Rural MPs are picking a fight with the Rudd Government over its plans to reduce spending on the Youth Allowance, with NSW Independent Tony Windsor and The Nationals both hitting out at the move.
The Nationals say they will take action in the Senate to ensure that students currently undertaking a gap year in order to qualify for the Independent Youth Allowance will not be unfairly disadvantaged by the Government's retrospective budget changes, while Mr Windsor will push for amendments to the legislation in the House of Representatives.
Current gap year students who have worked for at least 15 months over an 18-month period or have earned more than $19,532 in that time have found themselves caught out by the changes.
From 1 January, they will need work at least 30 hours a week for 18 months in a two-year period.
Mr Windsor last week presented to the House of Representatives a petition from 260 McCarthy College students protesting proposed changes.
"By lodging their petition, the McCarthy College students are saying to the Parliament that they believe the proposed changes are wrong and they want their representatives to act to fix the anomalies," Mr Windsor said.
Mr Windsor said the McCarthy College students argue that it is unethical for the Government to change the rules for those who finished school in 2008 and are working towards qualifying for the Independent Youth Allowance.
"The McCarthy College students are requesting a delay in the introduction of the new rules until 1 July 2010 and I support their call," Mr Windsor said.
"They also argue that students, especially those from rural areas, finishing Year 12 from 2009 onwards and wishing to work towards qualifying for the Independent Youth Allowance, will be disadvantaged under the new guidelines.
"They believe students will specifically be disadvantaged as a result of the increase in the number of hours needed to be worked in an 18-month period to 30 hours per week; the need to defer for more than one year to meet the new requirements – something only able to be done at one university in NSW and the ACT; and their belief that the linking of Start-up and Relocation Scholarships to eligibility for the Youth Allowance discriminates against all students from rural areas who must move away from home and find accommodation in order to attend university."
Mr Windsor today received a response to the students' concerns from Deputy Prime Minister Julia Gillard, who said the Government would be "very happy to work through the circumstances of students".
"I believe that, when we do that, the member will find that many of the students who currently think that they are ineligible will—on a genuine look at the new family income test—find themselves eligible," Ms Gillard said.
However, The Nationals want the Senate inquiry into the Youth Allowance legislation to also consider the broader issue of ensuring that there are adequate opportunities for students who are required to live away from home to further their education.
This could be country students who must travel long distances to attend city universities or students from the major cities attending regional universities or TAFE.
The Nationals will consider what additional changes to the system will be required following examination of the Committee’s report.
"The anger and frustration expressed by students, parents and teachers from regional communities across Australia is quite extraordinary," Nationals Leader Warren Truss said.
"I have had contact with hundreds of people, one Nationals MP has had 2500 people sign a petition, another received 55 emails in a single day and hundreds of people turned up in Shepparton and Inverell to protest.
"The Nationals are fighting these changes because they make it harder for students from regional areas to pursue their university aspirations."
In addition, Labor has decided to abolish Commonwealth Accommodation Scholarships worth $4,415 a year and replace them with a relocation allowance worth $4,000 in the first year and only $1,000 for the following three years.
"The Nationals want at the very least a guarantee that current gap year students are not affected," Mr Truss said.
"We are using the Senate Committee inquiry process to delve further into the Government’s proposals to see if more changes are needed."
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