B02/1995 VETERANS' CHILDREN EDUCATION SCHEME- RENT ASSISTANCE PAID/PAYABLE TO RECIPIENTS OF THE HOMELESS AND DOUBLE ORPHAN RATE OF EDUCATION ALLOWANCE

DATE OF ISSUE:  10 JANUARY 1995

VETERANS' CHILDREN EDUCATION SCHEME- RENT ASSISTANCE PAID/PAYABLE TO RECIPIENTS OF THE HOMELESS AND DOUBLE ORPHAN RATE OF EDUCATION ALLOWANCE

INTRODUCTION

The purpose of this instruction is to advise on the application and treatment of rent assistance (RA) payable to recipients of the homeless and double orphan rate of Education Allowance (EA) under the Veterans' Children Education Scheme (VCES).

BACKGROUND

2.The Government announced in the 1994 Budget that rent assistance would be paid to homeless students who qualify for EA.  To maintain consistency with DEET, payment of RA will also be extended to double orphans who qualify for EA.

3.The aim of this initiative is to ensure that students who qualify for the homeless rate of EA will receive the same level of assistance that is provided to other young people.  It encourages students to further their education and improve their prospects for the future by removing the incentives for young homeless people to leave education in order to access higher payments such as Young Homeless Allowance from the Department of Social Security

4.The date of implementation is 1 January 1995.

5.DEET will also introduce RA for recipients of the Student Homeless Rate (SHR) of Austudy on 1 January 1995.  The SHR includes double orphans.

INCOME AND ASSETS TESTS TREATMENT OF RENT ASSISTANCE

6.RA for recipients of EA at the homeless or double orphan rate under the VCES will not be income or assets tested for the following reasons:

• low administrative cost - there is no need to collect income and assets details or conduct regular reviews;

• no intrusion to recipients;

• neutralises the complex taxability issue regarding VCES and RA;

• consistent with compensatory nature of VCES payment (income and assets test free).

RATE OF RA PAYABLE

7.The amount of RA payable to recipients of EA at the homeless and double orphan rate is based on the existing rates and thresholds applicable to RA (as found in Part III of the Veterans' Entitlements Act 1986).  For example, as at 20 September 1994, the rate for not a member of a couple, no children, is $69.20 per fortnight.

PROCEDURES

8.Each recipient of EA at the homeless or double orphan rate will be sent an invitation to claim RA by the VCES secretaries in each state (Attachment A).  Upon receipt of RA details, in those states where the VCES Secretaries do not directly code the form D408, the RA details will be passed on to Income Support staff for coding.  An example of a coded form D408 is at Attachment B.

OBLIGATIONS

9.Recipients must receive an advice of payment of RA from the VCES Secretaries that includes their obligation to advise DVA of any changes to their circumstances regarding accommodation.  Attachment C provides the standard RA obligations paragraph that should be incorporated with the advice of payment of RA.  (This paragraph is currently contained in the automatic daily payment advices.)

LEGISLATION

10.The VEA does not require amendment, however, the VCES (delegated legislation) will be amended to provide for the payment of RA to recipients of the homeless and double orphan rate of EA.  The effective date of this amendment will be 1 January 1995.

CONTACT OFFICER

11.The contact officer for this exercise is Stephen Blair on (06) 289 6412.

David Mackrell

Assistant Secretary

Income Support

     December 1994

Attachment A

*** If you pay an amount for rent on a regular basis you may be entitled to an additional payment from the Department of Veterans' Affairs to help you meet these costs.

Rent can also include:

.the cost of lodging;

.the cost of board and lodging;

.or fees for a caravan site or to moor a boat.

To qualify for rent assistance you must pay rent in excess of the $61.80 per fortnight threshold.  You would then be paid 75 cents for each dollar of rent paid above this threshold up to the maximum amount of $69.20 per fortnight.

If you think you may be entitled to this additional payment please write to the above address within 21 days providing full details of whether you pay rent, board, lodgings, or board and lodgings, how much you pay, to whom you pay these amounts, and on what frequency you pay it.  You will also be required to provide proof of the amount you pay.  For example; a rent receipt, copy of a lease (if you have one), or a note from the person you pay rent to confirming the details.

If you provide your accommodation details to the Department of Veterans' Affairs, your details will be treated confidentially and we will contact you shortly after to advise you of your entitlement to rent assistance.

If you want to discuss any aspect of this additional payment please contact...........

ATTACHMENT B

REFER TO HARD COPY OF DEPARTMENTAL INSTRUCTION B02/95 FOR A COPY OF THIS ATTACHMENT

Attachment C

Obligations-Rent Assistance

***You must tell us if:

.the amount you pay for where you live changes or you stop making these payment;

.you start paying rent to a government authority, e.g. State Housing Commission or Authority; or

.you leave Australia temporarily.

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