Social Services Legislation Amendment (Student Reform) Act 2018

Administered by Department of Social Services

Legislation au C2018A00111 In force Act

Legislation content

 

 

 

 

 

 

Social Services Legislation Amendment (Student Reform) Act 2018

 

No. 111, 2018

 

 

 

 

 

An Act to amend the law relating to social security and student assistance, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Main amendments

Social Security Act 1991

Social Security (Administration) Act 1999

Schedule 2—Other amendments

Student Assistance Act 1973

 

 

 

Social Services Legislation Amendment (Student Reform) Act 2018

No. 111, 2018

 

 

 

An Act to amend the law relating to social security and student assistance, and for related purposes

[Assented to 21 September 2018]

The Parliament of Australia enacts:

1  Short title

  This Act is the Social Services Legislation Amendment (Student Reform) Act 2018.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

21 September 2018

2.  Schedule 1, items 1 to 5

As follows:

(a) if this Act receives the Royal Assent before 1 January 2019—1 January 2019;

(b) if this Act receives the Royal Assent on or after 1 January 2019—the first 1 January or 1 July to occur after the day this Act receives the Royal Assent.

1 January 2019

(paragraph (a) applies)

3.  Schedule 1, items 6 and 7

The day after this Act receives the Royal Assent.

22 September 2018

4.  Schedule 1, items 8 and 9

As follows:

(a) if this Act receives the Royal Assent before 1 January 2019—1 January 2019;

(b) if this Act receives the Royal Assent on or after 1 January 2019—the first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent.

1 January 2019

(paragraph (a) applies)

5.  Schedule 2

The 28th day after this Act receives the Royal Assent.

19 October 2018

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

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

Schedule 1—Main amendments

 

Social Security Act 1991

1  Subsection 5(1) (paragraphs (a) and (b) of the definition of parent)

After “section 592L”, insert “, subsection 1067A(10L)”.

2  Subsection 1067A(10A)

Repeal the subsection, substitute:

 (10A) For the purposes of determining whether a person is to be regarded as independent for the purposes of Part 2.11 or 2.11B, this Part or section 1070G:

 (a) paragraph (10)(b) does not apply unless subsection (10E) applies to the person because of paragraph (10E)(d); and

 (b) paragraph (10)(d) does not apply unless subsection (10E) applies to the person because of paragraph (10E)(e).

3  Paragraph 1067A(10E)(d)

Repeal the paragraph, substitute:

 (d) in relation to paragraph (10)(b)—the person’s combined parental income (as defined in point 1067G‑F10) for:

 (i) the last tax year that ended before the start of the 2 years referred to in that paragraph; or

 (ii) the appropriate tax year worked out under Submodule 3 of Module F of the Youth Allowance Rate Calculator in section 1067G;

  is less than the threshold amount (see subsection (10K)) for the person for that tax year; and

 (e) in relation to paragraph (10)(d)—the person’s combined parental income (as defined in point 1067G‑F10) for:

 (i) the last tax year that ended before the start of the 14‑month period referred to in that paragraph; or

 (ii) the appropriate tax year worked out under Submodule 3 of Module F of the Youth Allowance Rate Calculator in section 1067G;

  is less than the threshold amount (see subsection (10K)) for the person for that tax year.

4  After subsection 1067A(10J)

Insert:

 (10K) For the purposes of paragraphs (10E)(d) and (e), the threshold amount for the person (the primary person) for a tax year is the sum of the following:

 (a) $160,000;

 (b) $10,000 for each person who is a related person (see subsection (10L)) of the primary person on:

 (i) subject to subparagraph (ii)—30 June of that tax year; or

 (ii) if that tax year is the tax year following the base tax year because of point 1067G‑F7 or 1067G‑F8—the day the request was made.

 (10L) For the purposes of paragraph (10K)(b), a person (the first person) is a related person of the primary person on a day if on that day:

 (a) the first person is aged under 22; and

 (b) a parent of the first person is also a parent of the primary person; and

 (c) none of the following applies to the first person:

 (i) the first person is living away from the home of each parent covered by paragraph (b) and the first person is a member of a YA couple under subsection 1067C(1);

 (ii) the first person is living away from the home of each parent covered by paragraph (b) and the first person has a natural child, adoptive child or relationship child who is wholly or substantially dependent on the first person or the first person’s partner (if any);

 (iii) the first person is receiving youth allowance or disability support pension and the first person is independent under subsection (9);

 (iv) the first person is in State care.

Note: For parent, see paragraph (b) of the definition of parent in subsection 5(1).

5  Application provision

The amendments of section 1067A of the Social Security Act 1991 made by this Schedule apply in relation to:

 (a) working out qualification for, or the rate of, youth allowance in relation to days occurring on or after the commencement of this item; and

 (b) working out whether a person is qualified for a relocation scholarship payment at a time on or after the commencement of this item.

6  Point 1067G‑E1 (step 1 of the method statement)

Repeal the step, substitute:

Step 1. Work out the MIT reducible amount by subtracting the base FTB child rate in point 1067G‑E2 from the maximum FTB child rate in point 1067G‑E3 and then multiplying the result by:

 

7  Application provision

The amendment of point 1067G‑E1 of the Social Security Act 1991 made by this Schedule applies in relation to working out the rate of youth allowance in relation to days occurring on or after the commencement of this item.

Social Security (Administration) Act 1999

8  Subsection 123AB(1) (steps 3 to 5 of the method statement)

Repeal the steps, substitute:

Step 3. Work out the annual amount of estimated maintenance income for the parent under section 123AD.

Step 4. Go to subsection (2) if the actual maintenance income is equal to or more than the annual amount of estimated maintenance income and either:

 (a) the actual maintenance income is less than 125% of the annualised maintenance income free area; or

 (b) the actual maintenance income is equal to or more than 125% of the annualised maintenance income free area and the actual maintenance income is less than 125% of the annual amount of estimated maintenance income.

Step 5. Go to subsection (3) in any other case.

9  Application provision

The amendment of subsection 123AB(1) of the Social Security (Administration) Act 1999 made by this Schedule applies in relation to a requirement that arises under section 126A of that Act on or after the commencement of this item to review a decision, whether the decision was made before, on or after that commencement.

Schedule 2—Other amendments

 

Student Assistance Act 1973

1  After subsection 5D(2)

Insert:

 (2A) A determination under subsection (1) may make provision for and in relation to a specified course, that ceases to be a secondary course or a tertiary course, continuing to be a secondary course or a tertiary course in relation to specified persons in specified circumstances.

Note: For specification by class, see subsection 13(3) of the Legislation Act 2003.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 15 August 2018

Senate on 23 August 2018]

 

(144/18)

 

Overview

The Social Services Legislation Amendment (Student Reform) Act 2018 was enacted to address issues in the social security and student assistance systems by amending the Social Security Act 1991 and the Social Security (Administration) Act 1999, and making corresponding changes to the Student Assistance Act 1973. The Act was passed by the Parliament of Australia and received Royal Assent on 21 September 2018. The primary objective of this Act is to revise the criteria for determining the independence of students for the purposes of receiving social security benefits and student assistance, ensuring that the support systems are fair and adequately reflect the students' circumstances. The amendments primarily focus on redefining the parameters of parental income and relatedness, which in turn affects the eligibility and rate of payments such as youth allowance and relocation scholarship payments. The Act also aims to refine the process of calculating the Maximum Family Tax Benefit (FTB) child rate, ensuring that the financial assistance provided is both accurate and reflective of current economic conditions. Furthermore, it seeks to streamline the administrative procedures related to social security, making the system more efficient and responsive to the needs of the beneficiaries. By enacting this legislation, the Australian government intends to create a more equitable and effective social security and student assistance framework.

Scope and Application

The Social Services Legislation Amendment (Student Reform) Act 2018 applies to various aspects of social security and student assistance in Australia, primarily amending the Social Security Act 1991 and the Social Security (Administration) Act 1999. It affects individuals who are recipients of youth allowance and those who are subject to assessments of their parental income for the purpose of determining their eligibility and the rate of their allowance. The Act also extends to decisions made under the Social Security (Administration) Act 1999 concerning maintenance income, impacting those who are required to report their maintenance income for social security purposes. The amendments primarily relate to the computation of youth allowance rates and the criteria for determining student independence, specifically targeting the income thresholds for parents of students. The Act operates nationally, given its federal nature, and its provisions are applied through the relevant Commonwealth social security laws. The Act does not explicitly state any exclusions or exemptions, suggesting that the changes apply broadly to all cases governed by the amended Acts, subject to the specific conditions outlined in the amendments. Subordinate instruments may further define or refine the application of these amendments.

Key Provisions

The Social Services Legislation Amendment (Student Reform) Act 2018 (Act) makes amendments to the Social Security Act 1991, the Social Security (Administration) Act 1999, and the Student Assistance Act 1973. The main operative sections (sections 1-3) establish the short title of the Act and provide details on the commencement of various provisions. Certain provisions commence on the day the Act receives Royal Assent, while others commence on 1 January 2019 or at a later date depending on when the Act receives Royal Assent (section 2). The Act imposes obligations on parties by modifying the definition of 'parent' in the Social Security Act 1991 (section 1). It introduces new provisions to determine if a person is regarded as independent for the purposes of various sections (sections 2 and 3). Furthermore, it sets a new threshold amount for determining parental income (section 4) and modifies the method for calculating the rate of youth allowance (section 6). The Act also amends the method statement for determining the annual amount of estimated maintenance income in the Social Security (Administration) Act 1999 (section 8). Additionally, the Act introduces a new subsection in the Student Assistance Act 1973, allowing for the continuation of course classifications for specified persons under certain circumstances (Schedule 2, item 1). The Act does not specify any direct offences or penalties within its text. However, breaches of the amended provisions could lead to civil or administrative consequences, such as the incorrect calculation of social security payments or student assistance, which might result in overpayments or underpayments that need to be rectified.

Legal classification tags

Area of Law
Social Security Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Reporting & Disclosure Obligations

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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.