B61/1994 BUDGET 1994 INITIATIVE : EDUCATION ENTRY PAYMENT

DATE OF ISSUE:  14 DECEMBER 1994

BUDGET 1994 INITIATIVE : EDUCATION ENTRY PAYMENT

INTRODUCTION

The purpose of this Departmental Instruction is to provide procedural guidelines and background information on the Budget 1994 initiative to introduce an Education Entry Payment (EdEP) for partner and carer service pensioners from 1 January 1995 and income support supplement (ISS) recipients from 20 March 1995.

BACKGROUND

2.In the 1994/95 Budget, the Government announced the introduction of a $200 lump sum payment payable to certain partner and carer service pensioners and ISS recipients who enrol, or intend to enrol, in a course of approved education.

3.Only one payment is made in each calendar year.

4.The payment will be available to both new and existing students.

AIM

5.EdEP is designed to provide financial assistance with the costs of enrolling in a course of study.  The payment is directed at assisting eligible service and carer service pensioners and ISS recipients to improve and

develop their skills and qualifications by participating in further education, thereby improving their employment prospects.

ELIGIBILITY

6.To qualify for EdEP, claimants must be receiving either a partner or carer service pension or ISS and must:

• be below 60 years for females and 65 years for males (see Qualifying Age for Women at paragraph 10)

• be qualified to receive the $30 per week Pensioner Education Supplement (PES) (see paragraph 8) paid under the Austudy scheme by the Department of Employment, Education and Training (DEET)

• be enrolled or intends to enrol in either a full-time or part-time course of education which is an approved course under the Austudy scheme

• not be receiving an EdEP for which they have made a claim in the current calendar year.

7.A person claiming EdEP does not have to qualify or apply for Austudy.  It is only necessary for the proposed course to be approved for Austudy purposes.

PENSIONER EDUCATION SUPPLEMENT

8.PES is paid by DEET to certain categories of pensioners who commence full-time or part-time study in an approved Austudy course.  The payment of $30 per week ($1560/year) can be converted to a loan of up to $60 per week or $3120 per year to be repaid at a later date.  PES is paid on evidence of the following:

• offer of a place in an approved Austudy course; or

• acceptance of a place in an approved Austudy course; or

• student Identity card; or

• Higher Education Contribution statement; or

• receipt of payment of course fees.

Note:Data matching exercises and enrolment checks are undertaken by DEET to ensure rightful payment of PES.

APPROVED AUSTUDY COURSES

9.A listing of approved courses will be circulated to Branch Offices prior to implementation on 1 January 1995.  However, staff can obtain information on Austudy approved courses from Commonwealth Employment Service (CES) and Austudy offices.

QUALIFYING AGE FOR WOMEN

10.From 1 July 1995 the earliest age at which a female can be granted age pension and a female veteran granted age service pension will be gradually and progressively lifted.  It will be raised from 60 to 65 years (age pension) and 55 to 60 years (service pension) in six-monthly increments every two years.  In relation to the qualifying age (60 years) to receive EdEP from 1 July 1995, female partner and carer service pensioners and ISS recipients must be below:

• 60.5 years on 1 July 1995,

• 61 years on 1 July 1997,

• 61.5 years on 1 July 1999,

• 62 years on 1 July 2001,

• 62.5 years on 1 July 2003,

• 63 years on 1 July 2005,

• 63.5 years on 1 July 2007,

• 64 years on 1 July 2009,

• 64.5 years on 1 July 2011,

• 65 years on 1 July 2013.

TARGET POPULATION

11.There are approximately 5997 partner service pensioners, 1400 ISS recipients and a few carers under 60 years.  However, only a small number are expected to take advantage of EdEP.

PUBLICITY

12.This initiative was publicised in the October edition of Vetaffairs and will also be included in the December issue of Age Pension News (APN).  When DSS implementation (1 July 1995) is publicised in the APN in March, reference to DVA eligible client groups will also be made.

PROCEDURES

Legislative amendments

13.EdEP is contained in a new part of the VEA, part VIIAA.  New section 118AA deals with eligibility; 118AAB with need for a claim; 118AAC with entitlement to and amount of payment and 118AAD with refunds of payments.

Claims for EdEP

14.Claims for EdEP will be processed manually by Branch Office staff.  No official claim form will be required.  However, claims must be in writing, accompanied by the original PES notice/statement from DEET confirming eligibility for the $30/week payment.  Evidence of fees paid, either the receipt or a copy of the receipt, should also be sighted if available.

15.In order for EdEP to be paid for a particular year of study, staff should check that the claim is lodged before the end of that year and is accompanied by the PES notice/statement applicable for that same year.

16.If EdEP is paid prior to fees being paid, then applicants should be requested to present evidence of fees paid within 14 days of commencement of study.  Applicants should also be advised that recovery action will be taken if this requirement is not met.

17.If recovery action is necessary, it is to be undertaken under the normal recovery procedures.

18.Claimants will also be advised of the recovery aspect in the advice sent notifying them of grant of EdEP.

19.Claims for EdEP are not to be processed without the relevant evidence of PES entitlement.  If an EdEP applicant loses the PES notice/statement, staff should request that a copy of the notice, or a written statement from DEET be produced, confirming that the person is qualified for the $30/week payment.

Processing EdEP claims

20.Claims will be processed by Branch Office staff on D408 forms.  Staff will keep a record of the date the claim was lodged and when payment was made.  No recording on the CMS or PIPS is required.

21.It is important to keep a record of the date EdEP is paid so that it alerts anyone processing a second claim to the fact that it should not be paid.

22.The method of recording the claims can be either PC-based or book system, depending on which system best suits each Branch.

23.A one-time amount should be coded on the D408 to effect payment which will be made with the claimant's pension/ISS payment on the nearest payday following processing the claim.

24.If a person becomes eligible for a partner or carer service pension or ISS after receiving PES and commencing study, they  may apply for EdEP for that calendar year.

Payment to pensioners overseas

25.EdEP will not be paid to pensioners overseas, unless he/she is qualified for and receiving PES while overseas and if the course requires overseas study.

DSS liaison

26.Staff should liaise with DSS if, in processing a claim, evidence suggests that a person may have also claimed EdEP from DSS for the same period.  This situation could arise if a sole parent is granted EdEP from DSS, than marries a veteran and claims the payment again from DVA as a partner service pensioner.

Taxable income

27.EdEP will form part of the pensioner's taxable income.  Accordingly, staff will be required to enter the taxable amount on the tax system, which will generate a group certificate at the end of the financial year.

Advices

28.Advices will be generated and sent by Branch Office staff.  Advices should be sent in the following instances:

• to successful claimants;

• to claimants who do not qualify for the payment;

• to claimants who have already received EdEP for that year; and

• to claimants who are not in receipt of PES.

29.Suggested text for the various advices is attached.

FURTHER INSTRUCTIONS

30.Amendments to the GOSP will be completed as soon as possible.

ENQUIRIES

31.The contact officer for this project is Liz Lambart, tel (06) 289 6405,

fax (06) 289 6553.

DAVID MACKRELL

ASSISTANT SECRETARY

INCOME SUPPORT

SUGGESTED TEXT FOR MANUAL ADVICES TO BE GENERATED FOR EDEP

Letter to successful EdEP claimants who have already paid their fees

An extra payment of $200 will be made to you shortly.  This is the Education Entry Payment you recently applied for, to help you with the costs of studying.

You may qualify for this payment once a year, provided that you are enrolled in a course for which you are receiving the Austudy pensioner education supplement from the Department of Employment, Education and Training.

Letter to successful EdEP claimants who have not paid their fees

An extra payment of $200 will be made to you shortly.  This is the Education Entry Payment you recently applied for, to help you with the costs of studying.

You may qualify for this payment once a year, provided that you are enrolled in a course for which you are receiving the Austudy pensioner education supplement from the Department of Employment, Education and Training.

When you have paid your fees, could you please provide a copy of the receipt to your nearest Branch Office within 14 days of commencement of your studies.  Failure to do this will mean that you will have to repay the $200 Education Entry Payment.

To claimants who do not qualify for the payment because they are not either a partner/carer service pensioner to ISS recipient

I am writing to you about your claim for the $200 Education Entry Payment

You cannot be paid the $200 payment because you are not receiving either a partner or carer service pension (or [from March 1995] income support supplement).

To claimants who do not qualify for the payment because they are over pension age

I am writing to you about your claim for the $200 Education Entry Payment.

You cannot be paid the $200 payment because you do not meet the age eligibility criteria, that is, you are above 60 years (if female)/65 years (if male).

To claimants who are not in receipt of PES

I am writing to you about your claim for the $200 Education Entry Payment.

You cannot be paid the $200 payment because you are not getting the Austudy Pensioner Education Supplement paid by the Department of Employment, Education and Training.

To claimants who have already received EdEP for that calendar year

I am writing to you about your claim for the 4200 Education Entry Payment.

You cannot be paid the 4200 payment because you have already received the payment for this calendar year.  It can only be paid once a year for each calendar year.