Social Security (Approved Scholarship – Association of Mouth and Foot Painting Artists, Liechtenstein) Determination 2018

Administered by Department of Social Services

Legislation au F2018L01628 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Families and Social Services

 

Social Security Act 1991

 

Social Security (Approved Scholarship – Association of Mouth and Foot Painting Artists, Liechtenstein) Determination 2018

 

Purpose

 

The purpose of the Social Security (Approved Scholarship – Association of Mouth and Foot Painting Artists, Liechtenstein) Determination 2018 (the Determination) is to exempt the payment of the approved scholarship administered in Liechtenstein and awarded by the Association of Mouth and Foot Painting Artists, Liechtenstein to student members who receive these scholarships. 

 

These scholarships are for the sole purpose of allowing student members to improve their artistic ability and are provided to pay for education, supplies and equipment.  The scholarships are not intended to be used, either partly or wholly, for the purposes of meeting the student’s living expenses.

 

In addition to the power to make this Determination under subsection 24A of the Act, subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend or vary any such instrument. Accordingly, the Social Security Act 1991 – Notice under subsection 24A(1) – Instrument 92/92-30 will be repealed by this Determination.

 

Background

 

Under the social security law all income earned, derived or received, for a person’s own use or benefit, is counted as income.  The only exceptions are items specifically exempted under the social security law. 

 

Subsection 8(1) of the Social Security Act 1991 (the Act) provides income test definitions and defines approved scholarship as ‘a scholarship in relation to which a determination under section 24A is in force’.  Under section 24A of the Act, the Minister may determine in writing that a scholarship, or a class of scholarships that is:

 

(a)   awarded outside Australia; and

(b)   not intended to be used wholly or partly to assist recipients to meet living expenses;

 

is an approved scholarship, or a class of approved scholarships, as the case may be, for the purposes of the Act.

 


Subsection 8(8) of the Act, in turn, provides for amounts which are not income for the purposes of the Act.  Accordingly, under paragraph 8(8)(zj), a payment of an approved scholarship awarded on or after 1 September 1990 is not income for the purposes of the Act and therefore not to be taken into account under the social security income test.

 

Commencement

 

The instrument commences on the day after it is registered.

 

Consultation

 

The Department has consulted with the Department of Veterans' Affairs, the Department of Agriculture and Water Resources and the Association of Mouth and Foot Painting Artists regarding this determination.

 

The Determination is beneficial to social security payment recipients because it exempts the provision of this scholarship from the Association of Mouth and Foot Painting Artists, Liechtenstein from the social security income test.  Public consultation was therefore seen as unnecessary.

 

Regulatory Impact Analysis

 

This Determination does not require a Regulatory Impact Statement, as it is not regulatory in nature, does not impact on business activity and will have no, or minimal compliance costs.

 

Explanation of provisions

 

Section 1 of the instrument states the name of the determination is the Social Security (Approved Scholarship – Association of Mouth and Foot Painting Artists, Liechtenstein) Determination 2018.

 

Section 2 states that the determination commences on the day after it is registered.

 

Section 3 provides that the determination is made under section 24A of the Social Security Act 1991.

 

Section 4 defines Act as the Social Security Act 1991.

 

Section 5 provides that each instrument specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

 

Section 6 provides that the scholarship awarded by the Association of Mouth and Foot Painting Artists, Liechtenstein for the sole purpose of recipients improving their artistic ability and used only for education, supplies and equipment is an approved scholarship for the purposes of the Act.

 

Schedule 1 – Repeals

 

Item 1 repeals the Social Security Act 1991 – Notice under subsection 24A(1) – Instrument 92/92-30.

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Social Security (Approved Scholarship – Association of Mouth and Foot Painting Artists, Liechtenstein) Determination 2018

 

The Social Security (Approved Scholarship Association of Mouth and Foot Painting Artists, Liechtenstein) Determination 2018 (the Determination) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the legislative instrument

This Determination is made under Section 24A of the Social Security Act 1991 (the Act) and determines that the Scholarship Association of Mouth and Foot Painting Artists, Liechtenstein is an approved scholarship for the purposes of the Act, thereby exempting these scholarship payments received by the person from the social security income test.

The Determination ensures that people receiving assistance, which is for education, supplies and equipment, from the scholarship awarded by the Association of Mouth and Foot Painting Artists, Liechtenstein will not have this assistance assessed as income for social security purposes.

Human rights implications

The Determination engages the right to social security.

Section 24A of the Act allows the Minister for Families and Social Services to determine that when a person receives assistance from a scholarship this assistance is exempt from the social security income test in relation to social security payments for which the Minister for Families and Social Services is responsible.  The Determination is therefore beneficial to persons who receive such a social security payment.

Conclusion

This Determination ensures that individuals receiving assistance, which is for education, supplies and equipment, from the scholarship awarded by the Association of Mouth and Foot Painting Artists, Liechtenstein do not have this assistance assessed for income test purposes ensuring that the receipt of the scholarship does not reduce the amount of income support payments they may receive.  The Determination supports their human right to social security and is therefore compatible with human rights.

 

 

 

The Hon Paul Fletcher MP, Minister for Families and Social Services

Overview

The Social Security (Approved Scholarship – Association of Mouth and Foot Painting Artists, Liechtenstein) Determination 2018 was enacted to address a specific gap in the Social Security Act 1991 by providing clarity on the treatment of scholarships awarded by the Association of Mouth and Foot Painting Artists, Liechtenstein. This Determination was made under the authority of the Minister for Families and Social Services and aims to exempt approved scholarship payments from the social security income test, ensuring that these payments are not considered income for the purposes of social security benefits. This exemption is critical for scholarship recipients who use the funds solely for educational purposes, thereby supporting their right to social security without the risk of reduced income support payments. The Determination is compatible with human rights, as it upholds the right to social security for those who receive such scholarships. This legislative instrument was developed following consultations with relevant departments and the Association of Mouth and Foot Painting Artists, with the consensus that public consultation was unnecessary due to the specific nature of the scholarship. The instrument is not subject to a Regulatory Impact Statement, as it does not impose significant regulatory burdens or compliance costs. The Determination replaces the previous instrument, Social Security Act 1991 – Notice under subsection 24A(1) – Instrument 92/92-30, ensuring that the law remains current and aligned with the intended policy objectives.

Scope and Application

The Social Security (Approved Scholarship – Association of Mouth and Foot Painting Artists, Liechtenstein) Determination 2018 applies to the scholarship payments administered in Liechtenstein and awarded by the Association of Mouth and Foot Painting Artists, Liechtenstein to student members. The scholarships in question are specifically for the improvement of artistic ability and intended solely for education, supplies and equipment, thus ensuring that they do not contribute to living expenses. The Determination is made under the Social Security Act 1991, with a Commonwealth jurisdiction, and it specifically exempts these scholarships from being considered as income for social security purposes. This means that recipients of these scholarships will not have their social security payments reduced due to the scholarship income. The instrument does not apply to other scholarships or financial assistance not specified within its scope, and it effectively repeals the previously applicable Social Security Act 1991 – Notice under subsection 24A(1) – Instrument 92/92-30. The Determination is designed to support individuals receiving the specified scholarships, ensuring they do not face an adverse impact on their social security payments.

Key Provisions

The Social Security (Approved Scholarship – Association of Mouth and Foot Painting Artists, Liechtenstein) Determination 2018 primarily focuses on exempting scholarship payments from the social security income test for students receiving such scholarships from the Association of Mouth and Foot Painting Artists, Liechtenstein. Section 6 of the Determination states that the scholarship awarded by this association for improving artistic abilities, and used solely for education, supplies, and equipment, is an approved scholarship under the Social Security Act 1991 (the Act). This provision ensures that the scholarship payments are not considered income for social security purposes. Section 2 of the Determination indicates that it comes into effect on the day after it is registered, making it effective immediately upon registration. The Determination imposes specific obligations on both the Association of Mouth and Foot Painting Artists, Liechtenstein and the scholarship recipients. The association must ensure that the scholarships are strictly used for educational purposes, supplies, and equipment, and not for meeting living expenses. Recipients, on the other hand, must adhere to the conditions set by the Determination to maintain their eligibility for social security benefits. This includes using the scholarship funds solely for the purposes outlined and reporting any changes in circumstances that may affect their eligibility. Breaches of the provisions outlined in the Determination can lead to serious consequences. Under the Social Security Act 1991, any misuse of scholarship funds for living expenses could result in the scholarship no longer being considered an approved scholarship. This could lead to the scholarship payments being assessed as income for social security purposes, potentially reducing the amount of social security benefits the recipient is entitled to. Furthermore, any fraudulent activities or misrepresentation of the scholarship's use could attract civil or criminal penalties as per the Social Security Act 1991, including fines or imprisonment. The exact penalties would depend on the severity and nature of the breach.

Legal classification tags

Area of Law
Social Security Law
Instrument
Determination
Concepts
Definitions & Interpretation
Exemptions & Exclusions
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

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.