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Careers Fair Success in Bendigo

La Trobe Business School and La Trobe Law School jointly ran a very successful Careers Fair in Bendigo for local students to showcase the employment opportunities available within Bendigo.

The power of alumni

Firms in attendance actively looking for accounting students were MGR Accountants, Lead Advisory, AFS & Associates and Strategem Accountants. These four firms regularly provide internship and graduate employment opportunities to our local students and have done so for many years. The majority of staff representing the firms are alumni of LBS who completed an Accounting Work Placement with the firm, supervised by Dr Kate Ashman. As such, they are very keen to give back to the University whenever possible due to the opportunities they were offered.

Industry Partners attending Careers Fair

It has also become evident that local accounting firms have grown to the point where they are looking for a wider range of potential graduates including marketing and management students. This creates excellent opportunities for all LBS students and their employability. Additionally, Hazeldene’s Chicken Farm Bendigo attended as they were looking for both accounting and marketing students and are a large employer in the region.

Law representatives

Representatives from law firms, the Loddon Campaspe Community Legal Centre and the Magistrates’ Court of Victoria also attended the Fair. They provided information to Law and Criminology students about internship as well as employment opportunities.

Careers Fair Success

“It was a great opportunity for us, to be able to walk straight out of class, and have all these potential employers here for us to talk to.”

LBS student attending the event

The employers were equally pleased with the student attendance and reported to the organisers that it was incredibly valuable for them to attend. La Trobe University´s Careers & Employability Adviser Cris Stanway was available on-site to assist students with their resumes, which proved popular. The Fair was deemed an overwhelming success.

In 2020, the university will look to expand the range of businesses in attendance as there are many more keen to participate.

Students attending Careers Fair

Many thanks to Francine Rochford, Rob Stephenson, Andrew Quek, Myl Duffy and Mel Birch-Inward who provided invaluable assistance in organising and ensuring the smooth running of the day.

La Trobe is getting employability right

LBS researcher Dr Jasvir Kaur Nachatar Singh examined the experience of graduates from China who returned to China to seek employment after completing tertiary education at La Trobe University. Her research found that students from China felt that having studied at La Trobe University made them more employable in China.

The first study

Jasvir conducted in-depth interviews with 19 Chinese alumni from La Trobe University who had returned to China to work. About 70 to 80% of Chinese international students studying in Australia return to their home country to seek employment opportunities (ICEF Monitor, 2016) and previous research has suggested that Chinese employers prefer local graduates. However, Jasvir’s study found that when it comes to having necessary work-ready skills such as leadership, communications and influencing skills, those who have spent some time studying in Australia have the upper hand.

Jasvir mentioned that the Chinese graduates she interviewed were “impressed with the level of investment Australian universities like La Trobe are making into developing international students’ employability skills through part-time work experiences at La Trobe or outside the campus, volunteering opportunities and internships.”

“Programs such as La Trobe’s Career Ready Advantage, designed with Australia’s leading employers to help develop more employable graduates, are clearly working”

Dr Jasvir Kaur Nachatar Singh

The interviewed graduates also said that having an overseas Masters’ degree was particularly beneficial when it came to getting jobs in China, and some had studied further to obtain chartered certification such as Chartered Professional Accounting.

The second study

Jasvir conducted a second study looking at the experience of international students studying in China, with a special focus on development of employability skills. Jasvir interviewed 30 international students, largely from Africa and Malaysia, who had studied at the highly-ranked Wuhan and Tsinghua universities in China. “While these two prestigious Chinese universities score high in terms of academic results, the students I interviewed recognised that content knowledge is not enough”, said Jasvir. Students were expected to find their own work placements and were given little support by the university support services. Thus, in contrast to Australian universities, the second study found that Chinese universities do not place much emphasis on developing employability skills of international students.

Producing employable graduates

Both of Jasvir’s studies have shown that Chinese universities need to increase their focus on helping domestic and international students develop the necessary skills required for entering the competitive and rapidly changing world of work. The good news is that La Trobe University is getting it right when it comes to producing employable graduates!

Dr Jasvir Kaur Nachatar Singh is an award-winning lecturer at the LBS’ Department of Management, Sport and Tourism. Jasvir has been researching on academic success, teaching and learning as well as employability issues relating to international students from Malaysia, Australia and China. Jasvir has received several top La Trobe University grants and has published in quality higher education journals as well as presented her work worldwide.

This blog was originally published by LTU News.

Going to Kuala Lumpur with the New Colombo Plan

Business Newsroom sat down with Associate Professor Alison Parkes, Head of Department of Accounting & Data Analytics, to talk about her visit to Kuala Lumpur where she visited New Colombo Plan students.

 

What is the New Colombo Plan?

The New Colombo Plan (NCP) is an Australian Government initiative to increase knowledge of the Indo Pacific region by supporting undergraduates to study and undertake internships. Essentially the original Colombo Plan in the 1960s & 70s brought students from South-East Asia to Australia, while the New Colombo Plan takes Australian students to South-East Asia.

The Department of Accounting & Data Analytics applied for places in the first round of funding for this program and were awarded 6 places in 2016, 8 places in 2017 and 10 places in 2018. The places are only available to high achieving Accounting students who hold Australian citizenship.

The funding involves $3000 per student to go on placement in Malaysia for 4-6 weeks. The aim is to broaden students’ view of the world and to give them a taste of living and working in Asia.

 

Alison Parkes in Kuala Lumpur with New Colombo Plan students and alumni

 

Who are the students that went to Kuala Lumpur?

The eight students were all Accounting scholars, five from Melbourne and three from regional campuses. Scholarships seem to be taken up primarily by students from the larger campus in Melbourne but I wanted to ensure regional applicants were considered. Two of the regional students were from Shepparton and one from Bendigo, and for some of them it was their first time in Asia.

 

Where do NCP students go and how is it organised?

Once students have been accepted into the NCP program we provide workshops to upskill them in software use and the soft skills we know employers highly value. We also do some acculturation, providing them with information on living and working in Malaysia.

The placement details are arranged by a third party placement provider in conjunction with La Trobe staff. When students arrive in Kuala Lumpur, they are welcomed by Global Student, the third party placement agency. Global Student arranges the student’s placement and accommodation but also organises cultural and tourist activities. Several students went to the Australian High Commission for an event but there are also informal things like visits to Penang or a daytrip into the city. It’s a whole cultural and educational package and generally the scholarship funding ($3,000) covers most of these costs.

Global Student places students in a range of places, some go to the Big 4, like KPMG, while others experience working in smaller firms.

 

NCP students’ orientation in KL

 

What are the kind of tasks NCP students do?

The subject LBS students are enrolled in is the Accounting Workplace Program (ACC3AWP) which is a fairly standard Work Integrated Learning (WIL) subject. Out of the 23 students enrolled in the Accounting Workplace Program last summer 8 were NCP students and the other 15 were students doing local placements. The subject runs exactly the same whether you are in Melbourne or in KL.

The Accounting Work Placement includes several assessment pieces. Students write a reflective report that looks back on their experience. They write and submit a short journal entry each week talking about what happened that week, what they learned and the tasks they did. This is also useful to me as the Subject Coordinator, I can see how the placement is progressing and offer support and mentoring if any issues arise along the way. At the end of the program they put those entries together in a report and it provides them with a document they can look back at and reflect on what they learned. Students also write a placement report focused on the accounting work they did; this could be either a pre-defined project with a deliverable outcome or an operational role. We have had students asked to check whether data was correct, another group wrote an audit report including recommendations following up on stock that was disappearing within a company. We even had one student who went to a smaller organisation, whose accounting system wasn’t very well set up, so she re-built their accounting system from scratch. It really depends on the placement needs and the skills of the student.

 

What were you doing in Kuala Lumpur?

It is important to make sure our students have an instructive and enjoyable experience, so I went over to KL to see how everybody was getting on. I checked-in with Global Student staff and met with all the students, we had dinner together and I spent time making sure everybody was progressing okay. It is a sort of pastoral care-check combined with a review of the academic rigour attached to the placements. We need to make sure our students are undertaking meaningful work and are being supported appropriately in all our work placement programs.

The NCP is a really good program, we have 10 places available next year, but experience some difficulty finding the right students to partake. As already said, many of our students have not travelled much and going on an adventure like this requires an element of trust. We prefer to select students who are confident in their ability to survive and thrive in a totally different environment as the NCP takes students well outside their comfort zone.

For students who do take this opportunity you can see the difference when they come back. Their confidence, their work-readiness, they know better now what they are studying for, it just opens their eyes. There is something very brave about going to Asia for 6 weeks. They come back and can say to themselves “It went well, I did that, I made that happen!”

 

 

Associate Professor Alison Parkes is a researcher, educator, consultant, and author whose expertise relates to optimising information quality and decision outcomes via better design and control of accounting systems and processes. In her professional career prior to entering academia she held positions at Queensland Rail, Rio Tinto, and PriceWaterhouseCoopers. Her academic career has included positions at Massey University New Zealand (Associate Lecturer) The University of Melbourne (Lecturer, Senior Lecturer) and Taylor’s University Malaysia (Associate Professor and MBA Program Director). Alison’s research consists of two primary themes; (1) The task-technology-individual fit implications of accounting systems design choices, and (2) Strategic investment decision-making. Her research has been published in journals including Decision Support Systems, Behaviour & IT, the Business Process Management Journal, and the Australian Journal of Information Systems. She authors a leading Australian accounting information systems textbook and also designs and delivers specialised executive education and consulting. Alison has consulted internationally to the Governments of Malaysia and Iraq, and completed a variety of management accounting consulting jobs in the Australian not for profit sector.

 

 

Innovative Teaching is Rewarded

At La Trobe Business School, Teaching Awards and Teaching Support Staff Awards in our College reflect the extent to which our academics are able to make a real difference to student satisfaction and experience.  This year, there were five College Teaching Awards: LBS staff picked up three of the five awards in total.  In addition to the College Academic Staff Teaching Awards, the College also recognises the important role tutors and casual teaching support staff play in supporting academics to deliver a quality student experience. This year LBS staff picked up two of the four awards made.

Winners of the teaching awards were:

Peter Matheis (Entrepreneurship, Innovation & Marketing) for developing effective, engaging and innovative approaches to student learning and collaborative teaching initiatives in Marketing through blended flip-class room designs and resource curricula development

Esin Ozdil (Accounting and Data Analytics) for implementing diverse and timely formal and informal evaluation techniques that improve teaching and enhance students learning experience and engagement in different subject delivery modes

Seema Miglani and Biserka Siladi (Accounting and Data Analytics) for the development and delivery of a multi-campus, third year core subject using blended-learning technologies and resulting in improved levels of students’ satisfaction and understanding of real-word issues of auditing and assurance.

Winners for the Teacher Support Staff  category were:

Muhammad Saqib Manzoor (Economics & Finance) for the effective development of learning materials and co-developing assignments that engage and stimulate students as reflected by the high students satisfaction scores

Saedi Khosroshahi (Economics & Finance) for stimulating the students’ curiosity, encouraging critical thinking and promoting effective communication.

 

TEN TAX TIPS FOR STUDENTS? [1]

Mark Morris La Trobe Business School Professor of Practice

By Mark Morris

Few student welcome the prospect of preparing and lodging an income tax return with the Australian Taxation Office (the ATO).

However, where the income tax deducted from a student’s job exceeds the total income tax payable for the tax year the only way in which a student can obtain a refund of overpaid tax is by lodging an income tax return.

Of course, other students will be legally required to lodge a return and pay tax where insufficient income tax been retained from their salary, or where they derive other categories of assessable income on which they owe tax.

We have developed ten tax tips to help you decide whether you need to lodge an income return for the year ended 30 June 2017, and how to prepare a return if you have too.

1. Are you an Australian tax resident?

The first step is to work out if you are an Australian resident for Australian income tax purposes.

If you were born in Australia and continue to live here, you will be regarded as an Australian resident for income tax purposes as this is the country in which you reside.

However, it is important for international students to recognise that being a resident for Australian tax purposes is quite different to being a permanent resident for Australian immigration purposes, and that they may sometimes unknowingly be an Australian tax resident.

Very broadly, an international student may be regarded as residing in Australia if they are here for such a period of time that their behavior reflects a degree of continuity, routine or habit that is consistent with residing in Australia.

Whilst it is a question of fact in each case as a broad rule of thumb the ATO takes the view that living in Australia for six months is a period of time which is generally consistent with a person residing here for tax purposes.

For example, in one of the ATO’s binding public taxation rulings it held that an overseas student who came to Australia to attend a pre-arranged 4-year university course was an Australian resident even though he left after 6 months to return to his home country following a family illness as his living and working arrangements whilst in Australia were consistent with someone whose pattern of behavior was that they resided in Australia[2].

Accordingly, if you are unsure whether you are an Australian resident for income tax purposes you should contact the ATO or a registered tax agent to obtain more clarity as to whether or not you are an Australian resident in working out your tax rights and obligations.

2. What happens if you are an Australian tax resident?

Assuming you are regarded as an Australian resident for tax purposes what are some of the key tax implications you need to consider.

On the plus side you will be entitled to a tax free threshold which will mean that you do not pay any income tax for the year ended 30 June 2017 if your total taxable income was $18,200 or less.

Accordingly, if you worked part time and derived salary income from which income tax was deducted by your employer you will be able to obtain a tax refund of any Pay As You Go (PAYG) tax retained from your salary income if your total taxable income was $18,200 or less.

In practice, most individual resident taxpayers will also usually be entitled to a tax credit being the low income tax offset which means that no tax will typically be payable if that person’s taxable income is below $20,542. However, the amount of this this tax offset reduces tax payable but is not in itself refundable.

On the negative side you will be subject to tax on all your assessable income for the year ended 30 June 2017 regardless of where it was sourced. For example, an overseas student would need to include both their Australian salary income and any interest income earned in a bank account held in their home country.

In addition, Australian residents are subject to a 2% Medicare levy but only where their taxable income exceed certain thresholds.

By contrast a non-resident is only taxable on assessable income which has an Australian source being generally locally derived investment income. However, such income will be subject to tax at a rate of 32.5% for any taxable income derived up to $87,000 as there is no tax-free threshold for non-resident individuals.

3. What do I need if I want to lodge a return for the 2017 year?

Most students who have been employed would have already been issued a tax file number which is a prerequisite for every individual lodging an income tax return.

If for some reason you are lodging a return but do not have a tax file number you will need to apply for one from the ATO either directly or by using a registered tax agent.

You should then collate all the records and information you will need to prepare you income tax return including, amongst others, any payment summary, bank interest statements, dividend slips, invoices and receipts.

Assuming you have a tax file number you may consider preparing and lodging your income tax return on-line using the ATO’s myTax product if your tax affairs are reasonably simple. Further details on myTax can be found here.

Otherwise it may be prudent to contact a registered tax agent to ensure you identify all your entitlements and to ensure that your income tax return is correctly prepared.

Regardless of how you lodge your return you will need to disclose full bank account details when preparing your income tax return if you expect to receive a tax refund.

4. What types of income need to be included in your return?

As discussed, as an Australian resident you will be taxed on all of your assessable income wherever it is derived.

Some of the more common types of assessable income include the following:

  • Salary and wages (whether as a full-time, part-time or casual employee);
  • Allowances and bonuses (where received during the 2017 income year);
  • Tips and gratuities (such as those received working in hospitality jobs);
  • Fees received as an independent contractor under a contract for service;
  • Any business income derived during the year (not being income derived from carrying on a hobby);
  • Australian government payments and allowances including, amongst others, Newstart allowance, youth allowance, AuStudy payments and certain other educational and training allowances;
  • Interest income;
  • Dividend income (including the amount of any franking credit tax offset for any franking credit attached to a dividend paid by an Australian resident company);
  • Any distributions received as a beneficiary from a family trust or as a partner in a partnership; and
  • Capital gains arising from the disposal of certain CGT assets (which is a highly complex area requiring specialist expertise).

The total of such assessable income may be reduced by eligible deductions which may take the form of work-related deductions, self-education expenses in certain circumstances and personal deductions.

5. What type of work-related deductions can you claim?

You may be entitled to claim a deduction for expenses directly incurred in the course of gaining or producing your assessable income. However, you will not be able to claim an outright deduction which is capital in nature although you may be able depreciate certain capital assets like a computer over time for tax purposes where it has been used for the purpose of gaining or producing assessable income. In addition, you will not be entitled to claim a deduction for expenditure which is private in nature such as the cost of conventional clothing (e.g. suits) purchased for work purposes.

Some of the more common types of deductions you may be able to claim are as follows:

  • Work-related subscription and union fees;
  • Protective clothing and certain work uniforms (including compulsory work uniforms required by your employer);
  • Home office expenses (where you are required to work at home after hours and have a separate room allocated in your home study for that purpose);
  • Employment related telephone mobile and internet costs; and
  • Travel expenses between worksites (but excluding travel between home and work)).

You may also be entitled to claim a deduction for the cost of tools of trade, briefcases and calculators costing less than $300 to the extent to which you use it for work-related purposes.

However, you will only generally be able to claim any work related expenses costing $300 or more if you have retained all the relevant invoices and receipts.

6. When are self-education costs allowable?

Broadly, self-education expenses are only deductible to the extent that the course of study undertaken will either maintain or improve your skills in your current occupation.

Accordingly, you will not be entitled to claim the costs of your course if you’ve not yet embarked on a particular career. Nor will you be able to claim such costs if you have decided to change careers and have incurred such expenses in studying a new area of expertise.

However, you will be able to claim a deduction for self-education expenses where the study or training you are undertaking is likely to enhance your chances of promotion or increase your income earning capacity in your existing occupation.

Further details as to when self-education expenses are allowable or not are set out in Taxation Ruling TR98/9 which can be downloaded here.

Eligible self-education costs include, amongst others, course fees, textbooks, stationary, travel costs and the depreciation of items such as laptops, tablets and printers. However, it is necessary to add back $250 of any self-education expenses as being non-allowable.

Finally, any Higher Education Loan Program (HELP) repayments are non-deductible.

7. What other personal deductions may be allowable?

Donations of $ 2 dollars or more to a deductible gift recipient (e.g. a charity like the Red Cross) will be allowable provided you have kept copies of receipts for any gifts made.

You can also claim a deduction for any fee paid to a registered tax agent during the year ended 30 June 2017 for the cost of managing your tax affairs. However, any amount paid to a registered tax agent to assist you in in preparing your 2017 income tax return will only be deductible in the year ended 30 June 2018.

8. What tax offsets can you claim?

Whilst tax deductions may reduce assessable income tax offsets are directly applied as a credit to reduce tax payable.

Certain tax offsets may also result in a refund to the extent that the tax credit exceeds tax payable.

The most common tax offsets that a student may claim include the beneficiary tax offset, the franking credit tax offset and the small business tax offset.

A beneficiary tax offset may be available where a student receives a Newstart allowance, youth allowance, Austudy payments and certain other Commonwealth education or training programs.

The calculation of this offset can be complex but this offset may not only reduce tax payable on the amount of Government benefits received but also assessable income received from other sources.

Further details on the beneficiary tax offset can be found here.

A resident company may pass on a tax credit for tax it has paid to shareholders when it pays such shareholders a franked dividend. Such a tax credit can be claimed as a franking credit tax offset which may also result in a tax refund where the franking credit exceeds tax payable.

Finally, where a student is also carrying on a business that individual may be entitled to the small business income tax offset for the year ended 30 June 2017 being 8% of the income tax payable on the portion of an individual’s taxable income that is ‘total net small business income’ provided the aggregated turnover of the business is less than $5million.

However, an individual is only able to claim one small business tax offset for an income year irrespective of the number of sources of small business income derived by that individual and the maximum amount of the offset is capped to $1,000 per year. The application of this offset is also quite complex and specialist advice should be sought if you intend to claim it.

9. What are some of the potential traps to watch out for?

There are special rules to discourage adults from splitting income with their children (i.e. minors) aged under 18 at the end of the year unless that minor is engaged in a full-time occupation, receives a carer allowance, disability support pension or double orphan pension or a person who is disabled or a beneficiary under a special disability trust.

Where the minor is subject to these special rules, penalty tax rates apply to such children receiving dividends, interest, rent, royalties or a family trust distribution.

Where such income is between $417 and $1,307 tax will be paid on the excess of income over $416 at a rate of 68% whilst any amount of such income in excess of $1,307 will be subject to tax at a rate of 47%.

10. Where do I go for help?

If you believe that you required to lodge an income tax return or that you may wish to lodge a return in order to obtain your tax refund, you may wish to either contact the ATO or look at their website for more details at www.ato.gov.au

Should you want to get independent tax advice then try to locate an accountant who has the tax expertise to makes sure you lodge a correct income tax return but make sure that the accountant is also a registered tax agent who has been legally authorised to provide such services.

And if you are entitled to a tax refund go get what is yours!

[1] Latrobe University has used reasonable care and skill in compiling the content of this general commentary. However, it should not be relied upon as advice in any circumstances, and no warranty is provided by either the University or the author concerning the accuracy and completeness of these materials. Accordingly, they disclaim all and any liability to any person in respect of reliance on any of the matters raised in these materials, and professional advice should be sought from an appropriately qualified registered tax agent where required.

[2] Refer to Example 8 of Taxation Ruling TR98/17.

LBS’s Mark Morris: “What is the future of accounting?”

MM_Future

Recently, LBS Professor of Practice Mark Morris gave a presentation on the Future of Accounting at the Australian Tax Office. In the presentation, Mark speaks about how the ATO has adapted themselves to a changing world in the past, and how he thinks they can adapt themselves to new technology in the future. Mark looks at what the key drivers are of the profession changing in the framework of a globalised world, and where tax firms are and need to be now. He addresses questions like ‘How can firms stay ahead of the curve?’, ‘What skillset do they need?’ and ‘What strategies do tax firms need to develop for a market in 2020?’

To know what his answers to these questions are, watch Mark Morris’s presentation in full, below:

 

The La Trobe Commerce Students Association: An organisation for all LBS students

Commerce Student Association La Trobe University

By Evelyn Palmese

Hi fellow La Trobe Business School Students,

My name is Evelyn Palmese and I am the President of the La Trobe Commerce Students’ Association (CSA) for 2016. This year I will be entering my fourth and final year of a Bachelor of Accounting/ Bachelor of Finance double degree. As a student of La Trobe I understand that students are constantly striving and struggling to maintain a well-balanced university life. I am also highly aware of the stresses and difficulties that students often face when searching for employment for after they have completed their University degree.

Since our inception the CSA has strived to help students have a balanced university experience, by exposing them to professional industry and by providing them with the opportunities and tools that will place them in good stead when seeking employment. We also seek to organize networking opportunities with potential employers and fellow students through various enjoyable and informative events.

The CSA is the official student association on campus, which aims to further the interests of all students who are part of the La Trobe Business School. We are here to help students from all disciplines that fall within the School, including Accounting, Finance, Economics, Marketing, and Management, just to name a few.

Over the course of the year we will be running a multitude of different events starting with our Career Development Month which will be happening over March and April. During this time students will be able to attend workshops run by leading industries such as EY, CPA, CA and FPA, as well as a large careers expo that will bring together the entire month. There will also be the CSA Ball, and a Q&A panel and networking event, which will give students the opportunity to meet more of their peers and chat with individuals from across the industry. Also, don’t forget to look out for the two careers guides that we will be releasing and our stalls that will be popping up across the Uni during the year.

Being a part of a student society, especially a School based one, is a great way to meet people. It is also a great way to show potential employers that you have a real interest and passion for what you are studying, giving you that extra competitive advantage when applying for jobs.

Therefore I encourage all students from the La Trobe Business School to keep a look out for the CSA around campus, like us on Facebook and really get involved in the events that we have going through the year.

Wishing you all a fun and successful 2016!

Buly Cardak’s research reveals connections between student dropout rate and financial hardship

Buly Cardak La Trobe Business School

La Trobe Business School academic Buly Cardak recently came under the spotlight with his research on dropout rates among university students, with his research receiving significant media coverage. Specialising in the economics of education, he has been researching factors influencing students’ studies since early 2006. In his recent study, Associate Professor Cardak and his collaborator Joe Vecci studied the connection between the financial hardship of university students and the likelihood that these students would graduate or dropout at some later stage in their studies.

The data show that one in three students from financially disadvantaged backgrounds drop out from university studies. Further to this, students from financially disadvantaged backgrounds are up to 15% more likely to dropout than students from financially secure backgrounds. It is believed these effects operate through costs of living, e.g. paying for food, books, or transport, rather the tuition fees which can be deferred through HECS.

Associate Professor Cardak notes that these results are important because not only do they show that students experiencing financial hardship are more likely to drop out, but it was found that after three years of study, the likelihood of dropping out among financially disadvantaged students increases rather than falls as it does for other students. Disadvantaged students that don’t finish their degree in the standard allotted time are likely to be cut off from government income support. Facing this financial challenge, many students have no choice but to drop out. Not only is this detrimental to disadvantaged students, but it is also costly to society. After financially supporting students for several years, to have them drop out of university altogether, presents the economy with a costly loss of potentially skilled graduates.

Another important finding was how the Youth Allowance benefited students. It was found that students who are independent Youth Allowance recipients were less likely to drop out. However, results pointed to these students taking a longer time to graduate. It is suspected that this is related to students who have taken time off from study in order to work full time and earn sufficient income to demonstrate their financial independence and qualify for independent Youth Allowance. It seems that taking this time off from study has a longer term detrimental effect with students in this situation actually taking longer to graduate.

Associate Professor Buly Cardak and Joe Vecci, who have been conducting this study together, are hoping to conduct further analysis over the coming years on this issue, and to consider ways to improve the circumstances for financially disadvantaged students.

To read the full article in which this research has been published, see: Cardak, B.A. and J. Vecci, “Graduates, Dropouts and Slow Finishers: The Effects of Socioeconomic Status on University Educational Outcomes”, Oxford Bulletin Of Economics and Statistics.

 

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