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2016
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SOCIAL SERVICES LEGISLATION AMENDMENT
(SIMPLIFYING STUDENT PAYMENTS) BILL 2016
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Social Services, the Hon Christian Porter MP)
SOCIAL SERVICES LEGISLATION AMENDMENT
(SIMPLIFYING STUDENT PAYMENTS) BILL 2016
OUTLINE
This bill gives effect to a package of measures aimed at simplifying student
payments. These measures were announced as part of the 2016-17 Budget.
Means testing for social security benefits
The Bill will simplify means testing for student payments by:
removing the exemption from the assets test for youth allowance and austudy
payment recipients who are partnered to certain income support recipients;
extending the social security means test rules used to assess interests in
trusts and companies to independent youth allowance and austudy payment
recipients;
aligning the social security benefit income test treatment of gift payments from
immediate family members with existing pension rules; and
harmonising the family tax benefit income test with the youth allowance
parental income test by including tax free pensions and benefits as income for
the parental income test.
These measures, as announced, would commence from 1 January 2017. Should the
Bill not receive Royal Assent before 1 January 2017, it provides for a
commencement date on the first 1 January or 1 July after the amending Act receives
the Royal Assent.
Health care cards
From 1 January 2019, this Bill would make amendments to allow all students
receiving income support to access an automatic issue health care card. This
change would simplify and align concession card rules by ensuring that all income
support recipients (student and otherwise) will automatically receive some form of
concession card.
Remoteness Structure
Amendments are made to simplify the process for adopting the latest version of the
Australian Statistical Geography Standard remoteness structure published by the
Australian Statistician, which is used to assess eligibility for social security student
payments. A new remoteness structure will come into effect automatically, without
the need for legislative amendment, after its publication by the Australian Statistician.
1
Financial impact statement
MEASURE FINANCIAL IMPACT OVER THE FORWARD
ESTIMATES
Means testing for social security $0.778 million save over the forward estimates
benefits
Health care cards $0.726 million cost over the forward estimates
Remoteness structure nil
STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS
The statements of compatibility with human rights appear at the end of this
explanatory memorandum.
2
SOCIAL SERVICES LEGISLATION AMENDMENT
(SIMPLIFYING STUDENT PAYMENTS) BILL 2016
NOTES ON CLAUSES
Abbreviations used in this explanatory memorandum
In this explanatory memorandum, the Social Security Act means the Social
Security Act 1991.
Clause 1 sets out how the new Act is to be cited - that is, as the Social Services
Legislation Amendment (Simplifying Student Payments) Act 2016.
Clause 2 provides a table setting out the commencement dates of the various
sections in, and Schedules to, the new Act.
Clause 3 provides that each Act that is specified in a Schedule is amended or
repealed as set out in that Schedule.
1
Schedule 1 - Means testing for social security benefits
Schedule 1 - Means testing for social security benefits
Summary
The Bill will simplify means testing for student payments by:
removing the exemption from the assets test for youth allowance and austudy
payment recipients who are partnered to certain income support recipients;
extending the social security means test rules used to assess interests in
trusts and companies to independent youth allowance and austudy payment
recipients;
aligning the social security benefit income test treatment of gift payments from
immediate family members with existing pension rules; and
harmonising the family tax benefit income test with the youth allowance
parental income test by including tax free pensions and benefits as income for
the parental income test.
These measures commence on the first 1 January or 1 July after the amending Act
receives the Royal Assent.
Background
Youth allowance and austudy payment assets test
Youth allowance (YA) and austudy payment recipients are usually subject to the
benefits assets test. If a person is a member of a couple who owns their own home,
the person would not be entitled to YA or austudy payment if they and their partner
have assessable assets over $375,000 (as at 1 January 2017).
However, YA and austudy recipients are currently exempt from assets testing if they
have a partner who receives certain social security or veterans' affairs income
support payments, including a pension. Because pension payments are subject to a
more generous asset test than the benefits assets test, this creates an anomaly
under which some people can qualify for YA and austudy payments even though
they and their partner's assessable assets exceed the benefits assets test limit that
applies to all other YA and austudy recipients. Under this measure, this exemption
would be removed.
Means test treatment of private companies and private trusts
Standard social security income and assets test rules in the Social Security Act
include special provisions allowing the income and assets of private trust and
companies to be attributed to a person in certain circumstances, including where the
person has effective control of, or was the source of the funds held by, the trust or
company. These rules are in Part 3.18 of the Social Security Act.
2
Schedule 1 - Means testing for social security benefits
Currently, these standard provisions do not apply to YA or austudy recipients in
relation to the assets test. There are separate rules that apply, but these rules only
allow trust assets (and not company assets) to be attributed and lack the detailed
legal framework provided by the standard provisions.
These standard provisions also do not currently apply to ABSTUDY. ABSTUDY is an
administrative scheme that is regulated through the ABSTUDY policy manual. There
are similar rules for ABSTUDY in the manual.
This difference has no policy rationale, creates a potential inequity between
individuals in similar circumstances and is a potential avenue to undermine the
integrity of the means test. The measure would therefore apply the private trust and
company rules for the assets test for independent YA, austudy payment and
ABSTUDY recipients. (Dependent YA recipients are not subject to assets testing.)
Treatment of periodic gifts and allowances from family members
Currently, regular ongoing gifts from immediate family members are not assessed as
income for pension payments because family support for low income family
members is regarded as a positive outcome, which should not be discouraged
through an income test reduction. However, regular gifts from family members are
assessed for social security benefits and ABSTUDY, including for students.
Assessing regular payments from parents as income for dependent youth payment
recipients is particularly anomalous as the youth parental income test (PIT) already
reduces the youth payment payable where a parent of the youth payment recipient
has the ability to provide support. It is not logical or equitable to further reduce the
dependant child's youth payment when the parent provides support consistent with
these expectations.
The measure would bring the social security benefit and ABSTUDY income test into
line with the pension income test by exempting regular gifts from immediate family
members. This will simplify the social security system for social security benefit and
ABSTUDY recipients, ensure the same rules apply to pension, benefit and
ABSTUDY payments and remove a disincentive for immediate family members to
provide support to relatives in need.
Parental income test for youth allowance
The definition of adjusted taxable income for family tax benefit (FTB) differs from
the definition of combined parental income for the YA PIT in that tax free pensions
and benefits are included for FTB but not for the YA and ABSTUDY PIT.
This difference lacks a clear policy rationale and adds unnecessary complexity to the
system. This measure would harmonise means test arrangements by including tax
free pensions and benefits in the YA and ABSTUDY PIT.
3
Schedule 1 - Means testing for social security benefits
This change will also facilitate the re-use of FTB income details for the youth PIT. In
many cases, the Department of Human Services already holds verified information
about a family's adjusted taxable income for the previous financial year to calculate
FTB entitlements. At present, parents are required to resubmit this information to
support a youth payment claim by one of their children.
Explanation of the changes
Part 1 - Youth allowance and austudy payment assets test
Amendments to the Social Security Act
Section 547A of the Social Security Act provides that YA is not payable to a person if
the value of their assets is more than the person's assets value limit (set out in
section 547C) and provided they are not excluded from the application of the assets
test.
Section 547B then sets out who is excluded from the assets test. Under
subsection 547B(1), a person is excluded from the YA assets test if they are
independent but the person's partner is receiving a payment of pension, benefit or
allowance that is listed in the table in Module L in the Youth Allowance Rate
Calculator in Part 3.5 of the Social Security Act.
Item 1 repeals subsection 547B(1) of the Social Security Act. Item 2 makes a minor
consequential amendment.
Section 573 provides that austudy payment is not payable to a person if the value of
their assets is more than the person's assets value limit (set out in section 573B) and
provided they are not excluded from the application of the assets test.
Section 573A then provides that a person is excluded from the assets test if their
partner is, or has received a payment listed in the table at the end of the provision.
Item 3 repeals and replaces these provisions with a new section 573 which provides
that an austudy payment is not payable to a person if the value of their assets is
more than their assets value limit. A note is also included that directs the reader to
the assets value limit in section 573B.
These amendments will apply in working out whether YA or austudy payment is
payable to a person in respect of days occurring on and after commencement (the
application provisions in item 4 refer).
Part 2 - Means test treatment of private companies and private trusts
Amendments to the Social Security Act
Part 3.18 of the Social Security Act contains general provisions relating to the means
test treatment of private companies and private trusts and provides a system for the
attribution to individuals of the assets and income of private companies and private
trusts.
4
Schedule 1 - Means testing for social security benefits
These general provisions are currently disregarded in working out a person's assets
for the purposes of YA (section 547D refers). Instead, there are separate rules in
section 547E (relation to trust assets) that apply.
Under section 547D, the rules in Part 3.18 of the Social Security Act are specifically
disregarded in working out the value of a person's assets for the purposes of the YA
assets test. Item 5 and 6 remove references to Part 3.18 from section 547D.
Item 8 repeals section 547E. Item 7 removes reference to the rules in section 547E
from section 547D.
There are similar rules for austudy payment (in sections 573C and 573D of the
Social Security Act). The amendments made by items 9 and 10 have a similar
effect for austudy payment.
The overall effect of these amendments is that the general rules in Part 3.18 will
apply in working out the value of a person's assets under the YA and austudy
payment assets tests.
These amendments will apply in relation to working out whether youth allowance or
austudy payment is payable to a person in respect of days occurring on and after
commencement (the application provisions in item 11 refer).
Part 3 - Treatment of periodic gifts or allowances from family members
Amendments to the Social Security Act
Paragraph 8(8)(z) of the Social Security Act exempts from income a periodical
payment by way of gift or allowance, or a periodical benefit by way of gift or
allowance, from a parent, child, brother or sister of the person. As reflected in the
note after paragraph (z), this general rule is reversed for social security benefits by
specified provisions in the relevant rate calculators. These specific provisions are
point 1067G-H21 (for YA), point 1067L-D17 (for austudy payment), point 1068-G5
(for newstart allowance) and point 1068B-D5 (for partnered parenting payment).
Item 12 repeals the note at the end of paragraph 8(8)(z). Items 13 to 16 repeal the
specific provisions in the rate calculators that reverse the exemption in
paragraph 8(8)(z).
Item 17 is an application provision. It ensures that these amendments apply in
relation to working out the rate of social security benefits in respect of days occurring
on or after commencement.
5
Schedule 1 - Means testing for social security benefits
Part 4 - Parental income test for youth allowance
Amendments to the Social Security Act
For FTB, the definition of adjusted taxable income is set out in Schedule 3 to the A
New Tax System (Family Assistance) Act 1999. A component of adjusted taxable
income is an individual's tax free pension or benefit which is then defined in
clause 7 of Schedule 3 to include social security and veterans' affairs income
support payments and certain payments by the Veterans' Affairs Military
Rehabilitation and Compensation Commission.
For YA, combined parental income is defined in point 1067-F10 of the Social
Security Act and does not include the parent's tax free pensions or benefits.
Item 18 amends the definition of combined parental income so that it includes the
parent's tax free pensions or benefits as worked out in accordance with clause 7 of
Schedule 3 to the Family Assistance Act.
Item 19 is an application provision. It provides that this amendment applies in
relation to working out a person's eligibility for, or amount of, youth allowance for day
that is on or after commencement.
6
Schedule 2 - Health care cards
Schedule 2 - Health care cards
Summary
From 1 January 2019, this Bill would make amendments to allow all students
receiving income support to access an automatic issue health care card (HCC). This
change would simplify and align concession card rules by ensuring that all income
support recipients (student and otherwise) will automatically receive some form of
concession card.
Background
Under the current rules, recipients of youth allowance (student), austudy payment
and ABSTUDY living allowance are the only income support recipients not to qualify
for an automatic issue HCC. Instead, students can make a claim for a low income
HCC and are subject to an income test to determine their eligibility for that card.
This process is burdensome for students and costly to administer.
This measure will simplify the payment system by ensuring that all income support
recipients access an automatic issue HCC.
The amendments commence on 1 January 2019.
Explanation of the changes
The legislative framework for the issue of concession cards is in Part 2A.1 of the
Social Security Act. In particular Subdivision A of Division 3 sets out the qualification
rules for an automatic issue HCC. Subsection 1061ZK(5) which provides that
recipients of specified income support payments qualify for the automatic issue
HCC. Youth allowance is mentioned but people receiving youth allowance as a new
apprentice and full time students are excluded. Austudy payment and ABSTUDY
living allowance are not mentioned in subsection 1061ZK(5).
Subdivision B of Division 3 sets out the qualification rules for HCC's for which a claim
is required. Students and new apprentices receiving youth allowance, austudy
payment and ABSTUDY living allowance recipients may qualify for a low income
health care card under section 1067ZO if they satisfy the health care card income
test.
Item 1 broadens the scope of subsection 1061ZK(5) so that the provision applies to
a person who is receiving youth allowance (student) or austudy payment (or other
payments currently listed). This will also cover young people whose youth allowance
is being paid to a parent on their behalf as they would still be considered to be
'receiving' the payment under the Social Security Act.
Item 1 also inserts a new subsection 1061ZK(6) which covers a person who is
receiving their payment under the ABSTUDY scheme that includes a living
allowance component or where someone else is being paid the person's ABSTUDY
including living allowance (such as a boarding school).
7
Schedule 2 - Health care cards
Item 2 is an application provision. It provides that these amendments apply in
working out whether a person is qualified for an automatic issue HCC for a day that
is on or after commencement.
8
Schedule 3 - Remoteness Structure
Schedule 3 - Remoteness Structure
Summary
This Schedule implements a part of the 2016-17 Budget measure to simplify student
payments. The Schedule simplifies the process for updating the Australian Statistical
Geography Standard (ASGS) remoteness structure published by the Australian
Statistician which is used to assess eligibility for student payments under the Social
Security Act. The amendments simplify administration by allowing for the
remoteness structure in the Social Security Act to be updated automatically after a
new document is published by the Australian Statistician. This will ensure that an
assessment of qualification for youth allowance and qualification for, and rate of,
relocation scholarship payments is based on up-to-date geographical classification
information.
Background
Currently, student payment recipients whose family home is in a location
geographically categorised under the Remoteness Structure as Inner Regional
Australia, Outer Regional Australia, Remote Australia or Very Remote Australia can
access additional benefits or concessional qualification requirements under the
Social Security Act that are not available to students from major city areas. Such
benefits may include:
qualification for youth allowance on the basis of being independent under the
concessional workforce participation arrangements, provided the students'
parental income is below $150,000 per annum and they are required to live
away from home to study; and
qualification for relocation scholarship payment and the rate at which it is paid.
Currently, the 'Remoteness Structure' is defined in the Social Security Act to mean
the Remoteness Structure described in:
the document entitled 'Statistical Geography Volume 1 Australian Standard
Geographical Classification (ASGC) July 2006', published by the Australian
Statistician, that was effective 1 July 2006; or
the document specified in a determination made by the Secretary to be a
replacement document, provided this document is one published by the
Australian Statistician.
The 2006 ASGC remoteness structure is currently out of date and since
January 2013 has been superseded by the ASGS 2011 remoteness structure. The
ASGS remoteness structure is updated every five years, following each Census.
The 2016 update from the Australian Statistician is due in January 2018.
9
Schedule 3 - Remoteness Structure
This Schedule provides that the remoteness structure in the Social Security Act is
updated automatically, without the need for legislative amendment, when a new
ASGS or any replacement remoteness structure document is published by the
Australian Statistician. This simplifies administration and ensures that an
assessment of qualification for youth allowance and qualification for, and rate of,
relocation scholarship payment is based on the latest available information on
geographical classification.
The Secretary will continue to have the ability to specify a replacement document by
written determination but only in the circumstance that the Australian Statistician has
notified the Secretary that the Australian Statistician will no longer be publishing
replacement documents. This determination will be by a notifiable instrument, rather
than a legislative instrument.
The amendments made by this Schedule commence on 1 January 2017, or the first
1 January or 1 July after the date of Royal Assent if Royal Assent is not before
1 January 2017.
Explanation of the changes
Amendments to the Social Security Act
Item 1 repeals subsections 1067A(10F) to (10H) and substitutes new
subsections 1067A(10F) to (10J).
Current subsection 1067A(10F) defines the 'Remoteness Structure' to mean the
Remoteness Structure defined in:
the ASGC effective 1 July 2006; or
a document specified in a determination to be a replacement document.
Under current subsection 1067A(10G) the Secretary may, by written determination,
specify a replacement document, only if such document is one published by the
Australian Statistician.
Current subsection 1067A(10H) provides that a determination under
subsection 1067A(10G) is not a legislative instrument.
New subsection 1067A(10F) defines the 'Remoteness Structure' to mean the
Remoteness Structure described in:
the ASGS effective from July 2011 published by the Australian Statistician
and as amended from time to time;
any replacement document published by the Australian Statistician that is in
effect in accordance with subsection 1067A(10G); or
any document that is determined by the Secretary in an instrument under
subsection 1067A(10H) and that is in effect in accordance with
subsection 1067A(10J).
10
Schedule 3 - Remoteness Structure
New paragraph 1067A(10F)(a) allows for the Remoteness Structure to be the ASGS
as amended from time to time so as to ensure assessment of eligibility for student
payments is based on up-to-date geographical classification information.
New subsection 1067A(10G) provides that a replacement document mentioned in
paragraph 1067A(10F)(b) published by the Australian Statistician has effect on the
first 1 January or 1 July to occur after the day of publication and then has effect as
amended from time to time. New subsection 1067A(10G) also provides that the
document in effect immediately before the publication of the replacement document
is taken to continue to have effect until the end of the day before that 1 January or
1 July.
New subsection 1067A(10H) allows the Secretary to determine a replacement
document by notifiable instrument in the circumstance that the Australian Statistician
has notified the Secretary that the Australian Statistician will no longer be publishing
replacement documents for the remoteness structure.
New subsection 1067A(10J) provides that a document determined in an instrument
under subsection 1067A(10H) takes effect on the day specified in the determination
and then has effect as amended from time to time.
Item 2 provides that the amendments made by this Schedule apply in relation to
working out a person's qualification for, or the rate of, youth allowance for a day that
is on or after the commencement of this item, and in relation to working out a
person's qualification for a relocation scholarship payment, and if so qualified, the
amount of the relocation scholarship payment.
11
Statements of compatibility with human rights
STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
SOCIAL SERVICES LEGISLATION AMENDMENT
(SIMPLIFYING STUDENT PAYMENTS) BILL 2016
Schedule 1 - Means testing for social security benefits
This Schedule is compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Schedule
Schedule 1 of the Bill will improve the equity, simplicity and consistency of the
income support system from 1 January 2017 by aligning means testing rules for
student payments with other welfare payments.
Human rights implications
This Schedule engages the following human rights:
Right to social security
Schedule 1 of the Bill is consistent with supporting the right to social security.
From 1 January 2017, changes will be made to simplify the student payment means
test and remove anomalies by:
harmonising Income assessments for Family Tax Benefits and the youth
Parental Income Test, by including the value of tax free pensions and benefits
for the youth Parental Income Test,
removing the assets test exemption for Youth Allowance and Austudy
recipients with partners receiving certain Social Security or Veteran's Affairs
income support payments,
extending the trust and company rules to all student payment recipients, and
aligning the social security benefit and ABSTUDY income test treatment of gift
payments from immediate family members with existing pension rules.
Harmonising the Family Tax Benefit income test and the youth Parental Income Test
will improve equity and allow Family Tax Benefit income details to be automatically
reused for the youth Parental Income Test. Parents will no longer be required to
resubmit their income information to support a youth payment claim by one of their
children.
12
Statements of compatibility with human rights
The social security system uses means testing to ensure the social security system
is sustainable, targeted to those most in need, encourages self-provision, and is fair.
Removing the assets test exemption for Youth Allowance and Austudy recipients
with partners receiving certain Social Security or Veteran's Affairs income support
payments and extending the trust and company rules to all student payment
recipients will assist in meeting these objectives. These changes will remove
inequities under which some income support recipients with substantial levels of
private assets get higher income support payments that other people who have
similar levels of assets. Income support recipients affected by these changes have
the capacity to be more self-reliant and it is appropriate that they use their income
and assets to help support themselves.
This Schedule will also remove an anomaly by extending the pension income test
exemption for regular gifts from immediate family members across the social security
system so that it also applies for student payments and other social security benefits.
Extending this exemption will remove a disincentive for families to provide support to
family members. For dependent students, the parental means test already reduces a
dependant child's youth payment where a parent has the ability to provide support,
and it is not logical or equitable to further reduce the youth payment when the parent
provides the expected support.
Conclusion
The amendments in the Schedule are compatible with human rights because they do
not limit access to social security.
13
Statements of compatibility with human rights
Schedule 2 - Health care cards
This Schedule is compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Schedule
Schedule 2 of the Bill will improve consistency in accessing concession cards for
students with other income support recipients from 1 January 2019 by simplifying
administrative arrangement for recipients of youth allowance (student), austudy
payment and ABSTUDY living allowance.
Human rights implications
This Schedule engages the following human rights:
Right to social security
Schedule 2 of the Bill is consistent with supporting the right to social security.
From 1 January 2019, changes will be made to simplify the payment system to allow
all students receiving youth allowance (student), austudy payment and ABSTUDY
living allowance access to an automatic issue Health Care Card (HCC).
Under the current rules, recipients of youth allowance (student), austudy payment
and ABSTUDY living allowance are the only income support recipients who are not
qualified for an automatic issue HCC. Instead, these students can claim for a low
income Health Care Card (LIC) if their income is below a certain limit. This process is
burdensome for students and costly for Department of Human Services to
administer. In most circumstances currently, student payment recipients must wait
eight weeks to become eligible for a LIC or to provide proof that their income was
below the relevant limit in the previous eight weeks in order to be issued a LIC.
This measure will enable these students to be eligible for a HCC once they are on an
income support payment.
The Schedule also engages Article 11 of International Covenant on Economic,
Social and Cultural Rights (ICESCR), which provides for the right of everyone to the
enjoyment of the highest attainable standard of physical and mental health.
Recipients of student payments will be issued automatically a HCC which provides
the same Commonwealth concessions as those provided to a LIC. These
concessions include access to Pharmaceutical Benefits Scheme prescriptions at the
concessional rate and access to the lower threshold of the Extended Medicare
Safety Net.
Conclusion
The amendments in this Schedule are compatible with human rights because they
do not limit access to social security.
14
Statements of compatibility with human rights
Schedule 3 - Remoteness Structure
This Schedule is compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Schedule
This Schedule will update the reference in the Social Security Act 1991 (the Act) so
that the most current 'Australian Statistical Geography Standard' (ASGS)
remoteness structure, published by the Australian Statistician is used to assess
qualification for youth allowance and qualification for and the rate of payment of the
relocation scholarship. Currently, the outdated Australian Standard Geographical
Classification (ASGC) 2006 is used to assess qualification. This Schedule will
commence on 1 January 2017 or the first 1 January or 1 July after the date of Royal
Assent, if Royal Assent is not before 1 January 2017.
Under the Act, students whose family home is in a location geographically classified
as Inner Regional Australia, Outer Regional Australia, Remote Australia or Very
Remote Australia can access additional benefits or concessional qualification
requirements under the Act that are not available to students from major city areas.
Such benefits include:
qualification for youth allowance on the basis of being independent under the
concessional workforce participation criteria where the students' parental
income is below $150,000 and they are required to move away from home to
study, and
qualification for the relocation scholarship and the rate at which it is paid for
dependent youth allowance recipients, and some independent recipients.
This Schedule will simplify the process for updating the remoteness structure and
administrative arrangements for student payments.
Human rights implications
The Schedule engages the following human rights:
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural Rights
(ICESCR) recognises the right of everyone to social security.
The right to social security requires that a system be established under domestic
law, and that public authorities must take responsibility for the effective
administration of the system. The social security system must provide a minimum
essential level of benefits to all individuals and families that will enable them to cover
essential living costs.
15
Statements of compatibility with human rights
The United Nations Committee on Economic, Cultural and Social Rights (the
Committee) has stated that a social security scheme should be sustainable and that
the conditions for benefits must be reasonable, proportionate and transparent (see
General Comment No.19).
Article 4 of ICESCR provides that countries may limit the rights such as to social
security in a way determined by law only in so far as this may be compatible with the
nature of the rights contained within the ICESCR and solely for the purpose of
promoting the general welfare in a democratic society. Such a limitation must be
proportionate to the objective to be achieved.
To the extent that there is an impact on a person's right to social security by virtue of
Schedule 3, the impact is limited.
Using the current remoteness structure in assessing qualification for youth allowance
and qualification for and the rate of the relocation scholarship may mean that, as a
result of the change in their family homes' geographical 'remoteness' status, some
students who were previously ineligible may qualify for youth allowance or the
relocation scholarship and may qualify for a higher rate of the relocation scholarship.
Conversely, some students who would have previously been eligible for youth
allowance or the relocation scholarship under a previous remoteness structure, may
no longer be eligible under an updated version of the remoteness structure,
depending on their circumstances. The change in remoteness may occur prior to the
student applying for payment or partway through a student's course. The number of
students affected by this Schedule is expected to be very small.
Students who are found ineligible for youth allowance under the concessional
workforce participation independence criteria due to the change in remoteness, may
still qualify for youth allowance as either a dependent or under one of the other
independence criteria. Similarly, students who lose access to the relocation
scholarship will still retain access to youth allowance (provided they continue to meet
the qualification criteria).
It should be noted however that students who had previously qualified for youth
allowance under the concessional workforce participation independence criteria
under a previous remoteness structure, will not have their qualification for youth
allowance reassessed if their family home is classified as in a major city location of
Australia under an updated remoteness structure. These students will retain their
independent status.
Right to education
Article 13 of the ICESCR recognises the right of everyone to education.
This Schedule may have a limited impact on a person's right to education where a
person who would have been eligible for youth allowance or the relocation
scholarship under a previous remoteness structure, may no longer be eligible.
16
Statements of compatibility with human rights
The impact is expected to be limited as students who will no longer be able to apply
for youth allowance as an independent under the concessional workforce
participation criteria, will still be able to apply for youth allowance as either a
dependent or under one of the other independence criteria. Similarly, students who
lose access to the relocation scholarship will still retain access to youth allowance
(provided they continue to meet the qualification criteria).
In addition to student payments, the Australian Government provides other
programmes to assist tertiary students with the cost of education:
Students who are enrolling in a Commonwealth Supported Place for a
university level qualification (that is, undergraduate level) can access a HECS
HELP loan to pay their student contribution amount. Students accessing this
loan are required to pay their debt through the tax system when they earn
above the minimum threshold for compulsory repayment.
Eligible students who are enrolling in a higher-level vocational education and
training (VET) qualification are able to access VET FEE-HELP, a loan scheme
which assists eligible students, enrolled in diploma-level and above courses at
an approved VET provider, to pay their tuition fees.
FEE-HELP is a loan scheme that assists eligible fee paying students in non
Commonwealth Support Places (for example, post-graduate level courses at
university) pay all or part of their tuition fees.
Eligible students who access any of the above loans can borrow up to the
FEE HELP limit to pay their fees and do not have to repay the loan until their
income meets the minimum repayment threshold.
Updating the reference in the Act so that the most current ASGS is used to assess
qualification for youth allowance and the relocation scholarship, is reasonable in that
access to other payments and support mechanisms to allow individuals to undertake
study remains.
Conclusion
The Schedule is compatible with human rights. To the extent that it may have a
limited adverse impact on a person's access to social security or education, the
limitation is a reasonable, proportionate and necessary response to achieve the
legitimate objective of ensuring the long-term sustainability of the social security
system by simplifying the structure of the system.
[Circulated by the authority of the Minister for Social Services,
the Hon Christian Porter MP]
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