A young person may be considered independent for YA purposes if:
From 1 July 2010 a young person may be considered independent for DSP purposes if they have supported themselves through:
Note: In relation to the last dot point:
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:
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
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:
The young person can be considered independent under one of these criteria if he or she:
For the purposes of these provisions, the relevant tax year is:
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
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:
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.
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:
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:
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
The following activities may be considered paid employment for the purposes of assessing the self-supporting criterion for independence for YA and DSP:
Act reference: SSAct section 1067A(10) People who are self-supporting
_______________________________________________________
Last reviewed: 3 January 2012