Families Package - more generous means testing arrangements for youth payments

From 1 July 2016, the Parental Means Test for Youth Allowance and ABSTUDY Living Allowance will be simplified and more closely aligned with the Family Tax Benefit (FTB) Part A Income Test.

This measure started on 1 January 2016.

Description of the measure

The Parental Means Test for Youth Allowance and ABSTUDY Living Allowance will be simplified and more closely aligned with the Family Tax Benefit Part A Income Test. In addition, the Parental Income Test will take into account siblings of dependent Youth Allowance, ABSTUDY and Assistance for Isolated Children Additional Boarding Allowance recipients.  

From 1 January 2016:

  • Family Actual Means Test and Family Assets Test will be removed from Youth Allowance and ABSTUDY Parental Means Test arrangements
  • Parental Income Test exemptions will be removed for Youth Allowance and ABSTUDY for parents with a Low Income Healthcare Card, and recipients of the New Enterprise Incentive Scheme
  • Child Support maintenance income will be removed from the Parental Income Test assessment for Youth Allowance and ABSTUDY and Assistance for Isolated Children Scheme

From 1 July 2016, Parental Income Test and family pool arrangements for Youth Allowance and ABSTUDY and Assistance for Isolated Children Scheme will take into account all dependent siblings in the family aged 0-19, who meet the definition of a Family Tax Benefit child. Family Tax Benefit received by the family will be taken into account when calculating the young person’s rate of payment.

From 1 January 2017:

  • the treatment of Child Support maintenance income will be further reformed by applying a separate Maintenance Income Test. This test is similar to the one currently applying to FTB Part A 

There is no change to the financial year used to assess the Parental Income Test or FTB.

Questions and answers

Who is eligible for this measure

Families with dependent children in receipt of Youth Allowance, ABSTUDY or Assistance for Isolated Children, who are subject to the Parental Income Test, and who have a child or children in the Family Tax Benefit system.

There is no impact on Family Tax Benefit.

The date this measure will start and finish

The measure starts on 1 January 2016 and is ongoing.

Page last updated: 15 March 2016

This information was printed Saturday 1 October 2016 from humanservices.gov.au/corporate/budget/budget-2015-16/budget-measures/families/families-package-more-generous-means-testing-arrangements-youth-payments 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.