SOCIAL SECURITY AND OTHER LEGISLATION AMENDMENT (INCOME SUPPORT FOR STUDENTS) BILL 2010

i Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Review of impact of student income arrangements ........................... 3

Schedule 1--Youth allowance

Part 1--Independence criteria

Division 1--Main amendments

Social Security Act 1991

Division 2--Related amendment

Social Security Act 1991

Division 3--Application of amendments made by this Part

Part 2--Income tests

Division 1--Single reduction because of income tests

Social Security Act 1991

Division 2--Parental income test and family actual means test

Social Security Act 1991

Division 3--Income test for youth allowance and austudy payment

Social Security Act 1991

Division 4--Student income bank

Social Security Act 1991

Schedule 2--Scholarship payments for students

Part 1--Main amendments

Social Security Act 1991

Part 2--Related amendments

Higher Education Support Act 2003

Military Rehabilitation and Compensation Act 2004

Social Security Act 1991

Social Security (Administration) Act 1999

Veterans' Entitlements Act 1986

Schedule 3--Training supplement for parenting payment

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 1

A Bill for an Act to amend the law relating to social

security, veterans' affairs and higher education,

and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Social Security and Other Legislation

Amendment (Income Support for Students) Act 2009.

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 and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

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,

Part 1

1 January 2010.

1 January 2010

3. Schedule 1,

Part 2,

Divisions 1 and 2

1 January 2010.

1 January 2010

4. Schedule 1,

Part 2,

Divisions 3 and 4

1 July 2012.

1 July 2012

5. Schedule 2,

Part 1

1 January 2010.

1 January 2010

6. Schedule 2,

items 5 to 16

1 January 2010.

1 January 2010

7. Schedule 2,

item 17

Immediately after the commencement of the

provisions covered by table item 2.

1 January 2010

8. Schedule 2,

items 18 to 34

1 January 2010.

1 January 2010

9. Schedule 3

Immediately after the commencement of

Schedule 1 to the Social Security

Amendment (Training Incentives) Act 2009.

1 July 2009

Note:

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

passed by both Houses of the Parliament and assented to. It will not be

expanded to deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not

part of this Act. Information in this column may be added to or

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

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 3

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

according to its terms.

4 Review of impact of student income arrangements

(1) The Minister must cause a comprehensive review to be undertaken

of the impact of the student income arrangements implemented by

this Act on equity, with a particular focus on the impact on rural

and regional students.

(2) The review must:

(a) start not later than 30 June 2012; and

(b) be completed within 3 months.

(3) The Minister must cause a written report about the review to be

prepared.

(4) The Minister must cause a copy of the report to be laid before each

House of the Parliament within 15 sitting days of that House after

the day on which the Minister receives the report.

Schedule 1 Youth allowance

Part 1 Independence criteria

4 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

Schedule 1--Youth allowance

Part 1--Independence criteria

Division 1--Main amendments

Social Security Act 1991

1 Subsection 1067A(4)

Repeal the subsection, substitute:

Person at least a certain age

(4) For the purposes of Part 2.11, this Part and section 1070G, a person

is independent at a time in a year specified in an item of the table if

at the time the person is at least the age specified in the item:

Age when person becomes independent

Item Year

Age

1 2010

years

2 2011

years

A year after 2011

22 years

(4A) For the purposes of Parts 3.4A, 3.4B and 3.7, except

section 1070G, a person is independent if the person is at least 25

years old.

2 Paragraph 1067A(10)(a)

Omit "at least 30 hours per week", substitute "on average 30 hours per

week".

3 After subsection 1067A(10)

Insert:

(10A) Paragraphs (10)(b) and (c) do not apply for the purposes of

determining whether a person is to be regarded as independent for

the purposes of Part 2.11, this Part or section 1070G, unless

subsection (10B) or (10C) applies to the person.

Youth allowance Schedule 1

Independence criteria Part 1

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 5

(10B) This subsection applies to a person if, before 1 January 2010, the

person was:

(a) receiving youth allowance; and

(b) regarded as independent because of paragraph (10)(b) or (c).

(10C) This subsection applies to a person if the Secretary is satisfied that:

(a) in 2008 the person completed a course of education

determined under section 5D of the Student Assistance Act

1973 to be a secondary course for the purposes of that Act;

and

(b) disregarding subparagraph 541B(1)(a)(iii), the person did not

undertake full-time study in 2009; and

full-time study in 2010 because of his or her intended

enrolment at a higher education institution in a course of

education; and

(d) on a day (the higher education start day) in the period

starting on 1 January 2010 and ending at the end of

31 December 2010 the person starts undertaking full-time

study because of his or her enrolment at a higher education

institution in a course of education determined under

section 592N to be an approved scholarship course; and

(e) if the person would not be taken by section 1067D to be

required to live away from home on the higher education

start day, assuming he or she were not independent then--the

person's combined parental income (as defined in point

1067G-F10 of the Youth Allowance Rate Calculator in

section 1067G) for the tax year described in subsection (10D)

is less than $150,000; and

(f) disregarding subsection (10A) of this section, the person is

independent because of paragraph (10)(b) or (c) of this

section before 1 January 2011.

Note: For

undertaking full-time study see section 541B.

(10D) For the purposes of paragraph (10C)(e), the tax year is:

(a) the tax year ending on 30 June 2009; or

(b) the tax year ending on 30 June 2010 if:

(i) the person requests, in writing in accordance with a

form approved by the Secretary, the Secretary to

determine that paragraph (10C)(e) apply to the person's

Schedule 1 Youth allowance

Part 1 Independence criteria

6 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

combined parental income for that tax year and the

Secretary does so; or

(ii) under point 1067G-F6 of the Youth Allowance Rate

Calculator in section 1067G that tax year would be the

appropriate tax year for the purpose of applying Module

F of that Rate Calculator to the person in respect of a

youth allowance payment period including the higher

education start day (assuming youth allowance is or

may be payable to the person).

Division 2--Related amendment

Social Security Act 1991

4 Subsection 19A(2) (definition of independent)

Omit ", 3.4A, 3.4B, 3.5 and 3.7", substitute "and 3.5".

Division 3--Application of amendments made by this

Part

5 Application

The following apply for the purposes of working out a person's

eligibility for, or amount of, youth allowance for a day, or fares

allowance for a journey on a day, that is on or after 1 January 2010:

(a) subsections 1067A(4), (10A), (10B), (10C) and (10D) of the

Social Security Act 1991 as amended by this Part;

(b) the amendment by this Part of the definition of independent

in subsection 19A(2) of the Social Security Act 1991.

Youth allowance Schedule 1

Income tests Part 2

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 7

Part 2--Income tests

Division 1--Single reduction because of income tests

Social Security Act 1991

6 Point 1067G-A1 (method statement, step 8)

Omit "and take the reduction away from the maximum payment rate:

the result is the parental income test reduced rate".

7 Point 1067G-A1 (method statement, step 9)

Repeal the step.

8 Point 1067G-A1 (method statement, step 10)

Omit "and take the reduction away from the maximum payment rate:

the result is the actual means test reduced rate".

9 Point 1067G-A1 (method statement, step 11)

Repeal the step.

10 Point 1067G-A1 (method statement, step 13)

Repeal the step, substitute:

Step 13. Take away from the maximum payment rate the greatest

of the following that apply:

(a)

the person's reduction for parental income;

(b)

the person's reduction for actual means;

(c)

the person's income reduction.

(If a reduction described in paragraph (a) or (b) applies,

and is not less than any other reduction that applies, take

away from the maximum payment rate the

first-mentioned reduction.) The result is the provisional

fortnightly payment rate. If that rate is nil because of the

taking away of a reduction described in paragraph (a) or

(b) then youth allowance is not payable to the person.

Schedule 1 Youth allowance

Part 2 Income tests

8 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

Note:

If a person's maximum payment rate is reduced under

this step, section 1210 sets the order in which the

components of that rate are to be reduced.

11 Application of amendments

The amendments made by this Division apply for the purposes of

working out the rate of youth allowance payable to a person for a day

that is on or after 1 January 2010.

Division 2--Parental income test and family actual

means test

Social Security Act 1991

12 Paragraph 1067G-F3(c)

Repeal the paragraph, substitute:

13 Points 1067G-F22, 1067G-F23, 1067G-F24 and 1067G-F25

Repeal the points, substitute:

Parental income free area

1067G-F22 For the purposes of this Module, a person's parental income free

area for a time in a calendar year is an amount equal to the income

free area under clause 38N of Schedule 1 to the A New Tax System

(Family Assistance) Act 1999, as affected by indexation under

Schedule 4 to that Act, on 1 January in the calendar year.

Note:

The parental income free area is not indexed under this Act because it

is affected by indexation under the A New Tax System (Family

Assistance) Act 1999.

14 Points 1067G-F26, 1067G-F27 and 1067G-F28

Repeal the points, substitute:

Having parental income in common

1067G-F26 For the purposes of this Submodule, 2 or more persons have

parental income in common if:

(a) the parental income test applies to each of them; and

Youth allowance Schedule 1

Income tests Part 2

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 9

(b) a parent of one of the persons is also a parent of each of the

other persons.

Note:

Point 1067G-F30 affects whether a person to whom the parental

income test applies has parental income in common with someone

qualified for a payment under the ABSTUDY Scheme or for a

payment under the Assistance for Isolated Children Scheme.

Person who does not have parental income in common with anyone

else

1067G-F27 Work out a person's reduction for parental income using the

following formula and point 1067G-F29 if:

(a) the person does not have parental income in common with

anyone else; and

(b) the person's combined parental income (see Submodule 4)

for the appropriate tax year exceeds the person's parental

income free area (see Submodule 5):

The excess

130

Note:

Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a

year) and dividing again by 5 (so that the reduction for parental

income is only 20 cents for each dollar of the excess).

Person who has parental income in common with someone else

1067G-F28 Work out a person's reduction for parental income using the

following formula and point 1067G-F29 if:

(a) the person has parental income in common with one or more

other persons; and

(b) the person's combined parental income (see Submodule 4)

for the appropriate tax year exceeds the person's parental

income free area (see Submodule 5):

The excess

Person's maximum payment rate under Module A

Total of maximum payment rate of each person

130

who has parental income in common

�

Note:

Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a

year) and dividing again by 5.

Schedule 1 Youth allowance

Part 2 Income tests

10 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

Rounding the reduction for parental income

1067G-F29 If the result of the formula in whichever of points 1067G-F27 and

1067G-F28 applies is not a multiple of 10 cents, round the result to

the nearest 10 cents (rounding a multiple of 5 cents upwards).

Extension to recipients under ABSTUDY or Assistance for Isolated

Children Scheme

1067G-F30 This Submodule applies in relation to a person in respect of whom

a payment is made under the ABSTUDY Scheme or the Assistance

for Isolated Children Scheme and to whom a parental income test

under that scheme applies as if:

(a) the parental income test under this Module applied to the

person; and

(b) the total of the amounts described in the following table as

relevant to the person were the maximum payment rate for

the person for the purposes of this Submodule.

Amounts included in total treated as maximum payment rate

Item

If this allowance is being paid in

respect of the person

This amount is relevant to the

person

Living allowance under the

ABSTUDY Scheme

The person's maximum payment

rate of the living allowance

Group 2 school fees allowance

under the ABSTUDY Scheme

of the school fees allowance

amount subject to income testing

Additional boarding allowance

under the Assistance for Isolated

Children Scheme

of the maximum rate of the

additional boarding allowance

Note:

This Submodule does not (of its own force) affect the amount payable

to the person under the ABSTUDY Scheme or the Assistance for

Isolated Children Scheme.

15 Point 1067G-G15

Repeal the point, substitute:

Having parental income in common

1067G-G15 For the purposes of this Submodule, 2 or more persons have

parental income in common if:

(a) the parental income test applies to each of them; and

Youth allowance Schedule 1

Income tests Part 2

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 11

(b) a parent of one of the persons is also a parent of each of the

other persons.

Note:

Point 1067G-G19 affects whether a person to whom the parental

income test applies has parental income in common with someone

qualified for a payment under the ABSTUDY Scheme or for a

payment under the Assistance for Isolated Children Scheme.

Person who does not have parental income in common with anyone

else

1067G-G16 Work out a person's reduction for family actual means using the

following formula and point 1067G-G18 if:

(a) the person does not have parental income in common with

anyone else; and

(b) the actual means of the person's family (see Submodule 4)

for the appropriate tax year exceeds the person's family

actual means free area (see Submodule 5):

The excess

130

Note:

Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a

year) and dividing again by 5 (so that the reduction for family actual

means is only 20 cents for each dollar of the excess).

Person who has parental income in common with someone else

1067G-G17 Work out a person's reduction for family actual means using the

following formula and point 1067G-G18 if:

(a) the person has parental income in common with one or more

other persons; and

(b) the actual means of the person's family (see Submodule 4)

for the appropriate tax year exceeds the person's family

actual means free area (see Submodule 5):

The excess

Person's maximum payment rate under Module A

Total of maximum payment rate of each person

130

who has parental income in common

�

Note:

Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a

year) and dividing again by 5.

Schedule 1 Youth allowance

Part 2 Income tests

12 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

Rounding the reduction for family actual means

1067G-G18 If the result of the formula in whichever of points 1067G-16 and

1067G-G17 applies is not a multiple of 10 cents, round the result to

the nearest 10 cents (rounding a multiple of 5 cents upwards).

Extension to recipients under ABSTUDY or Assistance for Isolated

Children Scheme

1067G-G19 This Submodule applies in relation to a person in respect of whom

a payment is made under the ABSTUDY Scheme or the Assistance

for Isolated Children Scheme and to whom a parental income test

under that scheme applies as if:

(a) the parental income test under this Module applied to the

person; and

(b) the total of the amounts described in the following table as

relevant to the person were the maximum payment rate for

the person for the purposes of this Submodule.

Amounts included in total treated as maximum payment rate

Item

If this allowance is being paid in

respect of the person

This amount is relevant to the

person

Living allowance under the

ABSTUDY Scheme

The person's maximum payment

rate of the living allowance

Group 2 school fees allowance

under the ABSTUDY Scheme

of the school fees allowance

amount subject to income testing

Additional boarding allowance

under the Assistance for Isolated

Children Scheme

of the maximum rate of the

additional boarding allowance

Note:

This Submodule does not (of its own force) affect the amount payable

to the person under the ABSTUDY Scheme or the Assistance for

Isolated Children Scheme.

16 Section 1190 (table item 41)

Repeal the item.

17 Subsection 1191(1) (table item 30)

Repeal the item.

18 Application of amendments

Youth allowance Schedule 1

Income tests Part 2

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 13

The amendments made by this Division apply for the purposes of

working out the rate of youth allowance payable to a person for a day

that is on or after 1 January 2010.

Division 3--Income test for youth allowance and austudy

payment

Social Security Act 1991

19 Paragraphs 1067G-H29(a) and (aa)

Omit "$236", substitute "$400".

20 Point 1067L-D28

Omit "$236", substitute "$400".

21 Section 1190 (after table item 20)

Insert:

20AA. Ordinary

income

free area for youth

allowance and

austudy payment

YA and austudy

ordinary income

free area

[Youth Allowance Rate

Calculator--paragraphs

1067G-H29(a) and (aa)]

[Austudy Payment Rate

Calculator--point 1067L-D28]

YA and austudy

range reduction

boundary

20AB. Dollar

amount

boundary between

lower and upper

range reduction for

ordinary income

reduction

YA and austudy

range reduction

boundary

[Youth Allowance Rate

Calculator--paragraphs

1067G-H32(a) and (b) and

1067G-H33(a) and (b)]

[Austudy Payment Rate

Calculator--points 1067L-D31

and 1067L-D32]

22 Subsection 1191(1) (after table item 14)

Insert:

14AA. YA

and

austudy

ordinary

income free

area

1 January

June

highest June

quarter

before

reference

quarter (but

$1.00

Schedule 1 Youth allowance

Part 2 Income tests

14 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

not earlier

than June

quarter

2011)

YA and

austudy

range

reduction

boundary

14AB. YA

and

austudy

range

reduction

boundary

1 January

June

highest June

quarter

before

reference

quarter (but

not earlier

than June

quarter

2011)

$1.00

23 After subsection 1192(4)

Insert:

(4AA) The first indexation of the amounts to which items 14AA and

14AB of the CPI Indexation Table in subsection 1191(1) relate is

to take place on 1 January 2013.

24 Application of amendments

The amendments of points 1067G-H29 and 1067L-D28 of the Social

Security Act 1991 made by this Division apply for the purposes of

working out the rate of youth allowance or austudy payment payable to

a person for a day that is on or after 1 July 2012.

Division 4--Student income bank

Social Security Act 1991

25 Point 1067G-J3 (method statement, step 3, paragraph (a))

Omit "$6,000", substitute "$10,000".

26 Points 1067G-J4 and 1067G-J5

Youth allowance Schedule 1

Income tests Part 2

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 15

Omit "$236" (wherever occurring), substitute "the ordinary income free

area (see paragraph 1067G-H29(a) or (aa))".

27 Point 1067L-E2 (method statement, step 3, paragraph (a))

Omit "$6,000", substitute "$10,000".

28 Points 1067L-E3 and 1067L-E4

Omit "$236" (wherever occurring), substitute "the ordinary income free

area (see point 1067L-D28)".

29 Section 1190 (after table item 20A)

Insert:

Student income

bank balance limit

21. Student

income

bank balance limit

student income

bank balance

limit

[Youth Allowance Rate

Calculator--point 1067G-J3--

method statement--step 3--

paragraph (a)]

[Austudy Payment Rate

Calculator--point 1067L-E2--

method statement--step 3--

paragraph (a)]

30 Subsection 1191(1) (after table item 14A)

Insert:

15. student

income

bank

balance

limit

1 January

June

highest June

quarter

before

reference

quarter (but

not earlier

than June

quarter

2011)

$100.00

31 Subsection 1192(4A)

Repeal the subsection, substitute:

(4A) The first indexation of the amounts to which item 15 of the CPI

Indexation Table in subsection 1191(1) relates is to take place on

1 January 2013.

Schedule 1 Youth allowance

Part 2 Income tests

16 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

32 Application of amendments

The amendments of points 1067G-J3, 1067G-J4, 1067G-J5, 1067L-E2,

1067L-E3 and 1067L-E4 of the Social Security Act 1991 made by this

Division apply for the purposes of working out the rate of youth

allowance or austudy payment payable to a person for a day that is on or

after 1 July 2012.

Scholarship payments for students Schedule 2

Main amendments Part 1

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 17

Schedule 2--Scholarship payments for

students

Part 1--Main amendments

Social Security Act 1991

1 Paragraph 8(8)(zja)

Omit "provided for under the Commonwealth Scholarships Guidelines

made for the purposes of Part 2-4 of the Higher Education Support Act

2003;".

2 Subsection 23(1)

Insert:

Commonwealth Accommodation Scholarship means a scholarship

of that name provided for under the Commonwealth Scholarships

Guidelines made for the purposes of Part 2-4 of the Higher

Education Support Act 2003.

3 Subsection 23(1)

Insert:

Commonwealth Education Costs Scholarship means a scholarship

of that name provided for under the Commonwealth Scholarships

Guidelines made for the purposes of Part 2-4 of the Higher

Education Support Act 2003.

4 After Part 2.11A of Chapter 2

Insert:

Schedule 2 Scholarship payments for students

Part 1 Main amendments

18 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

Part 2.11B--Scholarship payments for students

Division 1--Student start-up scholarship payment

592F Qualification for student start-up scholarship payment

Receiving youth allowance

(1) A person is qualified for a student start-up scholarship payment at

a time (the qualification time) if:

(a) at the qualification time, the person is qualified for youth

allowance and youth allowance is payable to the person; and

(b) at the qualification time, the person is receiving youth

allowance and would be receiving youth allowance if steps 2

and 3 of the method statement in point 1067G-A1 of the

Youth Allowance Rate Calculator were disregarded for the

purposes of working out the person's rate of that allowance;

and

undertaking full-time study in an approved scholarship

course; and

(d) the Secretary is satisfied that in the period of 35 days starting

immediately after the qualification time, the person proposes

to start to undertake the course or to continue to undertake

the course; and

(e) the Secretary is satisfied that the person is not likely to

receive the amount or value of a Commonwealth Education

Costs Scholarship in the period of 6 months starting

immediately after the qualification time.

Note: For

approved scholarship course, see section 592M.

Receiving austudy payment

(2) A person is qualified for a student start-up scholarship payment at

a time (the qualification time) if:

(a) at the qualification time, the person is qualified for austudy

payment and austudy payment is payable to the person; and

(b) at the qualification time, the person is receiving austudy

payment and would be receiving austudy payment if steps 2

and 2A of the method statement in point 1067L-A1 of the

Scholarship payments for students Schedule 2

Main amendments Part 1

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 19

Austudy Payment Rate Calculator were disregarded for the

purposes of working out the person's rate of that payment;

and

is undertaking an approved scholarship course; and

(d) the Secretary is satisfied that in the period of 35 days starting

immediately after the qualification time, the person proposes

to start to undertake the course or to continue to undertake

the course; and

(e) the Secretary is satisfied that the person is not likely to

receive the amount or value of a Commonwealth Education

Costs Scholarship in the period of 6 months starting

immediately after the qualification time.

Note: For

approved scholarship course, see section 592M.

592G Circumstances in which person is not qualified for student

start-up scholarship payment

Previous qualification for, or receipt of, same or similar payment

(1) Despite section 592F, a person is not qualified for a student

start-up scholarship payment if 1 or more of the circumstances

listed in subsection (2) apply to the person in the period of 6

months (or shorter period determined under subsection (3)) ending

immediately before the person's qualification time.

(2) The circumstances are:

(a) the person has qualified for a student start-up scholarship

payment; or

(b) the person has qualified for a payment under the ABSTUDY

Scheme known as an ABSTUDY student start-up scholarship

payment; or

start-up scholarship payment under the scheme referred to in

section 117 of the Veterans' Entitlements Act; or

(d) the person has qualified for a payment known as a student

start-up scholarship payment under the scheme referred to in

section 258 of the Military Rehabilitation and Compensation

Act; or

(e) the person has received the amount or value of a

Commonwealth Education Costs Scholarship; or

Schedule 2 Scholarship payments for students

Part 1 Main amendments

20 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

(f) the person was entitled to the amount or value of a

Commonwealth Education Costs Scholarship but has not

received the full entitlement only because the scholarship

was suspended.

Secretary may determine period of less than 6 months

(3) For the purposes of subsection (1), the Secretary may determine a

period in relation to a person that is at least 2 months but less than

6 months if the Secretary considers that the determination would

enable the person to qualify for a student start-up scholarship

payment on or near the day on which the approved scholarship

course concerned started or starts.

(4) However, the Secretary must not make a determination under

subsection (3) if the effect of the determination would be to enable

the person to receive more than 2 student start-up scholarship

payments in a calendar year.

592H Amount of student start-up scholarship payment

Payment for which person is qualified in 2010

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

person is qualified in 2010 is $717.

Payment for which person is qualified in 2011 or later

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

person is qualified on or after 1 January 2011 is $1,127.

Note:

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

person is qualified on or after 1 January 2011 is indexed annually in

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

Division 2--Relocation scholarship payment

592J Qualification for relocation scholarship payment

A person is qualified for a relocation scholarship payment at a time

(the qualification time) if:

(a) at the qualification time, the person is qualified for youth

allowance and youth allowance is payable to the person; and

Scholarship payments for students Schedule 2

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No. , 2009 21

(b) at the qualification time, the person is receiving youth

allowance and would be receiving youth allowance if steps 2

and 3 of the method statement in point 1067G-A1 of the

Youth Allowance Rate Calculator were disregarded for the

purposes of working out the person's rate of that allowance;

and

(c)

the

person:

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

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

(ii) is not independent (see section 1067A) but is required to

live away from home (see section 1067D); and

(d) the person is receiving youth allowance because the person is

undertaking full-time study in an approved scholarship

course; and

(e) the Secretary is satisfied that in the period of 35 days starting

immediately after the qualification time, the person proposes

to start to undertake the course or to continue to undertake

the course; and

(f) the Secretary is satisfied that the person is not likely to

receive the amount or value of a Commonwealth

Accommodation Scholarship in the period of 12 months

starting immediately after the qualification time.

Note: For

approved scholarship course, see section 592M.

592K Circumstances in which person is not qualified for relocation

scholarship payment

Previous qualification for, or receipt of, same or similar payment

(1) Despite section 592J, a person is not qualified for a relocation

scholarship payment if 1 or more of the circumstances listed in

subsection (2) apply to the person in the period of 12 months (or

shorter period determined under subsection (3)) ending

immediately before the person's qualification time.

(2) The circumstances are:

(a) the person has qualified for a relocation scholarship payment;

(b) the person has qualified for a payment under the ABSTUDY

Scheme known as an ABSTUDY relocation scholarship

payment; or

Schedule 2 Scholarship payments for students

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22 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

scholarship payment under the scheme referred to in

section 117 of the Veterans' Entitlements Act; or

(d) the person has qualified for a payment known as a relocation

scholarship payment under the scheme referred to in

section 258 of the Military Rehabilitation and Compensation

Act; or

(e) the person has received the amount or value of a

Commonwealth Accommodation Scholarship; or

(f) the person was entitled to the amount or value of a

Commonwealth Accommodation Scholarship but has not

received the full entitlement only because the scholarship

was suspended.

(3) For the purposes of subsection (1), the Secretary may determine a

period in relation to a person that is at least 3 months but less than

12 months if the Secretary considers that the determination would

enable the person to qualify for a relocation scholarship payment

on or near 1 January in a year.

(4) However, the Secretary must not make a determination under

subsection (3) if the effect of the determination would be to enable

the person to receive more than 2 relocation scholarship payments

in a period of 2 successive calendar years.

Independent but did not receive same or similar payment

(5) Despite section 592J, a person is not qualified for a relocation

scholarship payment if:

(a) at the person's qualification time, the person has attained the

age at which the person is independent (see subsection

1067A(4)); and

(b) before the qualification time, the person has not received any

of the following:

(i) a relocation scholarship payment;

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

ABSTUDY relocation scholarship;

(iii) a payment known as a relocation scholarship payment

under the scheme referred to in section 117 of the

Veterans' Entitlements Act;

Scholarship payments for students Schedule 2

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Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 23

(iv) a payment known as a relocation scholarship payment

under the scheme referred to in section 258 of the

Military Rehabilitation and Compensation Act;

(v) the amount or value of a Commonwealth

Accommodation Scholarship.

592L Amount of relocation scholarship payment

Initial payment

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

$4,000, unless subsection (2) or (3) applies to the person.

Note:

The amount of a relocation scholarship payment is indexed annually

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

Previously undertaken approved scholarship course and

independent or required to live away from home

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

$1,000 if:

(a) in the calendar year before the calendar year in which the

person's qualification time falls, the person undertook a

course that, had the person undertaken it at the qualification

time, would have been an approved scholarship course at that

time; and

(b) either of the following applied to the person at a time that

was more than 6 months before the person's qualification

time:

(i) the person was independent because of subsection

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

(ii) the person was not independent (see section 1067A) but

was required to live away from home (see

section 1067D).

Note:

The amount of a relocation scholarship payment is indexed annually

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

Subsequent payment

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

$1,000 if the person has received any of the following before the

period described in subsection 592K(1):

(a) a relocation scholarship payment;

Schedule 2 Scholarship payments for students

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24 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

(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.

Note:

The amount of a relocation scholarship payment is indexed annually

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

Division 3--Approved scholarship course

592M Definition

In this Part:

approved scholarship course means:

(a) a course of study or instruction approved by the Minister

under a determination made for the purposes of

section 592N; or

(b) if no determination is in force--a course determined to be a

tertiary course under section 5D of the Student Assistance Act

1973 for the purposes of that Act.

592N Approved scholarship course

(1) The Minister may, by legislative instrument, determine that a

course of study or instruction is an approved scholarship course

for the purposes of this Part.

(2) Despite subsection 14(2) of the Legislative Instruments Act 2003, a

determination made for the purposes of subsection (1) may make

provision for, or in relation to, a matter by applying, adopting or

incorporating, with or without modification, any matter contained

in an instrument or other writing:

(a) as in force or existing at a particular time; or

(b) as in force or existing from time to time.

Scholarship payments for students Schedule 2

Related amendments Part 2

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 25

Part 2--Related amendments

Higher Education Support Act 2003

5 At the end of subsection 46-20(2)

Add:

; (m) information that providers are to give the Minister or the

Chief Executive Officer, or an

employee, of

Centrelink;

(n) information that providers are to give to:

(i) the Repatriation Commission; or

(ii) the Military Rehabilitation and Compensation

Commission; or

(iii) the Secretary, or an employee, of the Department

administered by the Minister who administers the

Veterans' Entitlements Act 1986; or

(iv) the Secretary, or an employee, of the Department

administered by the Minister who administers the

Military Rehabilitation and Compensation Act 2004.

6 Subclause 1(1) of Schedule 1

Insert:

Centrelink means the Commonwealth Services Delivery Agency

established by the Commonwealth Services Delivery Agency Act

1997.

7 Subclause 1(1) of Schedule 1

Insert:

employee of Centrelink means an employee within the meaning of

the Commonwealth Services Delivery Agency Act 1997.

8 Subclause 1(1) of Schedule 1

Military Rehabilitation and Compensation Commission means

the Military Rehabilitation and Compensation Commission

established by section 361 of the Military Rehabilitation and

Compensation Act 2004.

9 Subclause 1(1) of Schedule 1

Schedule 2 Scholarship payments for students

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26 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

Insert:

Repatriation Commission means the body corporate continued in

existence by section 179 of the Veterans' Entitlements Act 1986.

Military Rehabilitation and Compensation Act 2004

10 After paragraph 258(3)(a)

Insert:

(aa) the payment of scholarships for eligible young persons who

are being provided with education or training under the

scheme;

Social Security Act 1991

11 Subsection 5(1) (definition of independent)

After "2.11,", insert "2.11B".

12 After subparagraph 8(8)(y)(vii)

Insert:

(viiaa) a payment known as a student start-up scholarship

payment, or a relocation scholarship payment, under the

scheme referred to in section 117 of the Veterans'

Entitlements Act; or

(viiab) a payment known as a student start-up scholarship

payment, or a relocation scholarship payment, under the

scheme referred to in section 258 of the Military

Rehabilitation and Compensation Act; or

13 After paragraph 8(8)(zjc)

Insert:

(zjd) a payment of a scholarship to a person during a calendar year

(other than an excluded payment):

(i) for the person to study, or to undertake research, at an

educational institution; or

(ii) for the person's achievement in studying, or in

undertaking research, at an educational institution;

to the extent that the payment does not exceed the person's

threshold amount for that year;

Scholarship payments for students Schedule 2

Related amendments Part 2

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 27

Note: For

excluded payment see subsection (8AA). For educational

institution see subsection 23(1). For threshold amount see

subsection (8AB).

14 After subsection 8(8)

Insert:

(8AA) For the purposes of paragraph (8)(zjd), each of the following is an

excluded payment:

(a) a payment of a scholarship referred to in paragraph (8)(zia),

(zj) or (zja);

(b) a scholarship payment under Part 2.11B;

(d) a payment known as a student start-up scholarship payment,

or a relocation scholarship payment, under the scheme

referred to in section 117 of the Veterans' Entitlements Act;

(e) a payment known as a student start-up scholarship payment,

or a relocation scholarship payment, under the scheme

referred to in section 258 of the Military Rehabilitation and

Compensation Act.

(8AB) For the purposes of paragraph (8)(zjd), a person's threshold

amount, for a calendar year, means $6,762 less the amount of any

payment made to that person during that year that is not income for

the purposes of this Act because of that paragraph.

Note:

The dollar amount mentioned in this subsection is indexed annually in

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

Example: On 1 March 2010 a person is paid a scholarship of $3,000 to study at

an educational institution. The threshold amount is $6,762 (as no other

payment has been excluded under paragraph (8)(zjd) for 2010). The

$3,000 is not income under that paragraph and the threshold amount is

reduced to $3,762.

On 1 May 2010 the person is paid a scholarship of $5,000 to study at

an educational institution. Of the $5,000, $3,762 is not income under

that paragraph. The threshold amount is reduced to zero.

There can be no further payments excluded under that paragraph for

that person for 2010.

15 Subsection 1067(1) (note to the definition of independent)

After "2.11,", insert "2.11B,".

16 Subsection 1067A(1)

Schedule 2 Scholarship payments for students

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28 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

After "2.11,", insert "2.11B,".

17 Subsection 1067A(4)

Omit "Part 2.11", substitute "Parts 2.11 and 2.11B".

18 Subsections 1067B(1) and 1067D(1)

After "for the purposes of", insert "Part 2.11B and".

19 Section 1190 (at the end of the table)

Add:

Amounts related

to scholarships

67. threshold

amount

scholarship

threshold amount

subsection 8(8AB)

68. student

start-up

scholarship

payment amount

student start-up

scholarship

payment amount

subsection 592H(2)

69. relocation

scholarship

payment amount

relocation

scholarship

payment amount

subsections 592L(1), (2) and

(3)

20 Subsection 1191(1) (at the end of the table)

Add:

Amounts

related to

scholarships

39. scholarship

threshold

amount

1 January

June

highest June

quarter before

reference quarter

(but not earlier

than June quarter

2009)

$1.00

40. student

start-up

scholarship

payment

amount

1 January

June

highest June

quarter before

reference quarter

(but not earlier

than June quarter

2009)

$1.00

41. relocation

scholarship

1 January

June

highest June

quarter before

$1.00

Scholarship payments for students Schedule 2

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Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 29

payment

amount

reference quarter

(but not earlier

than June quarter

2009)

21 At the end of section 1192

Add:

(8) The first indexation of the amounts to which items 39, 40 and 41 of

the CPI Indexation Table in subsection 1191(1) relate is to take

place on 1 January 2011.

22 Subsection 1222(2) (after table item 4C)

Insert:

4D 1223ABE

(debts in respect of

scholarship payments)

deductions

legal proceedings

garnishee notice

repayment by instalments

1231, 1234A

1232

1233

1234

23 After section 1223ABD

Insert:

1223ABE Debts in respect of scholarship payments

Person does not start to undertake 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) the person does not start to undertake the course;

then:

Commonwealth; and

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

payment.

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

opinion, the person does not start to undertake the course because

of exceptional circumstances beyond the person's control.

Note: For

approved scholarship course, see section 592M.

Schedule 2 Scholarship payments for students

Part 2 Related amendments

30 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

Person not continuing to undertake 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; and

(b) the person starts to undertake the course; and

after the course commences;

then:

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

Commonwealth; and

(e) the debt is taken to have arisen when the person receives 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 the 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 receives 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 the course as mentioned in those

subsections because of exceptional circumstances beyond the

person's control.

Social Security (Administration) Act 1999

24 After section 12G

Insert:

Scholarship payments for students Schedule 2

Related amendments Part 2

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 31

12H Student start-up scholarship payment and relocation

scholarship payment

A claim is not required for a student start-up scholarship payment

or a relocation scholarship payment.

25 Subsection 47(1) (after paragraph (b) of the definition of

lump sum benefit)

Insert:

(ba) student start-up scholarship payment; or

(bb) relocation scholarship payment; or

26 Subsection 47(4)

After "and (4)", insert ", section 47DA".

27 After section 47C

Insert:

47DA Student start-up scholarship payments and relocation

scholarship payments

If:

(a) a person is qualified for a student start-up scholarship

payment, or a relocation scholarship payment, on a particular

day because the person is receiving youth allowance; and

(b) the whole or a part of the person's instalment of youth

allowance in respect of a period that included that day is paid

to a parent of the person under section 45 of this Act;

the Secretary may pay the whole, or the same proportion, of the

person's scholarship payment to that parent or to any other person.

28 After Subdivision DB of Division 5 of Part 3B

Insert:

Schedule 2 Scholarship payments for students

Part 2 Related amendments

32 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

Subdivision DC--Student start-up scholarship payments and

relocation scholarship payments

123XPF Deductions from student start-up scholarship payments

Scope

(1) This section applies if:

(a) a person is subject to the income management regime; and

(b) a student start-up scholarship payment is payable to the

person.

Deductions from payment

(2) The following provisions have effect:

(a) the Secretary must deduct from the student start-up

scholarship payment the deductible portion of the payment;

(b) an amount equal to the deductible portion of the payment is

credited to the Special Account;

credited to the person's income management account.

(3) For the purposes of subsection (2), the deductible portion of a

student start-up scholarship payment is 100% of the amount of the

payment.

123XPG Deductions from relocation scholarship payments

Scope

(1) This section applies if:

(a) a person is subject to the income management regime; and

(b) a relocation scholarship payment is payable to the person.

Deductions from payment

(2) The following provisions have effect:

(a) the Secretary must deduct from the relocation scholarship

payment the deductible portion of the payment;

(b) an amount equal to the deductible portion of the payment is

credited to the Special Account;

Scholarship payments for students Schedule 2

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Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 33

credited to the person's income management account.

(3) For the purposes of subsection (2), the deductible portion of a

relocation scholarship payment is 100% of the amount of the

payment.

29 At the end of paragraph 195(2)(i)

Add:

(xviii) the amount or value of a Commonwealth Education

Costs Scholarship, or of a Commonwealth

Accommodation Scholarship, received by the person;

30 Subsection 202(1)

Repeal the subsection, substitute:

(1) A person may obtain protected information if the information is

obtained for the purposes of:

(a) the social security law; or

(b)

the

Farm Household Support Act 1992; or

(c)

the

Dental Benefits Act 2008; or

(d) the Family Homelessness Prevention and Early Intervention

Pilot; or

(e) administering Commonwealth scholarships payable under

Part 2-4 of the Higher Education Support Act 2003.

31 After paragraph 202(2)(da)

Insert:

(db) for the purposes of the administration of Commonwealth

scholarships payable under Part 2-4 of the Higher Education

Support Act 2003; or

Veterans' Entitlements Act 1986

32 After paragraph 5H(8)(f)

Insert:

(fa) a payment known as a student start-up scholarship payment,

or a relocation scholarship payment, under the Veterans'

Children Education Scheme;

Schedule 2 Scholarship payments for students

Part 2 Related amendments

34 Social Security and Other Legislation Amendment (Income Support for Students) Bill

2009 No. , 2009

33 After paragraph 5H(8)(hd)

Insert:

(he) a payment of a scholarship, to the extent that the payment is

not income for the purposes of the Social Security Act 1991

because of paragraph 8(8)(zjd) of that Act;

34 Application

The amendments made by items 13 and 33 apply in relation to

payments made on or after the commencement of those items.

Training supplement for parenting payment Schedule 3

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009

No. , 2009 35

Schedule 3--Training supplement for

parenting payment

Social Security Act 1991

1 Paragraph 503B(1)(b)

Repeal the paragraph, substitute:

(b) is subject to participation requirements; and

2 At the end of subsection 503B(1)

Add:

Note:

For when a person is subject to participation requirements, see

subsection 23(1).

Commonwealth of Australia Bills

SOCIAL SECURITY AND OTHER LEGISLATION AMENDMENT (INCOME SUPPORT FOR STUDENTS) BILL 2010