B3 -

Jim is 19 years old and entitled to Youth allowance for his studies. He occasionally has girlfriends but he usually breaks up with them within a few weeks. He has no children, and is sharing a flat close to university with a cousin. He visits his parents regularly as they have a great relationship earn $50,000 a year. Jim has a casual job and has accumulated an income bank of $600 so far. Last fortnight he worked 30 hours and was paid at the casual rate.

Write down your answers in the box below. Show the details of your calculations and justify any choice you make.

(a) Calculate Jim's wage from work for last fortnight.

(2 marks)

(b) Using the information provided below, identify the maximum allowance to which Jim is entitled, ignoring at this stage his work earnings, his income bank. and his parents' earnings. Justify how you made your decision.

(2 marks)

(c) Using the information provided below, calculate the allowance reduction to which Jim will be subject given his work earnings, his income bank and his parents' earnings. Calculate the new level of his income bank.

(3 marks)

(d) Calculate the earning that his parents would need to have in order for Jim to not receive any of the allowance decribed in b). Assume the same Jim's income and income bank as before.

(3 marks)

Your circumstances Your maximum fortnightly payment from 1 April 2021 Single no children, younger than 18, and live at your parent's home $303.20 Single, no children, younger than 18, living away from your parent's home to study, train or look for work $512.50 Single no children, 18 or older and live at your parent's home $354.60 Single no children, 18 or older and need to live away from your parent's home $512.50 Single, with children $656.00 A couple, with no children $512.50 A couple, with children $557.90 Your situation Amount your payment reduces by if you earn between $437-$524 per fortnight Amount your payment reduces by if you earn more than $524 per fortnight Maximum income before your payment reduces to $0 Single no children, younger than 18, and live at your parent's home 50 cents for each dollar over $437 $43.50 plus 60 cents for each dollar over $524 5963.34 Single no children, 18 or older and live at your parent's home 50 cents for each dollar over $437 $43.50 plus 60 cents for each dollar over $524 $1,050.17 Single or in a couple, no children, and need to live away from your parent's home 50 cents for each dollar over $437 $43.50 plus 60 cents for each dollar over $524 $1,317 34 Member of a couple with children 50 cents for each dollar over $437 $43.50 plus 60 cents for each dollar over $524 $1,394.17 Single with children 50 cents for each dollar over $437 $43.50 plus 60 cents for each dollar over $524 $1,560.17 Your circumstances Your maximum fortnightly payment from 1 April 2021 Single no children, younger than 18, and live at your parent's home $303.20 Single, no children, younger than 18, living away from your parent's home to study, train or look for work $512.50 Single no children, 18 or older and live at your parent's home $354.60 Single no children, 18 or older and need to live away from your parent's home $512.50 Single, with children $656.00 A couple, with no children $512.50 A couple, with children $557.90 Your situation Amount your payment reduces by if you earn between $437-$524 per fortnight Amount your payment reduces by if you earn more than $524 per fortnight Maximum income before your payment reduces to $0 Single no children, younger than 18, and live at your parent's home 50 cents for each dollar over $437 $43.50 plus 60 cents for each dollar over $524 5963.34 Single no children, 18 or older and live at your parent's home 50 cents for each dollar over $437 $43.50 plus 60 cents for each dollar over $524 $1,050.17 Single or in a couple, no children, and need to live away from your parent's home 50 cents for each dollar over $437 $43.50 plus 60 cents for each dollar over $524 $1,317 34 Member of a couple with children 50 cents for each dollar over $437 $43.50 plus 60 cents for each dollar over $524 $1,394.17 Single with children 50 cents for each dollar over $437 $43.50 plus 60 cents for each dollar over $524 $1,560.17