Changes in Student Allowances in 2007

Personal income

It is not mandatory for students to declare their personal income unless it is over the personal income test threshold.  About 35 percent of students declared their personal income in 2005 to 2007.

In 2005, 10,136 students lost their allowances for some time during the year due to having personal income over the personal income threshold of $135.13 per week gross.  From 1 January 2006, the personal income test threshold increased to $180 per week gross and a cliff-face exclusion for personal income over the threshold was replaced with a 100 percent or ‘dollar for dollar’ abatement regime.

In 2006, as a result of the policy change, the number of students who had their allowances abated on personal income grounds at least for one week during the year decreased by 25 percent to 7,600.  About 58 percent of the abated allowances were only partially abated.  The other 42 percent of the abated allowances were fully abated for at least one week during the year.

The average declared personal income increased by 16 percent to $4,800 in 2006 and by a further 5 percent to $5,000 in 2007.

The average personal income of 22,400 students who declared personal income in 2007 was:

• about $1,100 higher for students aged 25 and over than for those under the age of 25;
• about $200 higher for male students than for female;
• about $500 higher for non-single students than for single recipients;
• about $1,000 higher for students with children than for students without children.
  

Table 7: Annual personal income and average annual allowance of student allowances recipients with declared personal income by allowance type, 2007