Editors --- "Student start-up and relocation scholarships: approved scholarship course" [2012] SocSecRpr 33; (2012) 14(4) Social Security Reporter, Article 5

• KELLALEA and SECRETARY TO THE DEPARMENT OF INDUSTRY, INNOVATION, SCIENCE, RESEARCH AND TERTIARY EDUCATION
• Background
• Relevant legislation
• Discussion
• Conclusions
• Formal decision

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Student start-up and relocation scholarships: approved scholarship course

KELLALEA and SECRETARY TO THE DEPARMENT OF INDUSTRY, INNOVATION, SCIENCE, RESEARCH AND TERTIARY EDUCATION

(2012/761)

Decided: 2nd November 2012 by K. S. Levy.

Background

Kellalea was undertaking a Diploma of Music (Jazz Performance) at the Jazz Music Institute, and was in receipt of Youth Allowance. In February 2012, she applied for a scholarship, either the Student Startup Scholarship (designed to assist students undertaking a higher education or preparatory course) and/or the Relocation Scholarship (which is payable to students in receipt of Youth Allowance who are required to live away from home to undertake their course).

The application was rejected by a delegate of the Secretary. Kellalea sought review of the decision, which was reviewed by a Centrelink authorised review officer and affirmed.

Kellalea applied to the SSAT for a review of the decision. The SSAT affirmed the decision, and Kellalea applied to the AAT for a review of that decision.

Relevant legislation

Both the scholarships required certain criteria to be satisfied. The relevant ones which are important for consideration of this matter were that:

(a) The student must be a full time student;

(b) The student must be qualified for youth allowance and youth allowance must be paid to that person;

(c) The course must be conducted by an approved higher education provider; and

(d) The student must be undertaking an approved scholarship course.

An approved scholarship course as mentioned in ss.592F and 592J of the Social Security Act 1991 (Cth) (‘the Act’) is defined in ss.592M and 592N. Section 592M of the Act states that such a course is one ‘approved by the minister under a determination made for the purposes of s.592N’. The Determination is the Social Security (Approved Scholarship Courses) Determination 2010 (1). Paragraph 4 of the Determination states that an approved scholarship course is either:

(a) An accredited higher education course; or

(b) A preparatory course.

It was necessary to assess whether the Diploma of Music (Jazz Performance) course undertaken by Kellalea fell within either of those two definitions.

Discussion

The Diploma was a new course offered by the Jazz Music Institute. Evidence was given before the Tribunal to the effect that the Diploma was designed for students who were not up to Bachelor level entry, but that the course was not a bridging or enabling course for a Bachelor degree. That is, completion of the Diploma did not give a right of entry to the Bachelor degree, it just assisted students by making them more competitive for entry into the Bachelor degree. If a person who held a Diploma did gain entry into the Bachelor degree, they could receive up to 80 credit points towards the Bachelor degree (being the equivalent of one year of full-time study).

The Secretary submitted that the Diploma course was not a ‘preparatory course’ as defined, as it was a stand-alone course that led to an award of a Diploma degree. It was submitted that the Diploma was not designed to assist a person to gain entry in a higher education course, being the Bachelor degree, as completion of the course did not provide an automatic admission to the Bachelor degree. Applicants for the Bachelor degree still had to complete an audition and other entrance requirements before they were eligible for admission into that course. Kellalea submitted that the course was in fact designed to prepare her and other students for admission into the Bachelor degree.

Conclusions

The AAT found that the Jazz Music Institute was a ‘higher education institution’, but that the Diploma course was not an ‘accredited higher education course’, as the only accredited course run by the Jazz Music Institute was the Bachelor of Music in Jazz. The AAT further found that the Diploma course was not a ‘higher education course’ as defined in any event, but rather a vocational education and training course.

In the circumstances, the Diploma would need to fall within the definition of a ‘preparatory course’ in order for Kellalea to qualify for the scholarships.

In considering whether the Diploma course was designed to prepare Kellalea for entry into the Bachelor degree, the AAT concluded that the fact that the Diploma course was a stand-alone course that leads to an award was not determinative of the matter. The AAT considered that, in order to make a finding that the Diploma course was ‘preparatory’ for the Bachelor course, there would need to be evidence of a nexus or link between the completion of the Diploma course and the entry into the Bachelor degree. The AAT concluded that the completion of the Diploma was not the sole qualification for entry into the Bachelor course, as Kellalea would still have to pass an audition. Therefore the AAT concluded that there was not a sufficient nexus or link to show that the Diploma course was a ‘preparatory course’ as defined.

Formal decision

The AAT affirmed the decision under review.