AUSTUDY/ABSTUDY Supplement Regulations (Amendment)

Administered by Department of Education, Science and Training

Legislation au F1998B00165 Regulations Not in force Legislative Instrument

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AUSTUDY/ABSTUDY Supplement Regulations (Amendment) 1998 No. 179

EXPLANATORY STATEMENT

Statutory Rules 1998 No. l79

Issued by the authority of the Minister for Schools, Vocational Education and Training

Subject: Student and Youth Assistance Act 1973

AUSTUDY/ABSTUDY Supplement Regulations (Amendment)

Part 2 and Part 4A of the Student and Youth Assistance Act 1973 (the Act) provide the legislative authority for the AUSTUDY and the AUSTUDY/ABSTUDY Financial Supplement (the Financial Supplement) schemes respectively. Section 56 of the Act provides that the Governor-General may make regulations for the purposes of the Act. The Financial Supplement is a loan which is available to tertiary students: who are eligible for AUSTUDY or ABSTUDY; or

who would, except for the parental income test applicable under the AUSTUDY or ABSTUDY schemes, qualify for AUSTUDY or ABSTUDY and whose adjusted parental income is less than an amount prescribed in the AUSTUDY/ABSTUDY Supplement Regulations (the Regulations).

From 1 July 1998 AUSTUDY will be replaced by the Youth Allowance. The Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998 amends the Act to, amongst other things, repeal Parts 2 and 4B (which provided for certain indexation provisions) and remove references to AUSTUDY from Part 4A. These amendments commence on 1 July 1998. These regulations:

*       remove references to AUSTUDY from the AUSTUDY/AB STUDY Supplement Regulations (regulation 3, subregulations 4.2 to 4.7 and regulations 5 and 6); and

*       insert a new definition of "indexation factor" in regulation 7A which is consequential on the repeal of Part 4B of the Act. This does not change the effect of the regulation (regulation 7).

*       Regulation 1 provides that the regulations commence on 1 July 1998. The Attachment contains more details about the amendments.

ATTACHMENT

DETAILS OF THE AUSTUDY/ABSTUDY SUPPLEMENT REGULATIONS (AMENDMENT)

Regulation 1 Commencement

Regulation 1 provides that the regulations commence on 1 July 1998.

Regulation 2 Amendment

Regulation 2 provides that the AUSTUDY/ABSTUDY Supplement Regulations (the Regulations) are amended by these regulations.

Regulation 3 Regulation 1 (Citation)

Regulation 3 amends the title of the Regulations to the ABSTUDY Regulations.

Regulation 4 Regulation 3 (Interpretation)

Subregulation 4.1 omits the definition of "Act" and insert a new definition to mean the Student Assistance Act 1973.

Subregulations 4.2, 4.4, 4.5, 4.6 and 4.7 omit references to AUSTUDY from the definitions of 14 adjusted parental income", "category 1 student", "category 2 student", "living allowance" and "pensioner education supplement" respectively.

Subregulation 4.3 omits the definition of "AUSTUDY".

Regulation 5 Regulation 5 (Prescribed courses)

Regulation 5 omits subregulation 5(2) which refers to AUSTUDY.

Regulation 6 Regulation 6 (Prescribed benefits)

Regulation 6 omits "the AUSTUDY scheme or" from the regulation.

Regulation 7 Regulation 7A (Prescribed parental income - years after 1997)

Background

Regulation 7A provides for the "prescribed parental income" prescribed in regulation 7 to be indexed annually. The "indexation factor" is defined in subregulation 7A(3) to mean the indexation factor worked out under subsection 12ZZA(2) of the Act, as affected by subsection 12ZZA(3) and subsections 12ZZB(1) and (2) of the Act, in relation to the relevant year. Subsections 12ZZA(2) and (3) and 12ZZB(1) and (2) are contained in Part 4B of the Act which will be repealed on 1 July 1998 by the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998. Therefore these provisions need to be inserted in the Regulations.

Amendments made by these regulations

Subregulation 7.1 omits the definition of "indexation factor" in subregulation 7A(3) and insert a new definition to mean the number for the relevant year using the formula:

the index number for the June quarter in the later reference period

the index number for the June quarter in the earlier reference period

Subregulation 7.2 defines:

"earlier reference period" to mean the year before the later reference period; and

"later reference period" to mean the year before the relevant year.

Subregulation 7.3 inserts new subregulations 7A(3A) and (3B) to provide that the indexation factor calculated under subregulation 7A(3) is rounded to three decimal places.

Subregulation 7.4 provides that if the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Australian Statistician for the quarter, the later index number is disregarded for the purposes of regulation 7A.

Subregulation 7.5 provides that if the Australian Statistician changes the reference base for the Consumer Price Index, the index numbers published in terms of the new reference base are used for the purposes of regulation 7A.

 

Overview

The AUSTUDY/ABSTUDY Supplement Regulations (Amendment) 1998 No. 179 was enacted to amend the AUSTUDY/ABSTUDY Supplement Regulations under the Student and Youth Assistance Act 1973, ensuring the continued functionality of the AUSTUDY/ABSTUDY Financial Supplement scheme in light of the replacement of AUSTUDY with the Youth Allowance. The Act, enacted by the Parliament of Australia, provides the legislative foundation for the AUSTUDY and AUSTUDY/ABSTUDY Financial Supplement schemes, which offer financial assistance to tertiary students. The stated policy objective of these regulations is to maintain the integrity and accessibility of the financial assistance provided to students by adapting to the legislative changes introduced by the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998. The regulations aim to remove outdated references to AUSTUDY and update the indexation provisions to align with the new legislative framework, ensuring that the financial support mechanisms remain effective and relevant.

Scope and Application

The AUSTUDY/ABSTUDY Supplement Regulations (Amendment) 1998 No. 179 pertains to the amendments made to the AUSTUDY/ABSTUDY Supplement Regulations under the Student and Youth Assistance Act 1973. These regulations specifically address the transition from the AUSTUDY scheme to the new Youth Allowance, which commenced on 1 July 1998. The regulations remove references to AUSTUDY from the AUSTUDY/ABSTUDY Supplement Regulations and insert a new definition of "indexation factor" in regulation 7A, consequential to the repeal of Part 4B of the Act. This amendment ensures the continued functionality of the AUSTUDY/ABSTUDY Financial Supplement scheme under the new legislative framework. The regulations apply to tertiary students who are eligible for AUSTUDY or ABSTUDY, or those who would qualify for these schemes except for the parental income test, and whose adjusted parental income falls below a prescribed amount. The scope of the regulations is national, aligning with the legislative authority provided under the Commonwealth. The amendments ensure that the AUSTUDY/ABSTUDY Financial Supplement scheme remains effective and relevant post the introduction of the Youth Allowance.

Key Provisions

The AUSTUDY/ABSTUDY Supplement Regulations (Amendment) 1998 (No. 179) amends the AUSTUDY/ABSTUDY Supplement Regulations under the Student and Youth Assistance Act 1973 (the Act). These regulations are significant as they reflect the transition from AUSTUDY to the Youth Allowance, which came into effect from 1 July 1998. The regulations primarily serve to remove references to AUSTUDY throughout the AUSTUDY/ABSTUDY Supplement Regulations and adjust the definition of "indexation factor" to account for the repeal of Part 4B of the Act, which dealt with indexation provisions. The regulations impose several obligations on the entities they govern. Firstly, they require the removal of all references to AUSTUDY from the definitions and provisions of the AUSTUDY/ABSTUDY Supplement Regulations. For instance, Regulation 3 changes the title of the Regulations to the ABSTUDY Regulations, and Subregulations 4.2 to 4.7 and Regulations 5 and 6 remove references to AUSTUDY from various definitions such as "adjusted parental income," "category 1 student," "category 2 student," "living allowance," and "pensioner education supplement." This ensures that the regulations align with the legislative changes brought about by the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998. Additionally, the regulations impose the obligation to update the definition of "indexation factor" to reflect the changes in the indexation methodology. Regulation 7A introduces a new formula for calculating the indexation factor, specifying that it should be based on the ratio of index numbers for the June quarter of the relevant year to that of the previous year. This amendment ensures the continued indexing of prescribed parental income in accordance with the repealed indexation provisions of the Act. Failure to comply with these regulations could result in several consequences. While the explanatory statement does not explicitly mention penalties for non-compliance, breaches of regulations under the Act could lead to civil or criminal penalties as prescribed in the legislation. Civil penalties typically include fines and, in some cases, imprisonment, depending on the severity and intent of the breach. The exact penalties would be determined by the courts based on the specific circumstances of each case and the provisions of the Act. It is crucial for the governed entities to adhere to these regulations to avoid any legal repercussions.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.