Is it possible to live on centrelink alone?

Ok, just tossing around thoughts at the moment, because DH wants to study nursing, but he wants to do it full time. Actually, we both want to study nursing, but I thought if he did it first, got into the system, then when I start most of the kids will be at school.

So is it possible to live on Austudy payments and whatever I would get from family assistance? We manage to live on one income at the moment, but its a middle income I suppose you would say (over 50K) plus whatever I get from family assistance.

So does anyone do it? How much approximately are the payments? I had a look on the family assistance website and centrelink, and tbh, its just confusing me all those numbers.

Anyway, just something I'm tossing around in my head.

Your best bet would be to jump on to the Centrelink website and use their rate estimator to see how much you would both get each fortnight. Then you can work out if it's doable :)

Austudy is much, much lower than the other payments and at least one of you would be on it (you can stay on parenting payment) and Austudy is barely enough to feed a cat let alone a human. EVERY other payment is higher. Wouldn't recommend it unless you are single and in share accommodation and willing to live on rice and ramen like other students.

Whats parenting payment? I get FTB A & B at the moment.

Thanks Leash, I did jump on there, and I *think* I got my estimates right, but I'm not too sure.

It would most likely involve a move back to Queensland, so will probably never eventuate, but I just wanted to get my numbers right to back me up.

AUSTUDY is a very low payment. I can't imagine someone paying a mortgage with that.

Do you qualify for Rent Assistance? (i can't remember if you are renting or have bought a home).

The family tax payment (either b or a) that is tied to income, will probably go up if the $50K stops.

Other options may include:
- studying part-time instead of fulltime
(find out what the percentages are - e.g if studying 75% of a course entitles a person to fulltime AUSTUDY)
- studying online (the bits you can do that are theory)
- doing the parts of the course that are theoretical part-time (while dh is still working), and doing the practical parts fulltime (thereby minimising the length of time your family needs to be existing on F/T CL payments.

Can you learn to be a nurse in Tassie? or do you have to go to QLD to do that?
Is it exam based or does it involve "practical modules" in hospitals?

If you don't understand the CL website (i find it confusing too), maybe get a CL staff member to help you look up the right bits and add them up. (at a CL office).

just a bit of brainstroming from someone who has never studied to be a nurse, so pure brainstorming. but i have lived on AUSTUDY in the past, and it was really hard (as a single person, paying rent, no child). i worked fulltime in the semester breaks, saved EVERYTHING in order to survive for the rest of the year.

don't forget to allow money for text books and course fees. these days, with the internet, fees may be for other things (than text books). Plus the HECS debt that will accrue.

ask at the Uni about scholarships.

The CL site says (under Training - AUSTUDY)
"maximum fortnightly payment for partnered person with children" is $413
plus family tax a and b
plus rent assistance (if you qualify for that)

I guess technically you could, but it would be really tough IMO.

I would *think* you'd be entitled to the max rate of FTB A & B, plus parenting payment.
Parenting Payment is given to the lower income earner. It's a taxable income & it's means tested - at 50k a year you might not be entitled to any (we're not) but if your DH was on Austudy I would think you would be.

I second speaking to someone at CL to help you out with what you'd be entitled to.

(and moving back to QLD would be ok too, lol :p)

i've sent you the numbers babe...

the numbers aren't as bad as you might think - austudy for a mature aged person isn't THAT low (around 410 per fortnight - similar to parenting payment)

Totally agree with everyone's opinions.

We live on clink alone since DH hurt his back [apart from the odd occassion I have to take $ from the business acc when we are desperate].

It is very hard, you get just enough to live off. If you have any debt it's really tight - we were paying off our car + 3x credit cards for the first 18mths after DH hurt his back. Now I only have the cc's left. It is doable, but coming off your income it would be a real shock to the system. It was a huge change for us even though DH only earnt about 10K more a year than what we get now.

Austudy would be worse. AFAIK & as the PP have said it is alot less that Newstart+Parenting Payment.

Hey,

I studied a few years ago (Graduated 2007) with a few families living on CL. I was a povo singleton living on Youth Allowance and then Austudy and woudln't have survived without credit and loans but the families were much better looked after. Most of them had a house coming into it but definitely lived off benefits alone.
ALso My DH is studying nursing now externally through Charles Darwin Uni (First year is web based study) and he manages to work 2 nights a week as an EN, used to be Patient Care Assistant(a few days manual handling training is all that is required). The new changes to Centrelink let you earn a little more before they take any away so that could be something to consider. He does most of his study while he is at work and is a SAH Dad the rest of the week while i work. I think if it is what you want to do you can defnitley do it. There are also MANY MAny nursing scholarships that don't get taken up especially if you are from or plan on practicing in a rural area.
Good luck

When I was a student you could only be paid austudy if you have no assets that you can sell to live off. If the rules are the same then you could be in for some trouble if you have investments or own an asset, or sold shares to buy something such as a car. The may tell you to sell the car and live off the proceeds and when you run out of money then you can claim austudy ;)

i have just run the estimator on the details Arimeh gave me - paying rent, money in the bank from the sale of their house, and average assets - and it came back that the amount for Austudy is less than $4 less than her parenting payment ($414 for Austudy, $417 for parenting payment). income and assets tests DO come into it - you wouldn't be able to have massive amounts tied up in shares or a huge house you're earning money on while you live elsewhere, but if you are a low income family, and one of you is studying to extend your employability, you do get supported.

Thanks BG for sending me those figures, they aren't as bad as I thought they would be.

We wouldn't have any debt, we currently own our car and just have the mortgage (which we would sell the house) and then just a credit card.

Oh - and we don't have to move to queensland, its just a bonus for me!

It's a long time to be living at that level though. If anything goes wrong or your car needs a new gearbox yadda yadda it can really throw you for a six. It's hard to afford swimming or dancing lessons for the kids - it's enough to live on but that's it.

It would be for 3 years, and we'd have about $40K still in the bank from the sale of our house just in case anything did happen - which is better than nothing I guess? I'm not expecting any car trouble cos its a good car and its not that old, but I know anything can pop up. But that should be enough of a buffer shouldn't it?

I mean, its all just speculation and will probably never happen because DH doesn't really want to move back to queensland, said he'll be a hypocrite if he did that, and he doesn't know if he wants to go back to full time study next year (cos its pretty soon...)

Sooo.. its just ... ideas... (or really - its just me day dreaming!)

Mel,
Not going to comment on the payment stuff, cos eeryone else has told you...
But i can comment on the Nursing stuff.
When i did my training, i managed to work a fair bit around my lectures, depends what he wants to do... but in 2nd year i was working 3 shifts in a nursing home as well as studying... granted i didnt have a family to look after, but it certianly helped cash wise.

Another option could possibly be doing div 2 initially so that he will get credits towards div 1 and then he can work as a div 2 while studying and will have to do less subjects so could do more hours at work.
In Vic, you can do Div 2 in one year or 2 years as part of a sponsorship, so you are working through that time too - if that makes sense...
Just throwing in other options!

Now with national registration it will be better in that once you are qualified he (and then you) will be able to work anywhere in Aust without having to apply for a new registration - makes so much more sense!

Hope this helps

I think the $$$ in the bank would probably affect hun. You might be expected to use that money first.

Yup, if you apply for payment with $40k in the bank they might make you wait a year or something ridiculous before you can get payment. Sell the house once you're *on* a payment and it isn't the same.

I had this discussion with CL a while back as I have a house for sale (never sold it, it is rented now). I'd just be putting the proceeds into our new house if it sold though, rather than leaving cash lying around. I'm under the CL asset limit by a lot despite having three properties - one is vacant land and one is a large and very nice house worth barely more than the land, just in a cheap area - and my pay gets cut down because of the rent.

I'm sure BG took our money into account when doing the figures (didn't you BG? Or was I assuming you did.. LOL)

DD is doing nursing at uni and works FT at Maccas as a manger while she does it, admittedly her hours are all over the place and its weekend and night work too but it is doable.

DD and many of her friends are at Uni full time and have jobs. He will be able to pick up jobs but it will mean you will be doing alot of the parenting on yur own. He will get school holidays off and over Christmas time will be able to pick up extra work (except schools) as many want to go on leave.
A friend is doing nursing at the moment and is either going to apply for dispatch (emergency services) or orderly work.
I hope either of you go ahead and do this. :)

DH and I survived with me on austudy and him on newstart. He stayed on newstart as he was doing a shorter course then me. Sure, we lived in a bit of a dump, and we weren't exactly eating gourmet meals. We didn't go out a lot, but we survived. We even kept up payments on the car loan at the time. Sure, no kids. But we managed with careful budgetting. Even when the gear box in the car exploded. I'm not sure I'd be wanting to do it for more than the 12 months we managed, though.

BW

I'm actually studying social security as part of my financial planning course at the moment and the 40k will only be exempt from the income and means test if it is from the sale of your principal residence and is going to be used to purchase another residence within 12 months. So in this case the funds will be included in the asset and income test.

I think while you are studying, you can also work part time and earn a couple of hundred dollars a fortnight before your payments start decreasing so you can get a bit of extra cash by DH or you working part time.

I think you aren't allowed savings of over $2000 if you are living off c'link (that's just from memory) so if you had money in the bank from the sale of your house, you would have to live off that first. If the money is tied up in your house and your assests are valued at less than a certain amount (it used to be around $200'000 but it has probably gone up since I was studying 10 years ago), then you would still be eligible and not expected to live off it.

Certainly do what you gotta do and follow those dreams, if you are prepared for the sacrifice (and it is, cos I been living off Clink for nearly 3 years now and it sucks balls), go for it.

I personally hate been thrown backwards when things happen (car, kids etc), that weren't a problem back in the actual INCOME days.....That's just moi, and if I was studying for a degree at the end of it I would probably have a different perspective.

xoxox GL with whatever you choose!

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I'm sure BG took our money into account when doing the figures (didn't you BG? Or was I assuming you did.. LOL)

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yes, i did take it into account

if you have money in the bank, you do not have to live off it before applying for payment. you will be asked if you have liquid assets (so it's best to have money in term deposits that you can't access) but you don't have to spend that - particularly as it's not "savings", it's funds from the sale of the house

the 40k earned a "deemed" amount of income which was applied to the calculations.

yes, if you sell a house and intend to buy another, you don't have that "deeming" apply at all for 12 months (from memory). if, after 12 months you don't buy the house, you're not cut off payments, it is simply brought in under the income and assets test

Mel, do what feels right for you and your DH. if he isn't happy doing what he is doing and believes his passion is for nursing, then now is the time to do it. now, white you can be home and not have child care costs etc on top of it. yes, it will be tight, but you're not stupid - you know how to budget, you know how to live frugally. do what feels right for you guys. you've seen the figures - if you think it's workable, do it!

This is how we are living right now. DH is on parenting payment, I am on student youth allowance (as im under 25) doing Cert III in childrens services and i get FTB A and B. We pay a mortgage and have a credit card each for emergencies. On average we get around $850 per week. This will go up when bub is born to around $930 per week (not including the baby bonus). We live off this amount fine and are not struggling. However, we have no debt other than $3000 in credit cards and a mortgage that is only $250 per week. So it can work but you wouldn't want to have a lot of debt and be very good with your budget.

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Yup, if you apply for payment with $40k in the bank they might make you wait a year or something ridiculous before you can get payment. Sell the house once you're *on* a payment and it isn't the same

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That is incorrect. Austudy is a payment that can attract a liquid assets waiting period - when you apply for payments, if a couple have liquid assets (cash, savings, term deposits, shares) in excess of $10,000 a waiting period will apply. The waiting period will be a maximum of 13 weeks and I will find out the number of weeks you will likely serve based on liquid assets of $40,000 and let you know. My best friends are currently in your situation, dad is a full time student on Austudy, mum is on Parenting Payment and they receive maximum rate of FTB A due to being in receipt of an income support payment - dad works casually and earns about $300 gross p/f which has very little impact on their Austudy (Austudy recipient can earn $236 p/f gross without any reduction in payment) and they pay a mortgage and get by ok (although they admit they will be in trouble if the car blows up/appliance dies etc). Austudy also now attracts a scholarship twice a year - this year $650 per semester but next year it will increase to $1000 per semester (paid in a lump sum at the beginning of the semester). If you sell the house (don't quote me on this because I'm not 100% sure) I think if you intend to purchase a new home with the proceeds of the funds, the money is exempt from the income and asset limits for 12 months from sale of the property.

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if you have money in the bank, you do not have to live off it before applying for payment. you will be asked if you have liquid assets (so it's best to have money in term deposits that you can't access) but you don't have to spend that - particularly as it's not "savings", it's funds from the sale of the house

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just wanted to clarify that money held in term deposits ARE considered to be liquid assets: Liquid assets

I think it is doable babe, its pretty much what we have been doing....

You do get to "keep" all your profit from the house for 12 months, and they dont drop your payments. And when it does kick in, it doesn't drop too badly.

As long as you can save that 40K for the things that pop up for the 3 years, you should be fine.

From what your on now, your FTB & A will go up, and between you and DH, another $800 p/f... if DH's wage was FAAARRRR from this amount ( $800 + fta,b increase) you will feel the pinch, but if its not too far from the mark, ( and it wasn't in our case) then go live your dream sweets!!!!!!!!!!!!!!!!

Yeah the 40K we would hope to keep for a deposit on the next house, but the problem is we wouldn't be able to afford a new house in a years time, it would be after I've finished uni as well, so at least 6 years - which is a bummer!!

Thanks guys :) DH isn't sure he is ready to study next year so its all up in the air at the moment. Although today he talked about birthing choices with me for this next bub, and said staying down here would be my only chance at a homebirth so we should stay down here. I said yes its my only choice because the hospital won't take me in Launceston because I'm still a high risk - whereas I could birth at Selangor if we moved to Queensland - and I'd love to do that - they have such lovely midwives and birthing rooms!

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I'm actually studying social security as part of my financial planning course at the moment and the 40k will only be exempt from the income and means test if it is from the sale of your principal residence and is going to be used to purchase another residence within 12 months. So in this case the funds will be included in the asset and income test.

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That's an irritating ruling ... the house I have for sale USED to be my principal residence (for 6 years) but it has been for sale for well over a year now with no buyer. When it sells it will go towards a new house for us to live in - depending on timing the money will probably go straight to the builder and I won't see a penny. Unfortunately because it has been so damn long that house is now very much an investment property - nothing more stupid than leaving a nice house empty in a poor area. I was kind of counting on it not being included in the means test since we're already on payments ... but it is certainly on our asset list.

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just wanted to clarify that money held in term deposits ARE considered to be liquid assets: Liquid assets

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thanks for clarifying that

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It's a long time to be living at that level though. If anything goes wrong or your car needs a new gearbox yadda yadda it can really throw you for a six. It's hard to afford swimming or dancing lessons for the kids - it's enough to live on but that's it.

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That, yeah. Obviously completely diff circumstances with DF and I, as we have no car, mortgage or children, but we did this for about a year when we were both studying (we both still are, but now I'm doing my Doula course it is not government approved, so no c/link for me, plus I'm working now). It's doable, but it was really just paying for us to live; food, rent, bills. No extra's whatsoever. I'm sure it would not be as tight for you guys, so if you think you can do it then I reckon why not?

I have not read all the above posts, but we have done it, and it was doable but very very hard!
We are now in debt and face a lot of financial issues, so if u do go ahead and do it, my advice is pay all bills and debt first!
Hubby was studying for 6 months, and then 6 mths unempoyed, we had to cancel home ph, foxtel, etc..and as u might have seen from a few fb posts it put a massive strain on my marriage.
But it is doable with 5 kids and they still kept soccer and dance, i just gave up my love of shopping lol
We almost lost the car, and it hasnt had a service cause its not in budget, we have sacrificed alot!
now hubby has a job its making things a bit easier.

I think it's important to take your future into account, so if you have 3 tight money years then what's the benefit at the end of it? If your income will jump from $50,000 to a combined $100,000 after study then that's quite a good deal, especially if your income while your studying isn't hugely different then what it is now. DH and I both studied full time last year, both on austudy, I earnt an extra $120 per week above c'link but DH was doing his grad dip in teaching and it's very hard to work while on prac! For us, that one year has increased our possible earnings $100,000+ and it was actually a REALLY awesome year, we drank $4 bottles of wine (if you mix it with lemonade, it aint so bad!) and had Buffy marathons on saturday nights (Battlestar Galactica marathons when DH got to choose), instead of going out for dinner we had candlelit dinners at home, and if we wanted a big shopping trip we hit the garage sales with $10 each and tried to outdo each other. Granted, we didn't have kids, but the decision we made to study will hopefully positively affect our future.

I would have thought money in the bank would be more likely to affect your payments than living in your own home (sometimes that's exempt from asset tests, not sure in this case). It would definitely change how much you're entitled to.

I found with postgrad study that we needed DP's income to support me through it and I was still working part-time (but then we made no changes to our lifestyle). As an undergrad supporting myself I kept a full-time job and studied externally. I'm not sure if that's an option with nursing, but you could look into what you could do externally (Charles Sturt and UNE are two unis I know that offer external courses). Study load was pretty full-on, but do-able. Doing it part-time would make that a little easier.

ETA: I did a google and Uni of SA has offered an external nursing course (part- or full-time) where your placements are done locally. It might be worth considering as an option at least. This might work better for you if it's not for DH, because you'd have the flexibility of fitting study around what works for you and the kidlets.

Thanks guys

We know about the external courses, but (selfishly) I don't want him to study that way and be working full time because I would have even less support around me - I need his support to get through each day down here - so if I had even less support I'd probably go insane or something... LOL Plus, he's the type of person that if he's going to study, he wants to be the best in the class type of thing, and get really high marks, so he probably wouldn't have enough time to devote to study if he was still working full time.

We are still talking about it, he misses his family too - and Sunshine Coast Uni is a uni that has a pretty good rep.

He's asked me to go through the budget and see exactly if we could afford it, and what we would have to get rid of to live on it. (obviously private health cover would go!)

But I'm sure it is possible to live simply and we don't go out a lot anyway (and if we do its to do free stuff with the kids!) so I doubt that would change. And at least I would have support up there if we couldn't manage it and he had to work (I would get a job but if we do this next year I would have just had a baby!)

Well DH and I can and have but that was with 5 kids which adds 2xFTBA and LFS to your sitch. My sister has 3xFTBA, FTBB, PPP and DH on NS and things are much tighter for her. A big factor is how much the rent is. We can afford the $350pw but I wouldn't want to try with 3 less kids. A big help will be to goto RE.com.au and check out the rental prices via Map View around the area you are looking at with the bedroom setting. That way you can be sure you can afford it before you put the house on the market! LOL

Thanks BR - I was looking at real estate the other day, and it is possible to get a place for around $300 p/w - just depends on which area we want to live in. He wants to live close to the uni (if we were to do this) so that sorta limits our choices....

And I'll have 3 kids, and then 4 (if all goes well)

I get what you're saying about his time, Mel, but studying full-time internally will not guarantee he's doing it all in 'work' hours either. There's still lots of time outside of that you need to put in, assignments, reading, etc. IME it made no difference, external and internal, to what I needed to do at home. The only way to limit the time I had to spend studying was full-time vs part-time. While external, I'd pop off to the library for allocated study time where I needed to, but when I was internal, it had to be mostly at home because of DD (class time was also sometimes after hours). It was tricky to do things at home and complete the workload. Part-time made a big difference and the stress decreased enormously.

Bear in mind there are lots more holidays for uni, months at the end of the year, for eg. So whatever form of study he and you do, you get lots to downtime. So when you feel like you're killing yourself in the lead up to exams and at the end of the semester (and your partner has had enough of handling kids alone!), you know you've got a big break coming up. DTMS?

GL with your decision.