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
Overview
The Veterans' Children Education Scheme (Rent Assistance) Instrument No.1/2003 was enacted to clarify and align the rent assistance provisions within the Veterans' Children Education Scheme (VCES) with those of the Youth Allowance under the Social Security Act 1991 (SSA). This legislative instrument was introduced by the Repatriation Commission to address ambiguities that had arisen regarding the conditions for rent assistance eligibility under the VCES. The primary policy objective was to ensure that the rent assistance criteria for students under the VCES mirrored those applied to students receiving the Youth Allowance under the SSA, thereby avoiding potential discrepancies and ensuring equitable treatment. This alignment was critical to maintain the integrity of the VCES and to provide consistent support to eligible veterans' children pursuing education.
Scope and Application
The Veterans' Children Education Scheme (Rent Assistance) Instrument No. 1/2003 applies to students who are beneficiaries of the Veterans' Children Education Scheme (VCES) and who are seeking rent assistance. This Instrument aims to clarify the conditions under which rent assistance can be granted to students under the VCES by aligning them with the conditions set forth in the Social Security Act 1991 for students receiving Youth Allowance. The Instrument is applicable nationally across Australia, given that it is an instrument under the VCES, which is a Commonwealth initiative. The scope of the Instrument extends to ensuring that students who are eligible for rent assistance under the VCES must meet the same eligibility criteria as those under the SSA, including restrictions on the location and duration of rent assistance, and conditions related to the type of rent and residency status. There are no stated exclusions or thresholds within the Instrument itself, but it does refer to the SSA for specific conditions and criteria, implying that any exclusions or exemptions under the SSA will also apply to students under the VCES. The application of the Instrument may be further refined or expanded through subordinate instruments or amendments, as it references the SSA as it is in force from time to time.
Key Provisions
The main operative sections of the Veterans' Children Education Scheme (Rent Assistance) Instrument No.1/2003 (the Instrument) pertain to the amendments made to the Veterans' Children Education Scheme (VCES). Section 3 of the Instrument provides that the VCES is varied in accordance with Schedule 1, which includes the insertion of two notes after paragraph 2.6.3 of the VCES and an amendment to paragraph 5.5. This amendment aligns the rent assistance provisions of the VCES with those of the Social Security Act 1991 (SSA) in relation to the Youth Allowance. Specifically, the Instrument clarifies 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 SSA. This is achieved by making paragraph 5.5.1 of the VCES subject to the new paragraph 5.5.2, ensuring that a student must satisfy the criteria in both paragraphs to receive rent assistance under the VCES.
The Instrument imposes several obligations and requirements on the parties it governs. Firstly, students seeking rent assistance under the VCES must satisfy the same criteria as students receiving Youth Allowance under the SSA. This includes conditions such as the requirement that rent assistance can only be for premises in Australia, 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, and rent must be payable at a rate more than the threshold rate as worked out under the SSA. Additionally, the Instrument ensures that any changes to the rent assistance provisions in the SSA will automatically be reflected in the VCES, as the VCES defines the SSA as the Social Security Act 1991 as in force from time to time.
The Instrument does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach within its text. However, it is reasonable to infer that any breach of the conditions for rent assistance under the VCES could result in the denial of rent assistance payments to the student in question. Given that the VCES aligns its rent assistance provisions with those of the SSA, any penalties or consequences for breach would likely be consistent with those outlined in the SSA. Under the SSA, penalties for providing false or misleading information to obtain rent assistance could include financial penalties and, in severe cases, criminal charges.
In summary, the Veterans' Children Education Scheme (Rent Assistance) Instrument No.1/2003 amends the VCES to ensure that rent assistance is only payable under the same conditions as those stipulated in the SSA for Youth Allowance recipients. This involves aligning the eligibility criteria for rent assistance under both schemes and ensuring that any changes to the SSA's provisions are automatically reflected in the VCES. While the Instrument does not detail specific penalties for breach, it is likely that penalties would mirror those of the SSA, focusing on financial penalties and potential criminal charges for providing false or misleading information.