Explanatory Memorandum
(Circulated by authority of the Minister for Education, Science and Training the Hon Dr Brendan Nelson MP)Outline and financial impact
Outline
The Bill will amend the Student Assistance Act 1973 (the Act) to:
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- Permit Social Security, Veterans and Family Assistance legislation overpayments to be offset against benefits payable under the Assistance for Isolated Children (AIC) scheme and the ABSTUDY scheme;
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- Update the definitions of current special educational assistance scheme and former special educational assistance scheme to reflect that the Aboriginal Overseas Study Assistance Scheme no longer exists; and
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- Increase the 7 day notification period within which students are obliged to notify of certain prescribed events in section 48 of the Act and related sections to a 14 day period. This amendment will align the notification periods in these sections with section 344 of the Act and will also ensure consistency between the administration of the programs under the Act and other Commonwealth programmes administered by Centrelink.
Financial impact
Nil
NOTES ON CLAUSES
Clause 1 - Short Title
Provides for the Act to be cited as the Student Assistance Amendment Act 2002.
Clause 2 - Commencement
Provides for the Act to commence on the day on which it receives the Royal Assent.
Clause 3 - Schedule(s)
Provides that each Act that is specified in a Schedule is amended or repealed as set out in the applicable items in the Schedule and that any other item in a Schedule has effect according to its terms.
Schedule 1 - Amendments
Items 1 & 2
Amend the definition of current special educational assistance scheme in subsection 3(1) of the Act to remove reference to the Aboriginal Overseas Study Assistance Scheme.
Item 3
Inserts a new paragraph (aa) in the definition of former special educational assistance scheme in subsection 3(1) of the Act to extend the definition to include the Aboriginal Overseas Study Assistance Scheme (also known as Aboriginal and Torres Strait Islander Overseas Study Award Scheme).
Item 4 - 8 and 10
Amends the 7-day notification period in subsection 12QB(1), paragraph 12QB(2)(a), subparagraph 12QB(2)(d)(ii), subsection 12S(1), subparagraph 12S(2)(d)(ii) and section 48 of the Act to a 14-day notification period.
Item 9
Add a new section 39AA to permit a debt or overpayment that may be recovered by making deduction under section 1231 of the Social Security Act 1991 to be recovered by making deductions from amounts that would otherwise be payable under a special educational assistance scheme.