13.2.6 Effect of other assistance on eligibility
See paragraph 2.11 of the Instruments
A student is not to be paid benefits under the Schemes if they receive a financial benefit in the nature of educational assistance or income support, from any other Commonwealth Department or agency.
A student who is eligible to receive benefits under the Education Schemes but is instead receiving another mutually exclusive Commonwealth payment may still be eligible for the Schemes other benefits such as guidance, counselling and additional tuition.
A student who receives a financial benefit from the Commonwealth may be paid a benefit under the Scheme only if the educational assistance or income support:
(a) is provided (whether directly or indirectly) by the Department* or the Commission; or
(b) is provided under a scholarship from the Commonwealth known as the Commonwealth Education Costs Scholarship; or
(c) is provided under a scholarship from the Commonwealth known as the Commonwealth Accommodation Scholarship.
A student may choose to transfer to VCES or MRCAETS from another Commonwealth benefits scheme or vice versa.
*The Student Start-up and Relocation Scholarships introduced in 2010 do not affect a student’s payments, as they are paid directly by the Department.
Australian Defence Force Academy Students
Students studying through the Australian Defence Force Academy (ADFA) receive a fully-funded tertiary education plus salary and other financial benefits in return for a minimum period of military service.
According to legal advice received October 2023, the full subsidisation of an ADFA student’s tertiary course, and payment of salary in respect of their full time employment, should be taken to constitute ‘educational assistance’ and ‘income support’ respectively, provided by the Commonwealth. As such, in accordance with paragraph 2.11 of the Instruments, ADFA students are ineligible for benefits under the Schemes as they are receiving a financial benefit from the Department of Defence. Students studying at ADFA are a unique cohort, and cases where similar questions may be raised as to what constitutes educational assistance and income support should be considered on a case-by-case basis.
13.2.6.1 Mutually Exclusive Payments
‘Educational assistance’ and ‘income support’ are not defined under the Instruments.
‘Income support payment’ is defined in s 23 of the Social Security Act 1991 and means a payment of:
Payments defined as a ‘social security benefit’ or a ‘social security pension’ include (s 23 of the Social Security Act 1991):
Carer Payment and Carer Allowance
The Carer Payment is an income support payment by Services Australia that provides financial support to people aged between 16 and Age pension age who are unable to work in substantial paid employment because they provide full time daily care to someone with a severe disability or medical condition, or to someone who is frail aged. The Carer Payment is income and assets tested. Students who turn 16 years of age and have eligibility for both Carer Pension and DVA’s education allowance must choose between them as they are mutually exclusive payments.
The Carer Allowance is a supplementary fortnightly payment for parents or carers providing additional daily care to an adult or dependent child with a disability or medical condition, or to someone who is frail aged. This allowance is not income or assets tested and is non-taxable. A student can elect to receive the Carer Allowance without it affecting their Education Allowance and other benefits under the Schemes.
Disability Support Pension
The Disability Support Pension is financial support paid by Services Australia for people who have a physical, intellectual or psychiatric condition that prevents them from working 15 hours or more per week or who are permanently blind. Disability Support Pension may be paid to individuals aged between 16 years of age and Age Pension Age. Students who turn 16 years of age and have eligibility for both Disability Support Pension and a DVA education allowance must choose between them as they are mutually exclusive payments.
Family Tax Benefit (FTB)
Under s 22A of the A New Tax System (Family Assistance) Act 1999, FTB is mutually exclusive with an education allowance for students aged 16 years and over. Students aged under 16 years can receive both a DVA education allowance and FTB.
Students who are eligible to receive an education allowance under the Schemes but elect to receive FTB instead are still eligible for other benefits under the Schemes such as guidance, counselling, special assistance and additional tuition.
13.2.6.2 Services Australia Clearances
DVA will seek clearance from Services Australia before granting VCES or MRCAETS assistance to a secondary or tertiary student. Where the student is transferring to the Scheme from another Commonwealth educational assistance or income support scheme an agreed "cut-off" date must be negotiated with Services Australia.
In some cases it is to the student’s advantage to transfer to the Education Schemes retrospectively, in which case an adjustment of the arrears payment will be required to offset the resultant overpayment of the Services Australia benefit. This circumstance generally occurs if the student’s Youth Allowance has been significantly reduced by the income test and where Education Schemes’ benefits can be backdated for a significant period.
The seeking of clearances by DVA aims to reduce the incidence of overpayments, and consequential recovery of payments by DVA. However in instances where a scholarship amount is paid to a person by both DVA and Services Australia for the same period, then the agency who paid it second will be responsible for recovering that amount. This is because eligibility for the scholarships (as contained in the Instruments and the Social Security Act) ceases if the person has received the same amount in the previous 6 or 12 months (depending on the scholarship) i.e. the other agency paid it first.
13.2.6.3 Orphans
Single and double orphans under the VEA
See paragraph 3.6A of the VCES Instrument regarding double orphans
A small proportion of applicants for an education allowance are orphans (i.e. the veteran’s death has been accepted as war caused/service related or the veteran died whilst on T&PI, EDA etc.)
Such students have a potential eligibility for Single Orphan Dependant Pension or Double Orphan Dependant Pension as well as the Pharmaceutical Allowance/Veterans Supplement and a DVA Gold Card entitlement.
Whilst the student is under 16 years of age, education allowances can be granted concurrently with Single Orphan Pension (SOP) and Double Orphan Pension (DOP) (and Pharmaceutical Allowance/Veterans Supplement).
However, from age 16, SOP and DOP are not payable concurrently with other Australian Government student assistance (e.g. the VCES allowances, Youth Allowance, ABSTUDY, Assistance for Isolated Children) or income support benefits (e.g. Disability Support Pension). Thus the student/guardian may choose to receive SOP or DOP instead of an education allowance.
The Pharmaceutical Allowance/Veterans Supplement and Gold Card entitlement continues, but only while the child is undertaking full time education and is under 25 years of age.
A student/guardian can receive SOP or DOP concurrently with the Family Tax Benefit (FTB), even if the student is over the age of 16.
Orphans under the MRCA
Under the MRCA, the following compensation is available to an eligible young person on their veteran parent’s death:
This assistance is available concurrently with the Education Schemes’ allowance or other Australian Government student assistance (e.g. the VCES allowances, Youth Allowance, ABSTUDY, Assistance for Isolated Children) or FTB, regardless of the student’s age.