SOCIAL SECURITY AMENDMENT (STUDENT INCOME SUPPORT REFORMS) BILL 2011

i Social Security Amendment (Student Income Support Reforms) Bill 2011 No. , 2011

Contents

1 Short

title

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2 Commencement

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3 Schedule(s)

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Schedule 1--Student income support reforms

Part 1--Independence

Social Security Act 1991

Part 2--Amount of relocation scholarship payment

Social Security Act 1991

Part 3--Amount of student start-up scholarship payment

Social Security Act 1991

Part 4--Rural Tertiary Hardship Fund

Social Security Act 1991

Schedule 2--Other amendments

Part 1--Amendments commencing at start of 1 January 2012

Social Security Act 1991

Part 2--Amendments commencing later on 1 January 2012

Social Security Act 1991

Social Security Amendment (Student Income Support Reforms) Bill 2011 No. , 2011 1

A Bill for an Act to amend the Social Security Act

1991, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Social Security Amendment (Student

Income Support Reforms) Act 2011.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Social Security Amendment (Student Income Support Reforms) Bill 2011 No. ,

2011

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1

1 January 2012.

1 January 2012

3. Schedule 2,

Part 1

1 January 2012.

1 January 2012

4. Schedule 2,

Part 2

Immediately after the commencement of

item 15 of Schedule 2 to the Families,

Housing, Community Services and

Indigenous Affairs and Other Legislation

Amendment (Election Commitments and

Other Measures) Act 2011.

1 January 2012

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

Schedule 1 Student income support reforms

Part 2 Amount of relocation scholarship payment

4 Social Security Amendment (Student Income Support Reforms) Bill 2011 No. ,

2011

Part 2--Amount of relocation scholarship payment

Social Security Act 1991

2 Subsection 5(1) (paragraphs (a) and (b) of the definition of

parent)

Omit "and in", substitute ", section 592L and".

3 Section 592L

Repeal the section, substitute:

592L Amount of relocation scholarship payment

(1) The amount of a relocation scholarship payment to a person is

$4,000 if the person has not received a student relocation payment

(see subsection (7)) before.

Note:

The amount of a relocation scholarship payment for which a person is

qualified on or after 1 January 2013 is indexed annually in line with

CPI increases (see sections 1190 to 1194).

(2) Subsection (1) does not apply if:

(a) the person has, at any time before the calendar year

containing the qualification time, undertaken full-time study

in a course that, had the person undertaken it at the

qualification time, would have been an approved scholarship

course at that time; and

(b) at a time that was both while the person was undertaking that

study and more than 6 months before the qualification time,

the person was either:

(i) independent because of subsection 1067A(3), (5), (6),

(7), (8), (9) or (11); or

(ii) required to live away from home (see section 1067D).

(3) The amount of a relocation scholarship payment to a person is

$1,000 if neither subsection (1) nor subsection (4) applies.

Note:

The amount of a relocation scholarship payment for which a person is

qualified on or after 1 January 2013 is indexed annually in line with

CPI increases (see sections 1190 to 1194).

(4) The amount of a relocation scholarship payment to a person is

$2,000 if:

Student income support reforms Schedule 1

Amount of relocation scholarship payment Part 2

Social Security Amendment (Student Income Support Reforms) Bill 2011 No. , 2011

(a) in 1 or more calendar years (the prior years) that precede the

calendar year containing the qualification time, the person

undertook full-time study in a course that, had the person

undertaken it at the qualification time, would have been an

approved scholarship course at that time; and

(b) in 1 or 2 (but no more) of the prior years:

(i) the person was, while undertaking such study, either

independent because of subsection 1067A(3), (5), (6),

(7), (8), (9) or (11) or required to live away from home

(see section 1067D); or

(ii) the person received a student relocation payment (see

subsection (7)); and

Note:

The amount of a relocation scholarship payment for which a person is

qualified on or after 1 January 2013 is indexed annually in line with

CPI increases (see sections 1190 to 1194).

(5) This subsection applies to a person if, at the qualification time:

(a) the person is not independent (see section 1067A); and

(b) the person is required to live away from home (see

section 1067D); and

location (see subsection (7)).

Note: For

parent see subsection 5(1).

(6) This subsection applies to a person if:

(a) at the qualification time, the person is independent because of

subsection 1067A(3), (5), (6), (7), (8), (9) or (11); and

(b) at the time 6 months before the person first undertook study

described in paragraph (4)(a) of this section, the person's

usual place of residence was in a location that at the

qualification time is a regional or remote location (see

subsection (7)).

Definitions

(7) In this section:

regional or remote location means a location categorised as Inner

Regional Australia, Outer Regional Australia, Remote Australia or

Schedule 1 Student income support reforms

Part 2 Amount of relocation scholarship payment

6 Social Security Amendment (Student Income Support Reforms) Bill 2011 No. ,

2011

Very Remote Australia, under the Remoteness Structure as defined

in subsection 1067A(10F).

student relocation payment means any of the following:

(a) a relocation scholarship payment;

(b) a payment under the ABSTUDY Scheme known as an

ABSTUDY relocation scholarship payment;

the scheme referred to in section 117 of the Veterans'

Entitlements Act;

(d) a payment known as a relocation scholarship payment under

the scheme referred to in section 258 of the Military

Rehabilitation and Compensation Act;

(e) the amount or value of a Commonwealth Accommodation

Scholarship.

4 Application

(1)

Section 592L of the Social Security Act 1991 as amended by this Part

applies to amounts of relocation scholarship payments for which the

qualification times are on or after the commencement of this Part.

(2)

In determining whether subsection (1) of that section applies, take

account of payments and value received before, on or after the

commencement of this Part.

(3)

In determining whether subsection (4) of that section applies, take

account of prior years occurring before or after the commencement of

this Part.

5 Section 1190 (table item 69, column 4)

Omit "(2) and (3)", substitute "(3) and (4)".

6 Transitional--no indexation on 1 January 2012

The relocation scholarship payment amount is not to be indexed under

section 1191 of the Social Security Act 1991 on 1 January 2012.

Student income support reforms Schedule 1

Amount of student start-up scholarship payment Part 3

Social Security Amendment (Student Income Support Reforms) Bill 2011 No. , 2011

Part 3--Amount of student start-up scholarship

payment

Social Security Act 1991

7 Section 592H

Repeal the section, substitute:

592H Amount of student start-up scholarship payment

The amount of a student start-up scholarship payment for which a

person is qualified on or after 1 January 2012 is $1,025.

Note:

The amount of a student start-up scholarship payment for which a

person is qualified on or after 1 January 2013 is indexed annually in

line with CPI increases (see sections 1190 to 1194).

8 Section 1190 (cell at table item 68, column 4)

Repeal the cell, substitute:

section 592H

9 Transitional--no indexation on 1 January 2012

The student start-up scholarship payment amount is not to be indexed

under section 1191 of the Social Security Act 1991 on 1 January 2012.

Schedule 1 Student income support reforms

Part 4 Rural Tertiary Hardship Fund

8 Social Security Amendment (Student Income Support Reforms) Bill 2011 No. ,

2011

Part 4--Rural Tertiary Hardship Fund

Social Security Act 1991

10 Chapter 2BA

Repeal the Chapter.

11 Saving

Despite the repeal of Chapter 2BA of the Social Security Act 1991 by

this Part, that Chapter and the scheme determined under it continue to

apply in relation to:

(a) reviews of refusals, before that repeal, of applications for

assistance under the scheme; and

(b) approvals of such applications, and payment of assistance,

under that scheme as a result of such reviews.

Other amendments Schedule 2

Amendments commencing at start of 1 January 2012 Part 1

Social Security Amendment (Student Income Support Reforms) Bill 2011 No. , 2011

Schedule 2--Other amendments

Part 1--Amendments commencing at start of

1 January 2012

Social Security Act 1991

1 Point 1067G-G15 (note)

Repeal the note, substitute:

Note:

Points 1067G-G19 and 1067G-G20 affect whether a person to whom

the parental income test applies has parental income in common with

certain other persons.

2 Paragraph 1067G-G19(a)

Omit "under this Module".

3 Section 1067G (at the end of Module G of the Youth

Allowance Rate Calculator)

Add:

Extension to senior secondary school FTB children

1067G-G20 This Submodule applies in relation to a person who is an FTB

child aged 16 or more and a senior secondary school child but is

not a person described in point 1067G-G19 as if:

(a) the parental income test applied to the person; and

(b) the following amount were the maximum payment rate for

the person:

(i) if the person is aged less than 18--the amount specified

in column 3 of item 1 of the table in point 1067G-B2 (as

indexed);

(ii) if the person is aged 18 or more--the amount specified

in column 3 of item 2 of the table in point 1067G-B2 (as

indexed).

1067G-G21 For the purposes of point 1067G-G20, senior secondary school

child has the meaning given by section 22B of the Family

Assistance Act (disregarding subparagraph 22B(1)(a)(i) of that

Act).

Schedule 2 Other amendments

Part 1 Amendments commencing at start of 1 January 2012

10 Social Security Amendment (Student Income Support Reforms) Bill 2011 No. ,

2011

4 Section 1223ABE

Repeal the section, substitute:

1223ABE Debts in respect of scholarship payments

Person does not start to undertake a course

(1) If a person:

(a) has received a student start-up scholarship payment or a

relocation scholarship payment because the person is

proposing to undertake an approved scholarship course; and

(b) does not start to undertake full-time study in an approved

scholarship course;

then:

Commonwealth; and

(d) the debt is taken to have arisen when the person received the

payment.

However, this subsection does not apply if, in the Secretary's

opinion, the person does not start to undertake full-time study in an

approved scholarship course because of exceptional circumstances

beyond the person's control.

Note: For

approved scholarship course, see section 592M.

Person not continuing to undertake a course

(2) If a person:

(a) has received a student start-up scholarship payment or a

relocation scholarship payment because the person is

proposing to undertake an approved scholarship course (the

qualifying course); and

(b) starts to undertake an approved scholarship course; and

course at the end of 35 days after the qualifying course

commences;

then:

(d) the amount of the payment is a debt due to the

Commonwealth; and

Other amendments Schedule 2

Amendments commencing at start of 1 January 2012 Part 1

Social Security Amendment (Student Income Support Reforms) Bill 2011 No. , 2011

(e) the debt is taken to have arisen when the person received the

payment.

Note: For

approved scholarship course, see section 592M.

(3) If a person:

(a) has received a student start-up scholarship payment or a

relocation scholarship payment because the person is

undertaking an approved scholarship course; and

(b) is not undertaking full-time study in an approved scholarship

course at the end of 35 days after qualifying for the payment;

then:

Commonwealth; and

(d) the debt is taken to have arisen when the person received the

payment.

Note: For

approved scholarship course, see section 592M.

(4) Subsections (2) and (3) do not apply if, in the Secretary's opinion,

the person is not undertaking full-time study in an approved

scholarship course because of exceptional circumstances beyond

the person's control.

5 Application

Section 1223ABE of the Social Security Act 1991 as amended by this

Part applies to payments received on or after the commencement of this

Part.

Schedule 2 Other amendments

Part 2 Amendments commencing later on 1 January 2012

12 Social Security Amendment (Student Income Support Reforms) Bill 2011 No. ,

2011

Part 2--Amendments commencing later on

1 January 2012

Social Security Act 1991

6 At the end of subsection 543A(2AA)

Add:

; or (d) the Secretary determines that the person is not benefiting

from family tax benefit that is being paid to the person's

parents.

7 Point 1067G-F31

Omit "who is a senior secondary school child", substitute "a senior

secondary school child but is not a person described in point

1067G-F30".

Commonwealth of Australia Bills

SOCIAL SECURITY AMENDMENT (STUDENT INCOME SUPPORT REFORMS) BILL 2011