The Federal Government has announced major increases to payments for family’s whose teenage children stay in schooling.

 

Prime Minister Julia Gillard announced the package which offers up to $4,200 per year for each eligible teenager that stays in school.

 

The families of around 650,000 children turning 16 over the next five years will be eligible for the substantial cash increases if their teenager continues learning.

 

From 1 January next year, the new maximum rate of FTB Part A for 16-19 year olds will increase by around $160 per fortnight - an increase of around $4,200 per year.

 

This will align with the 13-15 year old rate and ensure assistance for families does not drop when children turn 16.

The increases to FTB Part A will only be available for families where their teenager is in full-time secondary study, or the vocational equivalent.

 

Research shows children from low-income families have lower levels of school completion. In 2006, Year 12 completion rates were 59 per cent for low-income students, compared to 78 per cent for higher income students.

 

About 23,000 families will either receive Rent Assistance, or receive extra Rent Assistance, up to $3,600 a year. In addition, 28,900 families will be eligible for FTB Part B up to $2,900 a year.