$$299.80 |
Single, with no children, $18$18 years or older and required to live away from parental home | $\$455.20$$455.20 |
Single, with children | $\$596.50$$596.50 |
Member of a couple, with no children | $\$455.20$$455.20 |
Member of a couple, with children | $\$499.90$$499.90 |
For a student on Youth Allowance the following applies: | ||||
If you earn: | Your fortnightly payment reduces by: | |||
Between $\$437$$437-$\$524$$524 | $50$50 cents for each dollar you earn over $\$437$$437 | |||
More than $\$524$$524 |
$\$43.50$$43.50 plus $60$60 cents for each dollar you earn over $\$524$$524 | |||
For a job-seeker on Youth Allowance the following applies: | ||||
If you earn: |
Your fortnightly payment reduces by: | |||
Between $\$143-\$250$$143−$250 |
$50$50 cents for each dollar you earn over $\$143$$143 |
|||
More than $\$250$$250 |
$\$53.50$$53.50 plus $60$60 cents for each dollar you earn over $\$250$$250 |
How much Youth Allowance is she entitled to per fortnight?
Give your answer to two decimal places.
When calculating the amount of Aged Pension an individual or a couple will receive, their age, their income and their assets are taken into consideration. If eligible, they will receive the maximum basic rate. Some individuals may qualify for the additional maximum pension supplement and or the energy supplement on top of the maximum basic supplement. Payments are then reduced when earning an income above a certain amount.
Consider the attached Age Pension eligibility rules.
Eligibility basics
|
Pension rates per fortnight |
Single | Couple each | Couple combined |
---|---|---|---|
Maximum basic rate | $\$843.60$$843.60 | $\$635.90$$635.90 | $\$1271.80$$1271.80 |
Maximum Pension Supplement | $\$68.50$$68.50 | $\$51.60$$51.60 | $\$103.20$$103.20 |
Energy Supplement | $\$14.10$$14.10 | $\$10.60$$10.60 | $\$21.20$$21.20 |
TOTAL | $\$926.20$$926.20 | $\$698.10$$698.10 | $\$1396.20$$1396.20 |
Pensioner | If income per fortnight is | Payment will reduce by |
---|---|---|
Single | Up to $\$172$$172 | $\$0$$0 |
Over $\$172$$172 | $50$50 cents for each dollar over $\$172$$172 | |
Couple combined | Up to $\$304$$304 | $\$0$$0 |
Over $\$304$$304 | $50$50 cents for each dollar over $\$304$$304 |
Kenneth and Kathleen are a couple who live together. They are both aged over $65$65 and they qualify for an energy supplement. The couple sell vegetables from their garden at a Thursday market where they make $\$101$$101 a week.
How much Age Pension do they, as a couple, receive each fortnight?
Give your answer to two decimal places.