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3.2.5.80 YA & DSP - Self-supporting through Paid Employment

Paid employment category - overview

A young person may be considered independent for YA purposes if:

  • they have supported themselves through paid work consisting of full-time employment of an average of 30 hours or more per week, in one or more jobs, for at least 18 months during any period of 2 years, or
  • they qualify under the paid employment criterion for students from inner regional, outer regional, remote or very remote locations, or
  • they qualified prior to 1 January 2011 for independence under the transitional arrangements for 2009 'gap year' students, or
  • they qualify for independence under the grandfathered arrangements.

 

From 1 July 2010 a young person may be considered independent for DSP purposes if they have supported themselves through:

  • paid work consisting of full-time employment averaging at least 30 hours per week, in one or more jobs, for at least 18 months during any period of 2 years, OR
  • paid work of at least 15 hours per week for at least 2 years since the person last left secondary school, OR
  • paid work within an 18 month period with cumulative earnings totalling at least 75% of the Wage Level A of the National Training Wage schedule included in a modern award (1.1.N.12) (see Note below).

 

Note: In relation to the last dot point:

  • the appropriate Wage Level A of the National Training Wage schedule included in a modern award is the rate that applied when the period(s) of employment began, and
  • a period of 18 months must have elapsed since the young person last left school, and
  • the employment period(s) must have occurred since the person last left school.

 

Full-time employment averaging at least 30 hours per week

From 1 July 2010 a young person may be considered independent for YA and DSP purposes if they have supported themselves through paid work consisting of full-time employment averaging 30 hours or more per week, in one or more jobs, for at least 18 months during any period of 2 years.

Example: Michael worked full-time for 38 hours a week as a sales assistant for 6 months after leaving secondary study, then went overseas for a 6-month holiday. On his return, he went back to full-time work of 38 hours a week for 12 months. Michael meets the self-supporting independence criterion as he worked full-time in employment of an average of more than 30 hours per week for 18 months during the last 2 years.

 

The assessment under this criterion may be made in respect of one or more jobs, whether consecutive and/or concurrent.

 

Where a young person has been working in a job that has not consistently provided them with 30 hours per week work, their hours of work can be averaged over periods of a maximum of 13 weeks, provided that the young person can reasonably be considered to have been engaged in full-time employment over the duration of the period.

 

This means, for example, that a young person can be considered to meet this criterion where they have undertaken:

  • at least 120 hours of work in each of 19 periods of 4 weeks, or
  • at least 390 hours of work in each of 6 periods of 13 weeks, or
  • at least 30 hours of work in each of 78 weeks (i.e. 30 hours or more for 78 weeks).

 

Example: Royce, 19, left secondary school in 2009 and entered into a series of casual jobs, sometimes several at once, over the period of 65 weeks from December 2009 until March 2011. During this time, Royce had varying hours that averaged 32 hours per week. In early March 2011, he commenced full-time studies in a 2 year Diploma at TAFE and ceased all casual work as he had sufficient savings to support himself for a while. During the mid semester break, which commenced at the end of June, Royce had the opportunity to work on a farm during harvest. Over the 6 week period between late June and early August, he worked an average of 60 hours per week. On recommencement of TAFE in August, Royce decided to work 2 evenings a week delivering pizza. His work hours totalled 11 hours per week. He continued this work for the rest of the year. In November 2011, Royce lodged a claim for YA. Royce was granted independent status because he had, overall, undertaken full-time work totalling at least 390 hours for 6 periods of 13 weeks over a 2-year duration.

 

Example: Rebecca, 19, left secondary school in 2010. From November 2010 until university commenced in March 2011, she worked very hard in a number of casual jobs, working an average of 80 hours per week over a 16 week period. Once university started, she ceased work in order to concentrate on her studies. In November 2011, after exams had finished, Rebecca again worked in several casual jobs over the holiday period, averaging 80 hours per week over a 16 week period. She recommenced university in March 2012. During the 2012 mid-semester break, she worked for 32 hours per week for 5 weeks doing temporary secretarial work. When university recommenced in August 2012, Rebecca sought to be assessed as an independent person for YA on the basis that she had worked a total of 2,720 hours over the 90 week period between November 2010 and August 2012, which is an average of just over 30 hours per week over that time. She does not meet the criterion for independence because the maximum period over which work hours can be averaged is 13 weeks. As Rebecca has not worked for an average of 30 hours per week for 6 periods of 13 weeks, she cannot be said to have undertaken full-time employment averaging 30 hours or more per week, in one or more jobs, for at least 18 months during any period of 2 years.

 

Act reference: SSAct section 1067A(10) to (10B) People who are self-supporting

 

Transitional arrangements for 2009 gap year students

From 1 July 2010, a young person who completed approved secondary studies (including secondary level vocational education and training studies) in 2008, took a gap year in 2009 and started university during 2010 may be considered independent for YA purposes if they have supported themselves through paid work consisting of:

  • part-time employment of at least 15 hours per week for at least 2 years since the person last left secondary school, OR
  • a period or periods of employment over an 18 month period since the person last left secondary school, with cumulative earnings totalling at least 75% of the Wage Level A of the National Training Wage schedule included in a modern award (1.1.N.12) or that maximum rate as varied or replaced by Fair Work Australia, and
  • they were granted YA under this provision before 1 January 2011.

 

The young person can be considered independent under one of these criteria if he or she:

  • intended throughout 2009 to undertake full-time study in 2010 at a higher education institution, AND
  • commences an approved scholarship course (1.1.A.218) in 2010 , AND
  • EITHER:
    • is required to live away from home to study because travelling time is excessive (1.1.E.150), OR
    • has a combined parental income for the relevant tax year of less than $150,000 if they live in the family home while studying.

 

For the purposes of these provisions, the relevant tax year is:

  • the 2008-09 financial year, or
  • if there has been a substantial decrease in income that is expected to last for at least 2 years, the 2009-10 financial year, or
  • if the student is commencing studies on or after 1 October 2010, the 2009-10 financial year.

 

Example: Darren finished Year 12 at the end of 2008. He decided not to start university in 2009, and instead worked in a series of part-time jobs during the year, earning over $20,000 over that period. In 2010, Darren moved out of the parental home in order to commence full-time study in March at a university that was several hours drive away. Darren can be assessed as independent when 18 months has elapsed since he last left secondary school.

 

Act reference: SSAct section 1067A(10C) to (10D) People who are self-supporting

 

Grandfathered arrangements

Young people who were receiving YA as an independent person prior to 1 July 2010 under the following criteria will retain their independent status for YA purposes if they have supported themselves through paid work consisting of:

  • part-time employment of at least 15 hours per week for at least 2 years since the person last left secondary school, OR
  • a period or periods of employment over an 18-month period since the person last left secondary school, with cumulative earnings totalling at least 75% of the appropriate maximum Wage Level A of the National Training Wage schedule included in a modern award (1.1.N.12) or that maximum rate as varied or replaced by Fair Work Australia.

 

Example: Sarah finished Year 12 at the end of 2008 and was accepted into university. She deferred her university studies until 2010, and decided instead to take a gap year in 2009 to work. She earned around $25,000 between leaving school and commencing her university degree in 2010. Sarah continues to live in the parental home. In May 2010, when 18 months elapsed since she last left secondary school, Sarah claimed and was granted YA as an independent person under the pre 1 July 2010 arrangements. Although this independence criterion has been removed from 1 July 2010, she will retain her independent status for YA purposes. This applies even if there is a break in YA payment.

 

Note: In the above example, if Sarah qualified and claimed YA in or after July 2010, and if her parents' combined income in 2008-09 was over $150,000, she would not be eligible for YA payment.

 

Inner regional, outer regional, remote & very remote students

From 1 January 2011, a young person whose family home is in a location categorised under the Australian Standard Geographical Classification (AGSC) as outer regional Australia, remote Australia or very remote Australia, may also be considered independent for YA purposes if they have supported themselves through paid work consisting of:

  • part-time employment of at least 15 hours per week for at least 2 years since the person last left secondary school, OR
  • a period or periods of employment over an 18-month period since the person last left secondary school, with cumulative earnings totalling at least 75% of Wage Level A of the National Training Wage schedule included in a modern award (1.1.N.12) or that maximum rate as varied or replaced by Fair Work Australia.

 

Note: The rate applied is the rate at the start of the period of employment.

 

The person can be considered independent under one of these criteria if:

  • the person is required to live away from home (3.2.6), and
  • the person is undertaking full-time study (3.2.7), and
  • the person's combined parental income for the appropriate tax year (1.1.A.170) is less than $150,000.

 

From 1 January 2012, these same arrangements apply also to a young person whose family home is in a location categorised under the AGSC as inner regional Australia.

Note: Information on the geographical location of a place can be found at Special Arrangements for Students Disadvantaged by Distance.

 

Act reference: SSAct section 1067A(10) People who are self-supporting, section 1067A(10E) to (10H) People who are self-supporting

 

Paid employment

The following activities may be considered paid employment for the purposes of assessing the self-supporting criterion for independence for YA and DSP:

  • periods of paid leave,
  • periods of unpaid leave due to employer shutdown that are outside the control of the young person (e.g. mandatory Christmas shutdown),
  • periods engaged in a full-time apprenticeship or traineeship,
  • periods of overseas employment,
  • periods of full-time participation in a CDEP program (1.1.C.102).

 

Act reference: SSAct section 1067A(10) People who are self-supporting

_______________________________________________________

Last reviewed: 3 January 2012


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Last Edited: 28/03/2012 4:10:53 PM


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