EXPLANATORY STATEMENT

Determination of Education Institutions and Courses under subsections 3(1) and 5D(1) of the Student Assistance Act 1973

Determination No. 2007/1

Issued by the authority of the Minister for Education, Employment and Workplace Relations

Purpose of the Determination

Subsections 3(1) and 5D(1) of the Student Assistance Act 1973 (the Act) provide that the Minister may determine:

• what is an approved education institution; and
• what is an approved course;

for the purposes of the Act.  To qualify for ABSTUDY, a person must be enrolled in and undertaking study at an education institution and in a course determined by the Minister under the Act.

Subsections 3(2A) and 5D(3) of the Act make the Determination a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.  This means that the Determination is a legislative instrument because of paragraph 6(d) of the Legislative Instruments Act 2003.

Other Legislation affected by this Determination

The Social Security Act 1991 requires that, to qualify for Youth Allowance payments to students, Austudy payments or the Pensioner Education Supplement (PES), a person must be enrolled in and undertaking study at an education institution and in a course determined by the Minister under the Student Assistance Act 1973.

The A New Tax System (Goods and Services Tax) Act 1999 provides that a supply of secondary and tertiary courses, as determined by the Minister under the Student Assistance Act 1973, will be GST-free.

Summary

This Determination retains the broad coverage of education institutions or courses provided by the repealed Determination 2002/1.  Some wording has been amended to clarify this coverage and to address changes in terminology in the education sectors since the last Determination was made.

The major change to the Determination is the inclusion of a new schedule of courses, at Schedule 3, which lists approved Masters by coursework programs to provide eligibility for income support payments to full‑time students on Youth Allowance and Austudy.  This measure was announced on 8 May 2007 as part of the 2007‑08 Budget.  Legislative amendments to the Social Security Act 1991 to facilitate this measure were included in the Social Security Legislation Amendment (2007 Budget Measures for Students) Act 2007.

It has also been necessary to make a new Determination to:

• revise the terminology used for training overseas‑trained professionals to equip them for entry into their profession in Australia under the definition “bridging study for overseas‑trained professionals”;

• introduce International Baccalaureate as an approved course in Australian secondary schools;

• clarify that combined vocational education and training courses must consist of two or more separate vocational education and training programmes undertaken concurrently.  The Determination clarifies that the combined course itself must lead to an award;

• clarify that unless a Masters course is explicitly listed as eligible, courses at Masters level or Doctoral degrees are not eligible;

• clarify that students undertaking integrated undergraduate or postgraduate courses leading to a Masters degree are eligible for income support payments except for that part of the course that leads exclusively to a Masters degree accreditation.  The pre‑Masters component of the course must lead to an accredited tertiary qualification other than a Masters degree or a PhD.  However, this element does not impinge on those Masters courses explicitly approved by this Determination.

Documents incorporated by reference

The Determination refers to:

• The Australian Qualifications Framework guidelines which can be viewed at the following website:

http://www.aqf.edu.au ; and

• The Australian Quality Training Framework which can be viewed at the following website:

http://www.training.com.au/aqtf2007.

Description of instrument

Section 1 — Name of instrument

The Determination is entitled the Determination of Education Institutions and Courses under subsections 3(1) and 5D(1) of the Student Assistance Act 1973 - Determination No. 2007/1.

Section 2 — Commencement

The Determination commences on the day after which it is registered with the Federal Register of Legislative Instruments.

Section 3 — Repeal

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

Section 4 — Definitions

Section 4 provides definitions of terms used in the Determination.

Section 5 — Education institutions

Section 5 provides a definition of education institutions for the purposes of this Determination.  This includes the definition of higher education institutions, secondary schools, registered training organisations and special schools.

Section 6 — Secondary courses

Section 6 defines secondary courses as specified in Column 1 and conducted in an education institution in column 2 of Schedule 1.

Part 7 — Tertiary courses

Section 7 defines tertiary courses as specified in Column 1 and conducted in an education institution in Column 2 of Schedule 2 or as an approved course specifically listed in Schedule 3.

Consultation

The Department of Education, Employment and Workplace Relations has consulted widely with the higher education sector and professional associations in developing the administrative Guidelines for the Approval of Masters Courses for Student Income Support Payments 2008 as the basis for assessing Masters by coursework programmes for approval by the Minister under this Determination.  The comments provided by these stakeholder groups were considered by the Minister in finalising the Guidelines.

Business Cost Calculator

This determination does not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure.  This determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.  It is not expected that any compliance costs will be incurred by business against the nine categories listed as a result of this determination.