Explanatory Memorandum
(Circulated by authority of the Minister for Education, Science and Training the Hon Julie Bishop MP)Schedule 2 - Amendment of the Social Security Act 1991
Social Security Act 1991
Item 1 Subsection 23(1)
Inserts a definition of VET provider in subsection 23(1). The term has the same meaning as in the Skilling Australia's Workforce Act 2005 .
Item 2 Subparagraphs 569(2)(b)(i) and (ii)
Part 2.11A (ss.568-592E) provides for Austudy payment while Part 3.5A (ss.1067H-1067L) contains the Austudy Payment Rate Calculator provisions. Subsection 569(2) lists classes of persons who do not satisfy the activity test for Austudy payment. Paragraph 569(2)(b) currently has the effect of providing that a person cannot be taken to satisfy the activity test if the person has completed a course for a degree of Master or Doctor at an educational institution (subparagraph 569(2)(b)(i)) or a qualification at a foreign institution that is (in the Secretary's opinion) of the same standing as a degree of Master or Doctor at an educational institution (subparagraph 569(2)(b)(ii)).
Item 2 amends subparagraphs 569(2)(b)(i) and (ii) to remove those persons who have completed a course for a degree of Master at an educational institution (or an equivalent qualification at a foreign institution) from the classes of persons who do not satisfy the activity test. This removes the current restriction on Austudy recipients which prevents them from receiving payment if they have already gained a masters' level degree. Such persons will now be able to satisfy the activity test for Austudy payment.
Item 3 Paragraph 569H(7)(e)
Section 569H sets out the progress rules for tertiary students to remain eligible for Austudy payment. Subsection 569H(7) sets out matters to be disregarded in determining whether someone has exceeded the allowable study time and paragraph 569H(7)(e) provides that time spent undertaking a TAFE course (if the normal length of the course for a full time student is one year or less) is a matter to be disregarded. Item 3 amends paragraph 569H(7)(e) to have the effect of providing that a course provided by a VET provider is also a matter to be disregarded in determining whether someone has exceeded the allowable study time for the purposes of subsection 569H(7).
Item 4 Subsection 569H(8)
Repeals subsection 569H(8) (not including the heading), and substitutes a new subsection to provide for 5 levels of tertiary courses to reflect the addition of a degree of Master by item 5.
Item 5 After subsection 569H(8)
Inserts a new subsection 569H(8A) to provide that a course for a degree of Master is a new level of tertiary course to be known as a "Level M course".
Item 6 Subparagraph 569H(10)(c)(iii)
Subsection 569H(10) sets out what are Level B tertiary courses. Paragraph 569H(10)(c) currently provides that a diploma course other than a graduate or postgraduate diploma course or a course for which an entry requirement is successful completion of year 10 of secondary studies or a TAFE course, is a Level B tertiary course. Item 6 amends subparagraph 569H(10)(c)(iii) to have the effect of providing that a course provided by a VET provider is also not a Level B tertiary course.
Item 7 Paragraph 569H(11)(c)
Subsection 569H(11) sets out what are Level C tertiary courses. Paragraph 569H(11)(c) currently provides that a diploma course at a TAFE institution for which an entry requirement is successful completion of year 12 of secondary studies is a Level C tertiary course. Item 7 amends paragraph 569H(11)(c) to have the effect of providing that a diploma course provided by a VET provider for which an entry requirement is successful completion of year 12 of secondary studies is also a Level C tertiary course.
Items 8 and 9 Paragraph 569H(12)(b)
Subsection 569H(12) sets out what are Level D tertiary courses. Paragraph 569H(12)(b) currently provides that a TAFE course (unless the course is in Level A, B or C) is a Level D tertiary course. Items 8 and 9 amend paragraph 569H(12)(b) to have the effect of providing that a TAFE course or a course provided by a VET provider (unless the course is in Level M , A, B or C) is a Level D tertiary course.
Item 10 Application
An application provision that provides that the amendments made by items 1 to 9 of this Schedule apply in respect of a period commencing on or after 1 January 2008.
Item 11 At the end of Division 1 of Part 2.23A
Part 2.23A (ss. 1061JG-1061JU) provides for a crisis payment to a person if they are experiencing an "extreme circumstance", while Division 1 of Part 2.23A (ss. 1061JG-1061JK) sets out the qualifications for a crisis payment. Item 11 inserts a new section 1061JL which has the effect of providing that a person is not qualified for a crisis payment under section 1061JG, 1061JH or 1061JHA in respect of a circumstance if the Secretary is satisfied that the person is qualified under the ABSTUDY scheme for a crisis payment in respect of that same circumstance and the crisis payment is payable under that scheme in respect of that circumstance.
Item 12 Section 1061JL
Amends new section 1061JL (inserted by item 11) to reflect the addition of new section 1061JI by the Families, Community Services and Indigenous Affairs Legislation Amendment (Further 2007 Budget Measures) Act 2007 , once that Act commences.
Item 13 Point 1067L-A1 (method statement)
Part 3.5A (ss.1067H-1067L) contains the Austudy Payment Rate Calculator provisions. Module A of the Austudy Payment Rate Calculator sets out the overall rate calculation process while the method of calculating the rate of Austudy payment is set out in the method statement at point 1067L A1. Item 13 inserts a new Step 2A in the method statement in point 1067L-A1 to have the effect of adding fortnightly rent assistance payments to a person's Austudy payment to increase the attraction for mature age people to participate in education. Currently Austudy recipients are not eligible for rent assistance.
Item 14 Point 1067L-A1 (method statement, step 3)
Amends step 3 of the method statement in point 1067L-A1 to reflect the addition of step 2A by item 13.
Item 15 After paragraph 1070(d)
Part 3.7 (ss.1070-1070X) makes provision for rent assistance. Section 1070 specifies when Part 3.7 applies. Item 15 inserts a new paragraph 1070(da) which has the effect of providing that Part 3.7 (i.e. rent assistance) applies if the rate of a person's social security payment is to be calculated in accordance with the Austudy Payment Rate Calculator in Part 3.5A. In other words the amendment extends rent assistance to Austudy recipients.
Item 16 Subsection 1070H(1)
Amends subsection 1070H(1) to have the effect of providing that, if the rate of a person's social security payment is to be calculated in accordance with the Austudy Payment Rate Calculator or Benefit Rate Calculator B, the specific requirement applicable to the social security payment is that set out in subsection 1070H(2). This amendment reflects the extension of rent assistance to Austudy recipients.
Item 17 Subsection 1070Q(1)
Amends subsection 1070Q(1) to have the effect of providing that, if the rate of the person's social security payment is to be calculated in accordance with the Youth Allowance Rate Calculator, the Austudy Payment Rate Calculator or Benefit Rate Calculator B, a person's rate of rent assistance is worked out under section 1070Q. This amendment reflects the extension of rent assistance to Austudy recipients.
Item 18 Application and transitional
Sub-item 18(1) is an application provision that provides that the amendments made by items 13 to 17 of this Schedule apply in respect of a fortnight that includes 1 January 2008 and later fortnights.
Sub-item 18(2) is an application provision that provides that the applicable amount per fortnight of rent assistance for the purposes of step 2A of the method statement in point 1067L-A1 of the Social Security Act 1991 in respect of the fortnight that includes 1 January 2008 is to be calculated pro rata in accordance with a formula reflecting the proportion of days in the fortnight that occur on or after 1 January 2008 (i.e. the number of eligible days ).