2008-2009 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 (Employment and Workplace Relations) A Bill for an Act to amend the law relating to social security, veterans' affairs and higher education, and for related purposes [Page Break] 1 Short title ........................................................................................... 1 2 Commencement ................................................................................. 1 3 Schedule(s) ........................................................................................ 2 Schedule 1--Youth allowance 4 Part 1--Independence criteria 4 Division 1--Main amendments 4 Social Security Act 1991 4 Division 2--Related amendment 5 Social Security Act 1991 5 Division 3--Application of amendments made by this Part 5 Part 2--Income tests 7 Division 1--Single reduction because of income tests 7 Social Security Act 1991 7 Division 2--Parental income test and family actual means test 8 Social Security Act 1991 8 Division 3--Income test for youth allowance and austudy payment 13 Social Security Act 1991 13 Division 4--Student income bank 14 Social Security Act 1991 14 Schedule 2--Scholarship payments for students 17 Part 1--Main amendments 17 Social Security Act 1991 17 Part 2--Related amendments 25 Higher Education Support Act 2003 25 Military Rehabilitation and Compensation Act 2004 26 Social Security Act 1991 26 Social Security (Administration) Act 1999 30 Veterans' Entitlements Act 1986 33 Schedule 3--Training supplement for parenting payment 35 Social Security Act 1991 35 i Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] No. , 2009 ii [Page Break] 2 security, veterans' affairs and higher education, 3 and for related purposes 4 The Parliament of Australia enacts: 5 1 Short title 6 This Act may be cited as the Social Security and Other Legislation 7 Amendment (Income Support for Students) Act 2009. 8 2 Commencement 9 (1) Each provision of this Act specified in column 1 of the table 10 commences, or is taken to have commenced, in accordance with 11 column 2 of the table. Any other statement in column 2 has effect 12 according to its terms. 13 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 1 [Page Break] Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 The day this Act receives the Royal Assent. and anything in this Act not elsewhere covered by this table 2. Schedule 1, 1 January 2010. 1 January 2010 Part 1 3. Schedule 1, 1 January 2010. 1 January 2010 Part 2, Divisions 1 and 2 4. Schedule 1, 1 July 2012. 1 July 2012 Part 2, Divisions 3 and 4 5. Schedule 2, 1 January 2010. 1 January 2010 Part 1 6. Schedule 2, 1 January 2010. 1 January 2010 items 5 to 16 7. Schedule 2, Immediately after the commencement of the 1 January 2010 item 17 provisions covered by table item 2. 8. Schedule 2, 1 January 2010. 1 January 2010 items 18 to 34 9. Schedule 3 Immediately after the commencement of 1 July 2009 Schedule 1 to the Social Security Amendment (Training Incentives) Act 2009. 1 Note: This table relates only to the provisions of this Act as originally 2 passed by both Houses of the Parliament and assented to. It will not be 3 expanded to deal with provisions inserted in this Act after assent. 4 (2) Column 3 of the table contains additional information that is not 5 part of this Act. Information in this column may be added to or 6 edited in any published version of this Act. 7 3 Schedule(s) 8 Each Act that is specified in a Schedule to this Act is amended or 9 repealed as set out in the applicable items in the Schedule 2 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] 2 according to its terms. 3 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 3 [Page Break] Part 1 Independence criteria 1 Schedule 1--Youth allowance 2 Part 1--Independence criteria 3 Division 1--Main amendments 4 Social Security Act 1991 5 1 Subsection 1067A(4) 6 Repeal the subsection, substitute: 7 Person at least a certain age 8 (4) For the purposes of Part 2.11, this Part and section 1070G, a person 9 is independent at a time in a year specified in an item of the table if 10 at the time the person is at least the age specified in the item: 11 Age when person becomes independent Item Year Age 1 2010 24 years 2 2011 23 years 3 A year after 2011 22 years 12 (4A) For the purposes of Parts 3.4A, 3.4B and 3.7, except 13 section 1070G, a person is independent if the person is at least 25 14 years old. 15 2 After subsection 1067A(10) 16 Insert: 17 (10A) Paragraphs (10)(b) and (c) do not apply for the purposes of 18 determining whether a person is to be regarded as independent for 19 the purposes of Part 2.11, this Part or section 1070G, unless 20 subsection (10B) or (10C) applies to the person. 21 (10B) This subsection applies to a person if, before 1 January 2010, the 22 person was: 23 (a) receiving youth allowance; and 24 (b) regarded as independent because of paragraph (10)(b) or (c). 4 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Independence criteria Part 1 1 (10C) This subsection applies to a person if the Secretary is satisfied that: 2 (a) in 2008 the person completed a course of education 3 determined under section 5D of the Student Assistance Act 4 1973 to be a secondary course for the purposes of that Act; 5 and 6 (b) disregarding subparagraph 541B(1)(a)(iii), the person did not 7 undertake full-time study in 2009; and 8 (c) throughout 2009 the person intended to start undertaking 9 full-time study in 2010 because of his or her intended 10 enrolment at a higher education institution in a course of 11 education; and 12 (d) on a day (the higher education start day) in the period 13 starting on 1 January 2010 and ending at the end of 30 June 14 2010 the person starts undertaking full-time study because of 15 his or her enrolment at a higher education institution in a 16 course of education (the chosen course) determined under 17 section 592N to be an approved scholarship course; and 18 (e) disregarding paragraph 1067D(1)(a) and subparagraphs 19 1067D(1)(c)(ii) and (iii), the person is required to live away 20 from home on the higher education start day; and 21 (f) disregarding subsection (10A) of this section, the person is 22 independent because of paragraph (10)(b) or (c) of this 23 section before 1 July 2010. 24 Note 1: For undertaking full-time study see section 541B. 25 Note 2: For required to live away from home see section 1067D. 26 Division 2--Related amendment 27 Social Security Act 1991 28 3 Subsection 19A(2) (definition of independent) 29 Omit ", 3.4A, 3.4B, 3.5 and 3.7", substitute "and 3.5". 30 Division 3--Application of amendments made by this 31 Part 32 4 Application Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 5 [Page Break] Part 1 Independence criteria 1 The following apply for the purposes of working out a person's 2 eligibility for, or amount of, youth allowance for a day, or fares 3 allowance for a journey on a day, that is on or after 1 January 2010: 4 (a) subsections 1067A(4), (10A), (10B) and (10C) of the Social 5 Security Act 1991 as amended by this Part; 6 (b) the amendment by this Part of the definition of independent 7 in subsection 19A(2) of the Social Security Act 1991. 8 6 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Income tests Part 2 1 Part 2--Income tests 2 Division 1--Single reduction because of income tests 3 Social Security Act 1991 4 5 Point 1067G-A1 (method statement, step 8) 5 Omit "and take the reduction away from the maximum payment rate: 6 the result is the parental income test reduced rate". 7 6 Point 1067G-A1 (method statement, step 9) 8 Repeal the step. 9 7 Point 1067G-A1 (method statement, step 10) 10 Omit "and take the reduction away from the maximum payment rate: 11 the result is the actual means test reduced rate". 12 8 Point 1067G-A1 (method statement, step 11) 13 Repeal the step. 14 9 Point 1067G-A1 (method statement, step 13) 15 Repeal the step, substitute: 16 Step 13. Take away from the maximum payment rate the greatest 17 of the following that apply: 18 (a) the person's reduction for parental income; 19 (b) the person's reduction for actual means; 20 (c) the person's income reduction. 21 (If a reduction described in paragraph (a) or (b) applies, 22 and is not less than any other reduction that applies, take 23 away from the maximum payment rate the 24 first-mentioned reduction.) The result is the provisional 25 fortnightly payment rate. If that rate is nil because of the 26 taking away of a reduction described in paragraph (a) or 27 (b) then youth allowance is not payable to the person. Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 7 [Page Break] Part 2 Income tests 1 Note: If a person's maximum payment rate is reduced under 2 this step, section 1210 sets the order in which the 3 components of that rate are to be reduced. 4 10 Application of amendments 5 The amendments made by this Division apply for the purposes of 6 working out the rate of youth allowance payable to a person for a day 7 that is on or after 1 January 2010. 8 Division 2--Parental income test and family actual 9 means test 10 Social Security Act 1991 11 11 Paragraph 1067G-F3(c) 12 Repeal the paragraph, substitute: 13 (c) is receiving a payment under the ABSTUDY Scheme; or 14 12 Points 1067G-F22, 1067G-F23, 1067G-F24 and 1067G-F25 15 Repeal the points, substitute: 16 Parental income free area 17 1067G-F22 For the purposes of this Module, a person's parental income free 18 area for a time in a calendar year is an amount equal to the income 19 free area under clause 38N of Schedule 1 to the A New Tax System 20 (Family Assistance) Act 1999, as affected by indexation under 21 Schedule 4 to that Act, on 1 January in the calendar year. 22 Note: The parental income free area is not indexed under this Act because it 23 is affected by indexation under the A New Tax System (Family 24 Assistance) Act 1999. 25 13 Points 1067G-F26, 1067G-F27 and 1067G-F28 26 Repeal the points, substitute: 27 Having parental income in common 28 1067G-F26 For the purposes of this Submodule, 2 or more persons have 29 parental income in common if: 30 (a) the parental income test applies to each of them; and 8 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Income tests Part 2 1 (b) a parent of one of the persons is also a parent of each of the 2 other persons. 3 Note: Point 1067G-F30 affects whether a person to whom the parental 4 income test applies has parental income in common with someone 5 qualified for a payment under the ABSTUDY Scheme or for a 6 payment under the Assistance for Isolated Children Scheme. 7 Person who does not have parental income in common with anyone 8 else 9 1067G-F27 Work out a person's reduction for parental income using the 10 following formula and point 1067G-F29 if: 11 (a) the person does not have parental income in common with 12 anyone else; and 13 (b) the person's combined parental income (see Submodule 4) 14 for the appropriate tax year exceeds the person's parental 15 income free area (see Submodule 5): The excess 16 130 17 Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a 18 year) and dividing again by 5 (so that the reduction for parental 19 income is only 20 cents for each dollar of the excess). 20 Person who has parental income in common with someone else 21 1067G-F28 Work out a person's reduction for parental income using the 22 following formula and point 1067G-F29 if: 23 (a) the person has parental income in common with one or more 24 other persons; and 25 (b) the person's combined parental income (see Submodule 4) 26 for the appropriate tax year exceeds the person's parental 27 income free area (see Submodule 5): The excess Person's maximum payment rate under Module A 28 × 130 Total of maximum payment rate of each person who has parental income in common 29 Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a 30 year) and dividing again by 5. Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 9 [Page Break] Part 2 Income tests 1 Rounding the reduction for parental income 2 1067G-F29 If the result of the formula in whichever of points 1067G-F27 and 3 1067G-F28 applies is not a multiple of 10 cents, round the result to 4 the nearest 10 cents (rounding a multiple of 5 cents upwards). 5 Extension to recipients under ABSTUDY or Assistance for Isolated 6 Children Scheme 7 1067G-F30 This Submodule applies in relation to a person in respect of whom 8 a payment is made under the ABSTUDY Scheme or the Assistance 9 for Isolated Children Scheme and to whom a parental income test 10 under that scheme applies as if: 11 (a) the parental income test under this Module applied to the 12 person; and 13 (b) the total of the amounts described in the following table as 14 relevant to the person were the maximum payment rate for 15 the person for the purposes of this Submodule. 16 Amounts included in total treated as maximum payment rate Item If this allowance is being paid in This amount is relevant to the respect of the person person 1 Living allowance under the The person's maximum payment ABSTUDY Scheme rate of the living allowance 2 Group 2 school fees allowance 1/26 of the school fees allowance under the ABSTUDY Scheme amount subject to income testing 3 Additional boarding allowance 1/26of the maximum rate of the under the Assistance for Isolated additional boarding allowance Children Scheme 17 Note: This Submodule does not (of its own force) affect the amount payable 18 to the person under the ABSTUDY Scheme or the Assistance for 19 Isolated Children Scheme. 20 14 Point 1067G-G15 21 Repeal the point, substitute: 22 Having parental income in common 23 1067G-G15 For the purposes of this Submodule, 2 or more persons have 24 parental income in common if: 25 (a) the parental income test applies to each of them; and 10 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Income tests Part 2 1 (b) a parent of one of the persons is also a parent of each of the 2 other persons. 3 Note: Point 1067G-G19 affects whether a person to whom the parental 4 income test applies has parental income in common with someone 5 qualified for a payment under the ABSTUDY Scheme or for a 6 payment under the Assistance for Isolated Children Scheme. 7 Person who does not have parental income in common with anyone 8 else 9 1067G-G16 Work out a person's reduction for family actual means using the 10 following formula and point 1067G-G18 if: 11 (a) the person does not have parental income in common with 12 anyone else; and 13 (b) the actual means of the person's family (see Submodule 4) 14 for the appropriate tax year exceeds the person's family 15 actual means free area (see Submodule 5): The excess 16 130 17 Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a 18 year) and dividing again by 5 (so that the reduction for family actual 19 means is only 20 cents for each dollar of the excess). 20 Person who has parental income in common with someone else 21 1067G-G17 Work out a person's reduction for family actual means using the 22 following formula and point 1067G-G18 if: 23 (a) the person has parental income in common with one or more 24 other persons; and 25 (b) the actual means of the person's family (see Submodule 4) 26 for the appropriate tax year exceeds the person's family 27 actual means free area (see Submodule 5): The excess Person's maximum payment rate under Module A 28 × 130 Total of maximum payment rate of each person who has parental income in common 29 Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a 30 year) and dividing again by 5. Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 11 [Page Break] Part 2 Income tests 1 Rounding the reduction for family actual means 2 1067G-G18 If the result of the formula in whichever of points 1067G-16 and 3 1067G-G17 applies is not a multiple of 10 cents, round the result to 4 the nearest 10 cents (rounding a multiple of 5 cents upwards). 5 Extension to recipients under ABSTUDY or Assistance for Isolated 6 Children Scheme 7 1067G-G19 This Submodule applies in relation to a person in respect of whom 8 a payment is made under the ABSTUDY Scheme or the Assistance 9 for Isolated Children Scheme and to whom a parental income test 10 under that scheme applies as if: 11 (a) the parental income test under this Module applied to the 12 person; and 13 (b) the total of the amounts described in the following table as 14 relevant to the person were the maximum payment rate for 15 the person for the purposes of this Submodule. 16 Amounts included in total treated as maximum payment rate Item If this allowance is being paid in This amount is relevant to the respect of the person person 1 Living allowance under the The person's maximum payment ABSTUDY Scheme rate of the living allowance 2 Group 2 school fees allowance 1/26 of the school fees allowance under the ABSTUDY Scheme amount subject to income testing 3 Additional boarding allowance 1/26of the maximum rate of the under the Assistance for Isolated additional boarding allowance Children Scheme 17 Note: This Submodule does not (of its own force) affect the amount payable 18 to the person under the ABSTUDY Scheme or the Assistance for 19 Isolated Children Scheme. 20 15 Section 1190 (table item 41) 21 Repeal the item. 22 16 Subsection 1191(1) (table item 30) 23 Repeal the item. 24 17 Application of amendments 12 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Income tests Part 2 1 The amendments made by this Division apply for the purposes of 2 working out the rate of youth allowance payable to a person for a day 3 that is on or after 1 January 2010. 4 Division 3--Income test for youth allowance and austudy 5 payment 6 Social Security Act 1991 7 18 Paragraphs 1067G-H29(a) and (aa) 8 Omit "$236", substitute "$400". 9 19 Point 1067L-D28 10 Omit "$236", substitute "$400". 11 20 Section 1190 (after table item 20) 12 Insert: 20AA. Ordinary income YA and austudy [Youth Allowance Rate free area for youth ordinary income Calculator--paragraphs allowance and free area 1067G-H29(a) and (aa)] austudy payment [Austudy Payment Rate Calculator--point 1067L-D28] YA and austudy range reduction boundary 20AB. Dollar amount of YA and austudy [Youth Allowance Rate boundary between range reduction Calculator--paragraphs lower and upper boundary 1067G-H32(a) and (b) and range reduction for 1067G-H33(a) and (b)] ordinary income [Austudy Payment Rate reduction Calculator--points 1067L-D31 and 1067L-D32] 13 21 Subsection 1191(1) (after table item 14) 14 Insert: 14AA. YA and 1 January June highest June $1.00 austudy quarter ordinary before income free reference area quarter (but Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 13 [Page Break] Part 2 Income tests not earlier than June quarter 2011) YA and austudy range reduction boundary 14AB. YA and 1 January June highest June $1.00 austudy quarter range before reduction reference boundary quarter (but not earlier than June quarter 2011) 1 22 After subsection 1192(4) 2 Insert: 3 (4AA) The first indexation of the amounts to which items 14AA and 4 14AB of the CPI Indexation Table in subsection 1191(1) relate is 5 to take place on 1 January 2013. 6 23 Application of amendments 7 The amendments of points 1067G-H29 and 1067L-D28 of the Social 8 Security Act 1991 made by this Division apply for the purposes of 9 working out the rate of youth allowance or austudy payment payable to 10 a person for a day that is on or after 1 July 2012. 11 Division 4--Student income bank 12 Social Security Act 1991 13 24 Point 1067G-J3 (method statement, step 3, paragraph (a)) 14 Omit "$6,000", substitute "$10,000". 15 25 Points 1067G-J4 and 1067G-J5 14 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Income tests Part 2 1 Omit "$236" (wherever occurring), substitute "the ordinary income free 2 area (see paragraph 1067G-H29(a) or (aa))". 3 26 Point 1067L-E2 (method statement, step 3, paragraph (a)) 4 Omit "$6,000", substitute "$10,000". 5 27 Points 1067L-E3 and 1067L-E4 6 Omit "$236" (wherever occurring), substitute "the ordinary income free 7 area (see point 1067L-D28)". 8 28 Section 1190 (after table item 20A) 9 Insert: Student income bank balance limit 21. Student income student income [Youth Allowance Rate bank balance limit bank balance Calculator--point 1067G-J3-- limit method statement--step 3-- paragraph (a)] [Austudy Payment Rate Calculator--point 1067L-E2-- method statement--step 3-- paragraph (a)] 10 29 Subsection 1191(1) (after table item 14A) 11 Insert: 15. student 1 January June highest June $100.00 income quarter bank before balance reference limit quarter (but not earlier than June quarter 2011) 12 30 Subsection 1192(4A) 13 Repeal the subsection, substitute: 14 (4A) The first indexation of the amounts to which item 15 of the CPI 15 Indexation Table in subsection 1191(1) relates is to take place on 16 1 January 2013. Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 15 [Page Break] Part 2 Income tests 1 31 Application of amendments 2 The amendments of points 1067G-J3, 1067G-J4, 1067G-J5, 1067L-E2, 3 1067L-E3 and 1067L-E4 of the Social Security Act 1991 made by this 4 Division apply for the purposes of working out the rate of youth 5 allowance or austudy payment payable to a person for a day that is on or 6 after 1 July 2012. 7 16 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 Schedule 2--Scholarship payments for 2 students 3 Part 1--Main amendments 4 Social Security Act 1991 5 1 Paragraph 8(8)(zja) 6 Omit "provided for under the Commonwealth Scholarships Guidelines 7 made for the purposes of Part 2-4 of the Higher Education Support Act 8 2003;". 9 2 Subsection 23(1) 10 Insert: 11 Commonwealth Accommodation Scholarship means a scholarship 12 of that name provided for under the Commonwealth Scholarships 13 Guidelines made for the purposes of Part 2-4 of the Higher 14 Education Support Act 2003. 15 3 Subsection 23(1) 16 Insert: 17 Commonwealth Education Costs Scholarship means a scholarship 18 of that name provided for under the Commonwealth Scholarships 19 Guidelines made for the purposes of Part 2-4 of the Higher 20 Education Support Act 2003. 21 4 After Part 2.11A of Chapter 2 22 Insert: Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 17 [Page Break] Part 1 Main amendments 1 Part 2.11B--Scholarship payments for students 2 Division 1--Student start-up scholarship payment 3 592F Qualification for student start-up scholarship payment 4 Receiving youth allowance 5 (1) A person is qualified for a student start-up scholarship payment at 6 a time (the qualification time) if: 7 (a) at the qualification time, the person is qualified for youth 8 allowance and youth allowance is payable to the person; and 9 (b) at the qualification time, the person is receiving youth 10 allowance and would be receiving youth allowance if steps 2 11 and 3 of the method statement in point 1067G-A1 of the 12 Youth Allowance Rate Calculator were disregarded for the 13 purposes of working out the person's rate of that allowance; 14 and 15 (c) the person is receiving youth allowance because the person is 16 undertaking full-time study in an approved scholarship 17 course; and 18 (d) the Secretary is satisfied that in the period of 35 days starting 19 immediately after the qualification time, the person proposes 20 to start to undertake the course or to continue to undertake 21 the course; and 22 (e) the Secretary is satisfied that the person is not likely to 23 receive the amount or value of a Commonwealth Education 24 Costs Scholarship in the period of 6 months starting 25 immediately after the qualification time. 26 Note: For approved scholarship course, see section 592M. 27 Receiving austudy payment 28 (2) A person is qualified for a student start-up scholarship payment at 29 a time (the qualification time) if: 30 (a) at the qualification time, the person is qualified for austudy 31 payment and austudy payment is payable to the person; and 32 (b) at the qualification time, the person is receiving austudy 33 payment and would be receiving austudy payment if steps 2 34 and 2A of the method statement in point 1067L-A1 of the 18 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 Austudy Payment Rate Calculator were disregarded for the 2 purposes of working out the person's rate of that payment; 3 and 4 (c) the person is receiving austudy payment because the person 5 is undertaking an approved scholarship course; and 6 (d) the Secretary is satisfied that in the period of 35 days starting 7 immediately after the qualification time, the person proposes 8 to start to undertake the course or to continue to undertake 9 the course; and 10 (e) the Secretary is satisfied that the person is not likely to 11 receive the amount or value of a Commonwealth Education 12 Costs Scholarship in the period of 6 months starting 13 immediately after the qualification time. 14 Note: For approved scholarship course, see section 592M. 15 592G Circumstances in which person is not qualified for student 16 start-up scholarship payment 17 Previous qualification for, or receipt of, same or similar payment 18 (1) Despite section 592F, a person is not qualified for a student 19 start-up scholarship payment if 1 or more of the circumstances 20 listed in subsection (2) apply to the person in the period of 6 21 months (or shorter period determined under subsection (3)) ending 22 immediately before the person's qualification time. 23 (2) The circumstances are: 24 (a) the person has qualified for a student start-up scholarship 25 payment; or 26 (b) the person has qualified for a payment under the ABSTUDY 27 Scheme known as an ABSTUDY student start-up scholarship 28 payment; or 29 (c) the person has qualified for a payment known as a student 30 start-up scholarship payment under the scheme referred to in 31 section 117 of the Veterans' Entitlements Act; or 32 (d) the person has qualified for a payment known as a student 33 start-up scholarship payment under the scheme referred to in 34 section 258 of the Military Rehabilitation and Compensation 35 Act; or 36 (e) the person has received the amount or value of a 37 Commonwealth Education Costs Scholarship; or Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 19 [Page Break] Part 1 Main amendments 1 (f) the person was entitled to the amount or value of a 2 Commonwealth Education Costs Scholarship but has not 3 received the full entitlement only because the scholarship 4 was suspended. 5 Secretary may determine period of less than 6 months 6 (3) For the purposes of subsection (1), the Secretary may determine a 7 period in relation to a person that is at least 2 months but less than 8 6 months if the Secretary considers that the determination would 9 enable the person to qualify for a student start-up scholarship 10 payment on or near the day on which the approved scholarship 11 course concerned started or starts. 12 (4) However, the Secretary must not make a determination under 13 subsection (3) if the effect of the determination would be to enable 14 the person to receive more than 2 student start-up scholarship 15 payments in a calendar year. 16 592H Amount of student start-up scholarship payment 17 The amount of a student start-up scholarship payment is $1,127. 18 Note: The amount of a student start-up scholarship payment is indexed 19 annually in line with CPI increases (see sections 1190 to 1194). 20 Division 2--Relocation scholarship payment 21 592J Qualification for relocation scholarship payment 22 A person is qualified for a relocation scholarship payment at a time 23 (the qualification time) if: 24 (a) at the qualification time, the person is qualified for youth 25 allowance and youth allowance is payable to the person; and 26 (b) at the qualification time, the person is receiving youth 27 allowance and would be receiving youth allowance if steps 2 28 and 3 of the method statement in point 1067G-A1 of the 29 Youth Allowance Rate Calculator were disregarded for the 30 purposes of working out the person's rate of that allowance; 31 and 32 (c) the person: 33 (i) is independent because of subsection 1067A(3), (5), (6), 34 (7), (8), (9) or (11); or 20 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 (ii) is not independent (see section 1067A) but is required to 2 live away from home (see section 1067D); and 3 (d) the person is receiving youth allowance because the person is 4 undertaking full-time study in an approved scholarship 5 course; and 6 (e) the Secretary is satisfied that in the period of 35 days starting 7 immediately after the qualification time, the person proposes 8 to start to undertake the course or to continue to undertake 9 the course; and 10 (f) the Secretary is satisfied that the person is not likely to 11 receive the amount or value of a Commonwealth 12 Accommodation Scholarship in the period of 12 months 13 starting immediately after the qualification time. 14 Note: For approved scholarship course, see section 592M. 15 592K Circumstances in which person is not qualified for relocation 16 scholarship payment 17 Previous qualification for, or receipt of, same or similar payment 18 (1) Despite section 592J, a person is not qualified for a relocation 19 scholarship payment if 1 or more of the circumstances listed in 20 subsection (2) apply to the person in the period of 12 months (or 21 shorter period determined under subsection (3)) ending 22 immediately before the person's qualification time. 23 (2) The circumstances are: 24 (a) the person has qualified for a relocation scholarship payment; 25 or 26 (b) the person has qualified for a payment under the ABSTUDY 27 Scheme known as an ABSTUDY relocation scholarship 28 payment; or 29 (c) the person has qualified for a payment known as a relocation 30 scholarship payment under the scheme referred to in 31 section 117 of the Veterans' Entitlements Act; or 32 (d) the person has qualified for a payment known as a relocation 33 scholarship payment under the scheme referred to in 34 section 258 of the Military Rehabilitation and Compensation 35 Act; or 36 (e) the person has received the amount or value of a 37 Commonwealth Accommodation Scholarship; or Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 21 [Page Break] Part 1 Main amendments 1 (f) the person was entitled to the amount or value of a 2 Commonwealth Accommodation Scholarship but has not 3 received the full entitlement only because the scholarship 4 was suspended. 5 (3) For the purposes of subsection (1), the Secretary may determine a 6 period in relation to a person that is at least 3 months but less than 7 12 months if the Secretary considers that the determination would 8 enable the person to qualify for a relocation scholarship payment 9 on or near 1 January in a year. 10 (4) However, the Secretary must not make a determination under 11 subsection (3) if the effect of the determination would be to enable 12 the person to receive more than 2 relocation scholarship payments 13 in a period of 2 successive calendar years. 14 Independent but did not receive same or similar payment 15 (5) Despite section 592J, a person is not qualified for a relocation 16 scholarship payment if: 17 (a) at the person's qualification time, the person has attained the 18 age at which the person is independent (see subsection 19 1067A(4)); and 20 (b) before the qualification time, the person has not received any 21 of the following: 22 (i) a relocation scholarship payment; 23 (ii) a payment under the ABSTUDY Scheme known as an 24 ABSTUDY relocation scholarship; 25 (iii) a payment known as a relocation scholarship payment 26 under the scheme referred to in section 117 of the 27 Veterans' Entitlements Act; 28 (iv) a payment known as a relocation scholarship payment 29 under the scheme referred to in section 258 of the 30 Military Rehabilitation and Compensation Act; 31 (v) the amount or value of a Commonwealth 32 Accommodation Scholarship. 22 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 592L Amount of relocation scholarship payment 2 Initial payment 3 (1) The amount of a relocation scholarship payment to a person is 4 $4,000, unless subsection (2) or (3) applies to the person. 5 Note: The amount of a relocation scholarship payment is indexed annually 6 in line with CPI increases (see sections 1190 to 1194). 7 Previously undertaken approved scholarship course and 8 independent or required to live away from home 9 (2) The amount of a relocation scholarship payment to a person is 10 $1,000 if: 11 (a) in the calendar year before the calendar year in which the 12 person's qualification time falls, the person undertook a 13 course that, had the person undertaken it at the qualification 14 time, would have been an approved scholarship course at that 15 time; and 16 (b) either of the following applied to the person at a time that 17 was more than 6 months before the person's qualification 18 time: 19 (i) the person was independent because of subsection 20 1067A(3), (5), (6), (7), (8), (9) or (11); 21 (ii) the person was not independent (see section 1067A) but 22 was required to live away from home (see 23 section 1067D). 24 Note: The amount of a relocation scholarship payment is indexed annually 25 in line with CPI increases (see sections 1190 to 1194). 26 Subsequent payment 27 (3) The amount of a relocation scholarship payment to a person is 28 $1,000 if the person has received any of the following before the 29 period described in subsection 592K(1): 30 (a) a relocation scholarship payment; 31 (b) a payment under the ABSTUDY Scheme known as an 32 ABSTUDY relocation scholarship payment; 33 (c) a payment known as a relocation scholarship payment under 34 the scheme referred to in section 117 of the Veterans' 35 Entitlements Act; Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 23 [Page Break] Part 1 Main amendments 1 (d) a payment known as a relocation scholarship payment under 2 the scheme referred to in section 258 of the Military 3 Rehabilitation and Compensation Act; 4 (e) the amount or value of a Commonwealth Accommodation 5 Scholarship. 6 Note: The amount of a relocation scholarship payment is indexed annually 7 in line with CPI increases (see sections 1190 to 1194). 8 Division 3--Approved scholarship course 9 592M Definition 10 In this Part: 11 approved scholarship course means: 12 (a) a course of study or instruction approved by the Minister 13 under a determination made for the purposes of 14 section 592N; or 15 (b) if no determination is in force--a course determined to be a 16 tertiary course under section 5D of the Student Assistance Act 17 1973 for the purposes of that Act. 18 592N Approved scholarship course 19 (1) The Minister may, by legislative instrument, determine that a 20 course of study or instruction is an approved scholarship course 21 for the purposes of this Part. 22 (2) Despite subsection 14(2) of the Legislative Instruments Act 2003, a 23 determination made for the purposes of subsection (1) may make 24 provision for, or in relation to, a matter by applying, adopting or 25 incorporating, with or without modification, any matter contained 26 in an instrument or other writing: 27 (a) as in force or existing at a particular time; or 28 (b) as in force or existing from time to time. 24 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Related amendments Part 2 1 Part 2--Related amendments 2 Higher Education Support Act 2003 3 5 At the end of subsection 46-20(2) 4 Add: 5 ; (m) information that providers are to give the Minister or the 6 Chief Executive Officer, or an *employee, of *Centrelink; 7 (n) information that providers are to give to: 8 (i) the Repatriation Commission; or 9 (ii) the Military Rehabilitation and Compensation 10 Commission; or 11 (iii) the Secretary, or an employee, of the Department 12 administered by the Minister who administers the 13 Veterans' Entitlements Act 1986; or 14 (iv) the Secretary, or an employee, of the Department 15 administered by the Minister who administers the 16 Military Rehabilitation and Compensation Act 2004. 17 6 Subclause 1(1) of Schedule 1 18 Insert: 19 Centrelink means the Commonwealth Services Delivery Agency 20 established by the Commonwealth Services Delivery Agency Act 21 1997. 22 7 Subclause 1(1) of Schedule 1 23 Insert: 24 employee of Centrelink means an employee within the meaning of 25 the Commonwealth Services Delivery Agency Act 1997. 26 8 Subclause 1(1) of Schedule 1 27 Military Rehabilitation and Compensation Commission means 28 the Military Rehabilitation and Compensation Commission 29 established by section 361 of the Military Rehabilitation and 30 Compensation Act 2004. 31 9 Subclause 1(1) of Schedule 1 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 25 [Page Break] Part 2 Related amendments 1 Insert: 2 Repatriation Commission means the body corporate continued in 3 existence by section 179 of the Veterans' Entitlements Act 1986. 4 Military Rehabilitation and Compensation Act 2004 5 10 After paragraph 258(3)(a) 6 Insert: 7 (aa) the payment of scholarships for eligible young persons who 8 are being provided with education or training under the 9 scheme; 10 Social Security Act 1991 11 11 Subsection 5(1) (definition of independent) 12 After "2.11,", insert "2.11B". 13 12 After subparagraph 8(8)(y)(vii) 14 Insert: 15 (viiaa) a payment known as a student start-up scholarship 16 payment, or a relocation scholarship payment, under the 17 scheme referred to in section 117 of the Veterans' 18 Entitlements Act; or 19 (viiab) a payment known as a student start-up scholarship 20 payment, or a relocation scholarship payment, under the 21 scheme referred to in section 258 of the Military 22 Rehabilitation and Compensation Act; or 23 13 After paragraph 8(8)(zjc) 24 Insert: 25 (zjd) a payment of a scholarship to a person during a calendar year 26 (other than an excluded payment): 27 (i) for the person to study, or to undertake research, at an 28 educational institution; or 29 (ii) for the person's achievement in studying, or in 30 undertaking research, at an educational institution; 31 to the extent that the payment does not exceed the person's 32 threshold amount for that year; 26 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Related amendments Part 2 1 Note: For excluded payment see subsection (8AA). For educational 2 institution see subsection 23(1). For threshold amount see 3 subsection (8AB). 4 14 After subsection 8(8) 5 Insert: 6 (8AA) For the purposes of paragraph (8)(zjd), each of the following is an 7 excluded payment: 8 (a) a payment of a scholarship referred to in paragraph (8)(zia), 9 (zj) or (zja); 10 (b) a scholarship payment under Part 2.11B; 11 (c) a scholarship payment under the ABSTUDY Scheme; 12 (d) a payment known as a student start-up scholarship payment, 13 or a relocation scholarship payment, under the scheme 14 referred to in section 117 of the Veterans' Entitlements Act; 15 (e) a payment known as a student start-up scholarship payment, 16 or a relocation scholarship payment, under the scheme 17 referred to in section 258 of the Military Rehabilitation and 18 Compensation Act. 19 (8AB) For the purposes of paragraph (8)(zjd), a person's threshold 20 amount, for a calendar year, means $6,762 less the amount of any 21 payment made to that person during that year that is not income for 22 the purposes of this Act because of that paragraph. 23 Note: The dollar amount mentioned in this subsection is indexed annually in 24 line with CPI increases (see sections 1190 to 1194). 25 Example: On 1 March 2010 a person is paid a scholarship of $3,000 to study at 26 an educational institution. The threshold amount is $6,762 (as no other 27 payment has been excluded under paragraph (8)(zjd) for 2010). The 28 $3,000 is not income under that paragraph and the threshold amount is 29 reduced to $3,762. 30 On 1 May 2010 the person is paid a scholarship of $5,000 to study at 31 an educational institution. Of the $5,000, $3,762 is not income under 32 that paragraph. The threshold amount is reduced to zero. 33 There can be no further payments excluded under that paragraph for 34 that person for 2010. 35 15 Subsection 1067(1) (note to the definition of independent) 36 After "2.11,", insert "2.11B,". 37 16 Subsection 1067A(1) Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 27 [Page Break] Part 2 Related amendments 1 After "2.11,", insert "2.11B,". 2 17 Subsection 1067A(4) 3 Omit "Part 2.11", substitute "Parts 2.11 and 2.11B". 4 18 Subsections 1067B(1) and 1067D(1) 5 After "for the purposes of", insert "Part 2.11B and". 6 19 Section 1190 (at the end of the table) 7 Add: Amounts related to scholarships 67. threshold amount scholarship subsection 8(8AB) threshold amount 68. student start-up student start-up section 592H scholarship scholarship payment amount payment amount 69. relocation relocation subsections 592L(1), (2) and scholarship scholarship (3) payment amount payment amount 8 20 Subsection 1191(1) (at the end of the table) 9 Add: Amounts related to scholarships 39. scholarship 1 January June highest June $1.00 threshold quarter before amount reference quarter (but not earlier than June quarter 2009) 40. student 1 January June highest June $1.00 start-up quarter before scholarship reference quarter payment (but not earlier amount than June quarter 2009) 41. relocation 1 January June highest June $1.00 scholarship quarter before 28 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Related amendments Part 2 payment reference quarter amount (but not earlier than June quarter 2009) 1 21 At the end of section 1192 2 Add: 3 (8) The first indexation of the amounts to which items 38, 39 and 40 of 4 the CPI Indexation Table in subsection 1191(1) relate is to take 5 place on 1 January 2011. 6 22 Subsection 1222(2) (after table item 4C) 7 Insert: 8 4D 1223ABE deductions 1231, 1234A (debts in respect of legal proceedings 1232 scholarship payments) garnishee notice 1233 repayment by instalments 1234 9 23 After section 1223ABD 10 Insert: 11 1223ABE Debts in respect of scholarship payments 12 Person does not start to undertake course 13 (1) If a person: 14 (a) has received a student start-up scholarship payment or a 15 relocation scholarship payment because the person is 16 proposing to undertake an approved scholarship course; and 17 (b) the person does not start to undertake the course; 18 then: 19 (c) the amount of the payment is a debt due to the 20 Commonwealth; and 21 (d) the debt is taken to have arisen when the person receives the 22 payment. 23 However, this subsection does not apply if, in the Secretary's 24 opinion, the person does not start to undertake the course because 25 of exceptional circumstances beyond the person's control. Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 29 [Page Break] Part 2 Related amendments 1 Note: For approved scholarship course, see section 592M. 2 Person not continuing to undertake course 3 (2) If a person: 4 (a) has received a student start-up scholarship payment or a 5 relocation scholarship payment because the person is 6 proposing to undertake an approved scholarship course; and 7 (b) the person starts to undertake the course; and 8 (c) the person is not undertaking the course at the end of 35 days 9 after the course commences; 10 then: 11 (d) the amount of the payment is a debt due to the 12 Commonwealth; and 13 (e) the debt is taken to have arisen when the person receives the 14 payment. 15 Note: For approved scholarship course, see section 592M. 16 (3) If a person: 17 (a) has received a student start-up scholarship payment or a 18 relocation scholarship payment because the person is 19 undertaking an approved scholarship course; and 20 (b) is not undertaking the course at the end of 35 days after 21 qualifying for the payment; 22 then: 23 (c) the amount of the payment is a debt due to the 24 Commonwealth; and 25 (d) the debt is taken to have arisen when the person receives the 26 payment. 27 Note: For approved scholarship course, see section 592M. 28 (4) Subsections (2) and (3) do not apply if, in the Secretary's opinion, 29 the person is not undertaking the course as mentioned in those 30 subsections because of exceptional circumstances beyond the 31 person's control. 32 Social Security (Administration) Act 1999 33 24 After section 12G 34 Insert: 30 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Related amendments Part 2 1 12H Student start-up scholarship payment and relocation 2 scholarship payment 3 A claim is not required for a student start-up scholarship payment 4 or a relocation scholarship payment. 5 25 Subsection 47(1) (after paragraph (b) of the definition of 6 lump sum benefit) 7 Insert: 8 (ba) student start-up scholarship payment; or 9 (bb) relocation scholarship payment; or 10 26 Subsection 47(4) 11 After "and (4)", insert ", section 47D". 12 27 After section 47C 13 Insert: 14 47D Student start-up scholarship payments and relocation 15 scholarship payments 16 If: 17 (a) a person is qualified for a student start-up scholarship 18 payment, or a relocation scholarship payment, on a particular 19 day because the person is receiving youth allowance; and 20 (b) the whole or a part of the person's instalment of youth 21 allowance in respect of a period that included that day is paid 22 to a parent of the person under section 45 of this Act; 23 the Secretary may pay the whole, or the same proportion, of the 24 person's scholarship payment to that parent or to any other person. 25 28 After Subdivision DB of Division 5 of Part 3B 26 Insert: Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 31 [Page Break] Part 2 Related amendments 1 Subdivision DC--Student start-up scholarship payments and 2 relocation scholarship payments 3 123XPE Deductions from student start-up scholarship payments 4 Scope 5 (1) This section applies if: 6 (a) a person is subject to the income management regime; and 7 (b) a student start-up scholarship payment is payable to the 8 person. 9 Deductions from payment 10 (2) The following provisions have effect: 11 (a) the Secretary must deduct from the student start-up 12 scholarship payment the deductible portion of the payment; 13 (b) an amount equal to the deductible portion of the payment is 14 credited to the Special Account; 15 (c) an amount equal to the deductible portion of the payment is 16 credited to the person's income management account. 17 (3) For the purposes of subsection (2), the deductible portion of a 18 student start-up scholarship payment is 100% of the amount of the 19 payment. 20 123XPF Deductions from relocation scholarship payments 21 Scope 22 (1) This section applies if: 23 (a) a person is subject to the income management regime; and 24 (b) a relocation scholarship payment is payable to the person. 25 Deductions from payment 26 (2) The following provisions have effect: 27 (a) the Secretary must deduct from the relocation scholarship 28 payment the deductible portion of the payment; 29 (b) an amount equal to the deductible portion of the payment is 30 credited to the Special Account; 32 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] Related amendments Part 2 1 (c) an amount equal to the deductible portion of the payment is 2 credited to the person's income management account. 3 (3) For the purposes of subsection (2), the deductible portion of a 4 relocation scholarship payment is 100% of the amount of the 5 payment. 6 29 At the end of paragraph 195(2)(i) 7 Add: 8 (xviii) the amount or value of a Commonwealth Education 9 Costs Scholarship, or of a Commonwealth 10 Accommodation Scholarship, received by the person; 11 30 Subsection 202(1) 12 Repeal the subsection, substitute: 13 (1) A person may obtain protected information if the information is 14 obtained for the purposes of: 15 (a) the social security law; or 16 (b) the Farm Household Support Act 1992; or 17 (c) the Dental Benefits Act 2008; or 18 (d) the Family Homelessness Prevention and Early Intervention 19 Pilot; or 20 (e) administering Commonwealth scholarships payable under 21 Part 2-4 of the Higher Education Support Act 2003. 22 31 After paragraph 202(2)(da) 23 Insert: 24 (db) for the purposes of the administration of Commonwealth 25 scholarships payable under Part 2-4 of the Higher Education 26 Support Act 2003; or 27 Veterans' Entitlements Act 1986 28 32 After paragraph 5H(8)(f) 29 Insert: 30 (fa) a payment known as a student start-up scholarship payment, 31 or a relocation scholarship payment, under the Veterans' 32 Children Education Scheme; Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 33 [Page Break] Part 2 Related amendments 1 33 After paragraph 5H(8)(hd) 2 Insert: 3 (he) a payment of a scholarship, to the extent that the payment is 4 not income for the purposes of the Social Security Act 1991 5 because of paragraph 8(8)(zjd) of that Act; 6 34 Application 7 The amendments made by items 13 and 33 apply in relation to 8 payments made on or after the commencement of those items. 9 34 Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 [Page Break] 1 Schedule 3--Training supplement for 2 parenting payment 3 4 Social Security Act 1991 5 1 Paragraph 503B(1)(b) 6 Repeal the paragraph, substitute: 7 (b) is subject to participation requirements; and 8 2 At the end of subsection 503B(1) 9 Add: 10 Note: For when a person is subject to participation requirements, see 11 subsection 23(1). Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 No. , 2009 35