AUSTUDY Regulations (Amendment)

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AUSTUDY Regulations (Amendment) 1996 No. 21

EXPLANATORY STATEMENT

Statutory Rules 1996 No. 21

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

Student and Youth Assistance Act 1973

AUSTUDY Regulations (Amendment)

The Student and Youth 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 parents.

Section 56 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

The changes to the AUSTUDY scheme made by the amending regulations provide for a Schooling Incidentals Allowance (SIA) to be paid to secondary students who are eligible for the Student Homeless Rate of AUSTUDY.

The regulations commence on the date of gazettal.

Attachment A contains a more detailed explanation of the amendments.

Authority: Section 56 of the Student and Youth Assistance Act 1973

Attachment A

DETAILS OF THE AUSTUDY REGULATIONS (AMENDMENT)

Details of the amendments to the AUSTUDY Regulations are set out below:

Regulation 1        Amendment

Subregulation 1.1 provides that the AUSTUDY Regulations are amended as set out in these regulations.

These regulations commence on gazettal in accordance with section 48 of the Acts

Interpretation Act 1901.

Regulation 2        New Chapter 6B

Subregulation 2.1 inserts Chapter 6B ("Schooling Incidentals Allowance") after Chapter 6A. Chapter 6B sets out details of the Allowance in regulations 103 to 106.

Regulation 103        Interpretation

Regulation 103 states that the Schooling Incidentals Allowance payable under Chapter 6B is referred to as SIA.

Regulation 104        Who can get SIA?

Subregulation 104(1) provides that a student can get SIA in a year if he or she is a secondary student and, at some time between 1 January and 31 March in that year, qualifies as independent under regulation 72, 73, 74, 75 or 76. These regulations apply if a student:

*       is an orphan (regulation 72);

*       has parents who cannot exercise normal responsibilities because they are in prison, incapacitated or missing (regulation 73);

*       does not live at home because of serious risk to his or her physical or mental health (regulation 74);

*       is an unsupported refugee without parents in Australia (regulation 75); or

*       was paid the Independent rate as wards of the State in 1990 (regulation 76).

A student in one of the above categories who qualifies as independent is granted Reviewable Independent (R1) status. The rate of AUSTUDY payment for a student granted RI status is the same as for other independent students of comparable age, and is called the AUSTUDY Student Homeless Rate (SHR).

Subregulation 104(2) provides that a student cannot get SIA in a year if he or she:

*       has already been paid SIA in that year eg. a student commences study at the start of the academic year on AUSTUDY SHR, discontinues, and then resumes study before 31 March and is again eligible for AUSTUDY SHR;

*       or has been paid SIA or an Incidentals Allowance (IA) under the ABSTUDY scheme in that year. SIA is payable to secondary students under the age of 18 years on ABSTUDY SHR. ABSTUDY already provides an IA to some secondary students who are over 18 years old as at 1 January in the year of study. A student can only receive one of the three allowances ie AUSTUDY SIA, ABSTUDY SIA or ABSTUDY IA, in any year.

Regulation 105        How much is SIA?

Subregulation 105(1) provides that SIA for 1996 is a single payment of $300. The payment is made as soon as practicable after a student is approved for AUSTUDY SHR.

Subregulation 105(2) provides that the payment for a year later than 1996 is calculated by applying the indexation factor for the later year to the SIA for the year before the later year.

Subregulation 105(3) specifies how the indexation factor is determined. The factor is identical to the indexation factor worked out under section 12ZZA of the Act for the purposes of that section.

Regulation 106        How might an overpayment of SIA arise?

Regulation 106 provides that an overpayment of SIA arises if a student who has been paid SIA in a year does not commence study in the course for which the amount was paid by the end of the second week of classes in the first term or semester of the course. The overpayment is recoverable under Part 6 of the Act.

 

Overview

The AUSTUDY Regulations (Amendment) 1996 No. 21 were enacted to amend the AUSTUDY Regulations under the Student and Youth Assistance Act 1973. This amendment aimed to introduce a Schooling Incidentals Allowance (SIA) for secondary students who qualify for the Student Homeless Rate of AUSTUDY. The Student and Youth Assistance Act 1973 provides the legislative framework for the AUSTUDY scheme, which includes financial assistance for students and a debt management regime. The policy objective of these regulations is to provide additional financial support to eligible secondary students, ensuring they have the necessary resources to cover incidental expenses related to their schooling. The regulations were issued under the authority of the Minister for Schools and came into effect on the date of gazettal.

Scope and Application

The AUSTUDY Regulations (Amendment) 1996 No. 21 applies to the AUSTUDY scheme as governed by the Student and Youth Assistance Act 1973, providing a Schooling Incidentals Allowance (SIA) to eligible secondary students. The SIA is available to students under the age of 18 years who are granted Reviewable Independent (R1) status under specific conditions such as being an orphan, having parents who cannot exercise normal responsibilities, or being an unsupported refugee without parents in Australia. The SIA is a single payment of $300 for the year 1996 and is subject to indexation for subsequent years, with an overpayment recoverable if the student does not commence study within the specified period. This amendment applies nationally, as it is made under the authority of the Commonwealth of Australia, and does not specify any exclusions or exemptions beyond the eligibility criteria outlined in the regulations. The regulations commence on the date of gazettal and are applicable to students who meet the criteria for the AUSTUDY Student Homeless Rate.

Key Provisions

The AUSTUDY Regulations (Amendment) 1996 No. 21 introduces significant changes to the AUSTUDY scheme, particularly through the introduction of a Schooling Incidentals Allowance (SIA). These regulations amend the existing AUSTUDY Regulations under the authority granted by section 56 of the Student and Youth Assistance Act 1973. The SIA is a one-off payment of $300 for the year 1996 and is indexed for subsequent years based on the same indexation factor used for AUSTUDY payments. This allowance is specifically targeted at secondary students who qualify as independent under certain conditions, as outlined in regulation 104(1). These conditions include being an orphan, having parents who are unable to exercise normal responsibilities, living away from home due to serious health risks, being an unsupported refugee, or being a ward of the State in 1990. A student meeting any of these criteria is granted Reviewable Independent (R1) status, entitling them to the AUSTUDY Student Homeless Rate (SHR). Importantly, a student cannot receive the SIA if they have already received it in the same year or if they have received an Incidentals Allowance under the ABSTUDY scheme. The regulations impose several obligations on the parties involved. Eligible students must meet the specified criteria to qualify for the SIA and must commence their course within the second week of classes in the first term or semester to avoid an overpayment. Additionally, the Department responsible for administering AUSTUDY must ensure that the SIA is paid promptly upon approval for AUSTUDY SHR and must recover any overpayments in accordance with the Act. Failure to comply with these obligations can result in financial repercussions for both the student and the administering body. Breaches of the regulations, such as overpayments due to failure to commence study, are subject to recovery under Part 6 of the Act. This means that if a student who has been paid the SIA does not start their course within the stipulated timeframe, the amount will be considered an overpayment and must be recovered. The Act does not specify a maximum penalty for these breaches, but it does outline the process for recovery, ensuring that the AUSTUDY scheme remains financially sustainable and fairly administered.

Legal classification tags

Area of Law
Education Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Licensing & Registration
Enforcement Powers
Indexation
Overpayment Recovery

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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.