VCES and MRCAETS are prescribed educational schemes under the Social Security Act 1991.

A child under 16 years of age who is in receipt of payments under a prescribed educational scheme is not precluded from payment of FTB Part A (or Part B if applicable).

A child between 16 and 24 years of age who is in receipt of payments under a prescribed educational scheme is precluded from payment of FTB Part A (or Part B if applicable).

FTB payments may be split between parents/guardians of a VCES or MRCAETS student because of living arrangements or child custody arrangements.  In these cases, VCES and MRCAETS payments must be split between parents/guardians in the same proportion that FTB payments are split.  The Children's Education Scheme application form requires an applicant to inform the Department of any splitting of FTB payments.  For existing students, where it becomes apparent that a child's parents have separated, or domestic arrangements have altered, Education Allowance payments should be reviewed and amended where necessary to maintain consistency with the payment of FTB.  (See Advisory Note AN02/2004 on CLIK for more information).