The student income support system under COVID-19

A previous post on my new paper on tertiary student finances under COVID-19 showed that, despite two lockdown-caused crashes in employment, students generally did well out of the COVID-affected labour market. This post looks at the student income support system. It too did well in maintaining and increasing student living standards.

Bonus payments for student income support recipients

The base student income support payments are modest. When COVID arrived in Australia in early 2020 the fortnightly Youth Allowance rates were $304.60 a fortnight for 18 year olds living at home, and $462.50 if living away from home. But COVID-19 bonuses significantly increased the financial benefits of being on student income support.

Students receiving YA, Austudy or Abstudy on 12 March 2020 received a $750 economic stimulus payment. From 27 April to 24 September 2020 they received the $550 fortnightly Coronavirus Supplement. This supplement was then phased down, to $225 a fortnight from 25 September 2020 to 31 December 2020, and then $150 a fortnight from 1 January to 31 March 2021. A student continuously on student income support from March 2020 to March 2021 received more than $9,000 in COVID-related bonus payments.

From 1 April 2021 the base student income support rates were permanently increased by $50 a fortnight.

The number of students receiving income support increased

After March 2020 the number of Youth Allowance recipients increased significantly compared to the same months in 2019, as the chart below shows.

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