External
Departmental Instruction

DATE OF ISSUE: 31 December 1992

VETERANS' CHILDREN EDUCATION SCHEME INCREASED RATES OF EDUCATION ALLOWANCES FROM JANUARY 1993.

INTRODUCTION

The purpose of this instruction is to advise of changes to the rates of education allowances paid through the Veterans' Children Education Scheme.

2.   The rates, which will be effective from the first payday in January 1993, are set out at ATTACHMENT A.

3.   The rates for secondary students, under 16 years and living away from home have been linked to the maximum rates payable under the Assistance to Isolated Children (AIC) scheme.

4.   The rates of VCES education allowance for all students aged 16 years and over have been aligned with the maximum rates of allowances paid through AUSTUDY.

5.   The education allowances for primary students and secondary students, under the age of sixteen and living at home are to be adjusted annually in line with the Consumer Price Index, effective from the first payday in January 1993.

Independent Students

6.The "Independence" criteria will no longer exist for those students who have made the "adult" choices of marriage or parenthood.  A separate "Homeless Student" category will be established to cover those students who have been forced to become "independent of the family" due to circumstances beyond their control.

7.The rate of education allowance payable for "Homeless students" will be equivalent to the present age-based "Independent" rates.

Personal Income Testing

8.As the VCES education allowances are considered to be compensation rather than income support, the personal income testing currently applied to VCES allowances will be abolished.

9.Those "60" category payments with miscellaneous code "1156" (which indicates that the student's allowance has been reduced because of income in excess of the current allowable limit) need to be increased to the maximum rate of education allowance, effective from the first payday in January 1993.

10.  Any enquiries regarding the increased rates should be directed to Meleta James, Compensation and Review,  on 06- 289 6457.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS PROGRAM

23 December 1993

ATTACHMENT A

Fortnightly rates of education allowance payable effective from 1 January 1993.  (VCES _ 4.8.1)

AGE GROUPAT HOMELIVING AWAYHOMELESS

FROM HOMESTUDENTS

Secondary Students

Under 16 years $29.00$129.80$214.30

Secondary/Tertiary

16 - 17 years$129.80$214.30$214.30

18 yrs and over$156.10$237.00$237.00

Double Orphans

Under 16 years$129.80

16  - 20 years$237.00

21 yrs and over$287.90

Primary Students

An annual lump sum of $143.00 will be made in respect of primary level education students.