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13.3.7 Indexing education allowances

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13.3.7 Indexing education allowances

See paragraph 3.8 of the Instruments

With effect from 1 January 1999, or from any earlier date that may be determined by instrument in writing by the Commission, the following allowances shall be indexed annually in accordance with paragraph 3.8.2.

(a) the annual allowance payable in respect of primary students; and

(b) the fortnightly education allowance payable in respect of secondary students who are under 16 years and living at home.

The allowances specified in paragraph 3.8.1 are to be indexed annually in accordance with the procedure set out in section 1191(1)(table item 3A) of the Social Security Act 1991 for the indexation of benefits under that Act except that the reference to ‘YA MBR’ in item 3A of the CPI Indexation Table in subsection 1191(1) is, for the purpose of the indexation of the relevant allowances under the Scheme, taken to be a reference to the relevant allowance specified in sub-paragraph 3.8.1(a) or (b).

The fortnightly education allowance payable in respect of secondary students under the age of 16 years who are living away from home was previously set by direct reference to the Assistance for Isolated Children (AIC) rates. The AIC scheme is administered by the Department of Employment and payments are made by the Department of Human Services.

From 1 January 2013, the AIC allowances have also been indexed and so to prevent double compensation for the CPI effects of the carbon price, indexation of VCES and MRCAETS payments to secondary students under the age of 16 living away from home is no longer adjusted in accordance with AIC rates.

The fortnightly education allowances payable in respect of all students aged 16 years and over shall be increased annually to a rate equivalent to the maximum basic rate of youth allowance payable under Part 3.5 of the Social Security Act 1991.

The current rates for all benefits under the Education Schemes are available in CLIK.