Farming families from the Orange region will be among those who benefit from the federal changes to means testing because farming assets will no longer count towards the Family Asset Test and Family Actual Means Test for the Youth Allowance Parental Income Test.

Federal member for Calare John Cobb said the government changes would mean from January 1 next year more students will be able to access annual payments that average more than $7000.

“The removal of the Family Actual Means Test will also see more families with dependent children receive youth allowance for the first time and increased payments for some existing students in Calare by approximately $2000 a year,” Mr Cobb said. 

“From 1 July, 2016 we will also be changing youth allowance parental income testing arrangements to include all Family Tax Benefit children in the family pool. The current test only includes dependent children over 16.”

He said once families incomes reach $50,000 the allowance tapers off however, under the changes some families that miss out on youth payments due to a higher taper rate will be eligible for an average payment of $50 a fortnight or $1300 a year.

“When it comes to education we have to make it possible for our kids to have the advantage of going to university,” Mr Cobb said.

Mr Cobb said the asset changes would benefit farming families near Orange where the farms were often more valuable than the income they bring in due to their location.

However, he said it was not just farming families that would benefit.

“If you had a business in town and own a warehouse and due to one thing or another the income was down but the warehouse is worth a lot, not long ago they wouldn’t be able to get anything. Just because we live in Orange or Bathurst doesn’t mean CSU [Charles Sturt University] has the course you need to do, does it?”

NSW Farmers Association board member Peter Darley welcomed the move saying farming incomes can be easily affected by droughts, commodity prices and varying weather patterns.

“Farmers, they are asset rich and cash poor at present,” Mr Darley said.