In an ideal world Kylie, I'd agree with your reasoning - however the fact is that because of the little that Centrelink coughs up, people have to get part-time jobs (which is not necessarily a bad thing) and thus they do not necessarily perform as well at university as they would otherwise
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Employees look positively upon students who have been able to balance their studies with a mix of part-time work and extra-curricular activities so I would encourage that whether they needed the money or not. And if the payment was enough to be comfortable (and comfortable is relative too) then we would encourage professional students and those who are 'professionals' at being supported by the government, the very type you want to minimise. I don't want any payments to be too generous because I want there to be an incentive to move off them
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Employers also look upon people with real-life experience, not just some greenhorn little kid with a degree but no real life experience - working in Coles or Woolies does not provide adequate real life experience (although it does help in the absence of worldly knowledge
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