C09/2007 Dates of Effect for the Veterans' Children Education Scheme (VCES) and Military Rehabilitation and Compensation Education and Training Scheme (MRCAETS)

Purpose

The purpose of this Departmental Instruction (DI) is to alert staff to the date of effect rules for VCES and MRCAETS payments where:

• a student's change in circumstances results in a variation to the amount payable; and/or
• a student reapplies for benefits after a break in their studies.

Background

Under paragraph 2.4 of the VCES and MRCAETS, the date of commencement of assistance is the later of:

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.

Both the VCES and MRCAETS stipulate that education allowances are payable fortnightly in advance.

The claim form for assistance under these schemes outlines the obligation to advise the Department of a change in a student's circumstances and payment recipients are advised in writing of these obligations on the granting of an allowance.  The notification period to advise the Department of a change in circumstance is 14 days or 28 days if living in a remote area or overseas.  The authority for these written notices are contained in section 127 of the Veterans' Entitlements Act 1986 and section 405 of the Military Rehabilitation and Compensation Act 2004.

Date of Effect Rules for the VCES and MRCAETS – change in circumstances

Although not previously articulated, the policy outlined below is in accordance with current practices and reflects a beneficial application of the date of effect rules for recipients who notify the Department of a change of event within the notification period.

The following date of effect rules for VCES and MRCAETS apply:

• Advance Notification
  •                                                      Variation effective from the payday after event.
• Notification within 14 (28) days of event
  •                                                      Increase effective from the payday after event.
  •                                                      Decrease/cancellation/suspension effective from the payday after receipt of notification.
• Notification outside 14 (28) day 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 205 of the Veterans' Entitlements Act 1986 in line with Chapter 2.8 of the Overpayment Management Manual or under section 429 of the Military Rehabilitation and Compensation Act 2004, upon request by the student or on the recommendation of the delegate raising the overpayment.

Date of Effect Rules - student reapplying for benefits after a break in study.

Circumstances may arise where a student reapplies for VCES or MRCAETS benefits after a break in study.  Legal Services Group has advised that for the purposes of determining such claims:

• the date of commencement of assistance is to be calculated in accordance with para 2.4.1(c) of the Scheme, i.e. the first payday after the student meets the eligibility requirements of the Scheme; and
• para 2.4.1(b) of the Scheme, which backdates payments to the first payday in January of the calendar year in which the claim is made for an eligible child, is to be disregarded.

To meet the eligibility requirements of the VCES and MRCAETS a student must be an eligible child who is under 25 years of age, undertaking full-time study and not in receipt of any other Commonwealth education assistance or income support.  Further, MRCAETS students must not be ordinarily engaged in full-time employment on his or her own behalf.  A student is not eligible for assistance under the Scheme until all criteria are met.

The term “undertaking” is not defined in the Scheme.  Current practices and procedures have led to inconsistencies in determining the date of effect in such cases with some States backdating payments to the first payday in January of the academic year (para 2.4.1(b)), whilst other States commence payments from the day the student recommences study (para 2.4.1(c)).

It is possible that a student reapplying after a break in study may have been accepted into a course of study some months prior to actually commencing.

Therefore, to ensure consistency in determining claims for students reapplying for benefits, the term “undertaking” is taken to mean the date on which the student actually recommences study.

The date of effect rules for a student reapplying for benefits after a break in study are as follows:

• claim to be determined in accordance with para 2.4.1(c) of the VCES and MRCAETS; and
• payment of benefits is to commence from the first payday after an eligible student recommences study.

This rule does not apply to continuing students.  For continuing students in primary, secondary or tertiary education, education allowance may be paid continually beyond the last payday in December where it is clear that the student will continue full time studies in the next academic year.

Contact officer

Any questions regarding this DI should be directed to Denise Mallinson, VCES Adviser on extension 16313.