DATE OF ISSUE:  31 MAY 2000

VETERANS' CHILDREN EDUCATION SCHEME (VCES) - RATE INCREASES EFFECTIVE FROM 1 JULY 2000

The purpose of this instruction is to advise increased rates of education allowance and maximum rent assistance payable for VCES.

Attachment A sets out the increased rates of education allowance and increased annual limits for additional tuition and special financial assistance.  These rates are effective on and from the first payday after 1 July 2000.  They have been increased in line with the 4% increase in pensions and allowances to coincide with the introduction of the Goods and Services Tax.

Primary education allowances are payable annually on the first payday in January, or where the child becomes eligible during the year, the annual allowance is paid in full in respect of any initial part year.  Any primary education allowance which is paid on or after 1 July 2000 is to be paid in full at the new annual rate.  There are no pro-rata payments.

The maximum amount  payable for rent assistance has also been increased and is effective from the first payday after 1 July 2000.  The increased limits are shown at Attachment B.  Please note that only the maximum amount payable has changed and that the rent thresholds remain unchanged.

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

PETER REECE

Division Head

Compensation and Support

       May 2000

Attachment  A

VETERANS' CHILDREN EDUCATION SCHEME

Primary Students

The annual education allowance for primary students is $169.40

Secondary/Tertiary Students (fortnightly rates)

StudStudents	At Home $	Living Away from Home  $	Homeless $
Under 16 years	34.90	176.03	281.10
16 – 17 years	153.90	281.10	281.10
18 years and over	185.00	281.10	281.10

Secondary/Tertiary Double Orphans (fortnightly rates)

Double Orphans	$
Under 16	153.30
16 - 20 years	281.10
21 years and over	341.40

Additional Tuition – annual limit

Primary student$1,040

Secondary student$1,300

Tertiary student$1,560

Special Financial Assistance – annual limit

All students$1,560

Attachment B

Veterans' Children Education Scheme

Rent Assistance

From 1 July 2000 fortnightly thresholds and maximum amount payable for rent assistance will be:

Category	Rent threshold (pf) $	Maximum RA (pf) $
single student	73.80	82.60
Sharer	73.80	55.10
member of a couple where the partner does not receive a rent increased benefit (from any source)	120.20	77.60
member of a couple where the partner does receive a rent increased benefit (from any source)	120.20	38.80