Determination No. 2002/1 - Determination of Education Institutions and Courses under subsections 3(1) and 5D(1) of the Student Assistance Act 1973 (17/10/2002)

Overview

The Determination of Education Institutions and Courses under subsections 3(1) and 5D(1) of the Student Assistance Act 1973 was enacted in 2002 to address the need for clarity in the definitions of approved education institutions and courses, particularly in the context of vocational education and training programmes. This determination was introduced to rectify an unintended interpretation of the previous 1999 determination, which had allowed payments to be made to students undertaking courses that included subjects or modules not from accredited vocational education and training courses. The objective was to ensure that payments are made only to those students who are undertaking courses with all subjects and modules from accredited vocational education and training courses. This clarification was necessary to align with the legislative intent and to prevent erroneous payments. The determination was issued by the Minister for Education, Science and Training under the authority granted by the Student Assistance Act 1973 and was tabled in Parliament as a disallowable instrument under the Acts Interpretation Act 1901.

Scope and Application

The Determination of Education Institutions and Courses under the Student Assistance Act 1973 specifies the types of educational institutions and courses that are recognised for the purposes of the Act. This includes secondary and tertiary education institutions and courses that are approved for the provision of student assistance payments under the Social Security Act 1991 and the GST-free supply of courses under the A New Tax System (Goods and Services Tax) Act 1999. The Determination applies to all entities and individuals providing education that seek to qualify for the specified benefits and tax exemptions. It is a Commonwealth instrument with jurisdiction across Australia, impacting both public and private educational institutions, as well as vocational education and training providers. The Determination does not apply to courses that are not listed within its scope and excludes unaccredited vocational education and training courses, ensuring that only approved and accredited courses qualify for student assistance payments and GST exemptions. The Determination also clarifies the definition of "vocational education and training programme" to prevent unintended interpretations that previously allowed payments for unaccredited subjects or modules. This Determination replaces the previous Determination 1999/2 and is subject to disallowance under the Acts Interpretation Act 1901, requiring it to be gazetted and tabled in Parliament.

Key Provisions

The Student Assistance Act 1973, under sections 3(1) and 5D(1), empowers the Minister to determine what constitutes an approved education institution and an approved course. The most recent Determination, Determination 2002/1, issued under this authority, clarifies and updates the definitions set out in the previous Determination 1999/2. This Determination, effective from 1 January 2003, outlines the specific types of education institutions and courses that are recognised for the purposes of the Act. Notably, it aims to correct an unintended interpretation of the term "vocational education and training programme," ensuring that payments are made only to those undertaking courses that include all subjects and modules from an accredited vocational education and training course. This means that students enrolled in unaccredited vocational education and training courses will no longer be eligible for payments once the new Determination takes effect. The Act imposes obligations on education institutions and students alike. Institutions must ensure that their courses meet the criteria set out in the Determination to be recognised as approved courses. They must also verify that their students are enrolled in these approved courses to be eligible for payments under the Social Security Act 1991 and for courses to be GST-free under the A New Tax System (Goods and Services Tax) Act 1999. Students, on the other hand, must be enrolled in and undertaking study at an education institution and in a course that is approved under the Student Assistance Act 1973 to qualify for Youth Allowance payments, Austudy payments, or the Pensioner Education Supplement. Failure to comply with the provisions of the Determination can lead to significant consequences. While the Determination itself does not explicitly outline penalties, the underlying Acts, such as the Student Assistance Act 1973, the Social Security Act 1991, and the A New Tax System (Goods and Services Tax) Act 1999, contain provisions for civil and criminal penalties. For instance, under the Social Security Act 1991, a person who makes a false or misleading statement in an application for a payment can be subject to a penalty of up to five penalty units for each offence, and in the case of a continuing failure to comply, a penalty of up to 10 penalty units for each day of non-compliance. Additionally, under the A New Tax System (Goods and Services Tax) Act 1999, supplying goods or services that are GST-free without meeting the necessary criteria can result in penalties, including fines of up to 20 penalty units for each offence. It is essential for both institutions and students to adhere to the Determination to avoid these potential penalties.