the parental income thresholds for youth allowance (dependent rate) are extremely low. i think 40k would be over the threshold to get payment to be honest.

and yes, c'link and all it's youth and student officers, will answer hypothetical questions.

there is more to it than JUST the income - they take into account the family assets, parental income and the family actual means test. it is changing from July 1 for the parental income test to be more generous so it's worth enquiring then - not sure exactly how it will impact your friends son

taken from the c'link website for the current period of time:
Income test

If your parent/s taxable income for the 2008/09 financial year is $33,300 or less (plus additional amounts for each dependent child other than yourself), your payment will not be affected by the income test.

If your parent/s have other dependent children, their taxable income can increase by the following amounts before it affects your payment:

* $1,230 for the first other dependent child aged under 16
* $2,562 for each additional dependent child aged under 16
* $3,792 for each dependent child:
o aged between 16–24 in full-time study, or
o aged between 16–20 and seeking employment, or
o who receives a boarding allowance or second home allowance under the Assistance for Isolated Children Scheme[4]
* $7,585 for a tertiary student getting living away from home rate of Youth Allowance where there are 2 such children in the family.

The rate of payment payable is reduced by $1 for every $4 of income over these amounts.

After applying the parental income test, a personal income test is applied.

In some circumstances (where parental income decreases or increases substantially) your parent/s income in the current tax year is used.
it is based on individual circumstances, but yes, what he is saying is right - if max rate is payable at an income of less than 33k, it would reduce significantly and possibly cut out eligibility completely if the income is at 40k. it is designed to support the children of extremely low income families (usually with parents on income support themselves).



this information is all available on the c'link website