Student Assistance Regulations (Amendment)

EXPLANATORY STATEMENT

Issued by authority of the Minister for Education

STATUTORY RULES 1986 NO. 381

STUDENT ASSISTANCE REGULATIONS (AMENDMENT)

LEGISLATIVE AUTHORITY

Section 36 of the Student Assistance Act 1973 (‘the Act’), so far as it is relevant, provides that:

“The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters which, by this Act, are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act…”

The Act and the Student Assistance Regulations (‘the Regulations’) provided the legislative authority for the Tertiary Education Assistance Scheme (TEAS) and for Post-graduate Awards.

The Student Assistance Amendment Act 1986 (Act No.114 of 1986, assented to on 4 November 1986) (‘the Amendment Act’ - date of operation 1 January 1987)) extends the coverage of the Act to secondary students as well as tertiary and post-graduate students.

Section 10 of the Act, as amended by the Amendment Act, provides for the grant of Education Assistance “subject to and in accordance with the regulations”. Section 11 provides that benefit under Education Assistance shall consist of, inter alia, “such amount of living allowance as is payable under the regulations”, and “such other allowances, if any, as are payable under the regulations”.

Section 14 of the Act provides for the grant of a Post-graduate Award “subject to and in accordance with the regulations”. Section 15 provides that benefit under a Post-graduate Award shall consist of, inter alia, “such amounts as are payable in accordance with the regulations” in relation to the cost of the course, living allowance “at such rate as is determined in accordance with the regulations”, and “such other allowances, if any, as are payable in accordance with the regulations”.

CONTENT OF AMENDMENTS

Introduction

The principal purpose of the Statutory Rules is to amend the Regulations to replace TEAS with the new student assistance scheme to be known as AUSTUDY which provides assistance to secondary as well as tertiary students. AUSTUDY subsumes TEAS and the two unlegislated schemes of general student assistance for secondary students, the Secondary Allowances Scheme (SAS) and the Adult Secondary Education Assistance Scheme (ASEAS).

A secondary purpose is to amend the Regulations to provide for the implementation of certain decisions announced by the Government in the 1986/87 Budget. Subsidiary purposes are to clarify and simplify the Regulations where possible in areas where they continue to apply, and to make certain minor amendments to the operation of the Post-graduate Awards schemes.

These various purposes, particularly the transition from TEAS To AUSTUDY, involve very extensive amendment to the Regulations.

The major changes are summarised below, in the order in which they appear in the Statutory Rules. More detailed explanations of individual regulations are set out in the Attachment.

(1) New Categories of Students Assisted

Assistance under the Act is now extended to secondary students. The Regulations identify two categories of secondary students.

• ‘Adult secondary students’ are those secondary students aged 19 years or over on 1 January in the year of study, who are not ‘general secondary students’ (see below). Adult secondary students, generally equivalent to the group previously assisted under ASEAS, receive the same rates of Assistance as tertiary students, including the higher rate available for students who live away from home to study. However, unlike general secondary students, adult secondary students are not eligible for Assistance to repeat a year of study undertaken in the last 3 years (or in any previous year if the student received Assistance as an adult secondary student for that year of study).

• ‘General secondary students’ are those secondary students aged under 19 at 1 January in the year of study. A student may also be categorised as a general secondary student under a concession which may apply if the student is between 19 and 21 at 1 January in the year of study and:

- is ineligible for Assistance as an adult secondary student because the student is repeating a year of study; but

- the student would have undertaken that repeat year before turning 19 (i.e. before the restriction on repeat study takes effect) had it not been for circumstances beyond his or her control.

In 1987 general secondary students are entitled to slightly lower rates than adult secondary and tertiary students, unless they are independent of their parents. (This difference in rates will be removed by 1989.) General secondary students are not eligible for the rate available to adult secondary and tertiary students who live away from home to study, nor are they eligible for fares allowance.

Assistance for both general and adult secondary students may be payable for study in any year of secondary education. Thus AUSTUDY extends beyond the coverage of SAS and ASEAS which were principally restricted to matriculation level study.

(2) Applicant and Recipient of Assistance

Adult secondary, general secondary and tertiary students are treated in the same way under the Regulations in so far as the student is the applicant for Assistance in all instances. This was the case under ASEAS and TEAS, but the applicant for SAS in the majority of cases was a parent of the student.

In 1987, Assistance is initially payable only to the student but once appropriate computer system changes have been set in place, an option will be provided for the parents of younger eligible secondary students to receive the payment instead of the student. The Minister for Education has the power to determine the recipient of Assistance under section 32 of the Act, so amendment of the Regulations will not be necessary in this respect.

(3) Allowable Starting Period

Different requirements have applied under SAS, TEAS and ASEAS in relation to the attendance of students at the start of each term or semester. In order to establish a uniform provision within AUSTUDY an ‘allowable starting period’ is introduced in normal full-year courses. If a student starts full-time study in his or her course in each term or semester before the second Friday of classes, there is no loss of benefits. Starting on any later day in the term or semester results in the payment of Assistance for that term or semester only from that day, unless the late start resulted from circumstances beyond the student’s control.

There is no allowable starting period in courses of less than 30 weeks’ duration or in courses which start late in first or second semester. In such courses students are expected to undertake full-time study from the first day of the course (unless prevented by circumstances beyond their control).

(4) Application of Personal Income Test

Under TEAS and ASEAS, allowances for all students have been subject to the same personal income test. Under SAS, only students receiving allowances in their own right were subject to a personal income test. From 1 January 1987, payment of living allowance under AUSTUDY is subject to the TEAS/ASEAS personal income test for all students, including general secondary students.

(5) Administration of Personal Income Test

Under TEAS and ASEAS, income derived in periods during which a student is not entitled to Assistance is not taken into account for the purposes of the income test. For example, income earned while studying part-time is not included. The income-test-free threshold of $2,000 p.a. is reduced proportionally to exclude such periods. This approach is difficult to administer strictly and involves some inequities in the targetting of Assistance. The regulations simplify this area.

From 1 January 1987 if a student starts full-time study before 30 June, income for the whole year (or until AUSTUDY otherwise terminates) is taken into account against the full income-test-free threshold. If a student starts full-time study after 30 June, income for the 6 months 1 July to 31 December (or until AUSTUDY otherwise terminates) is taken into account against a proportionally reduced threshold figure.

(6) New Living Allowance Rate Structure

A new age-related structure of rates of living allowance is introduced as illustrated in the table below. Higher rates are available for students aged 18 and over than for those aged 16 and 17. In 1987 the rate for dependent tertiary students aged 16-17 who are living at home is the same as unemployment benefit for people of that age. Links with the level of unemployment benefit will be established for students aged 18 and over from 1988.

In 1987, the maximum weekly rates of living allowance are:-

(7) Extension of Independent Status

Students who are classified as independent from their parents are not subject to the parental income test and are eligible for a higher rate of Assistance than dependent students. The criteria for independent status are broadened to include:

• refugees without parents in Australia; and

• students who are ‘homeless’ (within the meaning of the ‘young homeless allowance’) i.e.

- there is no family home at which the student’s parents are prepared to let the student live; or

- it would be unreasonable to expect the student to live at home because of domestic violence, incestuous harassment or other such exceptional circumstances; and

- the student is not receiving any direct or indirect Assistance from parents or guardians and is not receiving any income support from State or Commonwealth sources on a long-term basis.

These additional criteria have been operating since 1 July 1986, in line with the Government’s decision on the Young Homeless Allowance. They become part of the AUSTUDY criteria for independent status and the full set of criteria is available for all AUSTUDY students (including general secondary students) from 1 January 1987.

(8) Ineligibility Below Age 16

AUSTUDY is not generally payable to students who have not turned 16. The main exception is for students for whom SAS or TEAS was payable at some time in 1986. There is no minimum age restriction for these students. AUSTUDY is also payable to homeless students above the minimum school leaving age.

There was previously no minimum age applying to SAS or TEAS, but SAS (and ASEAS) were generally payable only for matriculation study. AUSTUDY is payable to any eligible secondary student, regardless of level of study.

(9) Specific Eligibility Restrictions for Secondary Students

Certain specific eligibility restrictions which were features of SAS and ASEAS apply to secondary students under AUSTUDY.

(a) Previous tertiary study: A secondary student is not eligible for Assistance if he or she has successfully completed -

(i) a tertiary course (in Australia or overseas) at advanced education degree or diploma level; or

(ii) within the last 5 years, any part of a tertiary course in Australia at advanced education degree or diploma level.

Previous study in a course of technical and further education does not affect a student’s eligibility (except where the course was at advanced education degree or diploma level).

(b) Repeat year of study: Adult secondary students only (not general secondary students) are ineligible for Assistance to undertake a year of study at the same overall level (year 10, year 11 or year 12) as a year of study undertaken in the last 3 years. Study below year 10 level or in English as a Second Language courses does not affect eligibility. Overseas study below year 12 level also does not affect eligibility. This rule is subject to certain concessions relating to (i) failure for reasons beyond the student’s control, (ii) early withdrawal from a course, and (iii) study in courses of less than 6 months duration. In each case the student’s eligibility is not affected.

(c) Repeat benefits: Adult secondary students only (not general secondary students) are ineligible for Assistance for a year of study if they have previously received any Assistance as an adult secondary student for a year of study at the same level. That is, Assistance is only payable for adult secondary students for one full attempt at each level of secondary study. The same concessions as those summarised in (b) above apply.

(10) Deduction of Social Security Benefits While Entitled to AUSTUDY

For students who start on time in the first term or semester of a normal course, AUSTUDY may be payable from 1 January. In certain circumstances, eg. where a person makes a late decision to take up full-time study, the Department of Social Security may have continued to pay unemployment, sickness or special benefit to that person after 1 January. In order to prevent duplication of Commonwealth assistance, the amount of any such benefit (if paid for a period during which a student is also entitled to AUSTUDY) is fully deducted from the student’s overall AUSTUDY entitlement for the year. Thus the actual amount received by the student from the Commonwealth is his or her correct AUSTUDY entitlement for the year.

The mechanism for this correction is the personal income test (which applies for all AUSTUDY students who are receiving an income-tested living allowance).

(11) Living Away from Home Rate

Adult secondary and tertiary students who are dependent on their parents are able to qualify for the same maximum rate as independent students if they are living away from home to study (subject to the parental and personal income tests). This provision existed under TEAS and ASEAS, but not SAS. Similarly, the living away from home rate is not payable to general secondary students under AUSTUDY. (Primary and secondary students who are isolated from schooling may qualify for assistance under the Assistance for Isolated Children Scheme).

(12) Increase to Family Income Threshold

AUSTUDY entitlements for dependent students, like entitlements under TEAS, ASEAS and SAS, are reduced by $2.50 for every whole $10 of parental income above a threshold figure known as the marginal adjusted family income (MAFI). Certain deductions are allowed in calculating parental income for this purpose.

The MAFI level is raised by 5% from $14995 in 1986 to $15,745 in 1987. This same increase in the threshold applies for the income test on the spouse of a married student.

(13) Increase to Dependent Child Allowance

Students with dependent children are entitled to an additional allowance of $17 per week, an increase of $1 per week over the 1986 level. This same increase applies for Postgraduate Award holders.

(14) Operation of the ‘Sibling Concession’

The abatement rate of the parental income test may be eased where there is more than one dependent student in the family. This ‘sibling concession’ applied within SAS, ASEAS and TEAS, but not across these schemes. Under AUSTUDY a sibling concession is available, but for cost reasons it is restricted to secondary students on the one hand, and tertiary students on the other. That is, the concession applies where there are two eligible dependent secondary students in the same family (whether adult secondary or general secondary) or if there are two dependent tertiary students in the same family, but it does not apply where, for example, there is one tertiary student and one secondary student.

(15) Assistance for Pensioner Students

From 1 January 1987 new arrangements are introduced for students who are in receipt of a pension (or supporting parent’s benefit) from the Department of Social Security (DSS) or Veterans Affairs (DVA). In line with the Budget decision to eliminate dual eligibility for pensions and student Assistance, normal AUSTUDY living allowance, dependent child allowance and dependent spouse allowance are not payable to DSS or DVA pensioners. (The only exception is for those receiving a disability pension from DVA. However, disability pensioners who are also receiving some other pension, eg. invalid pension from DSS, are also not qualified to receive normal AUSTUDY living allowance.)

A transitional concession applies such that current pensioner students who were receiving SAS, ASEAS or TEAS at the end of 1986 continue to receive the rate of assistance which was payable at the end of 1986, for as long as they continue in their programs of study.

Other pensioner students from 1 January 1987 who are starting a new program of study or who did not receive both a pension and student assistance in 1986 are not entitled to normal income-tested living allowance but may be eligible for an allowance of $15 per week depending on the type of pension they are receiving. The following groups are eligible for the $15 per week rate of living allowance:

• invalid pensioners (and service pensioners granted the pension on the grounds of invalidity);

• supporting parents beneficiaries;

• widows pensioners class A, i.e. those with dependent children (and war/defence widows pensioners with dependent children); and

• carers pensioners.

Other pensioners, with the exception of DVA disability pensioners, are not entitled to any form of assistance under AUSTUDY unless they fall within the transitional concession for continuing dual beneficiaries. Students who receive more than one form of pension are also not entitled to AUSTUDY unless in the transitional group.

(16) Full-time Status

AUSTUDY, like TEAS, ASEAS and SAS, is payable only for full-time students. Because of the different types of systems which operate there are two different approaches to the determination of full-time status under AUSTUDY.

(i) Non-school students (i.e. tertiary students, secondary students in education institutions other than schools, and correspondence students who do not attend a school for daily supervision) are assessed according to the workload they are undertaking. Assistance is not payable for any period during the academic year when that workload falls below 75% of the normal full-time amount of work for that period. This represents no change for tertiary and adult secondary students.

(ii) School students (i.e. secondary students attending schools on a normal basis and correspondence students receiving daily supervision at a school) are assessed according to their attendance at the school. Days of absence for reasons beyond the student’s control, e.g. illness, do not affect entitlements. However, Assistance is not payable for any days of unapproved absence in a term in excess of 15 such days of unapproved absence in that term. (Schools are asked to indicate whether or not absences have been authorised).

(17) Fares Allowance

The following changes are made to the operation of fares allowance:

(i) The allowance is payable for adult secondary and tertiary students but not for general secondary students.

- This reflects the situation whereby fares allowance was available under ASEAS and TEAS, but not SAS.

(ii) The allowance is no longer payable for single independent students.

- Fares allowance continues to be payable for dependent students for travel to and from the parental home or for married independent students for travel to and from their spouses’ homes.

(iii) The allowance is payable to pensioner students who are

- receiving some form of Assistance under AUSTUDY; and

- meet the normal requirements for fares allowance.

(18) Incidentals Allowance

Incidentals Allowance, which was payable under TEAS (up to $100 p.a.) and ASEAS ($30 p.a.), is not payable from 1 January 1987. For most tertiary and all adult secondary students, the loss of Incidentals Allowance is more than offset by increases in living allowance levels.

(19) Higher Education Administration Charge Allowance

Tertiary students who are required to pay the new Higher Education Administration Charge ($250 p.a.) receive an additional allowance under AUSTUDY to cover the amount which they are required to pay by way of the charge, provided that they have some other entitlement to AUSTUDY at some stage of the year. (The additional allowance is paid with the first normal AUSTUDY payment). A corresponding allowance is introduced for Postgraduate Award holders.

(20) Other Changes to Postgraduate Awards

In addition to the changes noted above, the regulations:-

(i) enable Award holders undertaking research in the external Territories to be treated as if their research were undertaken within the Commonwealth of Australia; and

(ii) provide a means of computing the full-time equivalent of a period of part-time study.

ATTACHMENT - DETAILS OF REGULATIONS

Regulation 1 provides for commencement dates, as follows -

• regulation 45 (which concerns the rates of fares allowance payable where students travel by private vehicle or taxi) is deemed to have come into operation on 4 December 1985;

• regulations 41 and 43 (which concern the upgrading of the Darwin Community College to the Darwin Institute of Technology) are deemed to have come into operation on 12 December 1985;

• regulation 42 (which omits “Geelong Business Academy” from the institutions listed as technical and further education institutions) is deemed to have come into operation on 30 April 1986;

• regulations 3, 6 and 9 (which respectively concern the definitions of “permanent resident of Australia”, “orphan” and “ward”, and set out the criteria for independent status) are deemed to have come into operation on 1 July 1986; and

• the remaining regulations came into operation on 1 January, 1987.

Regulation 2 omits the definition of “approved” in regulation 3. This omission is consequential to the amendment of regulation 29 by regulation 7 which inserts definitions of “approved course”, “approved secondary course” and “approved tertiary course”.

Regulation 3 extends the definition of “permanent resident” in regulation 5 to include refugee students.

Regulations 4 and 5 make minor drafting changes by omitting “tertiary” from headings which cover regulations dealing with both secondary and tertiary students.

Regulation 6 omits the definitions of “orphan” and “ward” in regulation 29. Those definitions have been transferred to regulation 30 (sub-regulations 30(1A) and (1B) - see amending regulation 9).

Regulation 7 amends regulation 29 to provide additional and amended definitions. The additional definitions inserted in sub-regulation 29(1) are set out below:

“adult secondary student” and “general secondary student” - the former (students 19 years of age and over at the start of the year) generally receive a higher level of benefit than the latter but face a test on repeated study. General secondary students (those under 19 at the start of the year) do not face any tests on repeat study. As a concession, students over 19 at the start of the year who fail to meet the repeat study rules applying for adult secondary students are regarded as general secondary students if they would have repeated the year concerned before turning 19, but were unable to do so for reasons beyond their control.

 “allowable starting period” - a period of grace to allow students to start their courses by the Friday of the second week of classes without reduced entitlement.

“approved secondary course” and “approved tertiary course” - reflect the new requirement in section 10 of the Act that the Minister shall “determine” those secondary and tertiary courses for which AUSTUDY is payable. Under the existing Act, the Minister “approves” courses for the purposes of Tertiary Education Assistance.

“continuing pensioner student” - defines the type of pensioner students who, rather than losing dual eligibility for their pensions and student assistance, are covered by a transitional provision. (This provision ‘freezes’ the 1986 student assistance entitlements of students who were in receipt of a pension and for whom SAS, TEAS or ASEAS was payable at the end of 1986.) To be eligible for this transitional provision, such students must continue to receive a pension in 1987 and must undertake full-time study in first term/semester 1987 in their current program of study (see “specified course” below).

“late starting course” - a course that commences after 31 March (or 31 July) and for which assistance is not payable retrospectively to 1 January (or 1 July).

“new pensioner student” - a pensioner student who does not attract the transitional provision and who therefore is not entitled to normal AUSTUDY living allowance, but may be entitled to an allowance of $15 per week (free of income test), depending on the type of pension received.

“part-time student” - a student who is not a full-time student. The meaning of “full-time student” is clarified in sub-regulation 29(2).

“pensioner” - a person who is in receipt of one of the following pensions:

• age pension;

• widows pension;

• invalid pension;

• supporting parents’ benefit;

• wife’s pension

• carer’s pension; or

• an equivalent Veterans’ Affairs pension.

“secondary student”, “semester”, “term”, “tertiary student” - for drafting convenience and consistency of interpretation, straight forward definitions of these expressions are inserted.

“specified course” - to be entitled to the transitional provisions, a continuing pensioner student must remain in a ‘specified course’, i.e. the same course as that for which student assistance was payable at the end of 1986 (including honours in such a course) or another approved course at the same level, of the same (or lesser) duration and in the same field of study.

Regulation 7 also amends certain definitions in sub-regulation 29(1):

“applicable lodgement date” - defines the due date for lodgement of applications. Students in the newly defined category of ‘late starting courses’ are required to apply for assistance within 4 weeks of the start of the course in order to receive full benefits.

“commencing date” - defines the earliest possible date for which Assistance may be paid in a year (if the student qualifies for assistance on that day). This date is also the start of the period over which a student’s personal income is taken into account. In order to simplify the determination of the commencing date, it is defined as:

• the first day of a short or late starting course;

• 1 January for students who start full-time study before 30 June, or;

• 1 July for students who start full-time study after 30 June.

“relevant period” - defines the period over which a student’s personal income is taken into account. In order to simplify the determination of the relevant period, it is defined as the period which starts on a commencing date (see above) and ends when assistance terminates (or when a new commencing date applies). The relevant period excludes any period while a student is receiving a pension and therefore is not entitled to an income-tested living allowance under AUSTUDY.

Other minor drafting changes and simplifications are made in sub-regulation 29(1) where appropriate for consistency of language.

Regulation 7 also introduces certain new sub-regulations into regulation 29 to provide interpretation of a number of expressions which have not previously been adequately defined:

“full-time student” - sub-regulation 29(2) responds to the definition of “full-time student” in the Act by clarifying that students are regarded as full-time if they meet the workload or attendance requirements for Assistance, as prescribed in sub-regulation 44B(1) and sub-regulations 44B(3), 44F(2) and 44G. That is, they must either be undertaking at least 75% of the normal full-time amount of work of their courses, or be attending a secondary school on a satisfactory daily basis.

“secondary school” - sub-regulation 29(3) defines a secondary school in terms of a government secondary school or a non-government secondary school recognised as such by a State government or by the Commonwealth (section 5 of the Act excludes schools and other educational institutions outside Australia other than those on Christmas Island).

“university” - sub-regulation 29(4) restricts the definition of “university” in section 5 of the Act to institutions that are universities for the purposes of the Commonwealth Tertiary Education Commission Act 1977 (and that are funded by the Commonwealth under States Grants and other legislation).

“normal full-time amount of work” - sub-regulations 29(4A), (4B), (4C) (4D) and (4E) define, for the purposes of the rules relating to academic progress and workload, the normal full-time amount of work of a course for a year or for a period in a year. Essentially this is the amount of work specified by the institution, or, where no such specification is made, an amount proportional to the total required for completion of the course. In the case of matriculation courses the normal full-time amount of work is explicitly detailed in sub-regulation (4E) which reflects the normal workload in each State or Territory.

In addition, regulation 7 inserts sub-regulation 29(4F) which clarifies that the eligibility rules relating to previous study undertaken by the applicant refer to both full-time and part-time study, unless otherwise specified.

Regulation 7 also provides for increases in the maximum rates of assistance by amending sub-regulations 29(7) and (9). The maximum rates for 1987 are shown in the table in the summary section of this memorandum.

Regulation 8 determines the circumstances in which a continuing pensioner student ceases to be entitled to the transitional provisions. The transitional arrangements cease when a student:

• ceases to be a pensioner;

• completes his or her program of study;

• does not undertake his or her program of study in first term/semester in a year;

• ceases study during a year and does not resume in that year;

• asks to be regarded as a new pensioner student; or

• starts a new program of study (without maintaining the original course).

Regulation 9 makes certain changes to the criteria for independent status. (Independent students are not subject to the parental income test and may be entitled to a higher maximum rate than dependent students.) The additional criteria which this regulation introduces have operated within TEAS since 1 July 1986 and have also applied for senior secondary students since that date as a result of the decision to implement the ‘Young Homeless Allowance’. The changes involve:

• extension of independent status to students who are above the minimum school leaving age and are assessed as ‘homeless’ (within the meaning of the ‘Young Homeless Allowance’);

• extension of independent status to refugee students without natural or adoptive parents in Australia;

• amendment of the definition of ‘orphan’ to align it with the Social Security definition;

• updating of the definition of ‘ward’ to pick up changes in other legislation and to include wards of the Commonwealth.

Regulation 10 changes regulation 30 where it specifies the periods which may not be counted as workforce participation for the purposes of gaining independent status. (Independent status may be granted where a student can demonstrate 2 years’ workforce participation in the last 3 years.)

Periods for which unemployment, sickness or special benefits are paid may be counted for this purpose, but not if they coincide with periods for which student assistance is payable after 1 January 1987. (Where the periods do coincide, the Social Security benefits should not have been paid by virtue of section 133 of the Social Security Act)

Regulation 11 makes a minor drafting change only.

Regulation 12 repeals regulations 33 and 33A and inserts the following regulations -

• regulation 32B which provides for the payment of the higher or highest rate of allowance in cases where the student’s level of entitlement is determined under more than one provision of the regulations,

• regulation 32C which precludes assistance to students who have not reached 16 years of age, except in the case of a student who received assistance in 1986 under the Tertiary Education Assistance Scheme or the Secondary Allowances Scheme, or who is a homeless student,

• regulation 33 which corresponds to previous regulation 33 but provides general rather than specific reference to educational assistance programs administered by the Commonwealth (students assisted under other Commonwealth programs of educational/training assistance are not eligible for AUSTUDY),

• regulation 33A which corresponds to previous regulation 33A, except that provision (a), relating to persons in lawful custody, is transferred to regulation 35, and

• regulation 33B which limits assistance for correspondence studies to students in Australia.

Regulation 13 amends regulation 34 to clarify certain tertiary academic eligibility requirements and to give effect to the rules which govern the academic eligibility of secondary students, as follows:

• Paragraph (a) responds to recent amendment of the Act.

• Paragraph (b) clarifies that previous study in a course that is not at the same level as the student’s current course is disregarded when assessing the student’s progress.

• Paragraph (c) is consequential to sub-regulation 29(2) which clarifies the meaning of “full-time student” (in terms of minium workload).

• Paragraph (d) amends the progress rules relating to previous study undertaken part-time (paragraphs 34(1)(ha), (hb) and (hc)). These provisions were incomplete in that they failed to test results in study during the most recent 2 part-time years, where that involves more than one approved tertiary course.

• Paragraph (e) is consequential to sub-regulation 29(2).

• Paragraph (f) clarifies the intention of paragraph 34(1) (k) which relates to the eligibility of a student who has already completed a course of the same level as the course for which he or she seeks Assistance. (In general, a student is ineligible if he or she has completed another course at the same level and of the same or greater duration.)

• Paragraphs (g) and (h) are consequential to sub-regulation 29(2).

• Paragraph (i) amends paragraph 34(1)(m) which relates to the eligibility of a student who transfers from one course to another at the same level. (Paragraph (m) provides that students who transfer are ineligible for Assistance if the total number of years of study they have already undertaken, both in the course from which they have transferred and in their current course, equals or exceeds the duration of the current course.) Essentially the amendments substitute “years of full-time study” and “fractions of years of full-time study” for the expressions “periods of full-time and part-time study”. The revised wording provides consistency in paragraph (m) with the definitions of “year of full-time study” and “year of part-time study” in sub-regulation 34(1A).

• Paragraph (j) provides a number of definitions of terms used in sub-regulation 34(1):

“year of full-time study” - a year that is not a year of part-time study,

“year of part-time study” - either a year during which the student undertakes, for a period of at least a term or a semester, a workload less than the minimum for which Assistance is payable; or a year during which the student ceased full-time study when he or she discontinued one or more subjects without incurring failure in those subjects,

“year’s work for a part-time student” - the work the student undertook in that year, and

“relevant study” - a term used in the amendments to paragraphs 34(1) (ha) and (hb) to clarify that the progress rules provided in those paragraphs also test results in any part-time years of study the student undertook in more than one course.

• Paragraph (k) amends paragraph 34(2) which allows for study discontinued without failure to be disregarded when determining whether the student has made satisfactory academic progress. The amendment is consequential to the changes in the transfer rule (paragraph 34(1)(m) and sub-regulation 34(13)) effected by Statutory Rules 354 of 1985. (Statutory Rules 354 of 1985 relaxed the rules relating to academic progress and transfer of course.)

• Paragraph (1) omits paragraph 34(3A) (h), which prescribes the level of advanced education courses at technical and further education institutions, and substitutes a provision establishing that advanced education courses and associate diploma courses of technical and further education are courses of the same level. (Under AUSTUDY, as in the case of TEAS, Assistance is provided where a student proceeds from a course at a particular level to a course at a higher level. Where the student attempts a second course at the same level, assistance is at best limited to the final year or years of that course.)

• Paragraph (m) omits sub-regulation 34(3E), which concerns the relative levels of technical and further education courses, where one such course is needed for entry to another, and substitutes a provision that includes technical and further education courses at advanced education institutions, but excludes associate diploma courses of technical and further education, which are regarded in all cases as at a higher level than other TAFE courses.

• Paragraph (n) amends sub-regulation 34(4) consequential to the amendment of sub-regulation 34(1) by Statutory Rules 354 of 1985. Sub-regulation (4) provides that study discontinued before 30 June (or on or after 30 June in the case of courses that commence in second semester) is disregarded for the purposes of determining whether the student has made satisfactory academic progress, irrespective of whether the institution itself regards the work discontinued as a failure.

• Paragraph (o) amends sub-regulation 34(5) which provides a concession where the student incurs a failure for reasons beyond his or her control. The amendment is consequential to the amendment of sub-regulation 34(1) by Statutory Rules 354 of 1985.

• Paragraph (p) omits sub-regulation 34(5AA) which defines “year of part-time study”. That expression is defined in sub-regulation 34(1A).

• Paragraph (q) inserts sub-regulation 34(5B) which clarifies that a student is not ineligible for Assistance for a course of practical legal training by reason of having completed a bachelor degree in Law at postgraduate level.

• Paragraph (r) clarifies the application of sub-regulation 34(5D). This sub-regulation provides that, for the purposes of AUSTUDY, Master’s qualifying courses are an extension of undergraduate study. This amendment makes it clear that this provision refers to study the student has already undertaken, as well as current or proposed study.

• Paragraph (s) relates to the application of the rules of academic progress as from 1987 and is consequential to amending paragraph 13(d) which omits paragraph 34(1)(hc).

• Paragraph (t) omits sub-regulation 34(6) consequential to the provision of definitions of “year of part-time study” in sub-regulation 34(1A) and “part-time student” in sub-regulation 29(1). Paragraph (t) also omits sub-regulation 34(9), consequential to amendment of the rules of academic progress by paragraphs 13(c), (d), (e), (g), (h) and (i); and omits sub-regulation 34(10), consequential to the amendment of sub-regulation 34(1) by Statutory Rules 354 of 1985.

• Paragraphs (u), (v) and (w) amend sub-regulation 34(11) consequential to the amendment of sub-regulation 34(1) by Statutory Rules 354 of 1985.

• Paragraph (x) amends sub-regulation (13) which concerns the type of work that may be taken into account, and its value, when applying the transfer rule 34(1) (m) as amended. Sub-regulation (13) presented difficulties in interpretation. The amendment relies on the definition of “year of full-time study” in sub-regulation 34 (1A), thus removing the need for paragraphs 34(13) (a), (b) and (c). The expression “fraction of a year of full-time study” is employed to measure the amount of work that has been undertaken by a student who undertook part-time study, or whose previous full-time study involved work that may be disregarded in the application of paragraph 34(1)(m).

• Paragraph (x) also makes drafting changes to sub-regulation 34(14) consequential to the addition of sub-regulation 29(2) to clarify the meaning of “full-time student”.

Regulation 14 amends regulation 34A, which relates to the level of courses completed overseas. The amendment takes account of the changed title of the Council on Overseas Professional Qualifications and clarifies that their advice is sufficient evidence of the level and amount of overseas study undertaken by an applicant.

Regulation 15 prescribes the rules of academic eligibility that apply in the case of students who undertake secondary courses, as follows.

• Regulation 34D provides that a student (irrespective of age) is ineligible for Assistance if he or she has already completed an advanced education or university course or has completed, within the most recent 5 years, study in an advanced education or university course that would permit progress in that course.

• Regulation 34E provides that an adult secondary student (i.e a student 19 or over at the start of the year) is not eligible for Assistance to repeat a level of secondary study he or she has already attempted within the past 3 years, or to repeat a year of secondary study undertaken at any time in respect of which assistance under the Adult Secondary Education Assistance Scheme was paid. In applying these rules certain study is disregarded, including study undertaken in Australia below Year 10, study undertaken overseas below Year 12, study in a course less than 6 months in duration, and less than half a year’s full-time study (or equivalent) in longer courses.

Regulation 16 consolidates the provisions relating to the ineligibility of persons who are in lawful custody. The reference in regulation 33A to such persons becomes sub-regulation 35(1A).

Regulation 17 repeals regulation 36 which is not used in practice. It also amends regulation 37 which determines the date on which Assistance for a student terminates for the year. That date is 31 December in the case of students who undertake study in their courses on the last day they are offered in the year, provided that that day falls in November or December. If the course is less than 30 weeks in duration (a ‘short course’) or starts later than normal in the year (a late starting course), Assistance terminates on the last day of the course in the year in which the course concludes, provided that the student undertakes full-time study on that day. Otherwise, Assistance ceases on the last day on which the student undertakes full-time study. Where a student does not resume full-time study in the course after a vacation between terms or semesters in a year, Assistance is not payable for the vacation. Regulation 37 previously made broadly similar provision, except that in the case of a student who ceased study after 30 June but before the end of first semester, Assistance ceased on 30 June.

Regulation 18 makes a minor drafting change only.

Regulation 19 makes a series of changes to regulation 41 which deals with living allowance for students of independent status:

• paragraph (a) corrects references to other regulations in line with re-numbering;

• paragraph (b) determines that regulation 41 does not apply to a pensioner (normal income-tested allowances are not payable to pensioners from 1 January 1987);

• paragraph (c) allows for a dollar for dollar reduction in a student’s annual AUSTUDY entitlement in respect of any amount of unemployment, sickness of special benefit that was paid for a period when AUSTUDY was also payable;

• paragraph (d) ensures that any such amount is not then further taken into account in the personal income test;

• paragraph (e) deletes a special provision which provided a higher personal income test-free threshold of $5100 (rather than $2000) for sole parents. Sole parents in receipt of supporting parents’ benefit are no longer entitled to income-tested living allowance, so this special provision is not required;

• paragraph (f) increases the parental income test-free threshold by 5% from $14,995 to $15,745;

• paragraph (g) increases the additional allowance for a dependent child from $16 to $17 per week; and

• paragraph (h) determines that the additional allowance for a dependent child of two AUSTUDY recipients may be paid to either parent (not both), rather than just to the female, as is the case under TEAS.

Regulation 20 corrects a cross-reference which had been omitted from the TEAS regulations.

Regulation 21 makes a series of changes to regulation 42 which deals with living allowance for students not of independent status, i.e. those for whom the parental income test applies:

• paragraph (a) corrects references to other regulations in line with re-numbering;

• paragraph (b) determines that regulation 42 does not apply to a pensioner (for whom normal income-tested living allowance is not payable);

• paragraph (c) determines that the higher rate for dependent students who live away from home is not available for general secondary students, applying only for adult secondary and tertiary students;

• paragraph (d) makes minor drafting changes consistent with extension of the regulations to cover secondary students;

• paragraph (e) makes a drafting change consistent with the deletion of the TEAS provision whereby the income of a student’s sibling was assessed before the ‘sibling concession’ was applied. (The ‘sibling concession’ eases the abatement rate of the parental income test where there are two or more eligible students in the same family. The change allows application of the concession without regard to the siblings’ incomes. In practice this is administratively complex and makes little difference);

• paragraphs (f) and (g) allow for a dollar for dollar reduction in a student’s annual AUSTUDY entitlement in respect of any amount of unemployment, sickness or special benefit that was paid for a period when AUSTUDY was also payable;

• paragraph (h) ensures that any such amount is not then further taken into account in the personal income test;

• paragraph (i) amends the application of the ‘sibling concession’ such that it applies where there are two or more eligible secondary students or two or more tertiary students in the same family (the students must be full-time and not independent);

• paragraph (j) increases the parental income test-free threshold by 5% from $14,995 to $15,745;

• paragraph (k) and (1) delete the TEAS provision whereby the income of a student’s sibling was assessed before the sibling concession was applied; and

• paragraph (m) increases the additional allowance for a dependent child from $16 to $17 per week.

Regulation 22 makes a minor change for clarification of wording.

Regulation 23 repeals regulations 43A and 43B which dealt respectively with the situation where living allowance is not payable for a student prior to the commencement of his or her course and the situation where the student commences his or her course late. Regulations 43B and 43C serve similar purposes. Regulations 43 and 43A are introduced to deal with living allowance for pensioner students.

Regulation 43 determines the availability and amount of living allowance for new pensioner students, i.e. those for whom the transitional arrangements do not apply. New pensioner students fall into two categories, depending on the type of pension received:

(1) those in receipt of

- age pension,

- widow’s pension class B or C (i.e. without dependent children),

- wife’s pension, or

- an equivalent pension from the Department of Veterans’ Affairs; and

(2) those in receipt of

- invalid pension,

- supporting parents benefit,

- widows pension class A (i.e. with dependent children),

- carers pension, or

- an equivalent pension from the Department of Veterans’ Affairs.

New pensioner students in the first category (or in receipt of more than one pension) are not entitled to any Assistance.

New pensioner students in the second category, who meet the normal requirements of full-time status etc., are entitled to $15 per week.

Regulation 43A determines the availability and amount of living allowance for continuing pensioner students, i.e. those for whom the transitional arrangements apply. A continuing pensioner student who meets the normal requirements of full-time status etc., is entitled to a daily rate of living allowance equal to that which was payable at the end of 1986 under SAS, TEAS or ASEAS. The minimum rate payable for a continuing pensioner student is the rate which would be payable if that student did not attract the transitional arrangements.

Regulation 43B clarifies the intention of the TEAS regulation 43A. Regulation 43B provides that where a student does not qualify for Assistance on his or her first day of full-time study in a year, Assistance is not payable for any retrospective period in that year.

Regulation 43C clarifies the intention of the TEAS regulation 43B. The new regulation provides that where a student starts full-time study late, Assistance does not start until the actual first day of full-time study, unless the late start was caused by reasons beyond the student’s control. A student is considered to have started late if he or she starts after the allowable starting period in a term or semester of a normal course (i.e. later than the second Friday of classes) or after the first day in a short course or a late starting course.

Regulation 43C also clarifies that where a student resumes full-time study late after a vacation, Assistance is not payable for that vacation, unless the late start resulted from circumstances beyond the student’s control.

Regulation 24 amends regulation 44 which determined the study to be taken into account in determining a student’s full-time status.

The amendment identifies the provisions of regulation 44 that relate to tertiary students only. It also omits sub-regulation (1) which provided that Assistance was not payable for any periods in the academic year during which the student is not enrolled in an approved course. That provision is transferred to sub-regulation 44(3).

Regulation 25 repeals regulation 44A. The provisions of that regulation (which dealt with the meaning of the ‘normal full-time amount of work’) are transferred to the general interpretation regulations in sub-regulations 29(4B), (4C) and (4D).

Regulation 25 also substitutes a new regulation 44A to assist in the interpretation of regulations 44B, C, D and E which deal with the minimum workload necessary for full-time status. These regulations do not apply to school students. Accordingly, regulation 44A inserts a definition of “prescribed student”, being a tertiary student or a secondary student attending a TAFE college, college of advanced education or university, or studying by correspondence. For such a student, the minimum workload requirements prescribed in regulation 44B apply i.e. in order to qualify for Assistance the student must be undertaking at least 75% of the normal full-time amount of work for his or her course.

Regulation 26 amends regulation 44B which specifies the 75% minimum workload requirement.

The amendment -

• limits the operation of sub-regulation 44B(1) to the academic year and excludes school students from the ambit of the sub-regulations;

• in sub-regulation 44B(2), provides a concession whereby a student who starts or resumes his or her course during an allowable starting period is deemed to meet minimum workload requirements for the whole of that period; and

• in sub-regulation 44B(3) requires that the student remain enrolled in his or her course during the academic year.

Regulation 27 amends regulation 44C which provides a concession that, under specified circumstances, reduces the minimum required workload from three-quarters to two-thirds of a normal full-time load. The amendment makes a minor drafting change consequential to amendment of the Act. In addition, it limits the operation of regulation 44C to non-school students.

Regulation 28 amends regulation 44D parallel to the amendment of regulation 44C.

Regulation 29 amends regulation 44E - which relaxes the minimum workload requirement in the case of students who make accelerated progress - to limit the operation of that concession to students undertaking tertiary courses. Paragraph (b) is a minor drafting change consequential to amendment of the Act.

Regulation 30 inserts regulation 44F which provides attendance rules for grantees who are school students. (These rules serve a similar purpose to the workload rules for non-school grantees provided in regulation 44B(1)). Absences for reasons beyond a school student’s control do not affect entitlements. School students are also allowed ‘unapproved’ absences of up to 15 days each term, without penalty. After the first 15 days of ‘unapproved absence’, living allowance is not payable in respect of further such absences or for weekends following each 5 days of such ‘unapproved absence’.

Sub-regulation 44F(1) provides relevant definitions, including -

• “prescribed correspondence student”, which refers to a student undertaking a correspondence course while not attending a school on a normal daily basis;

• “day of unapproved absence”, which refers to an absence from school not caused by circumstances beyond the control of the student; and

• “prescribed secondary student” which refers to a student undertaking a secondary course at a school who is not a prescribed correspondence student.

Sub-regulation 44F(2) provides the rule that Assistance is not payable to a prescribed secondary student for excess days of unapproved absence during a term.

Regulation 30 also inserts regulation 44G which requires that prescribed secondary students be enrolled full-time in secondary courses during the academic year.

Regulation 31 repeals regulation 45C consequential to the amendment of regulations 43A and 43B (re-located as regulations 43B and 43C).

Regulation 32 amends regulation 47 which deals with fares allowance. Fares allowance was payable under TEAS and ASEAS for tertiary and adult secondary students for a limited number of trips between their education institutions and their parents’ or spouses’ homes. The amendments will have the following effects:

paragraph (a) restricts fares allowance to tertiary and adult secondary students - general secondary students are not eligible;

paragraph (b) makes a minor consequential drafting change;

paragraph (c) determines that single independent students are not eligible for fares allowance;

paragraph (d) makes a minor drafting change consequential to changes to regulation 42; and

paragraph (e) determines that fares allowance is payable to pensioner students on the same basis as it is for non-pensioner students.

Regulation 33 repeals regulation 48 which provided an incidentals allowance. Following amendment of the Act, incidentals allowance is no longer payable (from 1 January 1987). Regulation 33 substitutes new regulation 48 which provides for an amount equal to the higher education administration charge to be paid to grantees required to meet the charge by reason of enrolment in advanced education or university courses.

Regulation 34 amends the definitions applicable to the Postgraduate Awards scheme by including a definition of “Australia”. The principal effect of this is that Award holders undertaking research in the external Territories, such as the Australian Antarctic Territory, have their Award administered as if their research were undertaken in the Commonwealth of Australia. Such research students do not have to satisfy scheme rules on overseas study, such as regulation 57, which provides limits on date of departure to overseas venues and limits on the duration of overseas study

Regulation 35 effects a consequential amendment to Regulation 57.

Regulation 36 amends scheme rules on the expiry of Awards by the effluxion of time by providing a means of computing the full-time equivalent of a period of part-time study. The duration of Awards is measured from when an Award holder commences the postgraduate course for which the Award is granted. Awards may be granted to both commencing and continuing students. In some cases it is necessary to be able to compute the full-time equivalent of part-time study, for example, where a holder has undertaken part of the postgraduate course as a part-time student before being granted an Award. The regulation relates a period of previous part-time study in the postgraduate course for which the Award is granted to the amount of advanced standing or credit that an institution grants to a student who changes his or her study mode to proceed as a full-time student. It is expected that in normal circumstances universities will, for example, regard twelve months previous part-time study as equivalent to six months full-time study.

Regulation 36 makes the following amendments:

• paragraph (a) effects a consequential amendment to make the provisions of sub-regulation 68(3) consistent with the preceding sub-regulations of regulation 68;

• sub-regulation 68(4A) defines a relevant period of part-time study as a “corresponding period of full-time study”;

• sub-regulation 68(4B) relates a “corresponding period” to an institution’s assessment of advanced standing or credit in the postgraduate course; and

• sub-regulation 68(4C) defines a part-time student for the purposes of the regulation.

Regulation 37 increases the additional allowance for a dependent child from $832 p.a. to $884 p.a., an increase of $1 per week.

Regulation 38 inserts a new regulation 71A to provide for the reimbursement of any amount of higher education administration charge payable by an award holder in respect of the course for which the award is granted.

Regulation 39 effects a consequential amendment to regulation 74 following the insertion of a definition of ‘Australia’ in regulation 49.

Regulation 40 amends regulation 85 which lists the obligations of grantees regarding notification to the Department of changes to personal circumstances that affect entitlement to Assistance. The amendments are consequential to changes to the Regulations as explained above.

Regulation 41 amends Schedule 1 by inserting ‘Darwin Institute of Technology’. Schedule 1 lists those institutions which do not fall within the definition of ‘advanced education institution’ in regulation 4 but which are regarded as such for student assistance purposes. (Darwin Institute of Technology was previously the Darwin Community College).

Regulation 42 omits ‘Geelong Business Academy’ from Schedule 3 which lists institutions regarded as technical and further education institutions for student assistance purposes. Geelong Business Academy has closed.

Regulation 43 omits ‘Darwin Community College’ from Schedule 3 (see amending regulation 41).

Regulation 44 inserts a new Schedule 3A listing those pensions which are covered by the new student assistance arrangements for pensioners. Part I of the Schedule lists the pensions which preclude a new pensioner student from Assistance. Part II of the Schedule lists those pensions which may be supplemented by a $15 per week payment under AUSTUDY for new pensioner students. (See also amending regulation 23).

Regulation 45 revises the rates of fares allowance payable where a student makes part of an approved journey by private vehicle because public transport is not available.