Under the new budget, country students who go to metropolitan universities will receive a $4,000 relocation allowance in their first year, with $1,000 each year after that.

Isolated Children’s and Parents Association of Australia federal president Roxanne Morrissey said a relocation allowance would be beneficial, but it comes hand-in-hand with changes to the Independence Test for Youth Allowance.

In order to qualify for youth allowance, young people need to be classified as independent for a two-year period, with at least 18 months of working 30 hours a week.

The change comes into effect in January next year.

“How do students plan for this at such short notice?” Mrs Morrisey said.

She said the increased parental income thresholds and discounted asset tests for farmers and small business owners were a benefit.

However, the association said the single criteria for qualifying for independent youth allowance would have a “huge negative impact on students from rural and remote areas”.

“Finding part-time work for 15 hours a week in small country towns is difficult enough but 30 hours a week is even tougher to do,” the statement said.

“We will now have students who couldn’t afford to relocate for study purposes, having to relocate for employment purposes to hopefully fund the study relocation.”

Federal Minister for Education Julia Gillard said Mr Ramsay and the association’s concerns were unnecessarily worrying local students and their families.

“Under the changes announced in the budget, students from families with a combined income of almost $140,000 may now be eligible to receive Youth Allowance.

“Students who need to live away from home to study may also be eligible for the new Relocation Scholarship of $4000 in the first year of study and $1000 each year following.”