Assessing entitlement to Youth Allowance (YA) special rate for Long Term Income Support Student or migrants studying English language courses 010-06040030

The LTIS rate of YA may be paid to YA customers aged 22 years or over who:

• do not have a dependent child, and
• start:
• full-time or approved concessional study after turning 22 years of age in an approved course, or
• an Australian Apprenticeship after turning 22 years of age, and
• have, when starting their qualifying study or apprenticeship, been receiving one or more of the following for at least 26 out of the preceding 39 weeks:
• JobSeeker Payment (JSP)
• Youth Allowance (YA) (as a job seeker only)
• Parenting Payment Single (PPS)
• Parenting Payment Partnered (PPP)
• Disability Support Pension (DSP)
• Carer Payment (CP), or
• Special Benefit (SpB)

Note: nil rate periods are not considered as receiving payment for the purposes of the Youth Allowance LTIS rate.

Students aged over 22 who were receiving JSP immediately before starting their course are only qualified for YA if their course has a duration of at least 12 months. However, if a student has a break between receiving JSP and then starting study and receiving YA, they will qualify for the LTIS rate even if their course has a duration of less than 12 months.

If there is a break in study or apprenticeship, the student/apprentice must satisfy the eligibility criteria from the date they restart the qualifying study or apprenticeship to be considered a long-term income support customer.

If there is no break in study or apprenticeship, the LTIS rate can continue to be paid for existing customers receiving the LTIS rate when starting a new course or apprenticeship.

The LTIS rate may also be paid to YA customers aged 22 years or over who:

• do not have a dependent child
• do not have English as a first language, and
• are undertaking an English language course which they commence or recommence after turning 22 years of age

For these customers, the time on income support is not relevant.

For early claims, the LTIS rate is not payable until all of the above criteria are met.

Under grandfathering provisions, customers aged 21 and over who received the LTIS rate of Youth Allowance before 1 July 2012 will continue to receive the LTIS rate whilst they qualify for YA in relation to the same course (including an English language course) or Australian Apprenticeship.

The basic rates of payment for customers aged 22 receiving YA are normally lower than the rates payable to customers of the same age on other income support payments, such as JobSeeker Payment (JSP). Despite the higher income free area, the lower YA basic payment rate may be a disincentive for customers considering a course of study or undertaking an Australian Apprenticeship. This is particularly the case for customers who have been receiving a benefit such as JSP for a significant period.

The LTIS rate of YA is intended to ease the transition for customers who have been receiving relevant income support payments for some time and who decide to commence or recommence after a break in qualifying study or an Australian Apprenticeship after they turn 22.

Customers undertaking an approved course or Australian Apprenticeship can only qualify for the LTIS rate of Youth Allowance if they have been receiving one or more of the relevant income support payments (YA rules) for at least 26 weeks during the 39 weeks immediately before commencing or recommencing the qualifying study or Australian Apprenticeship.

The 39 weeks is counted back from the day immediately before the day they commenced or recommenced after a break in the qualifying study or Australian Apprenticeship.

When assessing a customer's eligibility for the LTIS rate of YA, supporting information can be found on the Resources page.

The customer is not required to have been continuously on income support for the whole period. However, the total time on income support must add up to at least 26 weeks (182 days) in the 39 weeks (273 days) immediately before starting the qualifying study or apprenticeship.

Periods when the customer is on an employment income nil rate period do not count towards time on income support.