GILLARD SCARE CAMPAIGN ON YOUTH ALLOWANCE IS ALL SPIN: MIRABELLA

20-October-2009

The Minister for Education, Julia Gillard’s scare campaign on Youth Allowance in North East Victoria is all spin, Sophie Mirabella MP, Federal Member for Indi said today.

 “Ms Gillard is attempting to cover up the fact that under the Rudd Government’s Youth Allowance changes thousands of rural students beginning their year twelve exams today will lose their eligibility to qualify under the current gap year provisions,” said Mrs Mirabella.

 The Coalition is seeking to amend the legislation and protect these students into the future.

 “Under the Coalition’s amendments to Youth Allowance, students from the North East will be better off and no student will have their weekly income cut,” Mrs Mirabella said.

  To maintain Budget neutrality, the Coalition has announced a reduction in the rate of the new Start-Up Scholarship.  This is a new scholarship that currently no students are receiving, and as it is to be paid in a lump sum at the beginning of each semester, this change will not affect the proposed fortnightly payments to students by even one dollar – despite the misleading spin in the Minister’s press releases.

 Under the Coalition’s amendments, all students on youth allowance will be better off, receiving for the first time ever a $1000 start-up scholarship, rural and regional students will have a clear route to University available to them, and no student currently on their gap year preparing to enter University next year and claim Youth Allowance will be disadvantaged.

 “Minister Gillard doesn’t seem to comprehend that students from rural Australia don’t have the option of living freely at home while pursuing their studies.  These students have up until now been able to gain access to Youth Allowance through the workforce participation – or ‘gap year’ – route, that the Government is seeking to abolish,” Mrs Mirabella continued,

 “Based on Julia Gillard’s own Departments figures presented to the recent Senate Hearing, 25,000 students who are already in their gap year will be denied Youth Allowance.”

 “I encourage Ms Gillard to support the Coalitions sensible, fair, legislation amendments and stop the spin,” concluded Mrs Mirabella.