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).