2.3.2 Date of Effect Rules

For date of effect rules please see Departmental Instruction C09/2007.

The date of grant can never be earlier than the first payday of the current year in which an application is made, but can be later depending on the date of effect of the grant of pension, acceptance of death, etc and when the child commenced full time education.

This Departmental Instruction provides information for the date of effect 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.

Date of Effect Rules – change in circumstances

The following date of effect rules for VCES and 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 (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

A student may reapply for 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.

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.

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.

Where a student's education allowance has been cancelled, the education allowance may be restored to the date of suspension or cancellation if proof of enrolment is received by 31 March in the following year.

Proof of enrolment submitted after 31 March must be accompanied by an application form and payment of the education allowance may only begin from the payday after receipt of that application.

Students eligible on medical grounds

In the case of students eligible on medical grounds under section 116(1)(e) of the VEA, the date of effect of eligibility is from the first pension payday following the date of lodgement of the application for assistance.