EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO. 341
Issued by the authority of the Minister for Education and Youth Affairs
STUDENT ASSISTANCE ACT 1973
STUDENT ASSISTANCE REGULATIONS (AMENDMENT)
LEGISLATIVE AUTHORITY
The Student Assistance Act 1973 provides legislative authority for the Tertiary Education Assistance Scheme (TEAS) and for Post-graduate Awards.
Section 36 of the Act empowers the Governor-General to make regulations for the purposes of the Act. Sections 10 and 14 provide that approval for the grant of TEAS benefits or a Post-graduate Award is to be subject to and in accordance with the regulations, and sections 11 and 15 provide that the rate of living allowance under TEAS or an Award shall be at the rate prescribed in the regulations.
The present Statutory Rules amend the Student Assistance Regulations which give effect to the Act.
CONTENT OF AMENDMENTS
In addition to drafting changes, the amendments make the following substantive changes to the Regulations:
(i) Discontinued overseas courses
TEAS is not available for a year of study corresponding to a year which the student has undertaken in a previous course. The amendments provide that studies undertaken in discontinued overseas courses do not affect eligibility under this rule. Courses completed overseas, and the credit or status granted by Australian institutions because of studies in discontinued overseas courses, will continue to be taken into account in assessing eligibility.
(See amendment to existing regulation 34(1) (m) made by regulation 8(a) of the amendments.)
(ii) Study at honours level
Students who have completed a post-graduate diploma, or similar qualifications, have been ineligible to receive TEAS benefits if they then undertook the honours year of an undergraduate degree or a master’s qualifying course. The amendments insert a concession to allow such students to be eligible for TEAS.
(See new regulation 34(5C) inserted by regulation 8(b) of the amendments.)
(iii) TEAS income tests
The TEAS income test is applied to the income of a student’s parents in the previous financial year, or, where there has been a significant fall in parental income, in the current financial year. The income test has been applied to the income of those persons who were a student’s parents as at 30 June in the year preceding the year of study (or in some cases as at 1 July in the year of study).
The amendments provide that the income test should be applied to the income of those persons who were a student’s parents as at 1 January of the year of study. A similar modification is made to the income test on the income of a student’s spouse.
In cases where parental income fell prior to the year of study, so that the income test was applied to parental income in the financial year ending in the year of study, the income test has been applied to income for only that part of the financial year during which a person was a parent of the student. The amendment to the test on parental income described above removes the need for this provision, and the income test in such cases is now to be applied to the parental income in the full financial year.
(See amendments to existing regulations 41, 42, 46 and 46A made by amending regulations 10, 14, 18 and 19 respectively.)
(iv) Minimum workload provisions
It is a condition of TEAS that students should undertake at least three-quarters of a full-time workload to qualify for benefits. There is a concession which allows students who have been directed by their institution to undertake a lighter workload to qualify by attempting two-thirds or more of the full-time workload. No account has been taken of subjects which a student undertakes but does not require to complete his or her course.
The amendments extend the two-thirds concession to students who are recommended, rather than directed, by their institution to undertake a lighter workload. The concession is available provided that students undertake the lighter workload for not more than half the year and for specified academic or vocational reasons.
Some students who made accelerated progress in their courses have been unable to meet the TEAS minimum workload provisions in their final year of study, because they had an insufficient number of subjects to undertake in order to complete their courses. Under the amendments, such students may have all their subjects taken into account, regardless of whether the subjects are required to complete their courses or not.
The drafting of the former minimum workload provision was unsatisfactory in a number of respects and, in addition to the new concessions, the former provision has been completely re-drafted.
(See new regulations 44 to 44E inserted by regulation 17 of the amendments.)
(v) Family Income Supplement
Part V of the Social Security Act 1947 makes provision for the payment of allowances by way of Family Income Supplement. The amendments provide that such allowances are not taken into account in applying the TEAS income tests.
(See amendment to existing regulation 29(12) made by regulation 6 of the amendments.)
(vi) Budget increases
The amendments implement the increases in living allowance and income test levels announced in the context of the 1983-84 Budget:
• The TEAS maximum annual allowance for the away-from-home rate is to be raised from $2,827 to $2,982.
• The TEAS maximum annual allowance for the at-home rate is to be raised from $1,737 to $1,837.
• The TEAS maximum annual allowance for the independent rate is to be raised from $3,100 to $3,255.
• The threshold for the TEAS income test on spouse’s and parental income is to be raised from $12,248 to $12,983.
• The annual allowance for a Post-graduate Award is to be raised from $9,070.40 to $9,550.40 for a holder with a dependent spouse and from $6,850 to $7,330 in any other case.
The TEAS away-from-home and at-home rates may be increased by an amount of up to $273 per year payable under existing regulation 42(19). The effective maximum annual allowances for 1984 therefore are $3,255 for the away-from-home rate and $2,110 for the at-home rate.
(See amendments to existing regulations 29, 41, 42 and 70 made by amending regulations 5, 12, 16 and 22 respectively.)
(vii) TEAS application forms
The amendments provide that a TEAS application form is to be signed by a student’s spouse if information is required concerning the spouse’s income. This parallels the existing provision for parental signature of the application form where details of parental income are needed.
The amendments also simplify the drafting of the relevant regulation and correct a drafting error.
(See amendments to existing regulation 32 made by regulation 7 of the amendments.)
(viii) Practical legal training courses
The Regulations have previously provided that practical legal training courses are to be regarded as being of a higher level than undergraduate courses of study. The amendments have the effect that practical legal training courses are, in addition, to be regarded as being of the same level as post-graduate bachelor or diploma courses.
(See amendments to existing regulation 34(3) made by regulation 9 of the amendments.)
(ix) Spouse’s current income
Where there has been a significant fall in the income of a student’s spouse occurring in the year of study, the Regulations have provided for the TEAS income test to be applied to a notional figure formed by adding proportionate amounts of the spouse’s income in the previous financial year and in the current financial year. The amendments provide for the income test to be applied to the income of the previous financial year in determining benefits payable for the period before the fall in income, and to be applied to the income of the current financial year in determining benefits payable from the fall in income. This is parallel to the approach adopted, under existing regulation 46A, in cases where there has been a significant fall in parental income occurring in the year of study.
(See new regulation 41A inserted by regulation 13 of the amendments.)
(x) Status of certain institutions
The amendments provide that the Victorian College of Agriculture and Horticulture is to be regarded as an advanced education institution for the purposes of the Regulations. The College was formed by amalgamating several institutions and references to these institutions are deleted by the amendments.
Amendments are made to clarify the status of certain agricultural colleges and other institutions that are technical colleges in terms of the Regulations, but which fall outside the normal framework of technical and further education in their State or Territory.
(See amendments to Schedules 1 and 3 made by amending regulations 23 and 24 respectively.)
RETROSPECTIVITY
Regulation 23 deals with the Victorian College of Agriculture and Horticulture, and is deemed to have come into operation on 22 December 1982. This is the date on which the Victorian College of Agriculture and Horticulture Act 1982, No. 9812 (Vic.), under which the College was established, came into operation. The College is listed in Schedule 1 of the Regulations so as to bring it within the definition of “advanced education institution” in existing regulation 4.
The definition of “advanced education institution” in existing regulation 4 is in terms of the definition of “college of advanced education” in the Commonwealth Tertiary Education Commission Act 1977 and of Schedule 1 of the Student Assistance Regulations. Institutions are usually brought within regulation 4 by coming under the Commonwealth Tertiary Education Commission Act 1977, and accordingly no action was taken to insert a reference to the Victorian College of Agriculture and Horticulture into Schedule 1 until it was learnt (in September 1983) that the College would not be defined to be a college of advanced education for the purposes of the Commonwealth Tertiary Education Education Commission Act.
Regulation 6 deals with allowances payable by way of Family Income Supplement. It is deemed to have come into operation on 1 May 1983, which is the date when the Social Security Act 1947 was amended by section 6 2 of the Social Security Legislation Amendment Act 1982 so as to provide for such allowances.
NOTES ON INDIVIDUAL REGULATIONS
Regulation 1 concerns commencement dates for the amendments:
• Regulation 23, which concerns the Victorian College of Agriculture and Horticulture (see item (x) above), is deemed to have come into operation on 22 December 1982. (See above, “Retrospectivity”.)
• Regulations 3, 4, 8, 10, 14, 17, 18 and 19, which concern items (i) to (iv) above, are deemed to have come into operation on 1 January 19 83.
• Regulation 6, which concerns item (v) above, is deemed to have come into operation on 1 May 1983. (See above, “Retrospectivity”.)
• Regulations 5, 12, 16 and 22, which concern item (vi) above, and regulation 7, which concerns item (vii) above, come into operation on 1 January 1984.
• The other regulations come into operation on gazettal.
Regulation 2 concerns a drafting matter and omits the definition of “Department” from existing regulation 3(1). This term is defined in paragraph 17(ia) of the Acts Interpretation Act 1901.
Regulation 3 inserts a definition of “student” into existing regulation 3(1). The definition reflects the policy that students may receive benefits in a year of study before commencing or after completing their course.
Regulation 4 amends existing regulation 29(1). It provides for a definition of “academic year” and makes an amendment to the definition of “relevant period” consequential on regulation 17 of the amendments.
Regulation 5 amends existing regulation 29(7) to implement increases in the levels of maximum allowances for TEAS. (See item (vi) above.)
Regulation 6 amends existing regulation 29(12) to exempt allowances paid by way of Family Income Supplement from the TEAS income tests. (See item (v) above.)
Regulation 7 amends existing regulation 32, which deals with applications for Assistance under TEAS. Paragraphs (a) and (c) of regulation 7 make drafting changes. Paragraphs (b) and (d) enable applications forms to provide for the signature of an applicant’s spouse where information is required concerning the spouse’s income. (See item (vii) above.)
Regulations 8 and 9 amend existing regulation 34, which deals with ineligibility for previous study and other academic reasons.
Paragraph (a) of amending regulation 8 amends existing regulation 34(1)(m) to prevent study in courses discontinued overseas from affecting a student’s eligibility for TEAS benefits (see item (i) above).
Paragraph (b) enables students who have completed post-graduate diplomas, or similar qualifications, to be eligible for TEAS benefits in respect of the honours year of an undergraduate degree or the corresponding year of a master’s qualifying course (see item (ii) above).
Regulation 9 amends existing regulation 34(3) to provide that courses of practical legal training are to be regarded as being of the same level as post-graduate diplomas and similar courses. (See item (viii) above.)
Regulations 10, 11 and 12 amend existing regulation 41, which provides for the TEAS income test for students who qualify for independent status.
Paragraph (a) of amending regulation 10 makes a drafting change consequential on amending regulation 16. Paragraphs (b), (c) and (d) cause the income test to apply to the income of the person who was a student’s spouse on 1 January of the year of study, rather than on 30 June of the preceding year as at present (see item (iii) above).
Regulation 11 makes drafting changes:
• Paragraphs (a) and (e) express the income test as operating on a daily basis.
• Paragraph (b) omits sub-regulations 41(3AAA) to (3AAD). Sub-regulations (3AAA) to (3AAC) are replaced by new regulation 41A (see amending regulation 12) and sub-regulation (3AAD) is now unnecessary (see amending regulations 11(g) and (h)).
• Paragraph (c) makes an amendment consequential on the new regulation 41A (see amending regulation 13).
• Paragraphs (d) and (f) replace “child endowment” by “family allowance” in accordance with an amendment to the Social Security Act 1947 made by the Social Services Legislation Amendment Act 1982 (No. 37 of 1982).
• Paragraphs (g) and (h) make drafting changes to the provisions dealing with the effect of the separation of spouses. They enable former sub-regulation 41(3AAD) to be omitted (see amending regulation 11(b)).
Regulation 12 gives effect to the relaxation of the test on the income of a student’s spouse decided in the 1983-84 Budget context. (See item (vi) above.)
Regulation 13 inserts new regulation 41A in place of former regulations 41(3AAA) to (3AAC) (omitted by amending regulation 10(b)). Regulation 41A constitutes a concession where there has been a significant fall in the income of a student’s spouse. It provides that, for the period before the fall in income, the test is to be applied to the income in the previous financial year and that, for the period after the fall in income, the test is to be applied to the income in the current financial year. (See item (ix) above.)
Regulations 14,15 and 16 amend existing regulation 42, which provides for the TEAS income test for students who do not qualify for independent status.
Paragraph (b) of regulation 14 has the effect that the income test is to apply to the income of persons who were a student’s parents on 1 January of the year of study (see item (iii) above). Paragraphs (a), (c) and (d) make drafting changes consequential on the amendments made by amending regulation 17.
Regulation 15 makes drafting changes. Paragraphs (a) to (d) and (f) to (p) express the income test as operating on a daily basis. Paragraph (e) replaces “child endowment” by “family allowance”, in accordance with an amendment to the Social Security Act 1947.
Regulation 16 gives effect to the relaxation of the test on parental income decided in the 1983-84 Budget context. (See item (vi) above.)
Regulation 17 omits former regulation 4 4, which dealt with the TEAS minimum workload provision, and substitutes new regulations 44 to 44E in its stead. (See item (iv) above.)
• New regulation 44 replaces former regulations 44(2) and (6). It provides that students are to be deemed not to be undertaking work for which they are not formally enrolled or which they have already passed or do not need to pass. There are exceptions applicable where the pass no longer meets the institution’s requirements (new regulation 44(2)(c)) or where only a terminating pass has been awarded (new regulations 44(4) to (6)).
• New regulation 44A replaces former regulation 44(3A). Regulations 44A(1) and (2) relate the normal full-time amount of work for a period in a year or semester to the normal full-time amount of work for the year or semester. Regulation 44A(3) defines a normal full-time amount of work for a year and semester in relation to courses at Macquarie University.
• New regulation 44B replaces former regulation 44(3). It provides that living allowance is not payable where a student undertakes less than three-quarters of the normal full-time workload.
• New regulation 44C replaces former regulations 44(4) and (5). It provides that the minimum workload requirement may be met by undertaking at least two-thirds of the normal full-time workload in cases where students are prevented from undertaking a normal full-time workload because of the requirements of their institutions.
• New regulation 44D provides that the minimum workload requirement may be met by undertaking at least two-thirds of the normal full-time workload in cases where students undertake a lighter workload for up to half the year because of specified academic or vocational reasons.
• New regulation 44E applies to students who, because they have made accelerated progress in their course, would not meet the normal minimum workload requirements in the final year of their course. Regulation 4 4E allows account to be taken of subjects which such students undertake but which are not required to complete the course.
Regulation 18 amends existing regulation 46, which modifies the test on parental income where there has been a significant fall in parental income prior to the year of study. Regulation 18 makes the following changes:
• The provision defining the situation in which the concession applies is re-drafted to be in similar terms to new regulation 41A (inserted by amending regulation 13).
• The income test, if modified by existing regulation 46, applies to the income of those persons who were the student’s parents as at 1 January of the year of study, rather than as at 30 June of the previous year. (See item (iii) above.)
• The income test, as modified by regulation 46, applies to the whole of a parent’s income in the financial year ending in the year of study, rather than to the income in that part during which the person was a parent of the student. (See item (iii) above.)
Regulation 19 amends existing regulation 46A, which modifies the test on parental income where there has been a significant fall in parental income in the year of study. Regulation 19 makes the following changes:
• The provision defining the situation in which the concession applies is re-drafted to be in similar terms to the new regulation 41A (inserted by amending regulation 13).
• The income test, if modified by regulation 46A, applies to the income of those persons who were the student’s parents as at 1 January of the year of study, rather than as at 1 July of the year of study. (See item (iii) above.)
Regulation 20 corrects an error in the drafting of existing regulation 54, which deals with the allocation of the reserve quota of Post-graduate Awards granted for research work.
Regulation 21 amends existing regulation 70, which deals with the living allowance payable under Post-graduate Awards, to make a drafting change. It replaces “child endowment” with “family allowance”, in accordance with an amendment to the Social Security Act 1947.
Regulation 22 amends existing regulation 70, which deals with the living allowance payable under Post-graduate Awards, to implement the increases announced in the 1983-84 Budget context. (See item (vi) above.)
Paragraph (b) of regulation 23 inserts a reference to the Victorian College of Agriculture and Horticulture into Schedule 1 so that the College meets the definition of “advanced education institution”. Paragraph (a) omits from Schedule 1 references to institutions that have been amalgamated to form the College. (See item (x) above.)
Regulation 24 inserts references to certain institutions into Schedule 3 so as to make it clear that they fall within the definition of “technical college”. (See item (x) above.)
Regulation 25 makes drafting changes to regulations 43A, 43B, 45, 45A, 45B, 45BA and 45C, consequential on other amendments that express the TEAS income tests as operating on a daily basis.
Regulation 26 is a non-reduction provision and ensures that students will not have their rights adversely affected by the amendments with retrospective effect.