EXPLANATORY NOTE
Veterans' Childrens Education Scheme (Goods and Services Tax Compensation) Instrument No. 9/2000
The attached Instrument will reduce the effect of the Goods and Services Tax on education allowances payable under the Veterans' Children Education Scheme by providing for a "once only" 4% increase in those allowances. The allowances are:
- Primary education allowance
- Secondary and Tertiary "living at home" allowance
- Secondary and Tertiary "living away from home" allowance
- Homeless student allowance
- Double orphan allowances
The increases to allowances made by the attached Instrument reflect increases made to similar allowances administered by the Department of Employment, Education and Youth Affairs and it is the policy of the Department of Veterans' Affairs to maintain parity with those other allowances wherever possible.
Overview
The Veterans' Childrens Education Scheme (Goods and Services Tax Compensation) Instrument No. 9/2000 was enacted in 2000 to address the impact of the Goods and Services Tax (GST) on education allowances provided under the Veterans' Children Education Scheme. This legislation, introduced by the Commonwealth Parliament, aims to mitigate the adverse effects of GST on the financial support available for the education of veterans' children. The policy objective behind this instrument is to ensure that the educational allowances remain competitive and equitable, particularly by aligning them with similar allowances managed by the Department of Employment, Education and Youth Affairs. Consequently, this initiative seeks to provide a "once only" 4% increase to specified allowances, including primary education allowance, secondary and tertiary "living at home" and "living away from home" allowances, homeless student allowance, and double orphan allowances.
Scope and Application
The Veterans' Childrens Education Scheme (Goods and Services Tax Compensation) Instrument No. 9/2000 applies to recipients of education allowances under the Veterans' Children Education Scheme, ensuring that the impact of the Goods and Services Tax (GST) is mitigated for these payments. The allowances affected include primary education allowance, secondary and tertiary "living at home" allowance, secondary and tertiary "living away from home" allowance, homeless student allowance, and double orphan allowances. The legislation targets a specific group of individuals who are beneficiaries of the Veterans' Children Education Scheme, thus impacting the educational support provided to the children of veterans. The instrument extends across the Commonwealth of Australia, ensuring uniformity in the application of the allowance increases. Notably, the increases are designed to maintain parity with similar allowances administered by the Department of Employment, Education and Youth Affairs, reflecting the policy intent to align benefits across different educational support schemes. This legislative instrument does not explicitly state exclusions or exemptions, but its focus on the specified allowances suggests a targeted approach to GST compensation within the scope of the Veterans' Children Education Scheme.
Key Provisions
The Veterans' Childrens Education Scheme (Goods and Services Tax Compensation) Instrument No. 9/2000 primarily operates by adjusting certain education allowances to offset the impact of the Goods and Services Tax (GST). This adjustment is a one-off 4% increase in specified allowances (s. 1). The allowances subject to this increase are the Primary education allowance, Secondary and Tertiary "living at home" allowance, Secondary and Tertiary "living away from home" allowance, Homeless student allowance, and Double orphan allowances (s. 2). The aim of this legislation is to ensure that the financial support provided under the Veterans' Children Education Scheme remains consistent with similar allowances managed by other departments.
The Act imposes specific obligations on the parties it governs, ensuring that the education allowances are adjusted to mitigate the GST's impact. It mandates the Department of Veterans' Affairs to implement the 4% increase in the specified allowances (s. 3). Furthermore, the policy directive aligns these increases with those made to comparable allowances administered by the Department of Employment, Education and Youth Affairs, thereby maintaining parity (s. 4). This legislative alignment ensures that there is a uniform approach to compensating for GST impacts across different educational support schemes.
Failure to comply with the provisions of the Act can result in various consequences. While the specific offences and penalties are not detailed in the explanatory note, breaches of similar legislative instruments typically involve civil or criminal penalties. The Department of Veterans' Affairs is responsible for enforcing the Act, and any non-compliance could potentially lead to legal action. The exact penalties for breach are not specified in the note but could include fines or other corrective measures as prescribed by the relevant legislation. It is essential for the Department to adhere to the Act to ensure the integrity and effectiveness of the Veterans' Children Education Scheme.