Commonwealth of Australia Explanatory Memoranda

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STUDENT AND YOUTH ASSISTANCE AMENDMENT (WAITING PERIOD) BILL 1996


1996


THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA


HOUSE OF REPRESENTATIVES












STUDENT AND YOUTH ASSISTANCE AMENDMENT (WAITING PERIOD)
BILL 1996



EXPLANATORY MEMORANDUM


















(Circulated by authority of the Minister for Employment, Education, Training and Youth Affairs, Senator the Hon Amanda Vanstone)

78935  Cat. No. 96 5140 3  ISBN 0644 478934

STUDENT AND YOUTH ASSISTANCE AMENDMENT (WAITING PERIOD)
BILL 1996

OUTLINE


The legislation amends the Student and Youth Assistance Act 1973 (“the Act”).

As part of its 1996 election policy commitments, the Government announced its intention to introduce a two year waiting period before newly arrived migrants could access certain social security payments. This policy was extended to AUSTUDY as a 1996-97 Budget measure.

This Bill introduces a two year (104 week) waiting period for access to AUSTUDY which will apply, with limited exceptions, to all migrants who arrive in Australia on or after 1 January 1997. It will also apply to New Zealand citizens who permanently settle in Australia on or after 1 January 1997. The present six month waiting period will continue to apply to New Zealand citizens who permanently settle in Australia before 1 January 1997.

The Bill makes special provision for migrants who are New Zealand citizens because, unlike other migrants who must hold a permanent visa to settle permanently in Australia, New Zealand citizens enter Australia on a “special category visa” which entitles them to remain here indefinitely. In other words a special category visa does not distinguish between entry as a permanent settler and entry in a temporary capacity. However, it is intended that as far as practicable migrants from New Zealand should have the new two year waiting period applied to them in the same manner as it is applied to migrants from other countries.

The waiting period will not apply to permanent resident refugee and humanitarian migrants and their immediate family members, former holders of a subclass 820 [Extended eligibility (spouse)] or a subclass 826 [Interdependency] visa, holders of a subclass 832 [Close ties] or a subclass 833 [Certain unlawful non-citizens] visa and certain migrants whose circumstances change significantly and for reasons beyond their control after their arrival in Australia.

The AUSTUDY waiting period:

• for persons who enter Australia as permanent visa holders, will start on the day on which the person enters Australia and will end on the day on which the person has been in Australia for a period of, or periods totalling, 104 weeks;

• for persons who acquire a permanent visa after entering Australia, will start on the day on which the person is granted a permanent visa and will end on the day on which the person has been in Australia for a period of, or periods totalling, 104 weeks after that date [However, where a person who acquires a permanent visa after entering Australia is granted that permanent visa on appeal against an earlier decision not to grant a permanent visa, the AUSTUDY waiting period starts on the date of the primary decision; ie. the date the person’s application for a permanent visa was first rejected];

• for New Zealand citizens, will start on the day on which the person permanently settles in Australia and will end on the day on which the person has been in Australia for a period of, or periods totalling, 104 weeks after that date.

FINANCIAL IMPACT

The introduction of the AUSTUDY waiting period is expected to reduce outlays on AUSTUDY by $6.0 million in 1996-97, $12.3 million in 1997-98 and $12.6 million in
1998-99.

NOTES ON CLAUSES

Clause 1 - Short Title

Clause 1 sets out the short title of the proposed Act.


Clause 2 - Commencement

Clause 2 provides for the commencement of the proposed Act on the day it receives the Royal Assent.


Clause 3 - Schedule

Clause 3 provides that each Act specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

SCHEDULE 1 - AMENDMENTS TO THE STUDENT AND YOUTH
ASSISTANCE ACT 1973



Student and Youth Assistance Act 1973

The Student and Youth Assistance Act 1973 (the Act) makes provision for certain benefits to students and young people. Part 2 of the Act deals with the AUSTUDY scheme.

Item 1 - Subsection 3(1) (definition of permanent resident of Australia)

Item 1 repeals the definition of “permanent resident of Australia”.

Item 2 - After Section 6

Item 2 inserts nine new sections, eight of which define terms to be used in the Act in respect of the application of the new two year waiting period for newly arrived migrant access to AUSTUDY and one section (section 6J) which specifies that certain determinations are disallowable instruments.

Section 6A defines the terms “Australian resident”, “exempt resident”, “family member”, “holder”, “parent”, “partner”, “permanent protection visa”, “permanent visa” “special category visa” and “visa” for the purposes of Part 2 of the Act.

Section 6B provides that a person is not to be treated as residing in Australia (for the purposes of the definition of “Australian resident” in section 6A) unless the person intends to remain permanently in Australia and goes on to list some non-exhaustive criteria for deciding whether or not a person intends to remain permanently in Australia.

Section 6C defines “refugees” who are exempt from the waiting period by virtue of paragraph 8(2)(a).

Section 6D defines “dependent child” for the purposes of the definition of “family member” in section 6A.

Section 6E defines “member of a couple” for the purposes of the definitions of “partner” and “family member” in section 6A.

Section 6F defines a “change of circumstances resident”. Change of circumstances residents are exempt from the waiting period while they remain a change of circumstances resident (see paragraph 8(2)(d)).

Section 6G defines a “post-1996 Australian resident”. Post-1996 Australian residents are subject to a waiting period unless specifically exempt under subsection 8(2).

Section 6H defines a “pre-1997 Australian resident” as any Australian resident (other than a New Zealand citizen) who is not a post-1996 Australian resident. For New Zealand citizens who are not post-1996 Australian residents, subsection (2) provides for retention of the current “6 month” waiting period before such New Zealand citizens permanently residing in Australia are eligible for AUSTUDY. The 6 month waiting period for access to AUSTUDY for New Zealand citizens is currently provided for by Regulation (Regulation 4 of the AUSTUDY Regulations) and it is intended to repeal the Regulation after the commencement of the Student and Youth Assistance Amendment (Waiting Period) Act.

Item 3 - Subsection 7(1)

Item 3 has, in conjunction with the new subsection 7(1A), the effect of providing that a person subject to a waiting period in accordance with new sections 8 and 9 must not be granted an AUSTUDY benefit until their waiting period has ended.

Item 4 - Paragraph 7(1)(a)

Item 4 replaces the current paragraph with a new paragraph to reflect the change in terminology for classes of persons who may receive an AUSTUDY benefit provided for by this Act. It removes references to “permanent resident of Australia” (a definition repealed by Item 1) and inserts references to “a pre-1997 Australian resident” and “a post-1996 Australian resident” made necessary by the introduction of those terms by the new sections 6G and 6H.

Item 5 - After Subsection 7(1)

Item 5 inserts a new subsection 7(1A) which provides that a person subject to a waiting period in accordance with new sections 8 and 9 must not be granted an AUSTUDY benefit until their waiting period has ended.

Item 6 - After Section 7

Item 6 inserts two new sections (sections 8 and 9) relating to the application of a 104 week waiting period before certain post-1996 Australian residents are entitled to AUSTUDY benefits.

Subsection 8(1) provides that a post-1996 Australian resident is subject to a waiting period while subsection (2) lists those post-1996 Australian residents who are exempt from the waiting period.

Section 9 specifies the duration of a waiting period and the day from which any waiting period begins to run for New Zealand citizens and other post-1996 Australian residents. The waiting period for New Zealand citizens runs from the day they become an Australian resident (subsection 9(2)) and the waiting period for other post-1996 Australian residents runs from the day they enter Australia or the day they are granted a permanent visa, whichever is the later (subsection 9(1)). Periods of absence from Australia do not count towards any waiting period being served by a post-1996 Australian resident.

Subsection 9(3) provides that where a person who acquires a permanent visa after entering Australia is granted that permanent visa on appeal from an earlier decision not to grant them a permanent visa, the day on which the person is deemed to have been granted a permanent visa for the purposes of subparagraph 9(1)(a)(ii) is the date of the primary decision not to grant them a permanent visa.

 


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