GAP year students across the south-west were shocked to learn yesterday that their decision to take a year off to qualify for government handouts while studying may come to nothing.
Changes to the rules surrounding Youth Allowance mean school-leavers who deferred their tertiary place to work and qualify for the payments will be ineligible.
Tuesday's Federal Budget revealed the removal of two major eligibility criteria; that the recipient work part-time to earn at least $19,532, over a period of at least 18 months since leaving school.
Young people are working in shops, schools and offices across the region this year in the hope of fulfilling these two criteria and being recognised as "independent" by May next year.
The new system means that this year's gap students will not have completed their required 18-month earning period before the January 1 deadline.
From January 1, they'll need to work full-time for at least 30 hours a week to qualify.
Under the existing rules, an independent full-time university student paying rent can receive about $400 a fortnight and also earn another $236 while studying before losing any of their Youth Allowance payment.
Young employees in shops and businesses around Warrnambool were visibly shocked when told of the changes yesterday.
"That's what I was thinking of for next year, that's why I took a year off," said Larrissa Dendle, 19, who works at Southern Guns Surf and Skate and as a bar attendant at The Loft.
Miss Dendle, who attended Emmanuel College, has deferred a place to study teaching in Ballarat, which she had hoped would be largely supported through Youth Allowance payments.
"I'm going to have to find a job up there (Ballarat) and that will take me away from study," she said.
Matt Billington, 19, who works at Sportspower and had planned to study exercise and sports science in Ballarat, was also reconsidering his plan.
Aylish Fitzgerald, 19, who works in the advertising department at The Standard and at the IGA supermarket in Port Fairy, plans to study applied science in Ballarat.
"Everyone else that's going to uni has only survived because they've got that money," she said.
Warrnambool College careers advisor Peter Bollard said 39 per cent of the 2008 year 12 class deferred their university place to meet the eligibility requirements.
"We've been working with businesses and organisations to develop gap year jobs," he said.
He expected the change to eligibility requirements would seriously affect regional families, as students often had little choice but to study away from home.
The Government said the changes would save $1.8 billion over four years and would help fund other improvements to student income support. While many students may miss out on fortnightly payments, they will receive a lump-sum of about $4000 when moving away from home and $1000 for each year after that. Students from low-income families who will be eligible for Youth Allowance will now be able to earn up to $400 a fortnight before losing any of their payments.
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