3.2.3.20 Payability of YA

Summary

Even though a person is qualified, YA is NOT payable to the person in the circumstances listed in the following table. Where more detail about the circumstance is required, the second column indicates where you will find this.

Act reference: SSAct section 23(1)-'waiting period'

Community development employment projects

CDEP is a scheme funded by FaHCSIA. It provides funds to approved Aboriginal community groups to offer work to members of the community in activities that help individuals to acquire skills that:

• benefit the community,
• develop business enterprises, and/or
• lead to unsubsidised employment.

CDEP funding is used, among other things, to pay wages to scheme participants. The actual amount paid to individual participants is determined by the community and is based on the individual's contribution to the funded activity.

New CDEP participants commencing on or after 1 July 2009 will receive income support payments instead of CDEP wages. These new participants are not eligible for the CPS (1.2.7.100). From 1 October 2011 certain income support recipients who undertake CDEP activities will receive the approved program of work supplement of $20.80 per fortnight. Existing CDEP participants may continue to receive the CPS until 1 April 2012 providing they remain qualified. Between 1 April 2012 and 30 June 2012 those people on CDEP wages will be progressively transferred to income support and will then receive the approved program of work supplement.

The MBR and RAA of NSA are not payable to existing CDEP scheme participant receiving CDEP wages.

Income & assets testing

The following tests may apply to YA recipients:

• parental means test (1.1.P.50), which means the parental income test (1.1.P.40), family assets test and FAMT (1.1.F.10), UNLESS the person is independent,
• personal income test,
• partner income test, AND
• personal assets test.

The effect of these tests may be to reduce the young person's rate to nil, in which case they cannot be paid.

Policy reference: SS Guide Part 4 Income & Assets, 3.2.5 YA & DSP for Independent Young People

Employment income nil rate period - an incentive to take up work

A YA recipient (either student Australian apprentice or job seeker) who loses payment because of ordinary income (1.1.O.30), made up entirely or partly of employment income (1.1.E.102), may qualify for an employment income nil rate period. To assess qualification for an employment income nil rate period see 3.1.12 Employment Income Nil Rate Period.

During the nil rate period a YA recipient can:

• be paid certain supplementary benefits, and
• retain their HCC, and
• have their payment resumed if they report a fall in income sufficient for YA to be payable again.

Explanation: This policy provides incentives for YA recipients to take up work, particularly casual or short-term work.

Act reference: SSAct section 23(4A) Despite subsection (4)…, section 23(4AA) For the purposes of subsection (4A)..., section 1061ZMA Further extended qualification rule: loss of payment because of employment income

Policy reference: SS Guide 3.1.12 Employment Income Nil Rate Period, 3.9.1.10 Qualification for HCC - Automatic Issue, 3.9.2.30 PCC due to Employment, 1.1.S.370 Student income bank (YA, Austudy), 4.2.8.50 Full-time Students - Personal Income Test, Limits & Student Income Bank

Recipients travelling overseas

YA can only be paid to people travelling overseas if they:

• are still Australian residents (section 7(2)), AND
• are full-time students receiving YA while undertaking qualifying study overseas as part of their course at an Australian educational institution, OR
• are full-time students receiving YA and studying in Australia but travelling overseas during vacation periods, in which case they can receive payment for up to 6 weeks, OR
• are full-time Australian apprentices receiving YA, in which case they can receive payment for up to 6 weeks, OR
• are seeking medical treatment which is not available in Australia, in which case they can receive YA for up to 6 weeks, OR
• to attend to an acute family crisis and for a humanitarian purpose, OR
• are attending a training camp outside Australia as a member of the:
  • Australian Naval Reserve, OR
  • Naval Emergency Reserve Forces, OR
  • Australian Army Reserve, OR
  • Australian Air Force Reserve, OR
  • Army Individual Emergency Reserve.

Act reference: SSAct section 7(2) An Australian resident is...

Policy reference: SS Guide 7.1 Conditions for Payment Outside Australia, 7.1.2.20 Portability Table, 7.2 Arrangements for Payment Outside Australia

Students/Australian apprentices & vacation periods overseas

Full-time students and Australian apprentices receiving YA may, in certain circumstances, continue to receive payment while overseas.

• YA full-time student undertaking qualifying study in Australia continue to qualify for payment if they choose to spend their vacation period overseas. These recipients can continue to be paid for up to 6 weeks.
• YA Australian apprentices (remaining qualified by having a current Commonwealth registration number in respect to a full-time Australian apprenticeship) continue to qualify for payment if they choose to spend their vacation period overseas. These recipients can continue to be paid for up to 6 weeks.
• Students studying overseas through an Australian institution also qualify for payment if they choose to remain overseas during vacation periods.
• YA Australian apprentices continue to be paid YA as long as they are working overseas in their Australian apprenticeship and Commonwealth registration number in respect to a full-time Australian apprenticeship remains current.

Example: Mel has been working as an Australian apprentice (carpentry) for 6 months. The firm Mel works for obtains a contract in Indonesia to build housing for a period of 18 months and Mel agrees to move to Indonesia to continue her Australian apprenticeship. Mel continues to be paid YA during this period including her vacation period as long as her Commonwealth registration number in respect to her full-time Australian apprenticeship remains current.

Note: Full-time students would not satisfy the activity test when overseas outside vacation periods, unless while overseas they are considered to be enrolled as a full-time student at an Australian institution.

Payment of YA to a third party

YA for dependent young people aged 16 or 17 is ALWAYS paid to the parent(s) UNLESS an alternative direction has been made.

The whole or part of a person's payment of YA can be made to someone else on behalf of the person, if directed to do so by the:

• Secretary of the Department, OR
• the YA recipient, OR
• the parent (section 5(1)-'parent') of a dependent 16 or 17 year old claimant.

Act reference: SSAct section 5(1)-'parent'

Policy reference: SS Guide 8.4 Payment Methods

Direct payment to dependent young people under 18

YA can be paid directly to the dependent young person aged 16 or 17 if the:

• young person is:
  • not benefiting from the allowance because the parent(s) are using it for other purposes, OR
  • an Aboriginal or Torres Strait Islander who has been ceremonially admitted as an adult member of their community, OR
• parents:
  • leave Australia temporarily and the young person cannot access YA payments, OR
  • choose to have YA paid to the young person and authorises the change in writing. The parent does not have to explain their decision.

Shared custody

YA can only be paid into one account, and therefore cannot be split between separated or divorced parents or guardians. If custody is shared, YA is paid to the parent nominated by the YA applicant as the main carer. The main carer is the parent whose circumstances are assessed under the parental means test.

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Last reviewed: 2 January 2013