Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2016-2017
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SOCIAL SERVICES LEGISLATION AMENDMENT
(BETTER TARGETING STUDENT PAYMENTS) BILL 2017
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Social Services, the Hon Christian Porter MP)
SOCIAL SERVICES LEGISLATION AMENDMENT
(BETTER TARGETING STUDENT PAYMENTS) BILL 2017
OUTLINE
This bill introduces the following Budget 2017-18 measures:
Better Targeting of the Relocation Scholarship; and
Aligning the Pensioner Education Supplement and Education Entry Payment.
Schedule 1 - Relocation scholarship payment
Schedule 1 implements the 2017-18 Budget measure Better Targeting of the
Relocation Scholarship.
The amendments made by this Schedule better target the relocation scholarship
assistance for Youth Allowance students to those whose parental family home or
usual place of residence is in Australia. Students whose parental family home or
usual place of residence is located outside Australia will no longer be able to qualify
for the relocation scholarship. Access to the relocation scholarship will also be
restricted to students relocating to study in Australia. Students who relocate outside
Australia to undertake part of their Australian course will no longer be qualified for
the relocation scholarship.
Schedule 2 - Education entry payment
Schedule 2 implements part of the 2017-18 Budget measure Aligning the Pensioner
Education Supplement and Education Entry Payment.
The amendments made by this schedule will better align education entry payment
rates with the study loads undertaken by eligible students and four payment tiers for
the payment will be introduced.
Schedule 3 - Pensioner education supplement
Schedule 3 implements part of the 2017-18 Budget measure Aligning the Pensioner
Education Supplement and Education Entry Payment.
The amendments made by this schedule will better align pensioner education
supplement fortnightly rates with a person's study load. The schedule will also
ensure that payments of pensioner education supplement will cease during semester
breaks and holiday periods.
FINANCIAL IMPACT STATEMENT
The Government will achieve savings of $1.9 million over five years from 2016-17 for
the measure contained in Schedule 1.
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The Government will achieve savings of $94.7 million over five years from 2016-17
for the measure contained in Schedules 2 and 3.
STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS
The statements of compatibility with human rights appear at the end of this
explanatory memorandum.
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SOCIAL SERVICES LEGISLATION AMENDMENT
(BETTER TARGETING STUDENT PAYMENTS) BILL 2017
NOTES ON CLAUSES
Abbreviations used in this explanatory memorandum
In this explanatory memorandum:
Social Security Act means the Social Security Act 1991; and
Veterans' Entitlements Act means the Veterans' Entitlements Act 1986.
Clause 1 sets out how the new Act is to be cited - that is, as the Social Services
Legislation Amendment (Better Targeting Student Payments) Act 2017.
Clause 2 provides a table setting out the commencement dates of the various
sections in, and Schedules to, the new Act.
Clause 3 provides that each Act that is specified in a Schedule is amended or
repealed as set out in that Schedule.
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Schedule 1 - Relocation scholarship payment
Summary
Schedule 1 implements the 2017-18 Budget measure Better Targeting of the
Relocation Scholarship.
The amendments made by this Schedule better target the relocation scholarship
assistance for Youth Allowance students to those whose parental family home or
usual place of residence is in Australia. Students whose parental family home or
usual place of residence is located outside Australia will no longer be able to qualify
for the relocation scholarship. Access to the relocation scholarship will also be
restricted to students relocating to study in Australia. Students who relocate outside
Australia to undertake part of their Australian course will no longer be qualified for
the relocation scholarship.
Background
The relocation scholarship was introduced on 1 April 2010 with the intention of
assisting dependent and some independent students who have to move away
from home to undertake higher education studies with the costs of establishing
new accommodation. The objective of the relocation scholarship is to remove
financial barriers to the education participation of students from low socio-
economic status backgrounds, particularly those from regional and remote areas
of Australia and Indigenous students.
The relocation scholarship primarily assists students from regional and remote
areas of Australia moving away from home to study. This is in recognition that
regional and remote students face additional costs in pursuing tertiary education
and have much lower participation rates in higher education than students from
major city areas of Australia. The relocation scholarship also assists students
from major city areas who relocate to undertake study at a regional or remote
campus location.
Qualification for the relocation scholarship payment is restricted to recipients of youth
allowance (or ABSTUDY recipients under equivalent provisions in the ABSTUDY
policy manual) undertaking higher education or higher education preparatory
courses.
Currently, students with a parental home or usual place of residence outside of
Australia are qualified for the relocation scholarship regardless of whether they are
moving to a major city or regional area in Australia to study. The relocation
scholarship is not paid to students relocating within or between major city locations in
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Australia. Continuing to pay the relocation scholarship to students moving away from
a residence outside of Australia to study in Australia is therefore not consistent
policy.
The relocation scholarship is also paid to students who elect to undertake part of
their Australian course in a study location outside of Australia. This is also not
consistent policy to pay the relocation scholarship to these students.
These students are currently qualified as a result of applying the Remoteness
Structure in subsection 1067A(10F) of the Social Security Act 1991 (the Act) and are
subsequently treated the same as regional and remote students for relocation
scholarship qualification purposes. This is a loophole in the current legislation and
any location that is not classified as one of the Major Cities of Australia in
accordance with the Remoteness Structure is, by default, treated as a regional or
remote location. This includes locations outside of Australia.
The amendments made by Schedule 1 aim to simplify the payment of the relocation
scholarship and better target the payment by narrowing the range of youth allowance
students who are qualified for the scholarship.
The amendments made by Schedule 1 commence on 1 January 2018 if the Social
Services Legislation Amendment (Better Targeting Student Payments) Act 2017
receives the Royal Assent before 1 January 2018. If this Act receives the Royal
Assent on or after 1 January 2018, Schedule 1 will commence on the first 1 January
or 1 July to occur after the day this Act receives the Royal Assent.
Explanation of the changes
Amendments to the Social Security Act 1991
Item 1 amends section 592K of the Act to insert new subsections 592K(7A), (7B)
and (7C). These new subsections provide for three additional circumstances in which
a person is not qualified for a relocation scholarship payment despite being
otherwise qualified under section 592J.
The first circumstance, dealt with in new subsection 592K(7A), applies where each of
the person's parents has their home outside of Australia. This rule is intended to
ensure that despite otherwise qualifying for the relocation scholarship under section
592J, a person is not qualified if, on the day the person started to undertake the
course (referred to in paragraph 592J(d)), the home of each parent of the person
was outside Australia.
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Example 1
Kate lives with both of her parents in Singapore as her mother has been
posted there for work purposes. Kate decides to return to Australia in 2018 to
commence university. Kate will not be eligible for the relocation scholarship as
her parental family home is outside of Australia.
Example 2
Dylan lives with his father in Jakarta and his mother lives in Wagga Wagga.
Dylan returns to Australia in 2019 to undertake a higher education course. As
both of Dylan's parents do not live outside of Australia, he may qualify for the
relocation scholarship based on the home of his mother, provided he meets
the other qualification criteria.
The second circumstance, as dealt with by new subsection 592K(7B), applies to
prevent a person who otherwise qualifies for relocation scholarship under section
592J from being qualified for relocation scholarship where the person is, at
qualification time independent because of subsection 1067A(3), (5), (6), (7), (8), (9)
or (11) of the Act; and on the day six months before beginning their course, had their
usual place of residence outside of Australia. This is intended to ensure that people
who have recently moved from outside of Australia to study are not qualified for the
relocation scholarship, and to be consistent with new subsection 592K(7A).
Example 3
Natalie is independent for youth allowance purposes as she has a dependent
child. Six months before she commenced her course in 2019 in Australia,
Natalie's usual place of residence was in Beijing where she was working for
the past two years. As Natalie's usual place of residence six months before
her course started was in a location outside of Australia, she is not eligible for
the relocation scholarship.
It should be noted that in order to qualify for the relocation scholarship, a person
must also be qualified for youth allowance. One of the qualification criteria for youth
allowance is that throughout the period of qualification the person must be an
Australian resident. This means that the person must reside in Australia and be
either an Australian citizen, hold a permanent visa or hold a protected special
category visa. As people who are not Australian residents cannot access youth
allowance and the relocation scholarship, these amendments do not apply to them.
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The third circumstance, as dealt with by new subsection 592K(7C), relates to people
whose place of study is outside of Australia at the person's qualification time. This
subsection operates to ensure that despite being otherwise qualified for the
relocation scholarship under section 592J, a person is not qualified if, at the person's
qualification time, the person's place of study, as worked out in accordance with an
instrument in force under subsection 592J(8), is outside Australia. However, upon
their return from studying outside of Australia, a student may qualify for the
relocation scholarship for the remainder of their course in Australia.
Example 4
John is qualified for youth allowance and undertaking a university course in
Sydney. John received a relocation scholarship in 2018 for the first year of his
course as his parental family home was located in Dubbo and he was
studying in a major city area. In 2019, John decides to undertake a year of
study in Italy that will be credited towards his Australian course. As his place
of study is outside of Australia, John will not be eligible for the relocation
scholarship. In 2020, John returns to study in Sydney and provided he
continues to meet the relocation scholarship qualification criteria, he may
requalify for the scholarship.
For the purposes of new subsections 592K (7A), (7B) and (7C), the definition of
'Australia' used is the same as that contained in section 23 of the Act. This section
defines Australia as including 'Norfolk Island, the Territory of Cocos (Keeling) Islands
and the Territory of Christmas Island'.
Item 2 inserts the subheading 'Interpretation' before subsection 592K(8).
Item 3 is an application provision for the amendments made by this schedule. Sub-
item 3(1) provides that subject to item 3, the amendments made by this schedule
apply in relation to working out whether a person is qualified for a relocation
scholarship payment at a time on or after the commencement of this item, whether
the person started to undertake the course concerned before, on or after that
commencement.
Example 5
Julie is a youth allowance recipient who begins her course on 10 January
2018. If the amendments made by Schedule 1 commence on 1 January 2018
they will apply to Julie. This means that if Julie is considered dependent for
youth allowance purposes and the home of both of her parents is overseas
she will not qualify for the relocation scholarship. Alternatively, if Julie is
considered independent for youth allowance purposes and her usual place of
residence is overseas, she will not qualify for the relocation scholarship. Julie
will also not qualify for the relocation scholarship if her place of study is
overseas.
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Sub-item 3(2) provides that if, before the commencement of this item, a person
started to undertake a course referred to in paragraph 592J(d) of the Act and on the
day they began that course the home of each parent was outside Australia, or on the
day six months before the person started to undertake that course, the person's
usual place of residence was outside Australia, then the new subsections 592K(7A)
and (7B) of the Act do not apply for the purposes of working out whether the person
is qualified for a relocation scholarship payment at a time on or after the
commencement of this item. The note in this sub-item states that subsection
592K(7C) does apply in relation to the person.
Example 6
Samantha is a youth allowance recipient who moved from her parental home
in Ireland to Australia to study. She began her course on 15 January 2017
and qualified for the relocation scholarship. Under sub-item 3(2) of the
application provision, Samantha is still qualified for the relocation scholarship
and therefore it is still payable because she began her course before the
commencement of Schedule 1 and she had received a relocation scholarship
in relation to that course. This assumes the amendments made by Schedule 1
commence on 1 January 2018.
However, if Samantha elects to study part of her Australian course in New
Zealand from 15 January 2018, then the new subsection 592(7C) would apply
and for the second year of study, Samantha would not be eligible for the
relocation scholarship. If Samantha returns to Australia in 2019 to continue
her course, she will qualify once again for the relocation scholarship provided
she continues to meet the eligibility criteria.
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Schedule 2 - Education entry payment
Summary
Schedule 2 implements part of the 2017-18 Budget measure Aligning the Pensioner
Education Supplement and Education Entry Payment.
The amendments made by this schedule will better align education entry payment
rates with the study loads undertaken by eligible students and four payment tiers for
the payment will be introduced.
Background
In broad terms, the education entry payment assists with education expenses, and is
paid once a calendar year to eligible recipients.
The education entry payment was introduced in 1993 to assist long-term income
support recipients improve or re-build their skills and training to be more competitive
in the labour market.
At present, recipients of certain social security payments and payments administered
by the Department of Veterans' Affairs may qualify for education entry payment if
they are enrolled in an approved course of education at an approved institution or if
pensioner education supplement is payable.
Currently all recipients of education entry payment receive the full lump sum
payment of $208 per year, regardless of their study load.
Schedule 2 amends the education entry payment provisions in Part 2.13A of the
Social Security Act 1991 and Part VIIAA of the Veterans' Entitlements Act 1986.
The amendments made to these Acts by Schedule 2 better target education entry
payment by tailoring the rate of payment to the study load undertaken by the student.
This is intended to better reflect the costs students incur as part of their study.
Students undertaking part-time study loads do not generally incur the same study
costs as those undertaking full-time study loads and it is proposed the education
entry payment rates reflect this.
Four payment tiers will be introduced to determine a person's rate of education entry
payment and these are as follows:
$208 per annum (current rate) for study loads of 76% to 100% of the normal
amount of full-time study;
$156 per annum (new rate) for study loads of 51% to 75%;
$104 per annum (new rate) for study loads of 26% to 50%; and
$52 per annum (new rate) for study loads of 25%.
The amendments made by Schedule 2 commence on 1 January 2018 if the Social
Services Legislation Amendment (Better Targeting Student Payments) Act 2017
receives the Royal Assent before 1 January 2018. If this Act receives the Royal
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Assent on or after 1 January 2018, Schedule 2 will commence on the first 1 January
or 1 July to occur after the day this Act receives the Royal Assent.
Explanation of the changes
Amendments to the Social Security Act
Item 1 inserts new Division 1A before Division 1 of Part 2.13A of the Act. New
Division 1A contains new section 665AA which provides a definition of 'normal
amount of full-time study' for the purposes of Part 2.13A of the Act.
This new definition is to be used when determining what constitutes a 'normal
amount of full-time study' for the purposes of new subsections 665V(2), 665ZD(2),
665ZM(2), 665ZR(2) and 665ZV(2) (see items 8, 11, 14, 17 and 20).
New section 665AA provides that the 'normal amount of full-time study' in respect of
a course is:
(a) if:
(i) the course is a course of study within the meaning of the Higher
Education Support Act 2003; and
(ii) there are Commonwealth supported students (within the
meaning of that Act) enrolled in the course;
the full time student load for the course; or
(b) if the course is not such a course and the institution defines an amount
of full time study that a full time student should typically undertake in
respect of the course - the amount so defined; or
(c) otherwise - an amount of full time study equivalent to the average
amount of full time study that a person would have to undertake for the
duration of the course in order to complete the course in the minimum
amount of time needed to complete it.
The new definition of 'normal amount of full-time study' in section 665AA uses the
same language as the definition of 'normal amount of full-time study' in subsection
1061PF(1) for the purposes of Part 2.24A of the Act (regarding pensioner education
supplement).
Items 2, 3, 4, 5 and 12 repeal sections 665B, 665F, 665J, 665N, and 665ZFB and
replace these with new sections.
These sections are the sections in Part 2.13A of the Act that determine the amount
of education entry payment to be paid to eligible recipients of pension PP (single),
disability support pension, widow B pension, special benefit and carer payment.
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The amendments in items 2, 3, 4, 5 and 12 operate so that a recipient's amount of
education entry payment is determined based on the fortnightly rate of pensioner
education supplement payable to the recipient.
If the fortnightly rate of pensioner education supplement payable to the person is
$62.40 then the person is paid an education entry payment of $208.
If the fortnightly rate of pensioner education supplement payable to the person is
$46.80 then the person is paid an education entry payment of $156.
If the fortnightly rate of pensioner education supplement payable to the person is
$31.20 then the person is paid an education entry payment of $104.
If the fortnightly rate of pensioner education supplement payable to the person is
$15.60 then the person is paid an education entry payment of $52.
Item 6 repeals paragraph 665U(1)(a) and substitutes a new paragraph. Paragraph
665U(1)(a) currently provides that a recipient of newstart allowance qualifies for an
education entry payment if (as well as satisfying other qualification requirements) the
recipient enrols in or intends to enrol in a full-time course of education that is an
approved course under the ABSTUDY scheme or an approved course of education
or study for the purposes of paragraph 541B(1)(c) (Youth Allowance) or 569A(b)
(Austudy). Item 6 ensures that a person must actually enrol in a course in order to
satisfy the requirements in paragraph 665U(1)(a). Given that under the new
education entry payment rate provision (see item 8) the recipient's study load needs
to be assessed when determining the amount of education entry payment to pay to
the recipient, this assessment can only be made once the recipient has enrolled in
the course and cannot be based on an intention to enrol in a course.
Item 7 repeals paragraph 665U(1)(d) and substitutes a new paragraph. New
paragraph 665U(1)(d) provides that a newstart allowance recipient is qualified for an
education entry payment under this section if (as well as satisfying other qualification
requirements) the recipient has not received a payment under Part 2.13A of the Act
for which the recipient made a claim in the current calendar year.
Item 8 repeals section 665V and substitutes a new section. This new section sets
out a new formula for determining the amount of education entry payment (if any) to
be paid to a recipient of newstart allowance.
The amount of an education entry payment for a recipient of newstart allowance is
worked out using the table at the end of the new section and is based on the
person's study load.
To determine the person's study load it is necessary to apply subsection 665V(2) to
work out the percentage (the relevant percentage), of the normal amount of
full-time study in respect of the course of education, the Secretary is satisfied that
the person will be undertaking on the first day of the current calendar year the
person undertakes study in that course. It is the person's relevant percentage that
determines the amount of the person's education entry payment.
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There is a note to new subsection 665V(2) that refers to the definition of 'normal
amount of full-time study' in new section 665AA. New section 665AA is set out in
item 1.
Once the person's relevant percentage has been determined the amount of
education entry payment paid to the person is the corresponding amount in column 2
of the table at the end of section 665V.
If the person's relevant percentage is 76% or more of the normal amount of full-time
study the person will receive $208.
If the person's relevant percentage is 51% or more but less than 76% the person will
receive $156.
If the person's relevant percentage is more than 25% but less than 51% the person
will receive $104.
If the person's relevant percentage is 25% the person will receive $52.
If the person's relevant percentage is less than 25% the person will not receive an
education entry payment.
Item 9 repeals paragraph 665ZC(1)(a) and substitutes a new paragraph. Paragraph
665ZC(1)(a) currently provides that a recipient of widow allowance qualifies for an
education entry payment if (as well as satisfying other qualification requirements) the
recipient enrols in or intends to enrol in a full-time or part-time course of education
that is an approved course under the ABSTUDY scheme. Item 9 ensures that a
person must actually enrol in a course in order to satisfy the requirements in
paragraph 665ZC(1)(a). Given that under the new education entry payment rate
provision (see item 11) the recipient's study load needs to be assessed when
determining the amount of education entry payment to pay to the recipient, this
assessment can only be made once the recipient has enrolled in the course and
cannot be based on an intention to enrol in a course.
Item 10 repeals paragraph 665ZC(1)(c) and substitutes a new paragraph. New
paragraph 665ZC(1)(c) provides that a widow allowance recipient is qualified for an
education entry payment under this section if (as well as satisfying other qualification
requirements) the recipient has not received a payment under Part 2.13A of the Act
for which the recipient made a claim in the current calendar year.
Item 11 repeals section 665ZD and substitutes a new section. This new section sets
out a new formula for determining the amount of education entry payment (if any) to
be paid to a recipient of widow allowance.
The amount of an education entry payment for a recipient of widow allowance is
worked out using the table at the end of the new section and is based on the
person's study load.
To determine the person's study load it is necessary to apply subsection 665ZD(2) to
work out the percentage (the relevant percentage), of the normal amount of full-
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time study in respect of the course of education, the Secretary is satisfied that the
person will be undertaking on the first day of the current calendar year the person
undertakes study in that course. It is the person's relevant percentage that
determines the amount of the person's education entry payment.
There is a note to new subsection 665ZD(2) that refers to the definition of 'normal
amount of full-time study' in new section 665AA. New section 665AA is set out in
item 1.
Once the person's relevant percentage has been determined the amount of
education entry payment paid to the person is the corresponding amount in column 2
of the table at the end of section 665ZD.
If the person's relevant percentage is 76% or more of the normal amount of full-time
study the person will receive $208.
If the person's relevant percentage is 51% or more but less than 76% the person will
receive $156.
If the person's relevant percentage is more than 25% but less than 51% the person
will receive $104.
If the person's relevant percentage is 25% the person will receive $52.
If the person's relevant percentage is less than 25% the person will not receive an
education entry payment.
Item 13 repeals paragraph 665ZL(a) and substitutes a new paragraph. Paragraph
665ZL(a) currently provides that a recipient of wife pension qualifies for an education
entry payment if (as well as satisfying other qualification requirements) the recipient
enrols in or intends to enrol in a full-time or part-time course of education that is an
approved course under the ABSTUDY scheme. Item 13 ensures that a person must
actually enrol in a course in order to satisfy the requirements in paragraph 665ZL(a).
Given that under the new education entry payment rate provision (see item 14) the
recipient's study load needs to be assessed when determining the amount of
education entry payment to pay to the recipient, this assessment can only be made
once the recipient has enrolled in the course and cannot be based on an intention to
enrol in a course.
Item 14 repeals section 665ZM and substitutes a new section. This new section sets
out a new formula for determining the amount of education entry payment (if any) to
be paid to a recipient of wife pension.
The amount of an education entry payment for a recipient of wife pension is worked
out using the table at the end of the new section and is based on the person's study
load.
To determine the person's study load it is necessary to apply subsection 665ZM(2)
to work out the percentage (the relevant percentage), of the normal amount of full-
time study in respect of the course of education, the Secretary is satisfied that the
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person will be undertaking on the first day of the current calendar year the person
undertakes study in that course. It is the person's relevant percentage that
determines the amount of the person's education entry payment.
There is a note to new subsection 665ZM(2) that refers to the definition of 'normal
amount of full-time study' in new section 665AA. New section 665AA is set out in
item 1.
Once the person's relevant percentage has been determined the amount of
education entry payment paid to the person is the corresponding amount in column 2
of the table at the end of section 665ZM.
If the person's relevant percentage is 76% or more of the normal amount of full-time
study the person will receive $208.
If the person's relevant percentage is 51% or more but less than 76% the person will
receive $156.
If the person's relevant percentage is more than 25% but less than 51% the person
will receive $104.
If the person's relevant percentage is 25% the person will receive $52.
If the person's relevant percentage is less than 25% the person will not receive an
education entry payment.
Item 15 repeals paragraph 665ZQ(1)(a) and substitutes a new paragraph.
Paragraph 665ZQ(1)(a) currently provides that a recipient of partner allowance
qualifies for an education entry payment if (as well as satisfying other qualification
requirements) the recipient enrols in or intends to enrol in a full-time course of
education that is an approved course under the ABSTUDY scheme. Item 15 ensures
that a person must actually enrol in a course in order to satisfy the requirements in
paragraph 665ZQ(1)(a). Given that under the new education entry payment rate
provision (see item 17) the recipient's study load needs to be assessed when
determining the amount of education entry payment to pay to the recipient, this
assessment can only be made once the recipient has enrolled in the course and
cannot be based on an intention to enrol in a course.
Item 16 repeals paragraph 665ZQ(1)(c) and substitutes a new paragraph. New
paragraph 665ZQ(1)(c) provides that a partner allowance recipient is qualified for an
education entry payment under this section if (as well as satisfying other qualification
requirements) the recipient has not received a payment under Part 2.13A of the Act
for which the recipient made a claim in the current calendar year.
Item 17 repeals section 665ZR and substitutes a new section. This new section sets
out a new formula for determining the amount of education entry payment (if any) to
be paid to a recipient of partner allowance.
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The amount of an education entry payment for a recipient of partner allowance is
worked out using the table at the end of the new section and is based on the
person's study load.
To determine the person's study load it is necessary to apply subsection 665ZR(2) to
work out the percentage (the relevant percentage), of the normal amount of full-
time study in respect of the course of education, the Secretary is satisfied that the
person will be undertaking on the first day of the current calendar year the person
undertakes study in that course. It is the person's relevant percentage that
determines the amount of the person's education entry payment.
There is a note to new subsection 665ZR(2) that refers to the definition of 'normal
amount of full-time study' in new section 665AA. New section 665AA is set out in
item 1.
Once the person's relevant percentage has been determined the amount of
education entry payment paid to the person is the corresponding amount in column 2
of the table at the end of section 665ZR.
If the person's relevant percentage is 76% or more of the normal amount of full-time
study the person will receive $208.
If the person's relevant percentage is 51% or more but less than 76% the person will
receive $156.
If the person's relevant percentage is more than 25% but less than 51% the person
will receive $104.
If the person's relevant percentage is 25% the person will receive $52.
If the person's relevant percentage is less than 25% the person will not receive an
education entry payment.
Item 18 repeals paragraph 665ZU(1)(a) and substitutes a new paragraph. Paragraph
665ZU(1)(a) currently provides that a recipient of benefit PP (partnered) qualifies for
an education entry payment if (as well as satisfying other qualification requirements)
the recipient enrols in or intends to enrol in a full-time or part-time course of
education that is an approved course under the AUSTUDY scheme or ABSTUDY
scheme. Item 18 ensures that a person must actually enrol in a course in order to
satisfy the requirements in paragraph 665ZU(1)(a). Given that under the new
education entry payment rate provision (see item 20) the recipient's study load
needs to be assessed when determining the amount of education entry payment to
pay to the recipient, this assessment can only be made once the recipient has
enrolled in the course and cannot be based on an intention to enrol in a course.
New paragraph 665ZU(1)(a) also removes a redundant reference to the 'AUSTUDY
scheme'. This scheme no longer exists.
Item 19 repeals paragraph 665ZU(1)(c) and substitutes a new paragraph. New
paragraph 665ZU(1)(c) provides that a benefit PP (partnered) recipient is qualified
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for an education entry payment under this section if (as well as satisfying other
qualification requirements) the recipient has not received a payment under Part
2.13A of the Act for which the recipient made a claim in the current calendar year.
Item 20 repeals section 665ZV and substitutes a new section. This new section sets
out a new formula for determining the amount of education entry payment (if any) to
be paid to a recipient of benefit PP (partnered).
The amount of an education entry payment for a recipient of benefit PP (partnered)
is worked out using the table at the end of the new section and is based on the
person's study load.
To determine the person's study load it is necessary to apply subsection 665ZV(2) to
work out the percentage (the relevant percentage), of the normal amount of full-
time study in respect of the course of education, the Secretary is satisfied that the
person will be undertaking on the first day of the current calendar year the person
undertakes study in that course. It is the person's relevant percentage that
determines the amount of the person's education entry payment.
There is a note to new subsection 665ZV(2) that refers to the definition of 'normal
amount of full-time study' in new section 665AA. New section 665AA is set out in
item 1.
Once the person's relevant percentage has been determined the amount of
education entry payment paid to the person is the corresponding amount in column 2
of the table at the end of section 665ZV.
If the person's relevant percentage is 76% or more of the normal amount of full-time
study the person will receive $208.
If the person's relevant percentage is 51% or more but less than 76% the person will
receive $156.
If the person's relevant percentage is more than 25% but less than 51% the person
will receive $104.
If the person's relevant percentage is 25% the person will receive $52.
If the person's relevant percentage is less than 25% the person will not receive an
education entry payment.
Item 21 is an application provision that provides the amendments made by this
Schedule apply in relation to the following:
(a) working out qualification for an education entry payment on or after the
commencement of this item;
(b) working out the amount of an education entry payment on or after the
commencement of this item for a person who qualified for the payment
on or after that commencement.
16
Amendments to the Veterans' Entitlements Act
Item 22 amends section 118AA of the Veterans' Entitlements Act. Section 118AA
sets out the criteria for a person to be eligible for an education entry payment. For
the education entry payment to be payable to a person, the conditions contained in
both the Veterans' Entitlements Act and the Social Security Act must be met.
The conditions are:
the person must be receiving (paragraph 118AA(a)):
o a partner service pension; or
o an invalidity service pension; or
o an income support supplement (ISS).
In addition the person must:
be under pension age (paragraph 118AA(b)); and
be qualified (or would be qualified, except for the receipt of a similar payment)
to receive the Pensioner Education Supplement (under the Social Security
Act) (paragraph 118AA(c)); and
be enrolled or satisfy the Repatriation Commission that the person intends to
enrol in either a full-time or part-time course of education which is an
approved course under the Austudy scheme (paragraph 118AA(d)); and
have not already received an Education Entry Payment in the current
calendar year (paragraph 118AA(e)).
Paragraph 118AA(d) is repealed and replaced. New paragraph 118AA(d) requires
the Repatriation Commission to be satisfied that the person is enrolled in either a
full-time or part-time course of education which is an approved course under the
Austudy scheme.
Item 23 is a formatting amendment to subsection 118AAC(1) to insert the heading
"Entitlement".
Item 24 repeals subsection 118AAC(2) and substitutes new subsections 118AAC(2),
(3), (4) and (5).
Repealed subsection 118AAC(2) had referred to the amount of the education entry
payment being "$208".
New subsection 118AAC(2) provides that the amount of the education entry payment
will be determined using the table set out in the section (new subsection 118AAC(4))
which is based on the person's study load.
New subsection 118AAC(3) provides for the determination by the Repatriation
Commission of the percentage (the relevant percentage), of the normal amount of
full-time study in respect of the course of education, the Repatriation Commission is
satisfied that the person will be undertaking on the first day of the current calendar
year the person undertakes study in that course. It is the person's relevant
percentage that determines the amount of the person's education entry payment.
17
There is a note to new subsection 118AAC(3) that refers to the definition of "normal
amount of full-time study" in new subsection 118AAC(5).
Once the person's relevant percentage has been determined the amount of
education entry payment paid to the person is the corresponding amount in column 2
of the table at the end of subsection 118AAC(4).
If the person's relevant percentage is 76% or more the person will receive $208.
If the person's relevant percentage is 51% or more but less than 76% the person will
receive $156.
If the person's relevant percentage is more than 25% but less than 51% the person
will receive $104.
If the person's relevant percentage is 25% the person will receive $52.
If the person's relevant percentage is less than 25% the person will not receive an
education entry payment.
New subsection 118AAC(5) refers to the definition of "normal amount of full time
study" as having the same meaning as in Part 2.13A of the Social Security Act (set
out in new section 665AA (as inserted by Item 1 of this Schedule).
Item 25 repeals section 118AAD. Section 118AAD is redundant as it had provided
for the repayment of the education entry payment in the circumstances where it had
been paid on the basis that the eligible person had intended to enrol in a course.
With the repeal and substitution of paragraph 118AA(d), the payment is no longer
made on that basis.
Item 26 is an application and saving provision. Sub-item 26(1) provides that the
amendments to the Veterans' Entitlements Act made by this Schedule apply in
relation to the following:
(a) working out eligibility for an education entry payment on or after the
commencement of this item;
(b) working out the amount of an education entry payment on or after the
commencement of this item for a person who is eligible for the payment
on or after that commencement.
Sub-item 26(2) provides that despite the repeal of section 118AAD (by Item 25 of
this Schedule) the section will continue to apply on or after the commencement of
the amendments in relation to a claim for an education entry payment made before
that day.
18
Schedule 3 - Pensioner education supplement
Summary
Schedule 3 implements part of the 2017-18 Budget measure Aligning the Pensioner
Education Supplement and Education Entry Payment.
The amendments made by this schedule will better align pensioner education
supplement fortnightly rates with a person's study load. The schedule will also
ensure that payments of pensioner education supplement will cease during semester
breaks and holiday periods.
Background
In broad terms, the pensioner education supplement assists people receiving certain
income support payments with the ongoing costs of full-time or part-time study.
The pensioner education supplement was introduced to assist long-term income
support recipients improve their skills and training to be more competitive in the
labour market.
The pensioner education supplement is currently $62.40 per fortnight or $31.20 per
fortnight depending on the person's study load and income support payment type.
Schedule 3 amends Part 2.24A of the Social Security Act 1991 to better align rates
of payment with the person's actual study load. Pensioner education supplement
fortnightly rates will be better aligned with the study loads undertaken by eligible
students and four payment tiers will be introduced. These four payments tiers are as
follows:
$62.40 per fortnight (current rate) for study loads of 76% to 100% of the
normal amount of full-time study;
$46.80 per fortnight (new rate) for study loads of 51% to 75%;
$31.20 per fortnight (current part rate) for study loads of 26% to 50%; and
$15.60 per fortnight (new rate) for study loads of 25%.
The amendments made by this schedule will also ensure that payments of pensioner
education supplement will cease during semester breaks and holiday periods.
Pensioner education supplement is currently paid during semester breaks and end of
year holidays, as well as during study periods. The amendments made by this
schedule will ensure that payments will only be made within these study periods.
For vacation periods between study periods and vacation periods within a study
period the person will no longer be paid the supplement. Payment of the pensioner
education supplement will resume once the person resumes their studies (provided
they are otherwise qualified).
19
The amendments made by Schedule 3 commence on 1 January 2018 if the Social
Services Legislation Amendment (Better Targeting Student Payments) Act 2017
receives the Royal Assent before 1 January 2018. If this Act receives the Royal
Assent on or after 1 January 2018, Schedule 3 will commence on the first 1 January
or 1 July to occur after the day this Act receives the Royal Assent.
The changes to the Pensioner Education Supplement will also apply to Pensioner
Education Supplement payments made under the ABSTUDY Scheme and the
Assistance for Isolated Children Scheme. Amendments will be made to the
ABSTUDY Policy Manual and the Assistance for Isolated Children Scheme
Guidelines.
Explanation of the changes
Amendments to the Social Security Act
Item 1 repeals subsections 1061PB(3) to (5) and replaces these with new
subsections 1061PB(3) and (4). These new subsections amend the definition of
'undertaking qualifying study' for the purposes of determining whether a person
qualifies for pensioner education supplement.
New subsections 1061PB(3) and (4) amend the definition of 'undertaking qualifying
study' to ensure that a person is only paid pensioner education supplement for a
course (being a course referred to in paragraph 1061PB(1)(b) of the definition of
'undertaking qualifying study') for those days that fall within a study period (for
example, a semester).
New subsection 1061PB(3) provides that a person is not undertaking qualifying
study on a day if the day does not fall within a study period (such as, for example, a
semester) for the course referred to in paragraph 1061PB(1)(b) of the definition of
'undertaking qualifying study'.
New subsection 1061PB(4) provides that a person is not undertaking qualifying
study on a day if the day falls within a period of vacation that occurs during a study
period (such as, for example, a semester) for the course referred to in paragraph
1061PB(1)(b) of the definition of 'undertaking qualifying study'.
Item 2 repeals section 1061PZG and substitutes a new section. New section
1061PZG inserts a new rate provision for determining the fortnightly rate of
pensioner education supplement.
New section 1061PZG ensures that a person's rate of pensioner education
supplement is determined by their study load.
New subsection 1061PZG(1) provides that a person's rate of pensioner education
supplement is a daily rate worked out by dividing the person's fortnightly rate of
pensioner education supplement by 14.
20
New subsection 1061PZG(2) provides that a person's fortnightly rate of pensioner
education supplement is worked out using the table at the end of new section
1061PZG.
Before turning to this table it is necessary to apply subsection 1061PZG(3) to work
out the percentage (the relevant percentage), of the normal amount of full-time
study (within the meaning of section 1061PF of the Act) in respect of the course
concerned, the person is undertaking.
Once the relevant percentage has been worked out under subsection 1061PZG(3),
the table at the end of new section 1061PZG sets out the rate of pensioner
education supplement paid to the person.
For a person whose relevant percentage is 76% or more of the normal amount of
full-time study their rate of pensioner education supplement will be $62.40 per
fortnight.
For a person whose relevant percentage is 51% or more but less than 76% their rate
of pensioner education supplement will be $46.80 per fortnight.
For a person whose relevant percentage is more than 25% but less than 51% their
rate of pensioner education supplement will be $31.20 per fortnight.
For a person whose relevant percentage is 25% their rate of pensioner education
supplement will be $15.60 per fortnight.
A person whose relevant percentage is less than 25% cannot be paid any pensioner
education supplement.
Item 3 is an application provision that provides the amendments made by this
Schedule apply in relation to working out qualification for, or the rate of, pensioner
education supplement in relation to days occurring on or after the commencement of
this item.
21
STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
SOCIAL SERVICES LEGISLATION AMENDMENT
(BETTER TARGETING STUDENT PAYMENTS) BILL 2017
Schedule 1 - Relocation Scholarship Payment
This Schedule is compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Schedule
This Schedule will, from 1 January 2018, restrict access to the Relocation
Scholarship for Youth Allowance (student) recipients:
whose parental family home or usual place of residence is located in
Australia. Students whose parental family home or usual place of residence is
located outside of Australia will no longer be eligible for the Relocation
Scholarship.
studying in Australia. Students will no longer receive the Relocation
Scholarship to relocate to undertake part of their Australian courses outside of
Australia.
Where a student's parents return to Australia to live or the student returns to
Australia to continue studying after undertaking part of their course outside of
Australia, the student's eligibility for the Relocation Scholarship will be retested and
depending on the circumstances, the student may become eligible for the
Scholarship.
Dependent Youth Allowance recipients receiving the Relocation Scholarship prior to
the commencement of this measure with a parental home outside of Australia will
continue to receive the Relocation Scholarship after this date if, on the day they
started their current course their parental home was outside of Australia. Similarly,
independent Youth Allowance recipients will continue to receive the Relocation
Scholarship if they received a Scholarship prior to the commencement of this
measure and six months before they started their course, their usual place of
residence was outside of Australia.
These changes will also apply to ABSTUDY Living Allowance and will be reflected in
the ABSTUDY Policy Manual.
The Relocation Scholarship is a supplementary payment for students in receipt of
Youth Allowance. The purpose of the Relocation Scholarship is primarily to assist
students from regional or remote areas of Australia moving away from home to
study. This is in recognition that regional and remote students face additional costs
22
in pursuing tertiary education and have much lower participation rates in higher
education than students from major cities of Australia.
Human rights implications
This Schedule engages the following human rights:
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural Rights
(ICESCR) recognises the right of everyone to social security.
The right to social security requires that a system be established under domestic
law, and that public authorities must take responsibility for the effective
administration of the system. The social security system must provide a minimum
essential level of benefits to all individuals and families that will enable them to cover
essential living costs.
The United Nations Committee on Economic, Cultural and Social Rights (the
Committee) has stated that a social security scheme should be sustainable and that
the conditions for benefits must be reasonable, proportionate and transparent (see
General Comment No.19).
Article 4 of ICESCR provides that countries may limit the rights such as to social
security in a way determined by law only in so far as this may be compatible with the
nature of the rights contained within the ICESCR and solely for the purpose of
promoting the general welfare in a democratic society. Such a limitation must be
proportionate to the objective to be achieved.
To the extent that there is an impact on a person's right to social security by virtue of
Schedule 1, the impact is limited.
Under this Schedule, the Relocation Scholarship will be restricted to students
relocating within and studying in Australia.
Eligibility for the Relocation Scholarship will be retested if a student's parents return
to Australia to live or the student returns to Australia after studying outside of
Australia. Depending on the circumstances, the student may become eligible for the
Scholarship.
Whilst students with a parental home or usual place of residence outside of Australia
and students studying part of their Australian course outside of Australia will no
longer qualify for the Relocation Scholarship, this Schedule will not affect their
qualification for Youth Allowance.
Youth Allowance is a means-tested payment available for people aged 16-24 and
undertaking full-time study or training. It is a fortnightly payment designed to assist
with the living costs associated with study and to encourage young people to
undertake education and training. Students living away from home receive a higher
rate of payment than those students living at home. In 2017, students living away
from home may receive up to $437.50 per fortnight, compared to $288.10 per
fortnight for students living at home.
23
This Schedule will also not affect students from receiving Youth Allowance whilst
studying outside of Australia. Currently, students undertaking study outside of
Australia as part of an Australian course may be paid Youth Allowance for the entire
period of the overseas study as long as the study can be credited towards their
Australian course
The purpose of this Schedule is to simplify and streamline the delivery of the
Relocation Scholarship and to better reflect the policy intent of the Scholarship. The
payment of the Relocation Scholarship to students with a parental family home or
usual place of residence outside of Australia was an unintended consequence of
changes made to the Relocation Scholarship in 2015. These changes restricted
access to the Scholarship to students relocating to or from regional or remote areas
to study.
The Relocation Scholarship is a supplementary payment for dependent (and some
independent) Youth Allowance recipients who are required to live away from home to
undertake higher education studies. It is designed to assist with the costs of
establishing new accommodation. The student must be receiving at least $1 of Youth
Allowance in order to qualify for the Relocation Scholarship, which is an annual lump
sum payment paid whilst the student remains qualified.
The rate of the Scholarship paid to a qualified student, depends on their
circumstances. In 2017, students receive $4,376 in their first year of study and
$1,094 in each following year. In recognition of the additional costs of study, students
from regional and remote areas each receive $2,189 in their second and third years
of study.
In 2016, approximately 23,000 students received a Relocation Scholarship. It is
estimated that fewer than 300 students per year with parental homes outside of
Australia will no longer be able to access the Relocation Scholarship under this
measure and fewer than 150 students per year studying outside of Australia will no
longer be able to access the Relocation Scholarship.
Right to education
Article 13 of the ICESCR recognises the right of everyone to education.
To the extent that there is an impact on a person's right to education by virtue of
Schedule 1, the impact is limited.
While this Schedule may affect a person's ability to access the Relocation
Scholarship to assist with the costs of relocating to study, it will not affect their
qualification for Youth Allowance.
This Schedule will also not affect these students ability to access the Student
Start-up Loan which assists with the upfront costs of study, such as text books,
course equipment, and internet access. A student can receive up to two Student
Start-up Loans per calendar year for the duration of their course, whilst they continue
to qualify and apply for the Loans. In 2017, the value of each Loan is $1,035.
Right to work
24
Article 6 of the ICESCR recognises the right to work, which includes the availability
of technical and vocation guidance and training programs to achieve full and
productive employment.
To the extent that Schedule 1 impacts a person's right to work, the impact is limited.
As per above in the explanation of a person's right to education, whilst this Schedule
may affect a person's ability to access the Relocation Scholarship to assist with the
costs of relocating to study, it will not affect their qualification for Youth Allowance.
Youth Allowance (student) is a fortnightly payment designed to assist and encourage
young people to undertake education and training.
Discrimination on the basis of 'other status'
Article 2(2) prohibits discrimination on the basis of race, colour, language, religion,
political or other opinion, national or social origin, property, birth or other status.
'Other status' can include a group that is clearly identified.
While the Schedule makes a distinction in qualification for the Relocation
Scholarship based on the location of the student's parental home or usual place of
residence and their study location, it will help to simplify the administration of the
payment. It will also better reflect the policy intent of the Relocation Scholarship,
which is to assist students relocating within Australia, particularly students moving
from or to regional and remote areas to study.
Qualification requirements for Youth Allowance and subsequently the Relocation
Scholarship require the person to be an Australian resident. This means the person
must reside in Australia and are either an Australian citizen, hold a permanent visa
or hold a protected special category visa. People who do not meet this criteria are
not eligible for the Relocation Scholarship and will not be affected by this Schedule.
Conclusion
The amendments in the Schedule are compatible with human rights because they do
not limit access to social security or education.
25
Schedule 2 - Education Entry Payment
This Schedule is compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Schedule
In broad terms, the education entry payment assists with education expenses, and is
paid once a calendar year to eligible recipients. Recipients of certain social security
payments and payments administered by the Department of Veterans' Affairs may
qualify for education entry payment if they are enrolled in an approved course of
education at an approved institution or if pensioner education supplement is payable.
Currently all recipients of education entry payment receive the full lump sum
payment of $208 per year, regardless of their study load.
Schedule 2 will better target education entry payment by tailoring the rate of payment
to the study load undertaken by the student. This is intended to better reflect the
costs students incur as part of their study. Four payment tiers will be introduced to
determine a person's rate of education entry payment and these are as follows:
$208 per annum (current rate) for study loads of 76% to 100% of the normal
amount of full time study;
$156 per annum (new rate) for study loads of 51% to 75%;
$104 per annum (new rate) for study loads of 26% to 50%; and
$52 per annum (new rate) for study loads of 25%.
The amendments made by Schedule 2 commence on 1 January 2018 if the Social
Services Legislation Amendment (Better Targeting Student Payments) Act 2017
receives the Royal Assent before 1 January 2018. If this Act receives the Royal
Assent on or after 1 January 2018, Schedule 2 will commence on the first 1 January
or 1 July to occur after the day this Act receives the Royal Assent.
Human Rights Implications
This Schedule engages the following human rights:
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural Rights
(ICESCR) recognises the right of everyone to social security.
The right to social security requires that a system be established under domestic
law, and that public authorities must take responsibility for the effective
administration of the system. The social security system must provide a minimum
essential level of benefits to all individuals and families that will enable them to cover
essential living costs.
The United Nations Committee on Economic, Cultural and Social Rights (the
Committee) has stated that a social security scheme should be sustainable and that
26
the conditions for benefits must be reasonable, proportionate and transparent (see
General Comment No.19).
Article 4 of ICESCR provides that countries may limit the rights such as to social
security in a way determined by law only in so far as this may be compatible with the
nature of the rights contained within the ICESCR and solely for the purpose of
promoting the general welfare in a democratic society. Such a limitation must be
proportionate to the objective to be achieved.
To the extent that there is an impact on a person's right to social security by virtue of
Schedule 2, the impact is limited.
This measure does not change a person's access to the education entry payment.
The amendments in this measure reduce the amount of the education entry payment
for eligible income support recipients who are studying 75 per cent or less of the
normal amount of full-time study. The education entry payment is an additional
annual supplement paid to recipients of newstart allowance, partner allowance,
widow allowance, widow B pension, wife pension, parenting payment (single and
partnered), disability support pension, carer payment, special benefit, partner service
pension and invalidity service pension. The education entry payment is specifically
targeted to assist with the up-front costs of education and training for those who are
enrolling or commencing in an approved course of study.
Reducing the amount of the education entry payment for part-time students does not
limit or affect access to the right to social security. The education entry payment is
not an ongoing primary social security payment to meet the regular cost of living but
rather a supplement designed to assist individuals with the up-front costs of
education/training on an annual basis, paid on top of a recipient's primary payment.
An individual's entitlement to primary social security or Veterans' Affairs payments,
and other benefits, will not be affected by the amendments in Schedule 2.
To the extent that the amendments reduce a recipient's overall support, this is
proportionate to achieving the legitimate objective of ensuring the long-term
sustainability of the social security system.
Right to education
Article 13 of the ICESCR recognises the right of everyone to education.
This measure does not change a person's access to education entry payment. The
impact of the reduction in the rate of education entry payment for part-time students
on individuals is minor (reductions of $52, $104 or $156 per annum depending on
study load). It does not affect a person's entitlement to other ongoing payments or
programs designed to support individuals to engage in education. This measure is
aimed at achieving the legitimate objective of ensuring the long-term sustainability of
the social security system through more appropriate levels of additional education
support.
The Australian Government provides other payments and programs to assist
students, including:
27
Income support payments specifically designed to assist and encourage
people to undertake education and training. These payments are Austudy,
Youth Allowance (student) and ABSTUDY.
Students who are enrolling in a Commonwealth Supported Place for a
university level qualification (that is, undergraduate level) can access a
HECS-HELP loan to pay their student contribution amount. Students
accessing this loan are required to pay their debt through the tax system
when they earn above the minimum threshold for compulsory repayment.
Eligible students who are enrolling in a higher-level vocational education and
training (VET) qualification are able to access VET Student Loans, a loan
scheme which assists eligible students, enrolled with an approved provider in
an approved diploma-level or above course, to pay their tuition fees.
FEE-HELP is a loan scheme that assists eligible fee paying students in
non-Commonwealth Supported Places (for example, post-graduate level
courses at university) pay all or part of their tuition fees.
Eligible students who access any of the above loans can borrow up to the
FEE-HELP limit to pay their fees and do not have to repay the loan until their
income meets the minimum repayment threshold.
Consequently, the reduction in the amount of education entry payment for part time
students is reasonable in that access to other payments and support mechanisms to
allow individuals to undertake study remains.
Right to work
Article 6 of the ICESCR recognises the right to work, which includes the availability
of technical and vocational guidance and training programs to achieve full and
productive employment.
To the extent that Schedule 2 impacts on a person's right to work, the impact is
limited.
Whilst this Schedule may affect a person's annual rate of education entry payment,
the amendments will not affect their qualification for education entry payment or
qualification for their primary income support payment or access to any employment
assistance.
Conclusion
The Schedule is compatible with human rights because it does not limit the basic
right to social security or the right to work, and any impact on the right to education is
balanced with other financial support for students. The measure is a reasonable,
proportionate and necessary response to achieve the legitimate objective of ensuring
the long-term sustainability of the social security system.
28
Schedule 3 - Pensioner Education Supplement
This Schedule is compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Schedule
In broad terms, the pensioner education supplement assists students with the
ongoing costs of full-time or part-time study. The pensioner education supplement
was introduced to assist long-term income support recipients improve their skills and
training to be more competitive in the labour market.
The amendments made by this schedule will better align pensioner education
supplement fortnightly rates with a person's study load. Four payment tiers will be
introduced as follows:
$62.40 per fortnight (current full rate) for study loads of 76% to 100% of the
normal amount of full-time study;
$46.80 per fortnight (new rate) for study loads of 51% to 75%;
$31.20 per fortnight (current part rate) for study loads of 26% to 50%; and
$15.60 per fortnight (new rate) for study loads of 25%.
Pensioner education supplement is currently paid during semester breaks and end of
year holidays, as well as during study periods. The amendments made by this
schedule will ensure that payments will only be made within these study periods. For
vacation periods between study periods and vacation periods within a study period
the person will no longer be paid the supplement. Payment of the pensioner
education supplement will resume once the person resumes their studies (provided
they are otherwise qualified).
The changes to the Pensioner Education Supplement will also apply to Pensioner
Education Supplement payments made under the ABSTUDY Scheme and the
Assistance for Isolated Children Scheme. Amendments will be made to the
ABSTUDY Policy Manual and the Assistance for Isolated Children Scheme
Guidelines.
Human rights implications
The Schedule engages the following human rights:
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural Rights
(ICESCR) recognises the right of everyone to social security.
The pensioner education supplement is available to certain recipients of social
security payments and payments under the Veterans' Entitlements Act 1986 who are
undertaking qualifying study to assist with the ongoing costs associated with study.
Qualifying study includes secondary courses, tertiary courses, open learning,
certificate courses, bachelor degrees, advanced certificate courses, graduate
29
certificate courses, graduate diplomas and degrees, master qualifying courses or
approved masters by coursework programs.
The amendments in this Schedule reduce the amount of the pensioner education
supplement for some part-time students. The reduced rates of the pensioner
education supplement do not limit or affect access to the right to social security. The
pensioner education supplement is not a primary social security payment to meet the
regular cost of living but rather a supplement designed to assist with some of the
ongoing costs associated with study, paid on top of a recipient's primary payment.
An individual's entitlement to primary social security payments, and other benefits,
will not be affected by the changes to the rates of the pensioner education
supplement.
To the extent that the changes to the rates of pensioner education supplement and
not paying the supplement during study breaks may reduce a recipient's overall
support, this is proportionate to achieving the legitimate objective of ensuring the
long-term sustainability of the social security system.
Right to education
Article 13 of the ICESCR recognises the right of everyone to education.
This measure does not change a person's access to the pensioner education
supplement. The impact of reduced rates of pensioner education supplement for
some part- time students is minor (reductions of $15.60, $31.20 or $46.80 per
fortnight depending on study load and no payments during study breaks when a
student is generally not incurring additional ongoing study costs). It does not affect a
person's entitlement to other ongoing payments and programs designed to support
individuals to engage in education. This measure is aimed at achieving the legitimate
objective of ensuring the long-term sustainability of the social security system
through more appropriate levels of education support.
The Australian Government provides other payments and programs to assist
students, including:
Income support payments specifically designed to assist and encourage
people to undertake education and training. These payments are Austudy,
Youth Allowance (student) and ABSTUDY.
Students who are enrolling in a Commonwealth Supported Place for a
university level qualification (that is, undergraduate level) can access a
HECS-HELP loan to pay their student contribution amount. Students
accessing this loan are required to pay their debt through the tax system
when they earn above the minimum threshold for compulsory repayment.
Eligible students who are enrolling in a higher-level vocational education and
training (VET) qualification are able to access VET Student Loans, a loan
scheme which assists eligible students, enrolled with an approved provider in
an approved diploma-level or above course, to pay their tuition fees.
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FEE-HELP is a loan scheme that assists eligible fee paying students in
non-Commonwealth Supported Places (for example, post-graduate level
courses at university) pay all or part of their tuition fees.
Eligible students who access any of the above loans can borrow up to the
FEE-HELP limit to pay their fees and do not have to repay the loan until their
income meets the minimum repayment threshold.
Consequently, the reduction in the amount of pensioner education supplement for
some part-time students is reasonable in that access to other payments and support
mechanisms to allow individuals to undertake study remains.
Right to work
Article 6 of the ICESCR recognises the right to work, which includes the availability
of technical and vocational guidance and training programs to achieve full and
productive employment.
To the extent that Schedule 3 impacts on a person's right to work, the impact is
limited.
Whilst this Schedule may affect a person's fortnightly rate of pensioner education
supplement, the amendments will not affect their qualification for pensioner
education supplement or qualification for their primary income support payment or
access to any employment assistance.
Conclusion
The Schedule is compatible with human rights because it does not limit the basic
right to social security or the right to work, and any impact on the right to education is
balanced with other financial support for students. The measure is a reasonable,
proportionate and necessary response to achieve the legitimate objective of ensuring
the long-term sustainability of the social security system.
[Circulated by the authority of the Minister for Social Services,
the Hon Christian Porter MP]
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