Federal Member for Mallee John Forrest has welcomed the decision to refer the impacts of Youth Allowance changes to the Senate Rural and Regional Affairs and Transport Committee.

A report from the inquiry is due on August 30.

"The inquiry will examine the financial impact on rural and regional students who are attending metropolitan secondary schools, universities or TAFE," Mr Forrest said.

"Up to 30,000 students are expected to have their study plans disrupted or destroyed. Anything that diminishes opportunities for young people from rural and regional areas has massive long-term implications."

Hindmarsh Shire Council will make a submission to the Federal Government about Youth Allowance changes.

Cr Rob Gersch said the changes affected rural students more than metropolitan students.

"It's the rural students that are the ones that are going to be the big problem," he said. "I can see what the government is trying to do, there are a lot rorting the system.

"What they're trying to do is tighten up but it does penalise our rural students and that's what we have to stand up to and make a noise about."

Mayor Michael Gawith said rural students had to consider accommodation and travel costs when working out if they could afford to go to university.

"It's our kids that are caught up in this," Cr Gawith said.

The Federal Government announced in its budgets changes to Youth Allowance independence criteria.

Under current criteria students can earn $19,532 in an 18-month period to qualify. Under the new roles, students have to work 30 hours a week for 18 months.

THE Senate Rural and Regional Affairs and Transport References Committee will report on a Youth Allowance inquiry by August 30.

The inquiry will consider:

 The financial impact on rural and regional students who are attending metropolitan secondary schools, universities or TAFE.

 The education alternatives for rural and regional students wanting to study in regional areas.

 The implications of existing and proposed government measures on prospective students living in rural and regional areas.

The short and long-term impact of current and proposed government policies on regional university and TAFE college enrolments.

 The adequacy of government measures to provide for students who are required to leave home for secondary or post-secondary study.

 The education needs of rural and regional students.

 The impact of government measures and proposals on rural and regional communities.