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Reforming Youth Allowance: The “Independent-at- Home” Category

Bruce James Chapman () and Kiatanantha Lounkaew ()

No 623, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University

Abstract: Several of the Youth Allowance eligibility criteria for independent status were subject to severe criticism in the recent Review of Australian Higher Education (2008). Specifically, it seems to be the case that many students are able to qualify for socalled “independent-at-home” financial support even though they may be living in circumstances of relative economic advantage. The paper examines the policy and statistical basis for these claims with the use of data from the HILDA survey and reports apparently strong support for the notion that the rules result in important inequities; the evidence was important to the deliberations of the Review Committee. The Commonwealth Government has recently announced changes to YA consistent with these findings.

Keywords: Youth Allowance; student income support; grants; “independent-athome”’ HILDA. (search for similar items in EconPapers)
JEL-codes: I00 I2 I20 I21 I22 I28 (search for similar items in EconPapers)
Date: 2009-09
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