New Monash University research has found eligibility for Federal Youth Allowance support is one of the major barriers to access and participation in tertiary education by young regional Australians.

Many regional students who move to be closer to university have to work long hours while studying and struggle to afford rising living costs. Poor health due to malnutrition was commonly reported.

The report, Youth Allowance and Regional Young People: Access to Tertiary Education, was released 12 November 2007 by the Monash University Department of Social Work and Charles Sturt University's Centre for Rural Social Research.

Monash researcher Naomi Godden said adequate financial support should be available to all regional young people who want to participate in tertiary education. Many regional young people are ineligible for Youth Allowance due to strict eligibility criteria.

"The Youth Allowance policy violates Australia's human rights obligation to ensure tertiary education is financially accessible for all young people. This is supported by figures which show only 17 per cent of university students have a regional background," Ms Godden said.

The researchers recommend every young person from regional Australia who must leave home for tertiary education should be automatically eligible for the full rate of Independent Youth Allowance, along with a Tertiary Access Allowance to cover their start-up costs and that the income cap of $236 a fortnight be increased.

The report's key findings include:

• Most regional families cannot afford to pay living costs for a regional young person studying away from home, which are estimated between $15,000 and $20,000 annually, plus relocation and start-up costs of $3000 to $6000;
• Regional young people are forced to work very long hours while studying, or families must make significant financial sacrifices. Money problems have been exacerbated by the drought and regional economic vulnerability;
• Income and assets thresholds for Dependent Youth Allowance are too low for regional families;
• Centrelink's definition of independence, including the unrealistic age of 25, means many regional young people are forced to defer tertiary studies for one to two years to work and earn $18,525 in 18 months, to be eligible as an Independent through Workforce Participation.

Ms Godden said current Youth Allowance rates are an estimated at 20 per cent below the poverty line. The maximum amount of income students can earn before payments drop - $236 a fortnight - has not risen since 1993.

The research was supported by Foundation for Young Australians and University of Western Australia.

The Regional Young People and Youth Allowance: Access to Tertiary Education report is available to view online.