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.
Overview
The Student Assistance Act 1973, as amended by the Student Assistance Regulations (Amendment) Statutory Rules 1987 No. 288, was enacted to address specific issues within the student assistance framework in Australia. The amendments aim to ensure that students who were previously receiving support under the Secondary Allowances Scheme as 'unsupported' students, and who continued their education into Year 12 in 1987, are eligible for AUSTUDY payments without the parental income test being applied. This change was introduced to provide continuity of support for these students, allowing them to complete their secondary education without financial barriers. The regulations were made under the authority of the Minister for Employment, Education and Training and were issued to correct a mistake in the previously enacted rules, ensuring that the intended support mechanisms are accurately applied. The policy objective is to maintain educational continuity and support for vulnerable students, particularly those who are homeless or otherwise unsupported.
Scope and Application
The Student Assistance Regulations (Amendment) Statutory Rules 1987 No. 288 amends the Student Assistance Regulations made under the Student Assistance Act 1973. These regulations apply to students who are eligible for assistance under the AUSTUDY scheme, which provides financial support to students pursuing higher education and related activities. The amended regulations particularly address the eligibility for AUSTUDY payments to certain secondary students who were previously classified as "unsupported" under the Secondary Allowances Scheme (SAS) and continued their education through to Year 12 in 1987. The amendments ensure that these students, who are in Year 12 in 1987 and meet other eligibility criteria, are eligible for the dependent rate of AUSTUDY without the application of the parental income test. Furthermore, the regulation corrects a mistake in the Schedule 3 of the Regulations by adjusting the effective date of the name change from "Central Coast Secretarial College" to "Passmore’s Business College" to 6 February 1985, thereby ensuring that students' entitlements to assistance are not adversely affected by this error. The changes apply nationally and are effective from 1 January 1987.
Key Provisions
The Student Assistance Regulations (Amendment) (No. 2) 2004, under Section 36 of the Student Assistance Act 1973, primarily introduces new provisions to address the payment of AUSTUDY to certain secondary students. Regulation 43BA (Section 1) establishes that specific secondary students who were supported under the Secondary Allowances Scheme (SAS) in 1986, and who are in Year 12 in 1987, are eligible for AUSTUDY payments at the dependent rate. This includes students who meet all other eligibility requirements (Regulation 43BA(1)). Furthermore, it specifies that for these students, the parental income test does not apply when calculating their entitlement (Regulation 43BA(2)). This provision ensures that students who were previously supported under the SAS as 'unsupported' students, and who continue their education in Year 12, receive AUSTUDY payments without the imposition of the parental income test.
The amended Regulations impose specific obligations on eligible students, the Department of Employment, Education and Training, and other relevant authorities. Eligible students must meet all the outlined criteria, including being in Year 12 in 1987 and fulfilling other eligibility requirements. The Department of Employment, Education and Training is tasked with administering the AUSTUDY payments, ensuring that the correct amount is disbursed to the eligible students, and verifying that they meet the specified conditions. Other relevant authorities, such as educational institutions, are required to provide necessary documentation and information to support the eligibility assessment process. These obligations ensure that the assistance is correctly targeted and managed, providing support to those who genuinely need it while maintaining the integrity of the student assistance system.
Breaches of the provisions under the amended Regulations could result in civil and criminal consequences. For instance, if a student falsely claims eligibility or provides misleading information, they could face penalties under the relevant sections of the Act, including fines or imprisonment. The specific penalties would depend on the nature and severity of the breach. Additionally, institutions or authorities that fail to comply with their obligations, such as not providing accurate information or documentation, could also face penalties. The consequences are designed to enforce compliance and maintain the effectiveness of the student assistance scheme.
Moreover, the amendments correct an earlier error in the Regulations that inadvertently affected student assistance entitlement. Regulation 7, which defines technical and further education institutions, previously contained an error regarding the name of an institution listed in Schedule 3. The amendment rectifies this error to ensure that students are not adversely affected by the mistake. This correction is crucial to maintaining the fairness and accuracy of the student assistance system. It ensures that all eligible students receive the correct support without unnecessary administrative errors impacting their entitlement.