Social Security (Fares Allowance for Private Transport) Determination 2002 (No. 2)

Overview

The Social Security (Fares Allowance for Private Transport) Determination 2002 (No. 2), enacted by the Parliament of Australia, addresses the need to update the rates of fares allowance for private transport, ensuring they reflect the current economic conditions and the increases in the Consumer Price Index since the last adjustment in 2002. This determination is a response to the legislative mandate under section 1061ZAAK of the Social Security Act 1991, which allows for the adjustment of fares allowance rates to maintain their relevance and effectiveness in reimbursing students for their travel expenses. The policy objective is to provide equitable and adequate support for eligible students by updating the reimbursement rates to align with the cost of living, thereby ensuring that the fares allowance remains a viable support mechanism for students relying on it to manage their travel expenses between their permanent homes and educational institutions.

Scope and Application

The Social Security (Fares Allowance for Private Transport) Determination 2002 (No. 2) amends the rates for fares allowance for private transport under the Social Security Act 1991. This legislation applies to tertiary students who are full-time or concessional study-load students receiving youth allowance, austudy payment, or pensioner education supplement, and to dependent youth allowance students. Additionally, independent students who live away from their permanent home and have a partner or dependent child residing there are also eligible, as are external students attending a compulsory component of their course at their enrolled educational institution. The allowance is specifically for travel within Australia and can be claimed for journeys between a student's permanent home and their educational institution, as well as for certain journeys during the study year. The allowance may also be claimed if students use their own vehicle, with reimbursement rates based on the kilometres travelled and the engine capacity of the car, as determined by the Motor Vehicle Allowance (MVA) rates. These rates are updated annually by the Department of Employment and Workplace Relations in line with the Consumer Price Index, with the latest updates specified in Subscription Notice 2002/6.

Key Provisions

The primary sections of the Social Security (Fares Allowance for Private Transport) Determination 2002 (No. 2) (the Determination) are pivotal in detailing the updated rates for the fares allowance provided to eligible students under the Social Security Act 1991. Section 3 of the Determination amends the rates specified in subsection 1061ZAAK(4) of the Act, which outlines the reimbursement rates for private transport travel based on the type and capacity of the engine. These updated rates are crucial for students who need to claim for travel expenses incurred while attending their educational institutions. The determination ensures that the fares allowance reflects the current economic conditions by aligning with the Consumer Price Index (CPI) adjustments as of 12 April 2002, which were the last rates updated. The obligations imposed by the Determination on the relevant parties are primarily administrative and procedural. The Department of Employment and Workplace Relations is tasked with updating the Motor Vehicle Allowance (MVA) rates annually, aligning them with CPI changes, and ensuring these updated rates are disseminated to all relevant government departments through Subscription Notice 2002/6. Eligible students, on the other hand, must ensure they use the updated rates when claiming their fares allowance. This requires them to stay informed about the changes and apply the correct rates in their reimbursement claims. The Minister for Social Security also has the authority to amend or replace the Table in subsection 1061ZAAK(4) under paragraph 1061ZAAK(8)(b) of the Act, with any such determination being a disallowable instrument as per subsection 1061ZAAK(9). In terms of consequences for non-compliance, the Determination does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach. However, the Social Security Act 1991 includes general provisions for penalties associated with incorrect claims or fraud. These penalties can include fines, recovery of overpaid amounts, and in severe cases, prosecution. The exact penalties are determined by the specifics of the breach and the provisions of the Social Security Act. The updated rates are designed to ensure accuracy and fairness in the reimbursement process, thereby reducing the potential for non-compliance. The implementation of these new rates on 1 January 2003 also marks a clear directive for all parties to adhere to the new guidelines to maintain compliance with the legislative requirements.