EXPLANATORY STATEMENT
Issued by authority of the Minister for Employment, Education and Training
STATUTORY RULES 1987 NO. 288
STUDENT ASSISTANCE REGULATIONS (AMENDMENT)
The Student Assistance Act
The Student Assistance Act 1973 (‘the Act’) provides the legislative authority for AUSTUDY and for Post-graduate Awards. Section 36 of the Act empowers the Governor-General to make regulations under the Act, and Section 11 provides that benefit under AUSTUDY is payable as provided by the regulations. The present amendments modify the Student Assistance Regulations (‘the Regulations’) made under section 36.
AUSTUDY commenced on 1 January 1987. It replaced the Tertiary Education Assistance Scheme (TEAS), which was previously provided for by the Act and Regulations, and the Secondary Allowances Scheme (SAS) and the Adult Secondary Education Assistance Scheme (ASEAS), which were not specifically provided for by legislation.
The amendments
1. SAS provided assistance to parents on limited incomes to keep their children at school for the senior secondary years. There was no special higher rate of allowance payable, as under TEAS, for independent students. However in a very small number of cases the normal rate of allowance (with a maximum value of $35 a week) could be paid direct to ‘unsupported’ students without reference to the level of parental income. These were cases where it had been established that there had been a permanent breakdown in relationships between the student and his or her parents, and the student was self-supporting with access to other resources.
From 1 July 1986 the Government introduced special provisions for homeless young people and the independent status arrangements under TEAS were expanded to include homelessness as a criterion. At the same time the full range of independence provisions, with the same higher rates, was extended to SAS, six months ahead of implementation of the other provisions of AUSTUDY.
Very strict eligibility criteria apply to the grant of independent status on the basis of homelessness. Not all students who received direct payment under SAS as ‘unsupported’ students meet these or other criteria for independence under AUSTUDY. To provide students in this situation with continuing assistance to enable them to complete their secondary education, it was decided that those who were in year 11 in 1986, who proceeded to year 12 in 1987, and who were still ‘unsupported’ should be eligible for the dependent rate of AUSTUDY, (maximum $40 to $45 a week, according to age) without the imposition of the parental income test. The proposed regulation will provide for such AUSTUDY payments.
Commencement
The commencement date for the above amendment is 1 January 1987.
2. Regulation 7 of the Student Assistance Regulations defines the institutions to be treated as technical and further education institutions for the purposes of the Act. That definition makes reference to institutions listed in Schedule 3 to the Regulations.
Prior to paragraph 11(a) of Statutory Rules 1985 No 372 taking effect, one of the institutions listed in Schedule 3 was “Central Coast Secretarial College”. That institution changed its name to “Passmore’s Business College” on 5 February 1985, and the purpose of paragraph 11(a) was, together with paragraph 11(b), to reflect in Schedule 3 that change of name with effect from the following day.
By mistake, however, paragraph 11(a) took effect from 1 January 1985 instead of 6 February 1985. The proposed regulation is intended to correct any adverse effect on student assistance entitlement of that error. The correction has been requested by the Senate Standing Committee on Regulations and Ordinances.
NOTES ON INDIVIDUAL REGULATIONS
Regulation 1
Regulation 1 inserts a new provision, regulation 43BA, which provides for AUSTUDY payments to be made to certain secondary students. Regulation 43BA(1) specifies that the assistance provided shall be at the dependent rate.
• Paragraph (a) specifies that the students in question are those who receive payment under the Secondary Allowances Scheme in 1986 as unsupported students.
• Paragraph (b) specifies that these students must be in Year 12 schooling in 1987.
• Paragraph (c) specifies that these students must also continue to meet other eligibility requirements.
Regulation 43BA(2) specifies that in calculating the entitlement of these students, the parental income test shall not apply.