The Isolated Children’s Parents’ Association said frequent lobbying has seen the government soften its hard-line stance on the youth allowance.

ICPA Australia Federal President Wendy Hick said parents were pleased after the legislation for Social Services Legislation Amendment Bill 2015 had been passed.  

“This means more generous means testing for youth payments and many parents are overcome with emotion as they pass on the news to their year 12 graduates that their dreams of a tertiary education will now come true,” she said. 

“After many years of lobbying by ICPA Australia the Family Assets Test for Youth Allowance has been lifted.

“This monumental development will benefit many rural and remote ambitious students who are currently sitting their final year 12 exams.” 

Ms Hick said she anticipates many more rural students, who are underrepresented at university will now fulfil their ambitions.

“They do not have to overcome the complex parental means tests for Youth Allowance when they apply for financial support now,” she said.

“Simplifying the parental means tests for these payments will provide additional assistance for working families to support their children to make the transition from school to further study.”

However, New England greens candidate Mercurius Goldstein said while it will now be easier to qualify for the Youth Allowance, the payment itself remains inadequate to meet the needs of many rural families.

"That is why the Greens will continue to pressure the government to increase the payment for rural families with the greatest need,” he said.

"Farm assets can also create complications for families trying to access fair payments, while some of the neediest families could still miss out altogether.

"The Greens would like to see the government take a more co-ordinated approach across the full range of family payments, not only Youth Allowance, to iron out these problems once and for all.”