EXPLANATORY STATEMENT
Veterans' Children Education Scheme (Rent Assistance) Instrument No.1/2003
The attached Instrument amended the Veterans’ Children Education Scheme (VCES) to provide that rent assistance under the VCES is only payable to a student in the same circumstances that rent assistance would be payable to a student in receipt of the Youth Allowance under the Social Security Act 1991 (SSA).
Prior to the making of the attached Instrument it was assumed that the rent assistance provisions of the VCES reflected those of the SSA in relation to the Youth Allowance but legal advice cast doubt on this assumption.
Accordingly the Repatriation Commission decided to amend the VCES to put the matter beyond doubt.
The intention underlying the attached Instrument is that in order to receive rent assistance under the VCES a student must, in addition to satisfying other requirements under the VCES, satisfy the requirements of the SSA as they are imposed on students who receive the Youth Allowance and who seek rent assistance.
These requirements (at the time the attached Instrument was made) include the following:
- rent assistance can only be for premises in Australia and in the case of students studying overseas, may only be granted for a maximum of 26 weeks during the period of absence;
- the student cannot be an aged care resident or an ineligible homeowner;
- rent (other than Government rent) must be paid by the student or the student must be under a liability to pay rent;
- rent is payable at a rate more than the threshold rate as worked out under the SSA.
It should be noted that at the time the attached Instrument was made, the VCES defined the Social Security Act 1991 as the Social Security Act 1991 as in force from time to time. This means that if the rent assistance provisions in the SSA in relation to the Youth Allowance change then so too do the rent assistance provisions of the VCES.
Further details of the variations to the VCES made by the attached Instrument are at Attachment A.
ATTACHMENT A
The attached Instrument
Section 1 sets out the name of the Instrument.
Section 2 provides that the Instrument commences when it is approved by the Minister for Veterans’ Affairs.
Section 3 provides that the Veterans’ Children Education Scheme (VCES) is varied in accordance with Schedule 1 of the Instrument.
Schedule 1
Item [1] inserts two notes after paragraph 2.6.3 of the VCES. Note (1) alerts readers to paragraph 5.5 of the VCES. Note (2) contains some details of the conditions attaching to rent assistance.
In relation to Note (1), paragraph 2.6.3 sets out the rule that in order to be eligible for benefits under the Veterans’ Children Education Scheme, a student must be studying, or have been accepted for study, in Australia but paragraph 2.6.3 states exceptions to this rule. It provides that in some cases benefits are payable to students overseas. However paragraph 5.5 sets out the circumstances when benefits comprised of rent assistance are payable overseas and Note (1) makes it clear that the two paragraphs are to be read together.
Item [2] amends paragraph 5.5 of the VCES (the rent assistance provision) by firstly making it clear that paragraph 5.5.1 is subject to the new paragraph 5.5.2. This is because the former paragraph 5.5.1, read by itself, would give a right to rent assistance unfettered by any other criteria, which is not the intention. Accordingly the revised paragraph 5.5.1 is to be read in conjunction with the new paragraph 5.5.2 so that in order to receive rent assistance a student must satisfy the criteria in both paragraphs.
The new paragraph 5.5.2, which was the vital amendment, provides that in order to receive rent assistance under the Veterans’ Children Education Scheme, a student must also satisfy the same criteria that a student receiving Youth Allowance under the Social Security Act 1991 must satisfy in order for that student to receive rent assistance under that Act.
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REPATRIATION COMMISSION