1 January 2001
The value of a family's interest in the assets of a farm and/or business will be disregarded by 75 per cent instead of 50 per cent. Effectively, this enables young people from families with business assets up to $1.658 million to qualify for Youth Allowance, subject to the family income test.
This change will directly increase the Government's support of families, particularly those from rural areas. An estimated 7,200 young people will benefit from this measure.
Dependent young people claiming Youth Allowance are generally subject to a parental means test. This test comprises of a family assets test, a parental income test and a family actual means test.
The family assets value limit for Youth Allowance, which is indexed in January each year, is currently $414,500. The net value of farm and business assets are currently discounted by 50 per cent allowing families with net assets up to $829,000 to access Youth Allowance. From 1 January 2001, the proposed change will increase the discount from 50 per cent to 75 per cent.
The family actual means test and parental income test will continue to apply where appropriate.
Dependent tertiary students who qualified for a Category 2 loan under the Student Financial Supplement Scheme because they were not eligible for Youth Allowance due to their family's business assets, will now be eligible to receive Youth Allowance, subject to the family income test.