AUSTUDY Regulations (Amendment) (Cth)

Statutory Rules 1997No. 341 1

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AUSTUDY Regulations2 (Amendment)

I, The Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Student and Youth Assistance Act 1973.

Dated 8 December 1997.

 WILLIAM DEANE

 Governor-General

By His Excellency’s Command,

christopher ellison

Minister for Schools, Vocational Education

and Training

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1.   Commencement

1.1   Regulations 3 and 4 and subregulation 5.13 commence on 1 January 1998.

[NOTE: The remaining provisions of these Regulations commence on gazettal:

 see Acts Interpretation Act 1901, s 48.]

2.   Amendment

2.1   The AUSTUDY Regulations are amended as set out in these Regulations.

3.   Regulation 86 (What is parental income?)

3.1   Subregulation 86 (9):

After paragraph 86 (9) (e), insert:

• “(f)

  an expense benefit within the meaning of Part 7 of that Schedule that is not an exempt expense benefit within the meaning of that Part;

• (g)

  a financial investment benefit within the meaning of Part 8 of that Schedule that is not an exempt financial investment benefit within the meaning of that Part;”.

4.   Regulation 94 (What is the spouse’s income?)

4.1   Subregulation 94 (1C):

After paragraph 94 (1C) (e), insert:

• “(f)

  an expense benefit within the meaning of Part 7 of that Schedule that is not an exempt expense benefit within the meaning of that Part;

• (g)

  a financial investment benefit within the meaning of Part 8 of that Schedule that is not an exempt financial investment benefit within the meaning of that Part;”.

5.   Schedule 6 (Fringe benefits)

5.1   Part 1:

Clause 1 (definition of “recipient”):

Omit the definition, substitute:

“‘recipient’ means an employee or a dependant of the employee;”.

5.2   Part 1:

Clause 1:

Insert the following definitions:

“‘arrangement’ means:

• (a)

  an agreement, promise, understanding or undertaking:

  • (i)

    whether express or implied; and

  • (ii)

    whether or not enforceable, or intended to be enforceable, by legal proceedings; and

• (b)

  any action, conduct, plan, proposal or scheme, whether unilateral or otherwise;

‘associate’ has the same meaning as in the Fringe Benefits Tax Assessment Act 1986;”.

5.3   Part 2:

Clause 3 (definitions of “arrangement” and “associate”):

Omit the definitions.

5.4   Part 2:

Subparagraph 4 (1) (b) (i):

After “employee”, insert “, or another person acting for the employer or associate”.

5.5   Part 3:

Paragraph 7 (a):

Omit the paragraph, substitute:

• “(a)

  an employer, an associate of an employer or another person acting for the employer or associate, pays an amount, directly or indirectly, to a private health insurance fund; and”.

5.6   Part 3:

Paragraph 7 (c):

Omit the paragraph, substitute:

• “(c)

  the private health insurance covers the recipient;”.

5.7   Part 4:

Clause 10:

Omit the clause, substitute:

Housing benefits

“10.

An employee is taken to be provided with a housing benefit if the employee’s employer, an associate of the employer or another person acting for the employer or associate:

• (a)

  provides the recipient with a housing right; or

• (b)

  makes rental, lease or mortgage payments, directly or indirectly, for the recipient.”.

5.8   Part 4:

Clause 11:

Omit “, or to the recipient and a partner or dependent of the recipient”.

5.9   Part 5:

Subclause 14 (1):

Omit “a person”, substitute “an employer, an associate of an employer or another person acting for the employer or associate,”.

5.10   Part 6:

Paragraph 20 (1) (a):

Omit the paragraph, substitute:

• “(a)

  an employer, an associate of an employer or another person acting for the employer or associate pays, directly or indirectly, an amount to a school; and”.

5.11   Part 6:

Paragraph 20 (1) (c):

Omit “a dependant of a recipient or of the recipient’s partner”, substitute “a child of an employee”.

5.12   Part 6:

Subclause 20 (1):

Omit “the recipient.”, substitute “the employee.”.

5.13   Add at the end:

“PART 7—EXPENSE BENEFITS

“Division 1—What is an expense benefit?

Definition

“22.

In this Part:

‘expense benefit’ does not include a health insurance benefit, housing benefit, loan benefit or school fees benefit within the meaning of the relevant Part of this Schedule.

Expense benefits

“23.

An employee gets an expense benefit if an amount is paid to or for the recipient in connection with an expense of a private nature that has been, or may be, incurred by the recipient, and the amount is paid by:

• (a)

  the employer of the employee; or

• (b)

  an associate of the employer; or

• (c)

  a person (the ‘arranger’), who is not the employer or an associate of the employer, under an arrangement between:

  • (i)

    the employer or an associate of the employer; and

  • (ii)

    the arranger or another person.

“Division 2—Exempt expense benefits

Exempt expense benefits

“24.

An amount paid as described in clause 23 is an exempt expense benefit if:

• (a)

  the amount is paid to reimburse expenses of an employee in connection with his or her employment; or

• (b)

  the employee requires the amount to be applied to the payment of expenses related to his or her employment.

“Division 3—Value of an expense benefit

Value of expense benefits

“25.

The value of an expense benefit is the amount of the payment that constitutes the expense benefit.

“PART 8—FINANCIAL INVESTMENT BENEFITS

“Division 1—What is a financial investment benefit?

Definition

“26.

In this Part:

‘available money’ for a person, means money that:

• (a)

  is held by or for the person; and

• (b)

  is not deposit money of the person; and

• (c)

  is not the subject of a loan made by the person;

‘deposit money’ of aperson, means the person’s money that is deposited in an account with a bank, building society, credit union or other institution that takes money on deposit;

‘financial investment’ means:

• (a)

  available or deposit money; or

• (b)

  a managed investment; or

• (c)

  a listed security; or

• (d)

  an unlisted public security; or

• (e)

  gold, silver or platinum bullion;

‘listed security’ means a share in a company, or another security, listed on a stock exchange;

‘managed investment’ has the same meaning as in subsections 9 (1A), (1B) and (1C) of the Social Security Act 1991;

‘unlisted public security’ means a public security that is not a listed security.

Financial investment benefits

“27.

An employee gets a financial investment benefit if the cost of the acquisition of a financial investment for the recipient is paid for, or reimbursed by:

• (a)

  the employer of the employee; or

• (b)

  an associate of the employer; or

• (c)

  a person (the ‘arranger’), who is not the employer or an associate of the employer, under an arrangement between:

  • (i)

    the employer or an associate of the employer; and

  • (ii)

    the arranger or another person.

“Division 2—Exempt financial investment benefits

Exempt financial investment benefits

“28.

(1) In this clause:

‘ATO small superannuation account’ means an account kept in the name of an individual under the Small Superannuation Accounts Act 1995;

‘superannuation fund’ means a superannuation fund as defined for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936 that is not a fund covered by subparagraph (ia) of the definition of ‘superannuation fund’ in subsection 27A (1) of that Act.

“(2)

An amount paid as described in clause 27 as a contribution to a superannuation fund or an ATO small superannuation account for the benefit of a recipient is an exempt financial investment benefit.

“Division 3—Value of financial investment benefits

Value of financial investment benefits

“29.

The value of a financial investment benefit is the value of the benefit when it is received by the recipient.”.

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NOTES

1. Notified in the Commonwealth of Australia Gazette on 9 December 1997.

2. Statutory Rules 1990 No. 443 as amended by 1991 No. 480; 1992 Nos. 24 and 399; 1993 No. 367; 1994 Nos. 13, 91 and 409; 1995 Nos. 132 and 393 (disallowed by the Senate on 10 September 1996); 1996 Nos. 21, 245, 246, 261 and 275; 1997 Nos. 83, 159, 187, 302 and 323.