DATE OF ISSUE:  15 JULY 1998

VETERANS CHILDREN EDUCATION SCHEME

EDUCATION ALLOWANCE RATES  EFFECTIVE  1 JULY 1998

The purpose of this Departmental Instruction is to advise of amended rates of education allowance payable under Part 3 of the Veterans' Children Education Scheme (VCES).

The amended rates are set out in Attachment A and are effective from 1 July 1998.

The amended rates are the result of the replacement of AUSTUDY by Youth Allowance.  VCES education allowance rates for students aged 16 and over have previously been aligned to AUSTUDY rates.  From 1 July 1998, these rates are aligned to Youth Allowance.

The education allowance rate payable in some categories has increased.

The categories that have increased the most (by $25.43 pf) are:

• Under 16 homeless
• 16 - 17 years living away from home
• 16 - 17 years homeless

Slightly increased (by 11 cents pf) are:

• 18 years and over living away from home,
• 18 years and over homeless
• Double Orphans 16  to 20 years

The following categories would drop slightly under Youth Allowance so these are being maintained at the current rate until at least 31 December 1998, or until indexation of the Youth Allowance equals or exceeds the current rate.

• 16 to 17 years at home
• 18 years and over at home
• Double orphans 21 and over

The following categories are not affected by any rate change at this time:

• Primary students
• Under 16 at home
• Under 16 living away from home

Double Orphans

From 1 July 1998, the education allowance rate for double orphans aged under 16 is set by using the formula:

VCES double orphan education allowance rate for 16 to 20 year olds less the amount of the double orphan's pension

Previously, the rate for double orphans aged under 16 was aligned to the maximum rate payable under the Assistance to Isolated Children Scheme (AICS).  The Repatriation Commission has decided to break the link with the AICS and to set the rate using a formula.  This corrects an anomaly that caused a drop in the total DVA assistance at age 16.  The use of the formula ensures continuity in the level of assistance received.

The category for Double Orphans aged Under 16 has dropped by $16.13 for new double orphans only:

• Double orphans under 16  "new to the category"  now receive $144.70 per fortnight.
• Existing double orphans in this category are to have their current rate of education allowance "frozen" until such time as the frozen amount is equivalent to, or less than, the DO rate that they would be entitled to due to age.

Attachment B details the categories of double orphans who will be affected by this chang and how their “frozen” education allowance rates are to be calculated.

The contact officer for enquiries on any of these changes is Marie Leach, Disability Compensation Branch, National Office on phone (02) 6289 6046.

W R MAXWELL

BH DISABILITY COMPENSATION

Attachment A

VETERANS' CHILDREN EDUCATION SCHEME

Primary Students

The annual education allowance for primary students is $160.00

Secondary/Tertiary Students(fortnightly rates)

Students	At Home $	Living Away from Home  $	Homeless $
Under 16 years	33.00	160.83	265.50
16 – 17 years	145.41	265.50	265.50
18 years and over	174.90	265.50	265.50

Secondary/Tertiary Double Orphans (fortnightly rates)

Double Orphans	$
Under 16	144.70
16 - 20 years	265.50
21 years and over	322.42