KEY POINTS:
Labour has promised to abolish the parental income test on student allowances over the next four years.
At present a fulltime student aged between 18-23 living away from home and whose parents combined income is below the threshold gets $153.46 a week after tax and is eligible for a weekly accommodation benefit of up to $40.
But those with parents who earn slightly more lose 25c for every dollar their parents earn above the threshold until their allowance abates completely. Students can earn up to $185 a week before their allowance abates.
Here is how the parental thresholds would move under Labour's plan:
* January 1, 2009 - threshold rises from $45,743 to $50,318;
* January 1, 2010 - threshold rises from $50,318 to $70,000;
* January 1 2011 - threshold rises from $70,000 to $100,000;
* January 1 2012 - threshold abolished.
- NZPA
