Education allowances are paid under the VCES and MRCAETS as compensation and are designed to provide financial assistance towards the cost of an eligible child's education.
Allowances are paid at the Living At Home, Living Away from Home, Homeless, and Double Orphan rates.
A student is considered to be living away from home if they reside away from their family (or primary) home for educational reasons. If a person is married, they are considered to be living at home as their home with their partner is considered to be their primary home. Likewise, a student who enters a de facto relationship is considered to be living at home once the nature of the relationship has been established.
Students who have married or entered a de facto relationship while on the scheme are no longer eligible for Living Away From Home rate (or Rent Assistance) if they were previously receiving it. This is because it is considered that they have established their own home and are no longer dependent on the previously supporting parent.
If a student is receiving the living away from home rate and he or she marries, or declares him or herself to be in a de facto relationships (and meets the definition), then payment is reduced to the living at home rate from the date of notification of the change in their living circumstances.
Note: as of 1 January 2010, there is no longer any 12 month test applied to students in de facto relationships.
The student then has the option of transferring to Youth Allowance/Austudy as an independent student.
Double Orphans who marry continue to be eligible for the Double Orphan rate and Rent Assistance.
The VCES Secretary must have confirming information from the student as to the change in circumstances before making any variation to the education allowance.
In forming an opinion as to whether two people are living together in a de facto relationship, section 11A [5] VEA (which also applies to MRCA relationships) requires a delegate to have regard to all the circumstances of the relationship, including the following factors:
The order in which the factors are set out in section 11A [5] VEA does not imply an order of importance and does not place a limit on the factors that may be considered in a particular case.
(1) Financial indicators of a possible de facto relationship
The following list is intended as a guide only and is not an exhaustive list of the possible joint financial arrangements which may be taken into account:
(2) the nature of the household
The following list is intended as a guide only and is not an exhaustive list of the possible domestic arrangements which may be taken into account when assessing the character of a relationship:
(3) Social aspects of the relationship
Consideration of the social aspects of a relationship are an important factor in forming an opinion about whether a de facto relationship exists including:
(4) Sexual relationship
The presence of a sexual relationship does not by itself prove the existence of a de facto relationship; nor does its absence prove one does not exist. Where a sexual relationship exists, consideration is given to whether it is ongoing and exclusive (whether there are ongoing casual relationships with other partners), in addition to the degree of emotional support provided and other forms of interdependence which may exist.
(5) The nature of the people's emotional commitment to each other
The level of commitment to each other is considered in terms of the emotional attachment between the two people and whether it is qualitatively different to the commitment of either party to anyone else. Factors indicating the two people's level of dedication to one another include:
Other indicators of a possible de facto relationship may include:
To establish whether a person is a member of a same sex de facto relationship, the same factors are considered as for opposite sex relationships (see section 11A [5] of the VEA). The one exception to this process is that some Australian jurisdictions now have legislation that enables same sex and opposite sex couples to register their partnership. A person who is in a relationship that has been registered under the Victorian Relationships Act 2008, Tasmanian Relationships Act 2003 or the ACT Civil Partnerships Act 2008 is considered to be the partner of the person they are registered with. Registration of a relationship under one of these laws is conclusive proof (in the same way that marriage is) that two people are partnered or members of a couple*.
* Under the VEA, provided that the person is not living separately and apart from the other person on a permanent basis, registration is conclusive proof of partnership.
If a person is in a registered relationship under a local register or an overseas register, this may be taken as evidence to contribute to the establishment of a registered relationship. However, registration in these contexts will not necessarily form conclusive proof of a partnered relationship.
Further information about de facto and registered relationships can be found in Chapter 7 [6] of the MRCA Policy Manual.
Students who are enrolled in primary education are eligible for an annual education allowance. The annual education allowance referred to in paragraph 3.2.1 shall be paid in full in respect of any initial part year.
Payment of the allowance will be made to the person who is entitled to be paid family tax benefit under A New Tax System (Family Assistance) (Administration) Act 1999 (entitled person) and if there is no entitled person - to a person approved by the Commission to receive the payment on the student's behalf.
An education allowance shall be payable fortnightly in advance, in respect of a student living at home and undertaking education as approved by the Commission.
Payment under paragraph 3.3.1 for secondary students under the age of sixteen will be made to the person who is entitled to be paid family tax benefit under A New Tax System (Family Assistance) (Administration) Act 1999 (entitled person) and if there is no entitled person - to a person approved by the Commission to receive the payment on the student's behalf.
Payment under paragraph 3.3.1 for secondary students aged sixteen years and over will be made to the person who is entitled to be paid family tax benefit under A New Tax System (Family Assistance) (Administration) Act 1999 (entitled person), who will then have the option of directing payment to the student or spouse and if there is no entitled person - to a person approved by the Commission to receive the payment on the student's behalf.
Payment will be made directly to tertiary students.
Living away from home rates of education allowance may be paid in respect of a student undertaking full time secondary education if the Commission is satisfied that additional expenses are incurred as a result of the student living away from home, and:
(a)educational facilities are not readily accessible from the student's place of residence; or
(b)the student is enrolled in a special course approved for the payment of allowance under the Commonwealth Assistance for Isolated Children Scheme; or
Note: the Assistance for Isolated Children Scheme is a non-statutory scheme administered by Centrelink. This Scheme provides financial support for primary or secondary students who cannot go to an appropriate state school because of geographical isolation, disability or special health needs. The scheme also helps families that are isolated from an appropriate state school where the school-aged student is undertaking a tertiary course instead.
(c)the student is physically or intellectually handicapped; or
(d)the student requires specialised remedial tuition; or
(e)the student is a member of an itinerant family; or
(f)the academic needs of that student are not met by local secondary facilities; or
(g)home conditions are detrimental to the student's educational progress.
Payment of education allowance for secondary students living away from home shall be made to:
(a) the person who is entitled to be paid family tax benefit under A New Tax System (Family Assistance) (Administration) Act 1999; or
(b)to the institution or person, if any, providing board to the student; or
(c)if the payment methods in paragraphs (a) and (b) are inappropriate or non-existent – a person approved by the Commission to receive the payment on behalf of the student.
This payment may be made either in part or in full, and:
(a)may be made to an institution a term in advance; or
(b)may be made to a person either a term in advance or fortnightly, as determined by the Commission.
A person in receipt of education allowance under sub-paragraph 3.4.2(a) may direct payment of the allowance to the student or to a parent, guardian or trustee of the student.
If only part of the payment is made to the institution or person providing board, the other part shall be paid to the person described at sub-paragraph 3.4.2(a) or, if relevant, to the person to whom they have directed payment. If there is no person for the purposes of subparagraph 3.4.2(a), the part-payment shall be paid to a person approved by the Commission to receive the payment on the student's behalf.
Living away from home rates of education allowance may be paid to a student undertaking an approved full-time tertiary or technical and further education course, where the Commission is satisfied that additional expenses are incurred as a result of the student living away from home; and
(a)educational facilities are not readily accessible from the student's place of residence; or
(b)it is a compulsory requirement for the student undertaking an approved course to reside at a hall of residence; or
(c)home conditions provide an inadequate study environment.
Allowances paid under paragraph 3.5.1 shall be payable to the student directly.
A student may, upon reaching minimum school leaving age as determined by the authorities of the State in which that student resides, be granted Homeless Student status where the Commission is satisfied that the student is not receiving or likely to receive continuous support either direct or indirect, in cash or in kind, from parents or any other person other than as provided for in this Scheme; and
(a) there is no family home; or
(b)the parents will not allow the student to reside in the family home; or
(c)it would be unreasonable to expect the student to live with the parents because of domestic violence, or comparable circumstances.
This allowance is intended to be paid to those students who are without a family home or at risk of homelessness due to family and/or other circumstances. Applications for homeless allowance usually involve circumstances of family dysfunction and often students are able to provide supporting documentation from a counsellor, local doctor, other health professional, police report etc.
Generally, a written statement and/or documents providing details of circumstances are required to support the application. A statement from a third party, preferably a counsellor/ doctor/ social worker is also required. A counsellor or social worker from VVCS or Centrelink may be available to make an assessment. A welfare officer from Legacy might also be appropriate. It may also be useful to refer the case to a suitably qualified Board member.
If a student has been granted homeless student status, education allowance is to be paid at a rate equivalent to the maximum basic rate payable under point 1067G-B3 of the Social Security Act 1991 in respect of a person who is independent.
The VCES / MRCAETS Secretary has the delegation to approve or not approve the application based on the information provided. If the Secretary in doubt they should discuss the case with the Children's Education Schemes Policy Officer.
Fortnightly payment of the allowance is to be made directly to the student or to an appropriate person if the Commission considers it unlikely that the student would be capable of managing his or her own finances. An 'appropriate person' is defined in 1.2.1 of the Instruments.
Special Financial Assistance may be granted to pay for a homeless student to access a private social worker. In such a situation, the social worker will be required to provide a report on the student's wellbeing.
A VCES student who is a double orphan and who is also a secondary or tertiary student is entitled to be paid an education allowance at the double orphan rate for the purpose of the student's education and training.
There is no such category of persons as 'double orphans' under MRCAETS.
Generally, part-time students are not eligible to receive benefits under the Schemes.
Where a student, referred to in paragraph 2.7.2, has been approved for benefits while undertaking part-time study, that student shall receive the appropriate full-time rate of education allowances.
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 sixteen 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 sixteen years who are living away from home shall be increased annually so that it is the same as the maximum rates payable to secondary students in receipt of Assistance for Isolated Children.
The fortnightly education allowances payable in respect of all students aged sixteen 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 <a href="//clik.dva.gov.au/HW-PRC/View">current rates for all benefits under the Education Schemes are available in CLIK.
Students receiving a fortnightly education allowance under VCES or MRCAETS for secondary or tertiary education may also be eligible for clean energy payments.
More ? [16]
Clean Energy Payments
Chapter 7.4 Clean Energy Payments [17] (Policy library)
Section 3A.1.1 [18] VCES
Section 3A.1.1 [18] MRCAETS
Links
[1] https://clik.dva.gov.au/user/login?destination=comment/reply/23812%23comment-form
[2] https://clik.dva.gov.au/user/login?destination=comment/reply/23932%23comment-form
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[4] https://clik.dva.gov.au/user/login?destination=comment/reply/23882%23comment-form
[5] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[6] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-mrca
[7] https://clik.dva.gov.au/user/login?destination=comment/reply/23816%23comment-form
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[10] https://clik.dva.gov.au/user/login?destination=comment/reply/23888%23comment-form
[11] https://clik.dva.gov.au/user/login?destination=comment/reply/23903%23comment-form
[12] https://clik.dva.gov.au/user/login?destination=comment/reply/23820%23comment-form
[13] https://clik.dva.gov.au/user/login?destination=comment/reply/23829%23comment-form
[14] https://clik.dva.gov.au/user/login?destination=comment/reply/23938%23comment-form
[15] https://clik.dva.gov.au/user/login?destination=comment/reply/23878%23comment-form
[16] https://clik.dva.gov.au/book/export/html/23812#tgt-csref_edserv_ftn1
[17] https://clik.dva.gov.au/compensation-and-support-policy-library/part-7-common-allowances-and-benefits/74-clean-energy-payments
[18] https://clik.dva.gov.au/legislation-library
[19] https://clik.dva.gov.au/book/export/html/23812#ref-csref_edserv_ftn1