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Thursday, 30 August 2001
Page: 27159


Senator Allison asked the Minister for Family and Community Services, upon notice, on 25 July 2001:

(1) Has Centrelink cut disability support pensions for disabled students who receive university scholarships intended for educational purposes only; if so, what is the rationale for such decisions.

(2) (a) How many students have been affected by this decision; and (b) how much has been cut.

(3) Does this mean that students from welfare backgrounds are effectively not entitled to scholarship assistance for fees, equipment, books, etc. without drastic reductions in their welfare benefits.


Senator Vanstone (Minister for Family and Community Services and Minister Assisting the Prime Minister for the Status of Women) —The answer to the honourable senator's question is as follows:

(1) Students and people with disabilities are treated no differently from any other person applying for income support. The income test counts gross income from all sources (including scholarships) unless specifically exempt. The income and assets tests ensure payments are targeted to those most in need, to keep the social security system affordable for taxpayers. The policy has not changed under this Government. In fact, this Government relaxed the income test for pensioners as part of the Tax Reform changes.

(2)(a) Centrelink recording systems do not enable this question to be answered.

(b) Centrelink recording systems do not enable this question to be answered.

(3) People on income support payments are always better off receiving additional income.

· The income test spreads the value of the scholarship over 12 months.

· A single pensioner can receive up to $112 a fortnight before their pension is reduced.

· Each dollar over this income free area is only reduced by 40 cents.

· A single pensioner can still receive up to $1,131.50 a fortnight ($29,419 a year) and still get a part pension.

· Reimbursements of costs such as for books, fees, photocopying and printing are not income for social security purposes.

· Pensioners are also eligible for additional assistance

- Pensioner Education Supplement of $62.40 a fortnight is paid at the full rate to a student with a disability, as long as they are doing no less than 25% of a full time study load

- Education Entry Payment of $208 once a year

- Mobility Allowance to assist disability support pensioners with transport.