Growing Jobs and Small Business - increasing the age of eligibility for Newstart Allowance and Sickness Allowance – delay

The commencement of the 2014-15 Budget measure, Increase the age of eligibility for Newstart Allowance and Sickness Allowance, will be delayed until 1 July 2016.

This Budget measure is subject to the passage of legislation.

Description of the measure

The commencement of the 2014-15 Budget measure, Increase the age of eligibility for Newstart Allowance and Sickness Allowance, will be delayed until 1 July 2016.

Details of the measure include:

Existing Newstart Allowance and Sickness Allowance recipients aged 22 to 24 years from 30 June 2016, will be grandfathered and continue to receive payments until they lose qualification.

Under this measure, the age of independence for young people (the age at which recipients are no longer subject to parental means testing), will remain at 22 years for Youth Allowance (other), consistent with the rules for Youth Allowance (student).

For more information about the 2014-15 Budget measure-Increasing the age of eligibility for Newstart Allowance and Sickness Allowance visit our website.

Questions and answers

Who is affected by this measure

All new claimants for Newstart Allowance, Youth Allowance (other) and Sickness Allowance aged between 22 and 24 years of age will be affected by this measure.

There will be no change to the age at which a person is considered independent. If you are 22 years or over you are automatically considered independent.

Who is eligible for this measure

People who claim either Newstart Allowance or Sickness Allowance on or after 1 July 2016 and who are aged between 22 and 24 years of age will be impacted by this measure.

Job seekers who are aged between 22 and 24 will need to apply for Youth Allowance (other).

Existing recipients aged 22 to 24 years of age on 30 June 2016 will continue to receive payments under ‘grandfathering’ arrangements until they lose qualification.

The date this measure will start and finish

This measure will start on 1 July 2016 and is ongoing.

Page last updated: 15 March 2016

This information was printed Sunday 25 September 2016 from humanservices.gov.au/corporate/budget/budget-2015-16/budget-measures/disability-and-carers/growing-jobs-and-small-business-increasing-age-eligibility-newstart-allowance It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.