EXPLANATORY STATEMENT
Select Legislative Instrument 2005 No. 123
Subject Student Assistance Act 1973
Student Assistance Amendment Regulations 2005 (No. 1)
Subsection 56(1) of the Student Assistance Act 1973 (the Act) provides, in part, that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which, by the Act, are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The ABSTUDY Scheme (also known as the Aboriginal Study Assistance Scheme) provides benefits to Aboriginal and Torres Strait Islander people most in need of assistance to promote equity of educational opportunity.
The Australian Government has made a commitment to extend eligibility for Youth Allowance and Austudy payments to full-time new apprentices. The purpose of the Regulations is to amend the Student Assistance Regulations 2003 (the Principal Regulations) to extend this initiative to the ABSTUDY Scheme, in order to ensure that ABSTUDY recipients are not disadvantaged.
Section 48 of the Act imposes an obligation on ABSTUDY payees to notify the Department of Education, Science and Training (the Department) within 14 days of the occurrence of an event prescribed by the Regulations. Part 2 of the Principal Regulations sets out prescribed definitions and events to clarify a recipient’s obligations and support the administration of the ABSTUDY Scheme. The Principal Regulations also enable effective prosecutions under subsection 49(1) of the Act for failure to notify the occurrence of prescribed events.
Regulation 1 provides that the Regulations are referred to as the Student Assistance Amendment Regulations 2005 (No. 1). Regulation 2 provides that the Regulations commence on 1 July 2005. Regulation 3 provides that Schedule 1 to the Regulations amends the Principal Regulations.
Item 1 in Schedule 1 amends the definition of ABSTUDY payee in regulation 5 of the Principal Regulations to include a reference to ‘new apprentice’. Items 2, 3 and 4 of Schedule 1 amend the definitions of ‘dependent student’ and ‘independent rate’ in regulation 5 of the Principal Regulations to include reference to ‘new apprentice’. Item 5 of Schedule 1 adds a definition of ‘new apprentice’ in regulation 5 of the Principal Regulations.
Item 6 in Schedule 1 amends the definitions of ‘parent’ and ‘partner’ in regulation 5 of the Principal Regulations, referring to new definitions in regulations 5C and 5D. Item 7 amends paragraph 5A(3)(d) (definition of ‘dependent child’) to increase the figures in subparagraphs 5A(3)(d)(i) and (ii) of the Principal Regulations.
Item 8 of Schedule 1 substitutes new definitions of ‘independent status’ and ‘parent’ in regulations 5B and 5C respectively of the Principal Regulations to include references to ‘new apprentice’. Item 8 also inserts a new definition of ‘partner’ at regulation 5D in the Principal Regulations.
Item 9 of Schedule 1 makes a technical amendment to correct a reference to ‘ABSTUDY recipient’, which should read ‘ABSTUDY payee’.
Item 10 amends item 110 in the list of prescribed events in Schedule 1 to the Principal Regulations to include a reference to an ABSTUDY payee becoming, or ceasing to be a new apprentice as a prescribed event.
Item 11 makes a minor amendment to the prescribed event in item 116 in Schedule 1 to the Principal Regulations, regarding earning an amount of income which differs from the last estimate given to Centrelink.
Item 12 substitutes new items 118 and 118A in Schedule 1 to the Principal Regulations, which relate to the ABSTUDY payee changing his or her partner, or changing address, sharing or ceasing to share accommodation.
Item 13 inserts a number of new prescribed events as items 123 to 133 in Schedule 1 to the Principal Regulations. These new prescribed events require an ABSTUDY payee to notify the Department when he or she:
- becomes aware of circumstances affecting entitlement to remote area allowance;
- is away from home for which remote area allowance is paid, for a period longer than 8 weeks;
- has a partner or dependent child who dies;
- has a dependent child who is, or intends to be, overseas;
- ceases work temporarily or permanently;
- separates from his or her partner permanently;
- receives a payment from a compensation related claim; or
- receives a payment under the Department’s New Apprenticeships Scheme Living Away From Home Allowance.
Item 14 amends the prescribed event in item 302 of Schedule 1 to the Principal Regulations, to reflect the change made in item 110 to Schedule 1.
In making the Regulations, the Department of Education, Science and Training consulted with Centrelink, which administers and delivers the ABSTUDY Scheme on behalf of the Department.
The Regulations commenced on 1 July 2005.
Overview
The Student Assistance Amendment Regulations 2005 (No. 1) were enacted to address the gap in the Student Assistance Act 1973 by extending eligibility for Youth Allowance and Austudy payments to full-time new apprentices, ensuring that Aboriginal and Torres Strait Islander students under the ABSTUDY Scheme do not remain disadvantaged. These regulations were introduced by the Parliament of Australia and aim to align the ABSTUDY Scheme with the broader changes in student assistance provisions. The Student Assistance Act 1973 allows the Governor-General to make regulations necessary for carrying out the Act, and these amendments were designed to support the equitable administration of the ABSTUDY Scheme by clarifying the obligations of recipients and facilitating effective prosecutions for non-compliance. The amendments also ensure that ABSTUDY payees are kept informed of their obligations, including notifying the Department of Education, Science and Training of prescribed events. The policy objective was to extend the benefits of the student assistance reforms to all eligible students, including those participating in the ABSTUDY Scheme.
Scope and Application
The Student Assistance Amendment Regulations 2005 (No. 1) pertains to the Student Assistance Act 1973, which regulates the administration and distribution of student assistance benefits, including the ABSTUDY Scheme designed to support educational opportunities for Aboriginal and Torres Strait Islander people. These regulations specifically target ABSTUDY payees, which now include new apprentices, thereby extending eligibility for Youth Allowance and Austudy payments to this group to ensure parity within the scheme. The geographic reach of these regulations is national, applying across Australia, as they amend the Student Assistance Regulations 2003 to update the definitions and prescribed events that affect the administration of the ABSTUDY Scheme. The regulations also mandate ABSTUDY payees to notify the Department of Education, Science and Training of various specified events within a 14-day period. While the regulations introduce several amendments to definitions and prescribed events, they do not explicitly state exclusions, but rather extend the scope of existing provisions to include new apprentices. The regulations came into effect on 1 July 2005, and they are supported by subordinate instruments that detail the specific changes made to the Principal Regulations.
Key Provisions
The Student Assistance Amendment Regulations 2005 (No. 1) amend the existing Student Assistance Regulations 2003 (Principal Regulations) to incorporate new provisions primarily aimed at extending eligibility for Youth Allowance and Austudy payments to full-time new apprentices under the ABSTUDY Scheme. Regulation 3 of these amendments alters the definition of ABSTUDY payee in the Principal Regulations (regulation 5) to include ‘new apprentice’ (item 1, Schedule 1). Additionally, it modifies the definitions of ‘dependent student’ and ‘independent rate’ to also encompass ‘new apprentice’ (items 2, 3, and 4, Schedule 1), and introduces a new definition for ‘new apprentice’ (item 5, Schedule 1). The amendments also redefine ‘parent’ and ‘partner’ to reflect new definitions in regulations 5C and 5D (item 6, Schedule 1), and update the figures for the definition of ‘dependent child’ (item 7, Schedule 1). Furthermore, new definitions for ‘independent status’ and ‘parent’ are introduced (item 8, Schedule 1), and a new definition for ‘partner’ is added (item 8, Schedule 1). A technical correction is made to replace ‘ABSTUDY recipient’ with ‘ABSTUDY payee’ (item 9, Schedule 1). The list of prescribed events is also updated to include new events related to becoming or ceasing to be a new apprentice (item 10, Schedule 1), and to adjust the event regarding income estimates (item 11, Schedule 1). The events related to changes in personal circumstances, such as changing a partner or address, are also revised (item 12, Schedule 1). A series of new events are added, requiring notification of various circumstances affecting ABSTUDY entitlements (items 123 to 133, Schedule 1). Lastly, an existing event is amended to align with the new definitions (item 14, Schedule 1).
These amendments impose specific obligations on ABSTUDY payees to notify the Department of Education, Science and Training within 14 days of certain events occurring, as prescribed by the Regulations. The updated definitions and events aim to clarify the payees' obligations and support the effective administration of the ABSTUDY Scheme. This includes notifying the Department of changes in employment status, personal circumstances, and other factors that may affect eligibility for or the amount of ABSTUDY payments. The updated definitions ensure that the Scheme is inclusive of new apprentices, thereby preventing any potential disadvantage to this group of recipients.
The Student Assistance Amendment Regulations 2005 (No. 1) impose penalties and consequences for failure to comply with the notification requirements. Under subsection 49(1) of the Student Assistance Act 1973, failure to notify the occurrence of a prescribed event can lead to effective prosecution. Although specific penalties are not detailed in the explanatory statement, such breaches can result in legal action being taken against the payee. This underscores the importance of adhering to the notification requirements to avoid potential legal repercussions.
In summary, the Student Assistance Amendment Regulations 2005 (No. 1) extend the eligibility criteria for Youth Allowance and Austudy payments to full-time new apprentices within the ABSTUDY Scheme. The Regulations introduce new definitions and prescribed events to ensure that these apprentices are not disadvantaged. ABSTUDY payees are required to notify the Department of specific events within 14 days, and failure to do so can result in prosecution under the Act. These amendments aim to enhance the fairness and inclusivity of the ABSTUDY Scheme, ensuring that all eligible individuals receive the support they need to pursue educational opportunities.