Rate of Youth Allowance (YA) when customer is in State care 010-06040020

For a customer to be considered independent under State care criteria, they must:

• be in the guardianship, care or custody of a court, a Minister or a Department, of the Commonwealth, a State or a Territory, or
• be under a current direction from a court (including the Family Court), Minister or Department placing them in the guardianship, care or custody of someone who is not their natural or adoptive parent (Note: this may include care from other family members, for example grandparents, aunts and uncles), or
• have been in one of the situations above, and only ceased to be in that situation because of their age

Some young people in voluntary placements do not have a direction from a court, Minister or Department nor are they in the guardianship, care or custody of a court, Minister or Department. These young people do not meet the criteria to be considered independent on the basis of being in State care.

If the young person is under 16 years of age, the State or Territory Government may pay an allowance for the upkeep of the young person. From age 16 to 17 this allowance may or may not continue to be paid. The State or Territory authorities determine this. Once a young person reaches 18 years of age this allowance will usually cease.

There is no requirement for the payment to be ongoing. For example, a young person who has been placed in a youth refuge by their Department of Community Services (DOCS) case manager is in supported State or Territory care (upkeep) unless the organisation providing the care receives no government funding from any agency of the government.

State care customers living in NSW can apply for the Independent Living Allowance payment or After Care Allowance from the NSW Government.

For customers who receive the NSW Independent Living Allowance or After Care Allowance, the:

• young person is deemed to be in supported State care, and
• allowance payment is assessable income and must be recorded on the customer's record

The rate of YA that can be paid to a young person who is or was in State care depends on whether or not the State or Territory Government is currently paying an allowance for their support or upkeep. That is, they will be entitled to the rate applicable to either a young person in:

• supported State care when the State or Territory Government is paying an allowance for their support or upkeep. YA is paid at the equivalent of the at home rate of YA, or
• unsupported State care when an allowance is not paid for their support. YA is paid at the equivalent of the away from home rate of YA

The young person in State care is considered to be independent regardless of whether they have a foster parent or a legal guardian and, as such, their rate of YA is not affected by the parental means tests.

Customers in supported or unsupported State care may be eligible for Rent Assistance. See, Qualification for payment of Rent Assistance (RA).

When making an unfavourable decision, speak to the customer:

• explain the decision
• give them a chance to provide more information, and
• advise their review and appeal rights