The Military Rehabilitation and Compensation Act 2004 (MRCA) Education and Training Scheme (MRCAETS) provides financial assistance, student support services, guidance and counselling for eligible children to help them achieve their full potential in education and career training. The MRCAETS has been developed to help support children undertaking primary, secondary and tertiary study, apprenticeships and traineeships, and is normally provided only for full-time study within Australia. Support may also be available in limited circumstances for approved part‑time study.

Benefits available under the MRCAETS may include:

• Education allowance
• Additional Tuition
• Special Assistance
• Fares Allowance
• Guidance and counselling 
• Student Start-up and Relocation Scholarships

Payments and services administered by the MRCAETS may also include support delivered on behalf of other Australian Government entities, where eligibility requirements are met

The MRCAETS operates under legislative instrument prescribed by the Repatriation Commission in accordance with section 258 of the MRCA.

Delegates should note that the Veterans’ Children Education Scheme (VCES) was closed on 1 July 2026. From this date, all VCES students were transferred into the MRCAETS. 

All education scheme administration from this date is undertaken solely under the MRCAETS.

The following decisions are a formal decision point which must be made by a delegate with appropriate authority:

• whether a person is an eligible child for the purposes of the MRCAETS.
• whether a person is a VEA eligible child or VEA eligible grandchild, meaning a person determined under s257C of the MRCA to be included in an additional class for the purposes of the MRCAETS.
• whether a person is eligible for payment of education allowance under the MRCAETS.
• who receives payment of education allowance, including any change in the person to whom payment is made.
• the rate of education allowance payable, including any change in the rate of payment.
• whether a student receives a scholarship.
• whether a student receives fares allowance, additional tuition, special assistance or rent assistance.
• ceasing payment due to unsatisfactory academic progress.
• reinstating payment where a student has resumed satisfactory academic progress.

If a delegate decides to vary the rate of education allowance, they must also make a new decision in relation to the person to whom the payment is made.

Decisions must be provided to the individual in writing, along with the reasons for the decision and information on their appeal rights.

The MRCAETS instrument sets out review provisions for decisions made under the Scheme. Under the instrument, a person must be given written notice of any decision regarding MRCAETS eligibility or entitlements. The person then has three months from receipt of the written notice to request a review of the decision. 

Where a request for review is received, the decision must be reviewed by a delegate (other than the original decision-maker) within three months of the application date unless the applicant has agreed in writing to a later timeframe. 

If the applicant is dissatisfied with the outcome of the review, they have a further right of review to the Administrative Review Tribunal (ART). 

Decisions which contain a legal error 

There is no express power to undertake an own motion review of decisions made under the MRCAETS. 

However, in circumstances where it is obvious that a decision contains a legal error, the Repatriation Commission (RC) can reconsider the decision and determine that it should be treated as invalid and of no effect. Where this applies, a new decision can be made. If a legal error has occurred, the delegate must seek policy advice.

Review of VCES decisions made prior to 1 July 2026 

From 1 July 2026, all VCES students were transferred into the MRCAETS. Transitional provisions preserve review rights for VCES decisions in the following circumstances: 

If a person received a VCES reviewable decision before 1 July 2026 and the 3-month period to request a review had not expired, they may request a review of the decision under the MRCAETS. 

If a person made an application for a review of a VCES decision before 1 July 2026 and the review had not been decided, it continues under the MRCAETS.

In both cases, the review outcome is made under the MRCAETS and is taken to be a MRCAETS decision, meaning the person has a further right of review to the ART.

To be eligible under the MRCAETS, individuals must be an eligible child, which includes:

• an eligible young person who is a dependant of a member or former member who:
  • is eligible, or was at some point, for the Special Rate Disability Pension (SRDP) under section 199 of the MRCA;
  • is eligible, or was at some point, for payment of an ‘Additional Disablement Amount’ under section 220A of the MRCA;
  • suffers an impairment that constitutes 80 or more impairment points under Part 2 of Chapter 4 of the MRCA due to one or more service injuries or diseases;  
  • was a dependant of the member in respect of whom section 12 of the MRCA applies.
• a VEA eligible child; or
• a VEA eligible grandchild (limited to the Long Tan Bursary).

An eligible young person (is someone who is:

• under 16 years old; or
• between 16 and 25, undertaking full-time education (including an Australian Apprenticeship, Traineeship or cadetship) and
• not ordinarily engaged in full-time work on his or her own account.

A student may be eligible for the MRCAETS under the ‘EYP pathway’ if they both meet the definition of an eligible young person and they are a dependant of a veteran who satisfies the relevant eligibility criteria as outlined above. See 9.5.2.3 for guidance on assessing whether a person is a dependant.  

A VEA eligible child is someone who is:  

• a child of a veteran who is receiving (or was receiving prior to their death) a disability compensation payment under the VEA:
  • at the special rate (formerly known as T&PI)
  • at the Extreme Disablement Adjustment (EDA) rate
  • at an increased rate because of multiple amputations, or multiple amputations and blindness in one eye, or  
• a child of a veteran whose death was war-caused or defence-caused, or  
• a child of a veteran who was an Australian prisoner of war and is now deceased.  

A child of veteran is someone who is:

• under 16 years old; or
• Between 16 and 25, undertaking full-time education (including an Australian Apprenticeship, Traineeship or cadetship), and
• wholly or substantially dependent on an eligible veteran (or was prior to their death)

A student may be eligible for MRCAETS under the ‘VEA eligible child’ pathway if they both meet the definition of child of a veteran and are wholly or substantially dependent on a veteran who satisfies the relevant eligibility criteria as outlined above. See 9.5.2.3 for guidance on assessing whether a person is a dependant.  

A student who is 25 years or older is still eligible for the MRCAETS where:

• before turning 25, the person begun a course of education or training provided under the scheme; and
• the person turns 25 before finishing the course; and
• after turning 25, the person continues the course in order to finish it.

For more information on the eligible young person definition, see section 7.9 of the MRCA Policy Manual 7.9.1 Who is an Eligible Young Person? | CLIK.

From 1 July 2026, the VCES was closed with all existing recipients transferred to the MRCAETS. The MRCA was amended to incorporate the former VCES eligibility framework. As a result, students who would previously have been eligible for the VCES are now eligible under the MRCAETS, with the eligibility criteria retained in the Act. 

Because the new MRCAETS framework brings together multiple eligibility pathways, including VEA eligible children and eligible young people, there are circumstances where a person may meet more than one underlying eligibility type. In these cases, the most appropriate eligibility pathway should be automatically applied based on which is most beneficial to the student. 

There are two main considerations when determining what is most beneficial for a student: work status and taxation. Information on these topics is set out blow. These considerations inform an eligibility hierarchy that is applied automatically. 

Work Status

Previously VCES eligibility rules will be continued under the MRCAETS. This includes the ability for VEA eligible children to undertake full-time work while studying, as the full-time work restrictions that apply to eligible young people do not apply to this cohort. 

Taxation 

The MRCA taxation rules will apply to all payments made under the MRCAETS. Under the MRCA, payments made as a result of a veteran’s death are exempt from income tax. This means that payments made to VEA eligible children as a dependant of a deceased veteran will be treated as non-taxable. 

Eligibility hierarchy 

To ensure the most beneficial eligibility is applied, the eligibility hierarchy is set out below (from highest to lowest): 

• VEA Double Orphan (tax-free, no full-time work restriction) 
• VEA Death Accept (tax-free, no full-time work restriction) 
• MRCA Death Accept (tax-free) 
• VEA – TPI, EDA, SDA, POW (no full-time work restriction)
• MRCA – SRDP, MPI, ADA. 

How dual eligibility is managed 

Where a student could potentially meet more than one eligibility type, the eligibility which is most beneficial should apply automatically. In practice this means: 

• Full-time work will only impact students with MRCA inherited eligibility. The restriction does not apply to inherited VEA eligibility. 
• Eligibility based on being a dependant of a deceased veteran (i.e. Death Accept) takes precedence, ensuring tax-free payment status applies.

To be eligible to receive MRCAETS benefits, a child must either be: 

• an eligible young person (dependant of a veteran with underlying MRCA eligibility) or 
• a VEA eligible child (dependant of a veteran with underlying VEA eligibility). 

While all students must be a dependant of an eligible veteran to be eligible for MRCAETS benefits, there are slight differences in dependency standards as outlined below.

Under the MRCA, a dependant means a related person of the member:

• who is wholly or partly dependent on the member; or
• who would be wholly or partly dependent on the member but for an incapacity of the member that resulted from an injury or disease or an aggravation of an injury or disease.

A related person can be:

• a child, step-child, grandchild, brother, sister, half-brother or half-sister of a deceased member, member or former member; or
• a child or step-child of the member’s partner;
• a person in respect of whom the member stands in the position of a parent; or in unusual circumstances
• the member's partner.

However, the related person must also be an eligible young person wholly or partly dependent on the deceased member, member or former member for economic support (or would have been wholly or partly dependent but for the incapacity of the member because of an injury or disease for which liability has been accepted under the MRCA).

When an eligible young person is wholly dependent under the MRCA 

An eligible young person is automatically considered to be wholly dependent on the member or former member if:

• they live with the member or former member, 
• they would be living with the member or former member but for a temporary absence of the member or the young person,
• they would be living with the member or former member but for an absence of the member or young person due to illness or infirmity, or 
• where the member or former member is liable to provide child support under the Child Support (Assessment) Act 1989 for the young person. Where child support is provided other than under a Child Support Agency arrangement, a level of dependency can still be established on a case-by-case basis. 

Where a child is not automatically deemed as dependent under section 17 of the MRCA, additional documentation may be required to establish dependency. Suitable evidence could take the form of a statutory declaration by the veteran or applicant, a guardianship order, evidence of payment by Service Australia of FTB to the member of member’s spouse on behalf of the child, a custody order, etc.

Step-children as eligible young people 

The list of dependants in section 15(2) includes a step-child. The child must also be wholly or partly dependent (this refers to economic dependency) on the member. If the step-child’s parents separate, the child will lose entitlements to MRCAETS benefits unless the child remains wholly or partly dependent on the member or former member, or the separation is due to family and domestic violence. 

If the child continues to live with the member or former member after the separation, the child is eligible to receive MRCAETS benefits based on continued dependency.

Absences due to illness or family and domestic violence 

An eligible young person may continue to be considered dependent on an eligible member where the young person or former member are permanently absent from the home for reasons of illness or where the absence is due to family and domestic violence (see 9.5.2.4). 

Dependant VEA eligible child

To be considered a VEA eligible child, the individual must be a child of a veteran who meets the relevant eligibility criteria. For the purposes of the MRCA, a person is taken to be a child of a veteran where they are wholly or substantially dependent on the veteran. 

A child will also be taken to be wholly or substantially dependent on a veteran where the veteran has a legal obligation to maintain the child

Under section 17 of the MRCA, an eligible young person may continue to be considered wholly dependent on an eligible member in circumstances where the person or the eligible member has left or been removed from their home due to circumstances of family or domestic violence. This exception does not apply to VEA eligible children.

Temporary Absence

Where an individual (eligible young person or member) is temporarily absent for reasons of family or domestic violence, the person continues to be wholly dependent on the member. 

Absence due to illness/infirmity

An eligible young person can continue to be considered wholly dependent on the member if the dependant’s or the member’s absence from the home is due to an illness or infirmity. The illness or infirmity causing the absence can be either the member’s or the dependent persons. 

The delegate should seek appropriate evidence linking the illness or infirmity with the absence. Evidence to substantiate a separation based on abuse caused by illness would be considered on a case-by-case basis. It could include a current protection order, medical (including psychological) evidence, witness statements or statutory declarations.

As an example, satisfactory evidence may include a statutory declaration outlining the reason for leaving the home supported by report from a GP which indicates person is seeking assistance for mental health following family or domestic violence. 

If it is established that a person is absent due to illness or infirmity, then they may be considered wholly dependent for the period which the illness or infirmity prevents return to the home. This may be short-term due to physical illness, or indefinite for psychological reasons. 

Absence under a protection order 

The term ‘protection order’ encompasses several situations including: 

• A restraining order
• A domestic violence order (DVO)
• Apprehended Violence Order (AVO)
• Apprehended Domestic Violence Order (ADVO)
• Apprehended Personal Violence Order (APVO), and,
• Child protection orders. 

A protection order results generally results in an individual being unable to remain in or return to the home for a set period. This means either the member or the dependent is unable to continue to live in the home for the duration of the protection order. 

As the member or dependent is unable to return to the home for the period, the absence is temporary in nature regardless of any statements regarding the likely permanency of the separation. 

In these circumstances the dependent may continue to be considered wholly dependent from the date of absence for the duration of the protection order, or for a period of 24 months, whichever is greater. 

This applies regardless of whether the dependent is identified as the alleged perpetrator or as the person who requires protection (noting that there are often cross claims where both individuals in a relationship are subject to orders identifying them as perpetrator). 

Delegates are advised to read this provision together with Section 9.5.2.3 (Dependants) and Section 9.5.2.2 (Inherited Eligibility Hierarchy), which now form the complete decision making pathway for dependency and inherited eligibility under MRCAETS.

 Claims for the MRCAETS must be made in accordance with section 319 of the MRCA. As assistance under the MRCAETS is included in the definition of compensation under section 5 of the Act, claims may be made either in writing or orally. 

Section 320 of the MRCA outlines who may make a claim. A claim may be made by the person entitled to the compensation, or on that person’s behalf by: 

• the person’s legal representative, with the person’s approval, 
• another person approved by the Commission, where the person is unable, due to physical or mental incapacity, to approve another person to act on their behalf, or 
• where the person is under 18: 
  • by the person’s parent or guardian, 
  • by someone approved by the person’s parent or guardian, or 

  • if there is not a parent or guardian of the person alive, willing and able to make or approve someone to make a claim, by another person approved by the Commission

     

To be eligible for benefits under the Schemes a student must generally be undertaking study within Australia or have made application or been accepted to study within Australia.

The Commission may waive this requirement if the circumstances of the student are held to be exceptional.

Overseas study

Allowances are paid at the living away from home rate to a student who has been awarded a place within a formal overseas exchange scheme or who has received a scholarship to study overseas. This benefit is payable for the duration of the approved period of overseas study.

A student may receive benefits under the MRCAETS if they are undertaking:

1. general primary or secondary education; or
2. a tertiary course of education or study that would qualify the student for a youth allowance under Part 2.11 of the Social Security Act 1991 (SSA); or
3. a course of tertiary study that would not qualify the student for a youth allowance under Part 2.11 of the SSA, but which:
   1. the Commission considers essential for achievement of the student’s vocational aim; and
   2. no other tertiary course that would qualify the student for a youth allowance under Part 2.11 of the SSA is suitable or available.

Courses that would qualify the student for Youth Allowance 

A student will be eligible to receive education allowances for a full-time course of study if it is a course that would qualify them for youth allowance – this includes courses offered online. Approved courses are those listed in the Student Assistance (Education Institutes and Courses) Determination 2019. https://www.legislation.gov.au/F2009L04345/latest/text

The courses set out in the Determination include: 

Secondary courses, including: 

• Accredited secondary courses through a secondary school or TAFE, higher education institution or special school
• English as a Second Language (ESL) courses
• Preparatory courses for tertiary education 
• School-based apprenticeships or traineeships
• International Baccalaureate
• Tertiary courses, including: 

Pre-vocational courses:

• ESL courses 
• Vocational Education and Training (VET) courses 
• Associate degrees or diplomas
• Diplomas or advanced diplomas
• Bachelor degrees (including honours) 
• Bridging study for overseas-trained professionals 
• Graduate certificate or diploma courses 
• Masters qualifying courses 
• Approved Masters by coursework programs 
• Combined courses comprised of approved courses specified in Schedule 2 or 3 of the Determination Open learning
• Accelerator programs. 

The Determination includes Schedules listing approved courses. Schedule 2 lists the general types of tertiary courses that are approved (i.e. Bachelor, Masters bridging course). Schedule 3 lists approved ‘Masters’ courses.

Doctorate or PhD level Courses

PhD level courses (with the one exception of Juris doctor courses) are not included as approved tertiary courses in the Determination F. They are not courses that qualify a student for youth allowance and, therefore, a student undertaking these courses will generally not qualify for payments under the Schemes.

The one exception to this is where the Commissions approve a course of study on the basis it is essential to achieve the student’s vocational aim. In such an instance, the student must provide DVA with a letter from the university or study institution stating the course is essential to achieving their vocational aim. In most instances, study at a PhD or Masters level is not considered essential.

Honours Courses

Study at an Honours level is normally considered to be a continuation of an approved Bachelor course. The delegate should confirm that the Honours course offered is a continuation of the Bachelor degree to assist in determining whether education allowance can be paid.

Minimum duration of a course of study

There is no minimum duration for a course of study conducted by an approved institution. 

Courses that do not lead to a tertiary qualification

Generally, post-schooling courses that do not lead to a recognised tertiary qualification are not eligible for support under the schemes. However, in exceptional circumstances where both: 

1. the course is essential for the achievement of the student's vocational aim, and
2. no other course of tertiary study that would qualify the student for a youth allowance under Part 2.11 of the SSA is "suitable or available"

Some consideration may be given to a non-certificate course to maintain eligibility under the MRCAETS. 

In these cases, the Family Policy team should be contacted to investigate whether MRCAETS support may still be appropriate before any decision is made.

A student is not to be paid benefits under the MRCAETS if they receive a financial benefit in the nature of educational assistance, or income support, from any other Commonwealth Department or agency.

A student who is eligible to receive benefits under the Education Schemes but is instead receiving another mutually exclusive Commonwealth payment may still be eligible for other MRCAETS benefits such as guidance, counselling special assistance and additional tuition.

A student may only be paid a benefit under the Scheme if the Commonwealth educational assistance or income support:

1. is provided (whether directly or indirectly) by the Department or the Commission; or
2. is provided under a scholarship from the Commonwealth known as the Commonwealth Education Costs Scholarship; or
3. is provided under a scholarship from the Commonwealth known as the Commonwealth Accommodation Scholarship; or
4. is a payment received under a grant known as the Commonwealth Practicum Payment.

A student may, subject to eligibility, cease receiving a payment under another Commonwealth benefits scheme and apply for support under the MRCAETS, or cease receiving Education Scheme payments and apply for another Commonwealth payment.

Commonwealth Practicum Payment 

The Commonwealth Practicum Payment (CPP) is a payment intended to assist students studying teaching, nursing, midwifery or social work to manage the costs associated with mandatory placements. It came into effect on 1 July 2025 and is delivered through the Department of Education and the Department of Employment and Workplace Relations. The MRCAETS instrument specifies that CPP is not considered mutually exclusive with support under the Scheme. 

Australian Defence Force Academy Students 

Students studying through the Australian Defence Force Academy (ADFA) receive a fully funded tertiary education plus salary and other financial benefits in return for a minimum period of military service.

According to legal advice received October 2023, the full subsidisation of an ADFA student’s tertiary course, and payment of salary in respect of their full-time employment, should be taken to constitute ‘educational assistance’ and ‘income support’ respectively, provided by the Commonwealth. As such, in accordance with paragraph 2.11 of the Instruments, ADFA students are ineligible for benefits under the Schemes as they are receiving a financial benefit from the Department of Defence. Students studying at ADFA are a unique cohort, and cases where similar questions may be raised as to what constitutes educational assistance and income support should be considered on a case-by-case basis.

DVA will seek clearance from Services Australia before granting assistance under the MRCAETS to a secondary or tertiary student. Where the student is transferring to the MRCAETS from another Commonwealth educational assistance or income support scheme an agreed "cut-off" date must be negotiated with Services Australia.

The seeking of clearances by DVA aims to reduce the incidence of overpayments, and consequential recovery of payments by DVA. However, in instances where a scholarship amount is paid to a person by both DVA and Services Australia for the same period, then the agency who paid it second will be responsible for recovering that amount. This is because eligibility for the scholarships (ceases if the person has received the same amount in the previous 6 or 12 months (depending on the scholarship) that is, where the amount has already been paid by another agency for the same period.

Orphan Pensions under the VEA

From 1 July 2026, all new claims for compensation will be assessed under the MRCA. However, Orphan Pensions granted under the VEA will be grandfathered for existing recipients, and automatic grants may continue to apply in some circumstances. 

This means that some VEA eligible children receiving support under the MRCAETS may also continue to be eligible for an Orphan Pension under the VEA. However, once a student turns 16 the Orphan Pensions are not payable if the student receives an allowance under the MRCAETS. The student (or guardian) will need to choose which payment to receive. 

Death benefits under the MRCA

Under the MRCA, the following compensation is available to an eligible young person on their veteran parent’s death:

• A tax-free lump sum compensation payment.
• A weekly payment.
• A  Veteran Card –  All Conditions (Veteran Gold Card) and
• A MRCA supplement payment.

This assistance is available concurrently with the MRCAETS allowance or other Australian Government student assistance (e.g. Youth Allowance, ABSTUDY, Assistance for Isolated Children) or FTB, regardless of the student’s age (while under 25).

Under the MRCAETS, if a student receives an education allowance under the MRCAETS, that student is, in the absence of a contrary intention, ineligible to receive any other education allowance. 

Essentially, a student may only receive one education allowance at a time under the MRCAETS.

Students who are enrolled in primary education are eligible for an annual education allowance. The annual education allowance provide to primary students shall be paid in full in respect of any initial part year.

The first year of primary schooling differs across the states and territories. A student is eligible for the MRCAETS’ benefits with effect from the date of commencement of the first year of formal primary schooling.

Prior to the first year of formal primary schooling, students attend part-time and so are not eligible for benefits under the Scheme.

Please note the table below also includes information about the first year of formal schooling (part-time) available in each state/territory.

Final year of primary school

The final year of primary school is consistent across all Australian states and territories - Year 6. Students in Year 7, regardless of where they are physically located, are paid the secondary school rate of education allowance under the MRCAETS.

 Who may an education allowance be paid to?

Payment of the allowance will be made to the person who is entitled to be paid family tax benefit under A New Tax System (Family Assistance) (Administration) Act 1999 (entitled person) and if there is no entitled person - to a person approved by the Commission to receive the payment on the student’s behalf. 

9.5.3.3.1 Online courses and the living away from home rate

A student who is required to live away from home may be eligible for the living away from home rate when studying a full-time course online if they meet the criteria or the living away from home rate (i.e.  the reason why the student is living away from home). These criteria include where the student is a member of an itinerant family or where home conditions are detrimental to the student’s educational progress. Delegates should consider these applications on a case-by-case basis and seek advice from the Policy team if required.

9.5.3.3.2 Overseas study

Allowances are paid at the living away from home rate to a student who has been awarded a place within a formal overseas exchange scheme or who has received a scholarship to study overseas. This benefit is payable for the duration of the approved period of overseas study.

9.5.3.3.3 Effect of marriage or de facto relationships on living away from home rate

For the effect of marriage or de facto relationship on the living away from home rate, see Part 9.5.3.4.2 of this manual.

Allowances for Tertiary students (including Apprentices, Trainees and cadets) living away from home

A student is living away from home if they reside away from their family (or primary) home for educational reasons. Refer to the definition of ‘home’ in this manual. There is no waiting period to be eligible for the living away from home rate.

Living away from home rates of education allowance may be paid to a student undertaking an approved full-time tertiary or technical and further education course, where the Commission is satisfied that additional expenses are incurred as a result of the student living away from home and:

1. educational facilities are not readily accessible from the student’s place of residence; or
2. it is a compulsory requirement for the student undertaking an approved course to reside at a hall of residence; or
3. home conditions provide an inadequate study environment. 

Note that if a student is living in a home maintained by a parent or guardian (e.g. the parent or guardian’s name is on the lease, a parent resides in the residence part-time), then this would not generally be considered to be living away from home. The delegate should consult with the Family Policy team when a situation like this arises, to determine whether the at-home or living away from home rate should apply.

Allowances paid under paragraph 3.5.1 of the Instruments shall be payable to the student directly.

9.5.3.4.1 Online courses and the living away from home rate

A student who is required to live away from home because home conditions provide an inadequate study environment may be eligible for the living away from home rate when studying a full-time course online, if they meet the criteria for the living away from home rate. 

Delegates should consider these applications on a case-by-case basis and seek advice from the Policy team if required.

9.5.3.4.2 Overseas study

Allowances are paid at the living away from home rate to a student who has been awarded a place within a formal overseas exchange scheme or who has received a scholarship to study overseas. This benefit is payable for the duration of the approved period of overseas study.

Note that the student must still satisfy all other eligibility criteria for the duration of the approved period of overseas study e.g. must still be undertaking full-time education (which includes apprentices and trainees), and in the case of MRCAETS, must not be engaged in full-time work. This provision is intended to cover those in formal exchange and scholarship programs.

9.5.3.4.3 Effect of marriage or de facto relationships on living away from home rate

If a person is married, they are considered to be living at home as their home with their partner is considered to be their primary home. Likewise, a student who enters a de facto relationship is considered to be living at home once the nature of the relationship has been established.

Students who have married or entered a de facto relationship while on the MRCAETS are no longer eligible for Living Away From Home rate (or Rent Assistance) if they were previously receiving it. This is because it is considered that they have established their own home and are no longer dependent on the previously supporting parent.

If a student is receiving the living away from home rate and he or she marries or declares him or herself to be in a de facto relationship (and meets the definition), then payment is reduced to the living at home rate from the date of notification of the change in their living circumstances.

The student may instead seek assistance under another Commonwealth payment, subject to meeting the relevant eligibility criteria.

The delegate must have confirmed information from the student as to the change in circumstances before making any variation to the education allowance.

9.5.3.4.4 Establishing a de facto relationship

In forming an opinion as to whether two people are living together in a de facto relationship, relevant legislative provisions require a delegate to have regard to all the circumstances of the relationship, including the following factors:

• the financial aspects of the relationship,
• the nature of the household,
• the social aspects of the relationship,
• any sexual relationship between the people, and
• the nature of the people’s commitment to each other.

The order in which the factors are set out does not imply an order of importance and does not place a limit on the factors that may be considered in a particular case.

(1) Financial indicators of a possible de facto relationship

The following list is intended as a guide only and is not an exhaustive list of the possible joint financial arrangements which may be considered:

•  joint ownership of property and major assets,
• joint pooling of finances, shared accounts, credit cards, loans
• acting as guarantor for loans,
• legal obligations owed by one person in respect of the other person,
• shared responsibility for electricity, gas and telephone accounts,
• shared responsibility for everyday household expenses,
• nomination as beneficiaries of wills, trusts, insurance policies, compensation or superannuation,
• claiming a person as a dependent for tax purposes.

(2) the nature of the household

The following list is intended as a guide only and is not an exhaustive list of the possible domestic arrangements which may be taken into account, when assessing the character of a relationship:

• joint responsibility for providing care or support of children, natural, step, fostered or adopted
• the living arrangements of the people, e.g. exclusive use of certain rooms
• the residence regarded as the people’s usual home,
• shared ownership of the home, or contribution towards maintenance costs, renovation or capital expenditure
• arrangements for paying the rent, mortgage and expenses,
• names in which the tenancy has been recorded,
• the basis on which responsibility for housework is distributed.

(3) Social aspects of the relationship

Consideration of the social aspects of a relationship are an important factor in forming an opinion about whether a de facto relationship exists including:

• whether the people hold themselves out as each other’s partner,
• the assessment of family, friends and regular associates of the people about the nature of their relationship,
• whether either or both, of the people are already married to other people and may be reluctant to disclose the status of their current relationship for personal reasons, e.g. impact on children, negative responses by family and friends to the current relationship,
• whether either or both, of the people are widowed and may be sensitive to being perceived negatively by family or friends,
• whether the people chose not to refer to each other as married or de facto for social, religious or cultural reasons.

(4) Sexual relationship

The presence of a sexual relationship does not by itself prove the existence of a de facto relationship; nor does its absence prove one does not exist. Where a sexual relationship exists, consideration is given to whether it is ongoing and exclusive (whether there are ongoing casual relationships with other partners), in addition to the degree of emotional support provided and other forms of interdependence which may exist.

(5) The nature of the people’s emotional commitment to each other

The level of commitment to each other is considered in terms of the emotional attachment between the two people and whether it is qualitatively different to the commitment of either party to anyone else. Factors indicating the two people’s level of dedication to one another include:

• the length of the relationship,
• level of obligation or duty demonstrated to one another and/or each other’s families,
• concern demonstrated for one another’s welfare and level of practical assistance provided in times of need,
• emotional support provided, especially during times of crisis or illness,
• the nature and level of companionship provided and level of disclosure of confidences,
• the level of involvement in one another’s families and friends, level of closeness and familiarity,
• whether the nature of the commitment has changed (and how),
• whether the people consider that the relationship is likely to continue indefinitely,
• whether the people see their relationship as a de facto relationship.

Other indicators of a possible de facto relationship may include:

• nomination of each other as next of kin for employment purposes, accessing rental accommodation, health care, education of children,
• relationship status used for taxation, health, insurance, childcare, welfare or other purposes,
• history of changed addresses together, moving interstate together or living overseas together,
• provision of care for one another’s parents or close relatives.

Registered Relationship

To establish whether a person is a member of a same sex de facto relationship, the same factors are considered as for opposite sex relationships. The one exception to this process is that some Australian jurisdictions now have legislation that enables same sex and opposite sex couples to register their partnership. A person who is in a relationship that has been registered under the Victorian Relationships Act 2008, Tasmanian Relationships Act 2003 or the ACT Civil Partnerships Act 2008 is considered to be the partner of the person they are registered with. Registration of a relationship under one of these laws is conclusive proof (in the same way that marriage is) that two people are partnered or members of a couple*.

* Under relevant legislative provisions, provided that the person is not living separately and apart from the other person on a permanent basis, registration is conclusive proof of partnership.

If a person is in a registered relationship under a local register or an overseas register, this may be taken as evidence to contribute to the establishment of a registered relationship. However, registration in these contexts will not necessarily form conclusive proof of a partnered relationship.

A full time student (or student approved for benefits while undertaking part-time study under MRCAETS) may, once they are at least 15 years old and "independent", be granted Homeless Student status where the Commission is satisfied that the student is not receiving or likely to receive continuous support either direct or indirect, in cash or in kind, from parents or any other person other than as provided for in this Scheme; and

1. there is no family home; or
2. the parents will not allow the student to reside in the family home; or
3. it would be unreasonable to expect the student to live with the parents because of domestic violence, or comparable circumstances.

Where a student is unable to return to the family home, they would be likely to be considered independent. The policy position is that this would require an actual inability to live in the family home, not simply a choice to live independently or in other shared accommodations.  Applications for homeless allowance usually involve circumstances of family dysfunction and often students can provide supporting documentation from a counsellor, local doctor, other health professional, police report etc.

Usually, a written statement and/or documents providing details of circumstances are required to support the application. A statement from a third party, preferably a counsellor/doctor/social worker is also required.

If a student has been granted homeless student status, education allowance is to be paid at the ‘homeless rate’.

The homeless rate is not payable unless the eligibility criteria in legislation are met. If a MRCAETS delegate believes an otherwise eligible student living outside of the parental home does not meet the eligibility criteria for any of the education schemes rates, they should consult with policy on a case-by-case basis. A person does not have to be strictly homeless, per the usual meaning of the word, to be eligible for the homeless rate.

From 1 July 2026, the MRCAETS includes the double orphan rate of education allowance. This mirrors the rate that was available to certain children under the former VCES. 

To be eligible for the rate, a person must be a VEA eligible child undertaking study at the secondary or tertiary who meets the definition of ‘double orphan’ outlined in the instrument. 

A ‘double orphan’ includes: 

• a VEA eligible child who does not have a parent, or 
• a VEA eligible child whose veteran parent is deceased, and they are not being maintained by the surviving parent. 

Situations where the living parent cannot provide care for the child 

The double orphan rate may be payable where the veteran parent is deceased and the other parent is alive but unable to maintain the child, for example due to incapacity or absence. 

The definition of double orphan mirrors the VEA eligibility criteria for the ‘double orphan pension’, however the double orphan rate of education allowance may be granted independently of any pension determination where the delegate considers the person meets the eligibility criteria under the MRCAETS. 

As the double orphan rate may only be granted to a VEA eligible child, a student who is eligible for MRCAETS as an eligible young person cannot receive the double orphan rate.

Students under 16

All MRCAETS payments made to students under 16 years of age are exempt from tax (see s51-10 table item 2.1A of the Income Tax Assessment Act 1997 (ITAA)).

Students over 16 – general tax status 

Payments made to students who are over the age of 16 are considered to be ‘Commonwealth education or training payments’ under s52-145 of the ITAA. The Australian Tax Office considers the Schemes' allowances to be the student's income because the student is the person who derives income from the payments (i.e. regardless of whether the payments are made or otherwise re-directed to a third party, including their parent/s).

Education Allowances paid to students 16 years of age and over are taxable, but supplementary payments are exempt. This exemption refers to all payments other than Education Allowance, such as Special Assistance and Additional Tuition (see s52-140(3) of the ITAA).

Students over 16 – following death acceptance 

Payments made under the MRCAETS are tax-free for students aged 16 and over where they are eligible for the Scheme due to the death of their veteran parent (including deaths accepted under the MRCA and VEA, and VEA double orphans). Where a student aged over 16 is already receiving support under the MRCA and their veteran parent’s death is subsequently accepted, their payments will become tax-free. 

The Student-Start Up and Relocation Scholarships are both non-taxable.

9.5.3.7.1 Tax withholding under MRCAETS

Under MRCAETS, students are not required to provide their TFN, however if they do not provide a TFN then the maximum rate of taxation must be withheld from their education allowance.

DVA is required under tax law to withhold tax deductions from the education allowance provided to students aged 16 years and over and who are not subject to tax-free treatment (see 9.5.3.7) . This includes students eligible for MRCAETS due to the death of their veteran parent.

The total annual education allowance paid under MRCAETS is less than the annual tax-free threshold and so DVA may withhold nil tax where a student requests DVA apply the tax-free threshold to their education allowance.

If the student does not provide their tax file number, then the maximum taxation rate must be withheld.

If the student does provide their tax file number but does not elect to apply the tax-free threshold to their education allowance, then the minimum tax that must be withheld is calculated using the tax rate tables provided by the Australian Taxation Office

* Note: Under s.52-114 of the Income Tax Assessment Act 1997, in particular item 16 of the Table in that section, a payment under the MRCAETS to an eligible young person who is an orphan (see s.258(1)(b) MRCA) is tax-exempt as it is "a payment because of a person's death" under s.258 MRCA (provision under which the MRCAETS is made).

9.5.3.7.2 Tax withholding for non-Australian residents

Under paragraph 2.6.2 of the Instruments, the Commission may approve payment of an education allowance to a student who is living overseas and not on a formal exchange or scholarship program for less than 12 months if it deems there are ‘exceptional circumstances’.

Students approved as having ‘exceptional circumstances’ who are living overseas and are 16 years of age or older will not be considered an Australian resident by the Australian Taxation Office for taxation purposes. Accordingly, these students will be deemed to be ‘foreign residents and so’ will not be entitled to the tax-free threshold. Higher withholding tax rates may also apply to foreign residents receiving an Australian income. Please see the Australian Taxation Office website for more information.

This chapter contains the following sections:

• 9.5.8.3.1 Students Living At Home
• 9.5.8.3.2 Students Living Away From Home
• 9.5.8.3.3 Homeless students
• 9.5.8.3.4 Double orphans
• 9.5.8.3.5 Payments where there is Shared Care of a child/ren

9.5.3.8.1 Students Living At Home

Payments to primary students and secondary students under the age of 16 will be made to the person who is entitled to be paid family tax benefit under A New Tax System (Family Assistance) (Administration) Act 1999 (entitled person) and if there is no entitled person - to a person approved by the Commission to receive the payment on the student’s behalf.

Payment under paragraph 3.3.1 for secondary students aged 16 years and over will be made to the person who is entitled to be paid family tax benefit under A New Tax System (Family Assistance) (Administration) Act 1999 (entitled person), who will then have the option of directing payment to the student or spouse. If there is no entitled person, payment will be made to a person approved by the Commission to receive the payment on the student’s behalf.

Payment may be made directly to tertiary students, apprentices and trainees.

9.5.3.8.2 Students Living Away From Home

Payment of education allowance for primary or secondary students living away from home shall be made to:

1. the person who is entitled to be paid family tax benefit under A New Tax System (Family Assistance) (Administration) Act 1999; or
2. to the institution or person, if any, providing board to the student; or
3. if the payment methods in paragraphs (a) and (b) are inappropriate or non-existent – a person approved by the Commission to receive the payment on behalf of the student.

A person in receipt of education allowance may direct payment of the allowance to the student or to a parent, guardian or trustee of the student.

If only part of the payment is made to the institution or person providing board, the other part shall be paid to the person or, if relevant, to the person to whom they have directed payment. If there is no person for the purposes of subparagraph 3.4.2(a), the part-payment shall be paid to a person approved by the Commission to receive the payment on the student’s behalf.

Payment may be made directly to tertiary students, apprentices and trainees.

9.5.3.8.3 Homeless students

Fortnightly payment of DVA’s education allowance is to be made directly to the student or to an appropriate person if the Commission considers it unlikely that the student would be capable of managing his or her own finances. An ‘appropriate person’ is defined in the MRCAETS legislative instrument.

9.5.3.8.4 Double orphans

Payment of the double orphan rate for students aged under 16 is to be made to the person who is paid a pension on behalf of the student (for example, the double orphan pension under the VEA). If there is no person who receives a pension on behalf of the student, the allowance is to be paid to an appropriate person. An appropriate person includes:

• a guardian or trustee,
• a person approved by a guardian or trustee, or 
• any other person approved by the Commission if there is no person able to act on the student’s behalf. 

For secondary students aged over 16, the allowance is to be paid to an appropriate person who will have the option of directing payment to the student. This recognises that from age 16, eligibility for the double orphan rate of education allowance is mutually exclusive with the double orphan pension, and payments should instead be made to an appropriate person (as defined above). 

Payment of the double orphan rate of education allowance is to be made directly to tertiary students. 

9.5.3.8.5 Payments where there is Shared Care of a child/ren

For separated parents who share the care of their child, relevant benefits should be apportioned according to the tapered methodology adopted by the Department of Human Services for Family Tax Benefits payments, see table below:

Where a shared care arrangement is in place, a successful claim from one parent or guardian of the dependant creates eligibility for the payment of the allowance to both parties according to these percentages

However, as a matter of process, DVA will generally seek a claim form from both parents/guardians in these situations. This ensures Education Allowance payments are being apportioned correctly. This also ensures that DVA is able to communicate with both parties on an ongoing basis and manage other benefit payments under the Schemes.

For the purposes of claim dates, the first Education Allowance claim in respect of a given child is the claim from which all benefits legally flow (including those payable to non-claimant FTB recipients who are eligible for a proportion of Education Allowance for a child).

Where possible, the percentage to be applied in the shared care determination should be:

• The same percentage of care applied by Services Australia, where FTB is claimed for the child; or
• The percentage of care in a written agreement such as a parenting order; or
• Another written agreement, signed by both parties that shows the percentage of care, appropriate to make a determination such as an agreed pattern of care agreement.   

Formal or legally binding agreements (for example, court documents or a written, signed agreement between the parties) will generally take precedence over informal agreements.

Disputed Care arrangements

Where the parents or carers do not agree on the percentages of care, the delegate will determine the care percentage to be applied based on the available evidence of the actual pattern of care. Where such evidence exists, delegates should look at the FTB percentages and any formal, legally binding agreement in the first instance. If delegates have other compelling evidence available showing that the legal agreement is no longer reflected in reality, they should discuss with Family Policy section before making any decision which is not aligned to either the FTB percentages or a legally binding agreement. 

If no evidence is available, delegates should work with parents to obtain sufficient evidence to make a determination as to the percentages of Education Allowance payable to each party. 

Shared care arrangements when one parent is not known to the Department

In shared care arrangements where one party is not known to the Department, their entitlement to a percentage of the Education Allowance, in line with the above table, remains.

Delegates should attempt to establish the identity and contact details of the parent or other carer who is not currently known to DVA, in order to pay their Education Allowance entitlement portion.

Even where reasonable efforts to establish the identity of the second parent or carer are unsuccessful, that person’s entitlement to a percentage of the Education Allowance remains. For this reason, delegates are unable to pay the remainder of the entitlement to the known parent in these situations.

Known parents/guardians can be reminded that it is in the best interests of the child to let DVA know the contact details of the other parent or carer who has an entitlement to a percentage of Education Allowance, but they cannot be compelled to do so.

Because the date of effect for the unknown parent’s entitlement to a percentage of the Education Allowance commences on the date the known parent made the initial claim, backdating and the payment of arrears may be considered in the event the unknown parent or carer becomes known to DVA

FTB conversion

Where the parents of a child are separated, it may be that one parent wishes to receive a share of FTB (according to their FTB shared care percentage) from Services Australia, while the child’s other parent wishes to receive an amount of MRCAETS payment that corresponds with their shared care percentage from DVA.

There is no bar in policy from either DVA or the Department of Social Services/Services Australia from this occurring.  The relevant family assistance law (s22A of the A New Tax System (Family Assistance) Act 1999) precludes an individual from receiving both payments at once. As the explanatory memorandum confirms, this is to prevent an individual receiving both payments at the same time and is not intended to preclude one member of a shared care separated couple from choosing to make a different choice than their ex-partner.

Therefore, in cases where parents are separated, share care of a child, and one parent wishes to surrender MRCAETS and continue receiving their percentage of FTB, but the other parent wishes to surrender FTB and continue receiving their percentage of MRCAETS, no individual is receiving both payments at the same time, so the notion of “double-dipping” does not apply and the intent of the law is served.

A student may be eligible for payment of benefits under the MRCAETS with effect from either:

1. the date of commencement of the first formal year of primary schooling; or
2. the first payday in January of the calendar year in which the claim is made for an eligible child; or
3. the first payday after the student meets the eligibility requirements of the Scheme,

whichever date is the later, providing that on that date, the student has not yet attained 25 years of age and is not receiving a financial benefit from the Commonwealth in the nature of educational assistance or income support

Students who are 16 or older at the time of claim or were previously receiving a DVA education allowance and who transferred to FTB when they turned 16 have ongoing eligibility under DVA’s education schemes. For these students who wish to return to the MRCAETS for their tertiary studies, following a Services Australia clearance, payments will commence from the first payday in January in accordance with the MRCAETS Instrument.

For students who were receiving FTB and wish to apply for a DVA education allowance (but have not previously applied for or been receiving a DVA education allowance) for their tertiary studies, payments will commence from the date the student actually commences their tertiary studies but can then be back dated from the first payday in January, provided the student meets all other eligibility criteria from 1 January. This is because the eligibility requirements for payment under the Instrument are not satisfied until the student commences study. However, once the eligibility requirements under of the Instrument are satisfied, payment can be backdated from 1 January. 

Delegates must also make a new decision on who receives the education allowance.

9.5.4.3.1 Date of effect rules

The date of commencement of assistance is calculated as the later of:

• the first payday after the student meets the eligibility requirements of the MRCAETS; and
• to the first payday in January of the calendar year in which the claim is made for an eligible child.

The date of commencement of assistance can never be earlier than the first payday of the current year in which an application is made. However, it can be later where the student became eligible during the year where the application was made. depending on the date of effect of the grant of pension, acceptance of death etc, and when the child commenced full-time education. 

For example, where a claim for a student is dependent on the veteran parent's claim for a compensation payment (such as the Special Rate Disability Pension), and the claim is delayed due to administrative delays/appeals for the claim, the student's claim may still only be backdated to the current year the decision for the payment was granted, and not to the date of effect of the grant of the pension, should it be earlier.

The date of commencement of payment must be included in the decision letter with the reasons for the decision. 

9.5.4.3.2 Date of Effect Rules – Continuing students

For continuing students in primary, secondary and tertiary education, education allowance may be paid continually beyond the last payday in December (or over the relevant holiday period) where it is clear that the student will continue full time studies in the next academic year.

A student's education allowance can only be cancelled where they have failed to provide proof of continuing study within a reasonable timeframe, following a written request for information from the delegate. Students who do not provide confirmation of enrolment no longer meet the eligibility requirements of the Scheme. A formal decision must be issued if payments are cancelled.

If a student's education allowance has been cancelled as they are no longer eligible under Part 2 of the Instruments, and evidence of ongoing study is later provided, the claim is treated as a new claim, and a new claim form is required. Education allowance may then be reinstated in accordance with the commencement of assistance rules outlined in paragraph 2.4 of the Instruments, being the later of: 

• the first payday after the student meets the eligibility requirements of the Schemes; and
• the first payday in January of the calendar year in which the claim is made. 

A formal decision must be issued if payments are commenced.

9.5.4.3.3 Date of Effect Rules – change in circumstances

The following date of effect rules for MRCAETS apply for recipients who notify the Department of a change of event:

• Advance Notification
  •  Variation effective from the payday after event.
•  Notification within 14 days (28 days if living in a remote area or overseas) of event
  •  Increase effective from the payday after event.
  •  Decrease/cancellation/suspension effective from the payday after receipt of notification.
•  Notification outside 14-day (28 day if living in a remote area or overseas) notification period -
  • Increase effective from the payday after receipt of notification.
  • Decrease/cancellation/suspension effective from payday after event.
•  Administrative delay –
  •  If an administrative delay occurs in processing the variation, the above rules apply and where applicable an overpayment raised. Consideration is to be given to a waiver under section 429 of the MRCA, upon request by the student or on the recommendation of the delegate raising the overpayment.

9.5.4.3.4 Date of Effect Rules – student reapplying for benefits after a break in study

A student may reapply for benefits after a break in study. This should be treated as a new claim for assistance, with a new claim form required. For the purposes of determining such claims, the date of commencement is calculated in accordance with paragraph 2.4 of the Instruments, being the later of: 

•  the first payday after the student meets the eligibility requirements of the Schemes; or 
• the first payday in January of the calendar year in which the claim is made. 

A student reapplying after a break in study may have been accepted into a course of study some months prior to commencing full-time education. To ensure consistency in processing claims for students reapplying for benefits, a student is considered to be "undertaking" full-time study from the date they recommence their studies. The date they commence study is the date when the student meets the eligibility requirements for payment under subparagraph 2.4.1(c) of the Instruments. 

The date that payment will recommence and reasons for the date must be included in the decision letter.

9.5.4.3.5 Date of Effect Rules – Students eligible on medical grounds

In the case of students eligible on medical grounds per part 2.10.2 of the instruments, the date of effect of eligibility is from the first pension payday following the date of lodgement of the application for assistance.

Where a primary or secondary student ceases to participate in the normal activities of a course for more than fifteen days in any year without reasonable cause, a delegate may review the student’s eligibility for continuing benefits under the Scheme and may suspend the payment of allowances.

If a delegate is satisfied that the student’s absence is due to sickness or reasons beyond the student’s control, the absences may be disregarded. A decision to disregard absences is not a formal decision with appeal rights, however the delegate should record the decision appropriately and advise the student. 

Where a delegate is satisfied that the absences are without reasonable cause and the student’s progress has been affected, a delegate may determine that the education allowance and/or other benefits will be suspended under the MRCAETS Instrument.

If a student resumes satisfactory progress, a delegate may determine suspended benefits are restored. If benefits are restored, then regular payments may resume but there will not be any back pay for the period of lost entitlement.  A decision to restore payment must be made.

The following decisions are a formal decision point which must be made by a delegate with appropriate authority:

• who receives payment under part 3 of the Instrument (including any change in who receives payment) 
• the rate of education allowance under part 3 of the Instrument (including any change in the rate of payment) 
• ceasing payment due to unsatisfactory progress under paragraph 2.5.2 of the Instrument 
• reinstating payment under paragraph 2.5.3 of the instrument where a student has resumed satisfactory progress. 

If a delegate decides to vary the rate of education allowance under part 3 of the Instruments, then the delegate must also make a new decision on who receives the payment under part 3 of the Instrument. 

Letters sent to secondary and tertiary students advising them their education allowance is to be ceased include a statement advising the student that they are no longer eligible for payments under the MRCAETS and advising the student to contact Services Australia about benefits (such as JobSeeker payment and Youth Allowance) if they require further financial assistance. 

Where a primary or secondary student’s progress is deemed unsatisfactory, a delegate may determine the student cease receiving benefits under the Scheme. 

Where a tertiary student aged 16 years or over would have failed to satisfy the progress rules in Part 2.11A of the Social Security Act 1991 (SSA) (if Part 2.11A had applied to the student), a delegate may determine that the student cease to receive benefits under the Scheme. The progress rules are outlined in section 569H of the SSA. A decision to cease payment must be. 

Benefits may be restored if the student resumes satisfactory progress, allowing regular payments to recommence. However, the student loses their entitlement to payments for the duration of the suspension, and no back pay is provided for this period. A decision to restore payments must be made.

 Education allowance for a student in tertiary education is to be paid to the student directly in accordance with the MRCAETS instrument. There is no requirement for a student to complete a new claim form or provide updated documents once they turn 18 or when they transition to tertiary education. Where a determination has been made that a student is eligible to receive an education allowance, that allowance should continue to be paid as long as the student remains eligible under the scheme.

The rate of payment applicable to a student may change if their living situation changes as outlined in section 9.5.3 of this handbook. The delegate must also make a new decision regarding who should receive the allowance, in accordance with this section. 

The decision that a different rate applies and who will receive the payment must be made in accordance with section 9.5.4 of this handbook.

For MRCA overpayments, please refer to Section 11.3.1 of the Military Compensation Manuals and Resources Library (MRCA Overpayment Policy). 

The Repatriation Commission (RC) may arrange for a student to be given, or directed to, guidance and counselling for matters affecting that student’s continuing progress in a course of study.

Guidance may include the provision of advice to students regarding their educational progress, planning of their studies, career directions, and other education related matters. 

Counselling is only provided by a qualified professional and may be related to either educational or personal matters affecting the student.

Guidance and counselling of beneficiaries of the Schemes and their families shall be:

(a) in the case of a student under 18 years of age — at the request of:

• the student; or
• the student’s parent, guardian or trustee; or
• the principal of the school, college or institution at which the student is enrolled.

(b) in any other case, at the request of the student

(c) in all cases at the discretion of the RC.

Where the Commission has approved payment to a student of a ‘living away from home’ rate of education allowance, it may accept financial liability for a fare (or part thereof) paid, or to be paid, by the student for a journey between the student’s home and place of study in Australia. Fares allowance is not payable when a student studies overseas.

In making a decision in respect of whether to accept liability for a fare, the Commission is to take into account Part 2.26 of the Social Security Act 1991. Part 2.26 sets out the circumstances under which fares allowance is payable and the level of fares allowance payable in certain circumstances. This Part also provides direction on fares allowance for students studying an external or correspondence course.

Students are entitled to the reimbursement of up to 2 single and 1 return trip per academic year (or equivalent). The intention is to reimburse the cost of travel from the student’s permanent or family home to the study institution in Australia at the beginning of the year, return travel at the completion of study for the year and one return trip during the academic year. Fares allowance is only payable for travel within Australia and the student’s permanent home must also be in Australia.

Reimbursement is at the cheapest rate of public transport that is reasonable and using a reasonable route and it is payable upon receipt of expenditure (copy of receipt, bus/ train ticket, etc). Where it is not practicable for the person to use public transport, private transport may be used and reimbursement is based on size of car/ number of kilometres travelled, calculated by formula under Part 2.26 (Fares Allowance) of the Social Security Act 1991.

DVA policy provides that air travel may be paid where the travel time (including waiting time between connections) exceeds 36 hours by train or 18 hours by coach. A higher rate may also be paid if the student is unable by illness or incapacity to travel by the cheaper means.

The MRCAETS Instrument provides the Repatriation Commission with the power to grant additional tuition funding to students where there is a discrepancy between the student’s intellectual potential and their actual academic achievements.

Requests for additional tuition 

The discrepancy must be established by the relevant education authority. The relevant education authority is the school, university or other education institution where the student is currently undertaking study. A request for additional tuition must be accompanied by an appropriate assessment from the education authority establishing the value of the proposed tuition. In most instances, the student’s lecturer, teacher, special education coordinator, or school deputy principal will provide the information requested in the form.

Additional tuition is intended to provide short-term assistance to students who are struggling in their studies where their usual performance has been hindered by circumstances beyond their control. For example, additional tuition may be provided to students who have been absent from school for long period due to illness, who have transferred schools and are struggling to maintain their previous academic achievements, or who have experienced a loss of a parent or family member and this loss has impacted their studies. In such cases additional tuition can assist the student to make sure that these circumstances do not permanently disadvantage their education.

Additional tuition is not intended to aid students who have achieved lesser results due to a lack of effort or to enable students to produce a higher level of result than would normally be expected. Additional tuition is also not intended to assist students who have never shown a particular aptitude in a subject to improve their results in that subject.

What is "tuition"?

"Tuition" is not defined in the Instruments, however ordinarily tuition refers to instruction or teaching, and in this context implies providing extra instructional support to address a specific educational discrepancy. A lesson plan, for example, may be part of an instructional process but the term tuition implies direct guidance, teaching, and interaction between a tutor/educator and the student. A comprehensive response to additional tuition should involve personalised and targeted instruction to bridge the gap between a student's intellectual potential and their actual academic achievement.

Approving requests

Before approving funding, the education authority must confirm that appropriate remedial teaching facilities have been utilised by the student (through the institution or another source), or that such facilities have not achieved the desired result. Additional tuition funding is intended to be utilised in addition to assistance available through the institution, not instead of that assistance.

In cases where students have identified learning difficulties which may be of longer-term duration, additional tuition can be provided where it is shown that academic improvements can be made. In such cases, a professional assessment may be required to establish the student’s intellectual potential and determine what assistance can be provided or adapted to best target their learning difficulties. It is recommended that students with long-term learning difficulties be monitored by the Schemes staff to establish if any other education-based assistance can be offered to the student.

Reviewing progress reports

Tutors are required to provide a brief report on the work covered by the student and an assessment of the student's progress during the tuition period. The reports should outline the student's progress, actions taken to address any identified issues and the effectiveness of the tuition. Where a provider is unable to demonstrate how their support was of value to the student, such support would not be covered by additional tuition. 

Arranging payment

Commission does not arrange the additional tuition but can allocate funding for that tuition. Tutors are located and engaged by the student, their parent, guardian, or the school. Parents are required to ensure that any tutor who invoices DVA for tutoring provided to a student receiving the Schemes’ benefits, MUST have a valid working with children check.

Tutors may invoice directly for payment. However, they are also required to submit the MRCAETS Claim for payment which includes the parent’s/guardian’s signature confirming that the service has been received. 

Continued assistance 

Additional tuition is granted for a prescribed period as determined by the Education Scheme Secretary. If the student is applying for additional tuition for subsequent periods, the appropriate assessment form must outline the continuing need for such assistance. Requests for continuing additional tuition must be accompanied by a report from the tutor outlining the work covered, progress made by the student, and the value in continuing tuition.

Maximum amount payable

Note: Annual rates of Additional Tuition (and Special Assistance) payable under the Schemes are provided in Commission Decision (CM7346) ratified at the meeting held on 3 November 2017.

Effective from 1 January 2018, the maximum annual amount payable in relation to Additional Tuition is $3,500.

The responsible Executive Level 1 may approve a further $2,000 per annum of Additional Tuition per student where required.

Any application for Additional Tuition funding that exceeds the above limits must be approved by the Commissions.

Shared care situations

The maximum amount of Additional Tuition funding is payable per child. Where parents or carers have shared care of that child, Additional Tuition claims can be made by either parent or carer, and claims can be actioned up to that combined limit from either parent, regardless of their percentage of care.

Additional Tuition claims from any person eligible to make such a claim on behalf of a child are actioned on a first come first, first serve basis. Importantly, the claimants must show that the criteria for the Additional Tuition payment is met on every occasion.

Where the Repatriation Commission considers that exceptional circumstances, beyond the control of the student, have hindered or will hinder a student’s progress:

…   (b)  the Commission may approve payment of Special Assistance in respect of that student.

Where the Commission considers that exceptional circumstances, beyond the control of the student, have hindered or will hinder a student’s educational progress, the Commission may approve payment of Special Assistance.

For "exceptional circumstances" to exist there must be external factors that impact on a student’s educational progress.

Importantly, this requires that both:

1. “exceptional circumstances” exist, and
2. that a hindrance to the student’s educational progress exists, or will exist, as a result of these exceptional circumstances.

Exceptional circumstances exist

For the purposes of the Schemes, what is an “exceptional circumstance” must be understood in the context of each individual case.

Generally, “exceptional circumstances” means hardship. Some examples of hardships encountered by families would include, but not be limited to, disability, learning difficulties, effects of natural disasters, disruptions or breakdowns to the family unit, or unexpected interstate moves. Hardships can be temporary or longer-term, but must, at the time of application, be impacting the student.

The onus is on the family to demonstrate exceptional circumstances exist. However, delegates should look at a family’s situation holistically and with empathy to help determine whether a hardship is affecting the family. Many families receiving support through the Schemes are single income families, and even minor changes to their situation may be a hardship in their context.

One of the most common “exceptional circumstances” claimed is financial hardship. This can be an exceptional circumstance if the family can provide evidence that to pay for the claimed expense was, or would be, a hardship to them. This requires supporting evidence beyond a statement from the parent that the family is in financial hardship.

As a result of these circumstances, the student’s educational progress has been, or will be, hindered

Once a delegate has established that exceptional circumstances are affecting the family, the next question becomes whether these circumstances have hindered or will hinder the student’s educational progress.

The onus is on the family to demonstrate that this hindrance either has occurred or is more likely than not to occur without the removal of the hardship discussed above. This could be through school reports but could also been shown through evidence from teachers or other educational professionals.

The test delegates should then apply is whether it is reasonable to say that what is claimed by the family would remove, or help to remove, a hindrance to the educational progress of the child.

If the answer is yes, then Special Assistance should be paid. This does not mean that what is claimed by the family must remove the hindrance completely. It is enough that the claimed intervention is working to offset, at least in part, the hindrance to the student’s educational progress.

In all cases, the need for the claimed intervention must be supported by evidence from a suitably qualified professional. Applications for this benefit should include full details of the circumstances necessitating a grant of Special Assistance. 

Some common examples of where Special Assistance could be provided include (but are not limited to):

•  speech therapy classes,
• cognitive assessments, such as for Attention Deficit Hyperactivity Disorder,
• educational psychological assessments, and
•  assistive technology devices or software.

Other useful examples

Assistance towards the cost of extra-curricular activities is generally precluded, unless the parent or student can show a direct link with supporting evidence between the student’s ability to undertake the extra-curricular activity and the student’s educational progress. For example, where a student’s extra-curricular activity is medically recognised as removing or substantially lessening a barrier (e.g. anxiety) to educational success.

Extra-curricular activities that allow a student to make progress in a field that is not related to their studies in school or a tertiary institution (for example, a student who wants to undertake an extra-curricular singing class because they have aspirations to be a singer), would not be covered as they do not relate to the student’s academic potential.

Expected, regular costs such as the cost of school fees, uniforms or general school supplies is generally precluded as this is provided for in the payment of education allowance. However, it would be appropriate to pay for these expenses where they are incurred unexpectedly.  For example, where the child has had to relocate with a parent following a breakdown in the parent’s marriage.

That the parents wish to have their child attend a private school but cannot afford private school fees is not an exceptional circumstance.

School camps may be compensable under Special Assistance if the camp is tied to a learning outcome. For example, a trip to Canberra with links to the curriculum would be potentially compensable.

Laptop computers have become an educational necessity for most students above a certain age. Where there is a school requirement that a student have a laptop, and a laptop is not provided by the school, then laptops can be funded under Special Assistance, should other tests be met. 

Declining applications

If an application is declined, the applicant must be notified, in writing, of the reasons for the decision and informed of their right of review.

Maximum amount payable

Note: Annual rates of Special Assistance (and Additional Tuition) payable under the MRCAETS are provided in Commission Decision (CM7346) ratified at the meeting held on 3 November 2017.

Effective from 1 January 2018, the maximum annual amount payable in relation to Special Assistance is $3,000.

The responsible Executive Level 1 or above may approve a further $2,000 per annum of Special Assistance per student where required.

If an application for Special Assistance is received that exceeds the above limits, a submission can be made to the Commissions requesting their decision.

Shared care situations

The maximum amount of Special Assistance funding is payable per child. Where parents have shared care of that child, Special Assistance claims can be made by either parent, and claims can be actioned up to that combined limit from either parent, regardless of their percentage of care.

Special Assistance claims from any person eligible to make such a claim on behalf of a child are actioned on a first come, first serve basis and claimants should wherever possible seek preapproval prior to making the purchase. Importantly, the claimants must show that the criteria for the Special Assistance payment is met on every occasion.

Students receiving a fortnightly education allowance under MRCAETS for secondary or tertiary education may also be eligible for energy payments. 　

The Energy Supplement (ES) is part of the Household Assistance Package, which provides financial assistance to members of the veteran and defence community to help meet the cost-of-living impact of the carbon price. The ES (previously the Clean Energy Supplement) commenced for recipients of fortnightly MRCAETS payments on 1 January 2014.

Payment is administered through Services Australia.

The Income Support Bonus (ISB) is paid to eligible students every six months to assist with cost of living pressures. To be eligible to receive the ISB, a person must be: 

•  receiving an education allowance under the MRCAETS on 20 March and/or 20 September (test dates), and 
• in secondary or tertiary education and aged: 
  • 16 years or older, or 
  •  under 16 and receiving an education allowance at the double orphan, homeless, or living away from home rate. 

A person does not need to claim the ISB. It is automatically paid to the person (or persons) receiving the education allowance. If a shared care arrangement exists for the payment of the education allowance, those proportions will be applied to the ISB. 

Amount and taxation 

The current ISB amount can be found in the payment rates chart. The ISB is tax-free, not subject to a means test and is not included as income for income test purposes. 

FTB is a two-part payment that helps with the cost of raising children and is a payment made by the Department of Human Services to a family for general costs, not specifically to help with education costs. Family Tax Benefit (FTB) payments are non-taxable and there is no capacity to make FTB payments to the child. The broader scope of FTB means that the benefits derived from it extend to the whole family - not only to the students in the family. This should be taken into consideration when families with secondary school students aged 16-17 are deciding whether to receive FTB or an education allowance under the Education Schemes, as some families may be financially better off to remain on FTB until the child finishes secondary schooling. Both DVA and Services Australia can assist the family in deciding which payment is more financially beneficial.

If a family chooses to receive FTB payments, the child is still eligible for guidance, counselling, special assistance and additional tuition under the Education Scheme. 

Special Case – separated parents

Where the parents of a child are separated, it may be that one parent wishes to receive a share of FTB (according to their FTB shared care percentage) from Services Australia, while the child’s other parent wishes to receive an amount of MRCAETS payment that corresponds with their shared care percentage from DVA.

There is no bar in policy from either DVA or the Department of Social Services/Services Australia from this occurring.  The relevant family assistance law (s22A of the A New Tax System (Family Assistance) Act 1999) precludes an individual from receiving both payments at once. As the explanatory memorandum confirms, this is to prevent an individual receiving both payments at the same time and is not intended to preclude one member of a shared care separated couple from choosing to make a different choice than their ex-partner.

Therefore, in cases where parents are separated, share care of a child, and one parent wishes to surrender MRCAETS and continue receiving their percentage of FTB, but the other parent wishes to surrender FTB and continue receiving their percentage of MRCAETS, no individual is receiving both payments at the same time, so the notion of “double-dipping” does not apply and the intent of the law is served.

MRCAETS is a Prescribed Educational Scheme (PES) under the Social Security Act 1991.

A child under 16 years of age who is in receipt of payments under a PES is not precluded from payment of FTB Part A (or Part B if applicable).

A child between 16 and 24 years of age who is in receipt of payments under a PES is precluded from payment of FTB Part A (or Part B if applicable).

MRCAETS students may access:

• Student Start‑up Scholarship
• Relocation Scholarship

These are paid through Services Australia and governed by separate legislative instruments.

The Relocation Scholarship is intended to assist students with the costs of establishing accommodation in their new place of study.

A student does not need to make a claim to receive the Scholarship. The Repatriation Commission may grant a Scholarship to a student where they are satisfied that:

1. the student is receiving tertiary education allowance at the living away from home, homeless or double orphan rate;
2. the student is undertaking an approved scholarship course;
3. the student intends to start or continue their course of study within the 35-day cut-off period; and
4. the student is not likely to receive the Commonwealth Accommodation Scholarship (CAS) in the period of 12 months starting immediately after the qualification time.

A student is not eligible to receive a Relocation Scholarship if, in the 12 months ending immediately before the student’s qualification time:

1. the student already qualified to receive a Relocation Scholarship payment; or
2. the student qualified to receive a Relocation Scholarship payment under ABSTUDY or Part 2.11B of the SSA; or
3. the student already qualified to receive a Relocation Scholarship payment under MRCAETS (for VCES students); or
4. the student has received the amount or value of a Commonwealth Accommodation Scholarship (CAS) or the person was entitled to the amount or value of such a scholarship but has not received the full entitlement only because the scholarship was suspended.

The Repatriation Commission has the discretion to determine a period in relation to a student that is between 3 and 12 months in which the student may be paid the Scholarship if this would enable payment to be made on or near the day 1 January in a year. 

This is consistent with the intention of the Scholarships to provide financial support to students who move locations to undertake study. The Repatriation Commission must not make a determination, in this regard if it results in a student being paid more than 2 Student Relocation Scholarship payments in a period of 2 successive calendar years.

Two Student Start-up Scholarship payments may be made in a calendar year. Each payment is for a 6-month period.

The Relocation Scholarship is paid once a year at one of the following three rates:

• an initial scholarship amount, payable once only;
• an intermediate rate paid for two years only; and
• an ongoing scholarship amount. 

Both scholarships are non-taxable and are indexed annually.

When a person becomes eligible for the Relocation Scholarship for the first time, the higher amount will generally be payable to that person. However, the higher amount cannot be paid if either:

1. the person has previously received a student relocation payment; or
2. more than 6 months prior to the person becoming eligible for the relocation scholarship and in any previous calendar year the person did an approved scholarship course while at the same time receiving; the homeless or living away from home allowance for a tertiary student

Effectively, this means that a person will only ever receive the higher amount of the Relocation Scholarship once (hence it is known as the ‘initial’ amount). The higher amount is intended to assist with the initial costs of relocating in order to study.

These provisions also mean that students who, more than 6 months prior to qualifying for the payment were receiving the living away from home, homeless or orphan allowance for a tertiary student while undertaking an approved scholarship course, will be ineligible for the higher amount. 

A student who is not eligible for the initial amount of the relocation scholarship will be eligible for the intermediate rate in the following circumstances:

In up to 2 prior calendar years the person was:

1. undertaking an approved scholarship course; and
2. at the same time, either:
   • was receiving a living away from home, homeless or double orphan tertiary education allowance; or
   • received a student relocation payment.

Note: the prior years do not have to have occurred immediately before the current year, and the 2 prior years do not themselves need to be consecutive.

A person who meets the criteria in (a) and (b) above in relation to 3 or more prior years is only entitled to the on-going rate of the relocation scholarship.

If a person is qualified for the relocation scholarship but does not meet the criteria for the initial or the intermediate rate, they are to be paid the ongoing rate.

Generally, payment of the Student Start-up and Relocation Scholarships will be made in February each year depending on when the study commenced. The second six monthly Student Start-up Scholarship will be made in July each year.

Student Start-up Scholarships are normally indexed annually on 1 January by CPI. 

Relocation Scholarships are indexed annually on 1 January by CPI.

Students may be eligible to receive the Student Start-up and/or Relocation Scholarships if they are undertaking an approved scholarship course. An approved scholarship course is an accredited higher education course or a preparatory course undertaken at a higher education institution. Accredited higher education courses and institutions are accredited by the relevant authorities in a State or Territory. These include Universities and select other education institutions and courses (e.g. some courses offered by TAFE and CIT).

A student studying overseas that is accredited to their Australian course of study are still eligible for the scholarships.

Students undertaking a preparatory course (a course offered by a higher education institution aimed to assist people to gain entry to higher education level courses, including enabling and bridging courses) may also be eligible to receive these scholarships. The links in the Course Coverage section should assist in determining which institutions are accredited higher education institutions for the purposes of the schemes and which courses will meet the relevant criteria for the scholarships

If a student receives the Student Start-up and/or Relocation Scholarship payments because they are proposing to undertake an approved scholarship course and does not start to undertake such a course, then an overpayment for the Scholarship/s is raised against the student.

Changing from one approved scholarship course to another does not trigger an overpayment. It is only if the student, having received the payment, does not start studying any approved scholarship course, that an overpayment should be raised.

For example, a student might have enrolled to study course A, then before the course commences changes their enrolment to course B. Provided course B is an approved scholarship course there is no overpayment.

The debt is taken to have arisen when the student received the payment. Commission has the discretion to waive this debt if the student did not commence an approved scholarship course due to exceptional circumstances beyond the student’s control.

An overpayment for the Scholarship/s is raised against the student in the following circumstances:

• a student receives the Student Start-up and/or Relocation Scholarship payments because they are proposing to undertake an approved scholarship course; and
• 35 days after the course commenced or 35 days after they qualified for the payment (if that occurred later) they are not undertaking an approved scholarship course. *

Changing from one approved scholarship course to another does not trigger an overpayment. It is only if the student, having received the payment and started an approved scholarship course, does not continue studying an approved scholarship course, that an overpayment should be raised.

For example, a student might start studying course A, then two weeks into the course changes to course B. Provided course B is an approved scholarship course there is no overpayment.

The debt is taken to have arisen when the student received the payment. Commission has the discretion to waive this debt if the student is not undertaking the course as mentioned above due to exceptional circumstances beyond the student’s control (see paragraph 7.3.10 of the MRCAETS Instrument).

*The intention of this part of the legislative instruments is not to penalise those that have completed their course requirements; that is, due to delivery method or course structure, a person has completed course requirements in under 35 days. This may arise given Higher Education courses have a range of structures, delivery methods and durations.

Any funds bequeathed in trust to the MRCAETS for the benefit of eligible students shall be deemed to have been bequeathed in trust to the Repatriation Commission (RC).

The RC may, from time to time, determine that funds left in its trust for the benefit of eligible students shall be administered by the RC.

Any bequest accepted either prior to or after the commencement of this Scheme, shall be administered within the terms of the bequest as varied from time to time by the Commission.

The Repatriation Commission (RC) may create scholarships from trust funds to be administered as required. The duration and value of these scholarships are at the discretion of the Commission. 

A person must be an eligible child who is or has been an eligible student assisted under the Scheme in order to qualify for the grant of a scholarship.

A scholarship may be awarded in a course not otherwise approved for the purpose of this Scheme.

Under the MRCAETS, the Repatriation Commission may create a bursary in order to assist a student with their tertiary education, known as the Long Tan Bursary. The Commission may determine the duration and value of the bursary and the number of bursaries to be granted in any calendar year. 

The Commission may only award a bursary to a VEA eligible child who is in the Long Tan Class of Person or a VEA eligible grandchild. Eligibility for a bursary is established through eligibility determinations made under section 257B of the MRCA. 

The below eligibility determinations were made under sections 116A and 116CA of the VEA respectively, and continue in effect under the MRCA by the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004: 

• Veterans' Entitlements (Veterans' Children Education Scheme) Eligible Persons Determination 2017 (children)
•  Veterans' Entitlements (Veterans' Children Education Scheme - Long Tan Bursary) Determination 2018 (grandchildren)

Generally, to be eligible to apply for a bursary a student must either be the child or grandchild of a Vietnam veteran who is making the transition to tertiary study, academically able to complete an undergraduate degree (or similar tertiary course), and whose family circumstances are such that the person may require additional financial assistance. 

In deciding whether to award a Long Tan Bursary to an eligible child, the Commission must take into account any matters the Commission thinks is relevant. This will generally include consideration of the matters outlined in the Long Tan Bursary Operational Guidelines. 

The Commission may award a bursary subject to the conditions in the document offering the bursary to the person and suspend or terminate a bursary if the person fails to comply with a condition. 

The Commission may contract with another person to administer the Long Tan Bursary and delegate its administrative powers. The Administrator may undertake the functions outlined in 8.5.1.1 of the MRCAETS instrument, which includes the power to: 

• accept and assess an application for the bursary, 
• award or refuse to award the bursary to an applicant, 
• impose conditions on a bursary, 
• monitor and report on a recipient of the bursary, 
• suspend or terminate a bursary.