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Senator Natasha Stott Despoja
Democrats Senator for South Australia
Australian Democrats spokesperson for Higher Education

Dated: 13 May 2005
Portfolio: Higher Education



Budget Compounds Student Poverty

Todays hearing of the Senate Inquiry into Student Income Support, initiated by Democrats Higher Education Spokesperson Senator Natasha Stott Despoja, has highlighted how the Budget failed to address crucial issues.

The Inquiry heard today from the National Welfare Rights Centre that parents and people with disabilities will find it even more difficult to study from July 2006 because they will no longer be eligible for the $62.40 a fortnight from the Pensioner Education Scheme and will receive a lower rate of payment.

This Budget has produced more obstacles to studying, instead of tackling the current ones, Senator Stott Despoja said.

Despite the Government recognising that families with a combined income of less than $37,500 are disadvantaged and qualify for the maximum Family Tax Benefit, it refuses to raise the threshold for the parental income test for full time students from a pitifully low $28,850.

It is ridiculous that a student whose parents' combined income is almost $9,000 less than the Family Tax Benefit 'low income' threshold cannot receive the full rate of Youth Allowance.

The Democrats call on the Government to link the low-income threshold for the parental income test for students, to that of the Family Tax Benefit.

Instead of paying wealthy families a $300 means-test free bonus, provided one parent stays at home with children up to 18 years of age, the Government could have directed that money to paying students a basic level of support.

Instead of bestowing large income tax cuts on wealthy Australians in the Budget, the Government could have at least paid Rent Assistance to Austudy recipients.

Todays hearing had no Government representation. I hope this is not a sign of the Government's attitude to the inquiry.

The Federal Government, arrogantly anticipating control of both Houses in July, is increasingly thumbing its nose at those giving voice to the disadvantaged and vulnerable, Senator Stott Despoja said.

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