AUSTUDY/ABSTUDY Supplement Regulations (Amendment) 1994 No. 444
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 444
Issued by the Authority of the Minister for Schools, Vocational Education and Training
Student Assistance Act 1973
AUSTUDY/ABSTUDY Supplement Regulations (Amendment)
The Student Assistance Act 1973 (the Act) provides the legislative authority for the AUSTUDY scheme and for a debt management regime for the AUSTUDY, ABSTUDY and Assistance for Isolated Children Schemes. These schemes pay financial assistance directly to students or their parents. The Act also provides for the AUSTUDY/ABSTUDY Supplement, which is a voluntary loans scheme for tertiary students.
Section 56 of the Act provides that the Governor-General may make regulations for the purposes of the Act. These Regulations make the following changes to the AUSTUDY/ABSTUDY Supplement:
• the prescribed parental income used to determine eligibility for Category 2 students is increased from $50,000 to $50,850;
• the maximum Supplement payable to Category 1 students (students who are eligible for AUSTUDY or ABSTUDY) is increased from $6,000 to $7,000; and
• a legislative basis is provided for the current practice of paying the Supplement in fortnightly payments.
These Regulations commence on 1 January 1995.
A detailed explanation of the Regulations is set out in the Attachment.
ATTACHMENT
Details of the AUSTUDY/ABSTUDY Supplement Regulations (Amendment)
Regulation 1. Commencement
Subregulation 1.1 provides that these Regulations will commence on 1 January 1995.
Regulation 2. Amendment
Subregulation 2.1 provides that the AUSTUDY/ABSTUDY Supplement Regulations are amended by these regulations.
Regulation 3. Regulation 7 (Prescribed parental income)
Subregulation 3.1 amends Regulation 7 which prescribes the parental income for the purpose of section 12C(1)(b)(ii) of the Student Assistance Act 1973. This section of the Act provides that a student who qualifies for AUSTUDY or ABSTUDY but for the parental income test will qualify for Supplement if the student's adjusted parental income is less than the prescribed amount. This amendment will increase the prescribed amount from $50,000 to $50,850.
Regulation 4. Regulation 9 (Maximum amount of financial supplement for category 1 students)
Subregulation 4.1 amends paragraph 9(1)(a) of the AUSTUDY/ABSTUDY Supplement Regulations to increase the present maximum Supplement payable to Category 1 students from $6,000 to $7,000.
"Category 1 students" are students who qualify for the Supplement on the basis that they are eligible for AUSTUDY or ABSTUDY.
Subregulation 4.2 amends subregulation 9(4) of the AUSTUDY/ABSTUDY Supplement Regulations. Under subregulation 9(4), the maximum amount of Category 1 Supplement is subject to a pro rata reduction when the period of the grant is less than one year. This amendment will reflect the increase in the maximum Supplement available to Category 1 students from $6,000 to $7,000.
Regulation 5. New regulation 16 (Time for payment of financial supplement)
Subregulation 5.1 inserts a new Regulation 16 which will provide for the fortnightly payment of the Supplement to students. This will provide a legislative basis for the current practice.
Overview
The AUSTUDY/ABSTUDY Supplement Regulations (Amendment) 1994 No. 444, issued under the authority of the Minister for Schools, Vocational Education and Training, amends the AUSTUDY/ABSTUDY Supplement Regulations to address certain financial aspects of the AUSTUDY/ABSTUDY Supplement scheme, which is a part of the broader Student Assistance Act 1973. The primary objective of these regulations is to enhance the financial support provided to eligible tertiary students through the AUSTUDY/ABSTUDY Supplement. Specifically, these amendments aim to increase the prescribed parental income threshold for eligibility from $50,000 to $50,850, raise the maximum Supplement payable to Category 1 students from $6,000 to $7,000, and formalise the current practice of making fortnightly payments to students. These changes are designed to ensure that the financial assistance provided aligns with the evolving needs of students and their families, thereby supporting educational participation and retention.
Scope and Application
The Student Assistance Act 1973 applies to the administration of the AUSTUDY and ABSTUDY schemes, which provide financial assistance to students or their parents, and the AUSTUDY/ABSTUDY Supplement, a voluntary loans scheme for tertiary students. The Act also provides a debt management regime for these schemes. It applies to individuals who are eligible for AUSTUDY or ABSTUDY and to those who apply for the AUSTUDY/ABSTUDY Supplement. The Act has a national reach as it is a Commonwealth Act, impacting students and their families across Australia. The AUSTUDY/ABSTUDY Supplement Regulations (Amendment) 1994 further detail the application of the AUSTUDY/ABSTUDY Supplement, including adjustments to eligibility criteria and payment methods. The Regulations increase the prescribed parental income threshold for Category 2 students from $50,000 to $50,850 and raise the maximum Supplement amount for Category 1 students from $6,000 to $7,000. These changes aim to better support students in need of financial assistance. Additionally, the Regulations establish a legislative basis for the current practice of paying the Supplement in fortnightly instalments. These amendments commenced on 1 January 1995, ensuring that the regulations are updated to reflect changes in the socio-economic environment and the needs of students.
Key Provisions
The AUSTUDY/ABSTUDY Supplement Regulations (Amendment) 1994 No. 444 make several key changes to the AUSTUDY/ABSTUDY Supplement, which is a voluntary loans scheme for tertiary students. Firstly, under Regulation 3 and Subregulation 3.1, the prescribed parental income used to determine eligibility for Category 2 students is increased from $50,000 to $50,850. This means that more students who qualify for AUSTUDY or ABSTUDY but for the parental income test will now qualify for the Supplement. Secondly, Regulation 4 and Subregulation 4.1 increase the maximum Supplement payable to Category 1 students from $6,000 to $7,000. This will provide additional financial assistance to students who qualify for AUSTUDY or ABSTUDY. Finally, Regulation 5 and Subregulation 5.1 establish a legislative basis for the current practice of paying the Supplement in fortnightly payments.
These Regulations impose obligations on the AUSTUDY/ABSTUDY Supplement scheme administrators to adjust the prescribed parental income and maximum Supplement amounts, as well as to pay the Supplement in fortnightly payments. The amendments ensure that the Supplement scheme remains up to date with the current income thresholds and payment practices.
There are no explicit offences, penalties, or civil/criminal consequences mentioned in the Explanatory Statement for breaching the Regulations. However, failure to comply with the amended Regulations could potentially lead to administrative issues or disputes over eligibility and payment amounts. The Regulations aim to provide clarity and certainty for students and administrators of the AUSTUDY/ABSTUDY Supplement scheme.