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CPI adjustment means more students eligible

11 April 2004

Media Release
For Immediate Release

CPI adjustment means more students eligible for allowance

The point at which parental income testing kicks in for Student Allowance eligibility was adjusted for inflation for the first time on 1 April 2005 which means more students are now eligible for an allowance.

"Students who do not receive an allowance should visit www.studylink.govt.nz or phone StudyLink on 0800 88 99 00 to discuss whether they are now eligible because of the rise in parental income limits, which comes on top of a significant rise earlier this year", said StudyLink General Manager Merv Dacre.

The abatement starting point adjustment for inflation was 2.7 percent. The inflation adjustment to the parental income limits is additional to and part of the same package of Government reforms announced in Budget 04 that increased the parental income limits for Student Allowances from 1 January, 2005.

Student Allowance rates also increased by 2.7 percent. They have been inflation-adjusted yearly for several years.

Last week's allowance increases mean Students without children will receive payment increases of up to more than $7. All students already receiving an allowance will get an increase, because abatement rates kick in higher.

As part of the Working for Families package, students who have children and receive an allowance will have part of it transferred to their Family Support (FS). This will affect their allowance, but they will receive more money overall as a result of increases to FS rates. Students with children and not receiving FS should visit www.workingforfamilies.govt.nz.

Student Allowance parental income limits will now be inflation adjusted each year in April.

ENDS

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