1.2.1.20 Youth Allowance (YA) - Description

Objective of YA

YA is an income support payment (section 23(1)-'income support payment') for young Australians generally aged 16 - 21 AND full-time students or Australian apprentices aged 22 - 24 which aims to:

• ensure eligible young people receive adequate levels of income while studying, undertaking an Australian apprenticeship, looking for, or preparing for, paid employment,
• encourage young people to choose further education or training over job search if they have not completed the final year of secondary school or an equivalent level of education (Certificate Level II or above) or do not have sufficient skills to obtain long term employment, and
• encourage young people to undertake a range of activities that will improve their skills and promote entry into employment.

Assistance for students and Australian apprentices aged 25 years or over is generally provided under Austudy.

YA may also be paid to a person who:

• is under 22 years, and temporarily unable to work due to an illness or injury, or
• has claimed DSP and are awaiting the assessment of the claim, or
• is under 16 years of age and independent.

From 1 July 2006, if a young person with a physical, intellectual or psychiatric impairment is assessed as having a partial capacity to work (1.1.P.56), they may qualify for YA. YA is also the appropriate payment for principal carer (1.1.P.412) parents (partnered) with a youngest child aged 6 years or more and principal carer parents (single) with a youngest child aged 8 years or more who claim after 1 July 2006.

From 1 January 2012, dependent young people undertaking full-time secondary study will not be able to apply for YA until they turn 18, unless they:

• become independent,
• are required to live away from home to study, or
• are determined by the Secretary to be not benefiting from FTB that is being paid to the person's parents.

Young people in receipt of YA on 31 December 2011 can choose to remain on YA if they remain eligible or instead, relinquish their YA payment and have their parent(s) claim FTB for them from 1 January 2012 if their parent is otherwise eligible for FTB.

Act reference: SSAct section 23(1)-'income support payment'

Supplementary assistance

YA recipients MAY also receive:

• rent assistance (1.2.7.10),
• student start-up scholarship (1.2.7.160),
• relocation scholarship (1.2.7.150),
• pharmaceutical allowance (1.2.7.20),
• remote area allowance (1.2.7.80),
• fares allowance (1.2.7.90),
• a health care card (1.2.8.10),
• mobility allowance (1.2.5.40),
• bereavement payment (1.2.3.90),
• youth disability supplement (1.2.7.140),
• pensioner education supplement (1.2.7.30),
• telephone allowance (1.2.7.70), AND/OR
• pensioner concession card (1.2.8.20).

Bereavement payment provisions

The surviving member of a couple may be eligible for bereavement payments following the death of a partner.

Frequency of YA payment

YA is paid fortnightly.

Background information

YA was introduced from 1 July 1998, replacing the following 5 schemes for young people:

• Austudy for 16-24 year olds and certain 15 year olds,
• NSA for 16-20 year olds and certain 15 year olds,
• YTA for 16-17 year olds and certain 15 year olds,
• SA for 16-20 year olds and certain 15 year olds, and
• more-than-minimum rate family allowance for secondary students aged 16-18 not formerly getting Austudy.

On 1 January 2012, FTB became the primary payment for dependent full-time secondary students living at home under the Supporting Families with Teenagers Measure.

On 1 July 2012, the maximum age for YA was increased to 22 years for recipients not undertaking full-time study or an Australian apprenticeship.

Act reference: SSAct section 540 Qualification for youth allowance-general rule, section 540A(1) Qualification for youth allowance-claimants for disability support pension, section 542 Situations in which a person is not required to satisfy the activity test, section 544DA Youth Allowance Employment Pathway Plans-early school leavers, section 592F Qualification for student start-up scholarship payment, section 592J Qualification for relocation scholarship payment

Policy reference: SS Guide 1.2.2.30 Austudy Payment (Austudy) - Description, 3.2.3 YA - Qualification & Payability, 5.1.1.20 YA - Current Rates

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Last reviewed: 2 July 2012