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2022-2023
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
EDUCATION LEGISLATION AMENDMENT (STARTUP YEAR AND OTHER MEASURES) BILL 2023
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Education, the Hon Jason Clare MP)
EDUCATION LEGISLATION AMENDMENT (STARTUP YEAR AND OTHER MEASURES) BILL 2023
OUTLINE
The Education Legislation Amendment (Startup Year and Other Measures) Bill 2023 (the Bill) amends the Higher Education Support Act 2003 (HESA) to create a new form of Higher Education Loan Program (HELP) assistance, SY-HELP, and to list Avondale University as a Table B provider under HESA. The Bill also amends the Australian Research Council Act 2001 (the ARC Act) to apply current indexation rates to existing appropriation amounts and insert a new funding cap for the financial year commencing 1 July 2025.
Schedule 1 to the Bill establishes SY-HELP. SY-HELP loans will support the participation of final year undergraduate students, current post-graduate students and recent graduates in accelerator program courses at Australian universities and university colleges.
SY-HELP assistance will be capped at the maximum student contribution amount for medicine, dentistry, and veterinary science under funding cluster four of HESA ($11,800 in 2023) and will be provided in relation to the course fee of a higher education-based accelerator program. Like OS-HELP, eligible students can receive a maximum of two discrete SY-HELP loans over their lifetime to fully cover the cost of their participation in accelerator programs.
In line with other instances of HELP assistance such as HECS-HELP and FEE-HELP, payments of SY-HELP assistance will be made directly to higher education providers who run eligible accelerator programs. Higher education providers will be prevented from charging a course fee that exceeds this funding cap.
Student and provider eligibility for SY-HELP assistance will operate in a similar manner to existing HELP types. Like HECS-HELP and FEE-HELP, students eligible for SY-HELP assistance will incur a debt to the Commonwealth of the amount of assistance on a pre-determined census date. SY-HELP assistance will not contribute to the existing HELP loan limit. Re-crediting, or reversal, provisions akin to those of HECS-HELP and FEE-HELP assistance will also apply to SY-HELP assistance.
· a limit on the number of SY-HELP places, and the mechanism through which SY-HELP places will be assigned to higher education providers, including considerations for equitable access for disadvantaged and underrepresented groups;
· a set of expected core capabilities that Startup Year accelerator program courses will be required to equip students with to ensure a consistent student experience across accelerator program courses.
The Bill also amends the Social Security Act 1991 , Social Security (Administration) Act 1999 and Student Assistance Act 1973 to provide that students entitled to SY-HELP assistance may qualify for relevant social security payments, including youth allowance and austudy payment, while undertaking an accelerator program course.
Schedule 2 to the Bill amends the ARC Act to increase research funding caps for the 2022-23, 2023-24 and 2024-25 financial years to reflect current indexation rates, and to insert a new funding cap for the 2025-25 financial year, resulting in an additional appropriation of $1009 million for the period of 2022-23 to 2025-26. These amendments support the financial assistance for approved research programs administered by the Australian Research Council (ARC), which fund the high-quality research needed to grow knowledge and innovation for the benefit of the Australian community.
The amendments are essential as the ARC Act is the legislative basis for Commonwealth spending on ARC research programs through special appropriation mechanisms which must occur each financial year. The amendments only impact administered special appropriations; they do not alter the substance of the ARC Act.
Schedule 3 to the Bill amends HESA to list Avondale University as a Table B provider, giving Avondale greater access to grants under HESA, including Research Block Grants, from the start of 2024. This amendment recognises Avondale University’s recent registration as an ‘Australian University’ under the Tertiary Education Quality and Standards Agency Act 2011 , and its teaching and research performance. The amendment will contribute to specialisation, differentiation and quality across the higher education sector.
FINANCIAL IMPACT STATEMENT
T he measures contained in Schedule 1 to the Bill to establish SY-HELP as a new form of HELP assistance will result in a net expense of $15.4 million over four years from 2022-23.
The below table sets out the proposed, current, and difference in the funding amount of each financial year for the ARC amendments included in Schedule 2 to the Act, which updates the special appropriation funding cap administered by the ARC to include indexation adjustments and an additional forward estimate for existing schemes within the National Competitive Grants Program (NCGP). The amendments will alter three existing financial year funding figures for indexation and extend the forward estimate period to include the 2025-26 financial year. The total of the additional appropriation is $1009 million for the financial years 2022-23 to 2025-26 inclusive. Indexation adjustments and adding the next year of the forward estimate are part of the standard budget process and are administrative in nature.
|
|
2022-23 |
2023-24 |
2024-25 |
2025-26 |
|
Proposed |
$831,594,000 |
$851,414,000 |
$871,694,000 |
$893,036,000 |
|
Current |
$815,288,000 |
$812,207,000 |
$811,169,000 |
0 |
|
Difference |
+$16,306,000 |
+$39,207,000 |
+$60,525,000 |
+$893,036,000 |
CONSULTATION
The Department of Education, in collaboration with the Department of Industry, Science and Resources, undertook a six-week consultation process with key stakeholders from across higher education, industry and the start-up community. Feedback from the consultation period have informed the final policy settings for Startup Year and the development of this Bill.
Feedback from stakeholders indicated that Startup Year can address a current gap in the higher education accelerator system and would improve access to higher education-based accelerators. Startup Year provides an opportunity for the entrepreneurial mindset to be encouraged and for this mindset to have a broader appeal. Startup Year accelerators will teach budding entrepreneurs important business and management skills that will help build confidence and resilience when creating ideas.
On 28 June 2022, Professor Kevin Petrie, Avondale Vice-Chancellor, wrote to the Minister for Education to seek support to become Table B provider. The Minister approved the request on 9 December 2022.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Education Legislation Amendment (Startup Year and Other Measures) Bill 2023
The Education Legislation Amendment (Startup Year and Other Measures) Bill 2023 (the Bill) 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 Bill
The Bill amends the Higher Education Support Act 2003 (HESA) to create a new form of Higher Education Loan Program (HELP) assistance, SY-HELP, and to list Avondale University as a Table B provider under HESA. The Bill also amends the Australian Research Council Act 2001 (the ARC Act) to apply current indexation rates to existing appropriation amounts and insert a new funding cap for the financial year commencing 1 July 2025.
Schedule 1 to the Bill establishes SY-HELP. SY-HELP loans will support the participation of final year undergraduate students, current post-graduate students and recent graduates in accelerator program courses at Australian universities and university colleges.
SY-HELP assistance will be capped at the maximum student contribution amount for medicine, dentistry, and veterinary science under funding cluster four of HESA ($11,800 in 2023) and will be provided in relation to the course fee of a higher education-based accelerator program. Like OS-HELP, eligible students can receive a maximum of two discrete SY-HELP loans over their lifetime to fully cover the cost of their participation in accelerator programs.
In line with other instances of HELP assistance such as HECS-HELP and FEE-HELP, payments of SY-HELP assistance will be made directly to higher education providers who run eligible accelerator programs. Higher education providers will be prevented from charging a course fee that exceeds this funding cap.
Student and provider eligibility for SY-HELP assistance will operate in a similar manner to existing HELP types. Like HECS-HELP and FEE-HELP, students eligible for SY-HELP assistance will incur a debt to the Commonwealth of the amount of assistance on a pre-determined census date. SY-HELP assistance will not contribute to the existing HELP loan limit. Re-crediting, or reversal, provisions akin to those of HECS-HELP and FEE-HELP assistance will also apply to SY-HELP assistance.
The Bill also establishes the legislative authority to create SY-HELP Guidelines as a legislative instrument. Consistent with other types of HELP assistance, the SY-HELP Guidelines will specify further details of SY-HELP, including:
- a registration process of eligible accelerator program courses for which SY-HELP assistance will be payable;
- a limit on the number of SY-HELP places, and the mechanism through which SY-HELP places will be assigned to higher education providers, including considerations for equitable access for disadvantaged and underrepresented groups;
- a set of expected core capabilities that Startup Year accelerator program courses will be required to equip students with to ensure a consistent student experience across accelerator program courses.
The Bill also amends the Social Security Act 1991 , Social Security (Administration) Act 1999 and Student Assistance Act 1973 to provide that students entitled to SY-HELP assistance may qualify for relevant social security payments, including youth allowance and austudy payment, while undertaking an accelerator program course.
Schedule 2 to the Bill amends the ARC Act to increase research funding caps for the 2022-23, 2023-24 and 2024-25 financial years to reflect current indexation rates, and to insert a new funding cap for the 2025-25 financial year, resulting in an additional appropriation of $1009 million for the period of 2022-23 to 2025-26. These amendments support the financial assistance for approved research programs administered by the Australian Research Council (ARC), which fund the high-quality research needed to grow knowledge and innovation for the benefit of the Australian community.
The amendments are essential as the ARC Act is the legislative basis for Commonwealth spending on ARC research programs through special appropriation mechanisms which must occur each financial year. The amendments only impact administered special appropriations; they do not alter the substance of the ARC Act.
Schedule 3 to the Bill amends HESA to list Avondale University as a Table B provider, giving Avondale greater access to grants under HESA, including Research Block Grants, from the start of 2024. This amendment recognises Avondale University’s recent registration as an ‘Australian University’ under the Tertiary Education Quality and Standards Agency Act 2011 , and its teaching and research performance. The amendment will contribute to specialisation, differentiation and quality across the higher education sector.
Human rights implications
The Bill engages the following rights:
· the right to work - Article 6 of the International Covenant on Economic, Social and Cultural Rights (ICESCR);
· the right to social security - Article 9 of the ICESCR; and
· the right to education - Article 13 of the ICESCR.
Right to work
The Bill engages with the right to work set out in Article 6 of the ICESCR. Article 6(1) of the ICESCR recognises “the right of everyone to the opportunity to gain [their] living by work” and that the State will “take appropriate steps to safeguard this right”. Article 7(2) cites “technical and vocational guidance and training programmes, policies and techniques to achieve steady economic, social and cultural development and full and productive employment under conditions safeguarding fundamental political and economic freedoms to the individual” as steps to be taken by a State Party to achieve the full realisation of the right contained in Article 6(1).
Schedule 1 to the Bill allows students to access HELP assistance - a type of income-contingent loan - to participate in higher education-based accelerator program courses and promotes the right to work by equipping students with the skills necessary to follow an entrepreneurial career. It will support participants’ ability to work in start-up companies and other innovative workplaces.
Schedule 1 to the Bill will also allow more equitable participation in higher education-based accelerator programs for people in underrepresented groups, thereby increasing opportunities for people from disadvantaged groups to follow their desired career path.
Right to social security
The Bill engages the right to social security contained in Article 9 of the ICESCR. Article 9 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.
Article 4 of the ICESCR provides that countries may limit the right 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.
The Social Security Act 1991 provides access to social security for students through equity measures that provide financial assistance to help meet the costs associated with study. To qualify for student payments, a student must meet specified criteria, including in relation to their course of study, study load and study progress. The amendments to the Social Security Act 1991 , Social Security (Administration) Act 1999 and Student Assistance Act 1973 contained in the Bill are ultimately beneficial in that they enable more students to access social security payments, to assist in meeting educational expenses with undertaking accelerator program courses .
Right to education
The Bill engages the right to education, which is set out in Article 13 of the ICESCR. Article 13 recognises the important personal, societal, economic, and intellectual benefits of education. Article 13 also provides that secondary education in all its different forms, including higher education, shall be made generally available and accessible to all by every appropriate means.
Article 13(2)(b) presents technical and vocational education as part of secondary education, reflecting its particular importance at this level of education. Technical and vocational education should enable students to acquire knowledge and skills which contribute to their employability and enhance their productivity. It should also provide retraining for adults whose current knowledge and skills have become obsolete owing to technological or other changes.
Schedule 1 to the Bill allows students to access HELP assistance to participate in higher education-based accelerator program courses and promotes the right to education because it will lead to increased accessibility to further education that is targeted to entrepreneurial thinking and problem solving and skills associated with running a start-up business. The amendments will help fill a gap in existing higher education offerings and will allow underrepresented groups to participate more fully in an entrepreneurial education. As set out in the amendments, providers are required to have fair, transparent and reasonable procedures for selecting between applicants for SY-HELP assistance, but are still permitted to consider educational disadvantage when making this decision. Supported by the SY-HELP Guidelines which are required to be considered when making this selection, these requirements will facilitate the promotion of education through the provision of accelerator program courses in a non-discriminatory manner.
Schedule 1 to the Bill will also allow for skills relevant to start-ups and other innovative businesses to be taught to a larger number of participants of higher education-based accelerators and in a more thorough way than what is currently available through existing higher education programs.
The amendments in Schedule 3 to the Bill will also support the right to education by giving Avondale University access to funding arrangements provided to Table B providers - for example, Indigenous student assistance grants under Part 2-2A of HESA and a range of grant programs under Part 2-3 of HESA. Avondale University’s eligibility for grants will improve access to education for students at Avondale University as they will be able to benefit from a wider range of grants, reducing barriers to their study.
Conclusion
The Bill is compatible with human rights because it promotes and supports the right to work, the right to social security and the right to education. To the extent a human rights obligation is engaged or limited, the impact is for a legitimate objective and is reasonable, necessary and proportionate as outlined above.
Minister for Education, the Hon Jason Clare MP
EDUCATION LEGISLATION AMENDMENT (STARTUP YEAR AND OTHER MEASURES) BILL 2023
NOTES ON CLAUSES
Clause 1: Short title
1. This is a formal provision specifying the short title of the Act.
Clause 2: Commencement
2. The table in subsection (1) of this clause sets out the commencement dates for the Bill’s provisions.
3. The whole of this Act commences the day after the Act receives the Royal Assent.
4. Subsection (2) of this clause provides that any information in column 3 of the table is not part of the Act.
Clause 3: Schedules
5. This clause gives effect to the provisions in the Schedules to the Bill by providing that any legislation 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— Startup year
Part 1 - SY-HELP assistance
Higher Education Support Act 2003
Items 1 and 2: Paragraph 3-10(d)
1. Section 3-10 of the Higher Education Support Act 2003 (HESA) sets out the types of assistance to students outlined in Chapter 3.
2. Items 1 and 2 insert new paragraph (e) into the list of programs in section 3-10, which specifies SY-HELP assistance as one of the types of assistance provided for in this chapter.
Item 3: After paragraph 5-1(4)(e)
3. Subsection 5-1(4) of HESA sets out provisions of HESA that don’t apply to Table C providers.
4. Item 3 inserts new paragraph (ea) into this subsection, to clarify that Part 3-7, which will govern SY-HELP assistance, does not apply to Table C providers.
Item 4: Subsection 19-35(5)
5. Item 4 repeals subsection 19-35(5) of HESA, and remakes it as a new subsection (6). It adds a new subsection (5), which sets out requirements that accelerator program course providers have fair, transparent and reasonable procedures for selecting among applicants as to who can enrol or receive SY-HELP assistance, and for the treatment of students.
Item 5: At the end of section 19-36A
6. Section 19-36A of HESA provides that a higher education provider must not offer or provide a benefit, or cause it to be offered or provided, which may induce a student to apply for Commonwealth assistance with the provider, except where set out in the Higher Education Provider Guidelines. This section is a civil penalty provision, with a civil penalty of 120 penalty units.
7. Item 5 inserts new subsections (3) and (4) into this section. These subsections clarify that the same requirement applies in relation to accelerator program courses.
Items 6 to 9: Sections 19-36B and 19-36C
8. Section 19-36B of HESA provides that, when higher education providers make unsolicited contact with a person to market, advertise or promote a unit or course of study, they must not mention the possible availability of assistance payable under Chapter 3. This section is a civil penalty provision.
9. Items 6 and 7 clarify that the same requirement applies in relation to accelerator program courses.
10. Section 19-36C of HESA applies a similar requirement where the higher education provider has obtained a person’s contact details from another person.
11. Items 8 and 9 clarify that this requirement applies in relation to accelerator program courses.
Items 10 and 11: Section 19-37
12. Subsection 19-37(3) of HESA provides that subsection (2) (which contains the requirement that students only pay providers non-academic fees when they have chosen to do so) does not apply in relation to certain goods or services which are essential for the course of study and could be, but were not, acquired from another provider, such as food, transport or accommodation for field trips.
13. Items 10 and 11 clarify that this requirement also applies in relation to accelerator program courses.
Item 12: Paragraph 19-38(4)(o)
14. Subsection 19-38(4) of HESA sets out the acceptable matters on which a provider may spend an amount paid to it as a student services and amenities fee. Paragraph (o) identifies one of these matters as spending on study skills other than through courses in which the student is enrolled.
15. Item 12 clarifies that this requirement also applies to accelerator program courses.
Items 13 and 14: Section 19-42
16. Section 19-42 of HESA provides that a higher education provider must assess the student as academically suited to undertake the unit before enrolling that student in the unit of study, and take into account any relevant requirements in the Higher Education Provider Guidelines. This section is a civil penalty provision.
17. Items 13 and 14 clarify that this requirement also applies in relation to accelerator program courses, and imposes a civil penalty of 120 penalty units.
Item 15: Paragraph 19-45(1)(a)
18. Item 15 clarifies that the requirement that a higher education provider must have a grievance procedure for dealing with complaints from students or persons seeking to enrol in courses also relates to persons seeking to enrol in accelerator program courses.
Item 16: Section 19-85
19. Item 16 repeals and replaces section 19-85, which outlines the basic requirement that higher education providers charge student contribution amounts and tuition fees for each unit of study in which they enrol students.
20. The new section provides that a higher education provider must charge, in accordance with HESA, student contribution amounts and tuition fees for each unit of study in which they enrol students as well as an accelerator program course fee for each accelerator program course in which it enrols students.
Item 17: After section 19-90
21. Item 17 inserts new section 19-92, which outlines the requirement for a provider to determine an accelerator program course fee for a relevant accredited accelerator program course, and provides for how accelerator program course fees for a student are determined.
Item 18: After section 19-95
22. Item 18 inserts a new section 19-97 which applies if a higher education provider is required to determine an accelerator program course fee for an accredited accelerator course under section 19-92.
23. This section provides that the provider must give a schedule of the accelerator program course fees, featuring particular details, to the Minister, and make it available to enrolled and prospective students on request. This section is a civil penalty provision, with a civil penalty of 60 penalty units.
Items 19 to 21: Section 65-1
24. Section 65-1 of HESA sets out what Chapter 3 of HESA is about, and lists and describes the types of assistance available under that Chapter.
25. Item 19 is a technical amendment which omits ‘4 kinds of assistance’ (available under the Chapter) wherever it appears, and substitutes ‘5 kinds of assistance’ due to the addition of SY-HELP assistance.
26. Items 20 and 21 insert SY-HELP assistance into the list of kinds of assistance available to students under Chapter 3 of HESA, and paid to the higher education provider on behalf of the student, in the description of what Chapter 3 is about.
Items 22 to 24: Sections 126-1 and 126-5
27. Section 126-1 of HESA sets out when a student is entitled to SA-HELP assistance to pay their student services and amenities fee. Section 126-5 of HESA sets out the citizenship or residency requirements students must meet in order to be eligible for SA-HELP assistance.
28. Item 22 repeals and replaces paragraph 126-1(1)(b), which sets out enrolment requirements for payment of SA-HELP assistance. The new paragraph clarifies that enrolment in an accelerator program course satisfies the enrolment requirement.
29. Item 23 repeals and replaces subsection 126-1(2), which sets out the meaning of a ‘request for Commonwealth assistance’ in this context. The new subsection provides that the request can relate to any of the courses mentioned in the previous paragraph (including accelerator program courses).
30. Item 24 repeals and replaces subsection 126-5(2), which provides that a student does not meet the citizenship or residency requirements for SA-HELP if the provider reasonably expects that the student will not undertake any of the units of study in Australia. The new subsection provides that a student does not meet the citizenship or residency requirements in relation to a student services and amenities fee imposed on the student by a higher education provider if the provider reasonably expects that for a student enrolled in one or more courses the student will not undertake in Australia any units of study, or any of an accelerator program course.
Item 25: At the end of Chapter 3
31.
Item
25 adds Part 3-7
into HESA, which is a new part outlining the operation of
SY-HELP assistance.
Division 128A - Introduction
32. New section 128A-1 outlines what Part 3-7 of the Act is about. In particular, it outlines particular requirements for receipt of SY-HELP assistance for an accelerator program course. It also outlines that there is a limit on the total amount of assistance the student can receive, and the assistance is paid to a higher education provider to discharge the student’s liability to pay. Note 1 explains that amounts of assistance under this Part may form part of a person’s HELP debts that the Commonwealth recovers under Part 4-2. A second note explains that this Part does not apply to Table C providers.
33. New section 128A-5 provides that SY-HELP assistance is dealt with in the SY-HELP Guidelines, and that the provisions of this Part indicate when a particular matter is or may be dealt with in these guidelines. A note explains that the SY-HELP Guidelines are made by the Minister under section 238-10.
Division 128B - Who is entitled to SY-HELP assistance?
34. New section 128B-1 sets out student entitlement to SY-HELP assistance, such as study, citizenship or residency, and enrolment requirements, and administrative requirements relating to the accelerator program course. It also provides for the form of a request for Commonwealth assistance under HESA, and selection by the provider of people for the receipt of SY-HELP assistance. It is intended that the ordinary meaning of the word ‘enrolled’ (‘to place on the register of an educational institution, or a course offered by an educational institution’) should operate in this section. Subsections (4) and (5) set out the circumstances in which a student meets the student identifier requirements for accelerator program courses.
35. New section 128B-5 provides that if a student would be entitled to SY-HELP assistance under subsection 128B-1(1) for 2 or more accelerator courses in which the student is enrolled at the same time, they are only entitled to SY-HELP assistance for one of these courses. The process for selecting this course is set out in new subsection 128B-5(2), and is either the student’s selection in writing (if enrolment was simultaneous), or the first enrolment if the enrolments were at different times. New subsection 128B-1(3) sets out that the SY-HELP Guidelines may prescribe requirements and other matters in relation to elections by students for the purposes of paragraph (2)(a).
36. New section 128B-10 provides that a student is not entitled to SY-HELP assistance for an accelerator program course if the Secretary determines that the student is not a genuine student in relation to the course. This decision is reviewable under Part 5-7 of HESA, and must take into account any matters specified in the Higher Education Provider Guidelines. A determination under this section made in writing is not a legislative instrument. New subsection 128B-10(3) is included to assist readers, as the instrument is not a legislative instrument within the meaning of subsection 8(1) of the Legislation Act 2003 as it is merely declaratory of the law.
37. New section 128B-15 provides that a student is not entitled to SY-HELP assistance for an accelerator program course provided, or to be provided, by a higher education provider if this would lead them to be undertaking an unreasonable study load. Subsection (1) sets out what an unreasonable study load is. A decision that undertaking a new accelerator program course will impose an unreasonable study load on a student is reviewable under Part 5-7, and must be made in accordance with the Higher Education Provider Guidelines. Subsection (2) sets out that a provider may determine that a person is not undertaking an unreasonable study load by having regard to particular factors. Subsection (3) sets out that any such decision by the provider must be made in accordance with the Higher Education Provider Guidelines. Subsection (4) sets out that if a decision is made in writing, it is not a legislative instrument. This subsection is included to assist readers, as the instrument is not a legislative instrument within the meaning of subsection 8(1) of the Legislation Act 2003 as it is merely declaratory of the law. The section also provides that if the higher education provider is unable to act, the Secretary may act on their behalf.
38. New section 128B-20 provides that there is no entitlement to SY-HELP assistance for an accelerator program course if the course is, or is to be, undertaken by the student primarily at an overseas campus.
39. New section 128B-25:
a. outlines the technical requirements for an accelerator program course, including that the course leads to the award of a qualification accredited by the provider; and
b. sets out the requirements for the provider to self-accredit a qualification as being integral to the development of startup businesses.
40. New section 128B-30 sets out the citizenship or residency requirements in relation to an accelerator program course. It also clarifies the day on which these requirements are assessed and the situation where a student intends to undertake the course outside Australia. New subsection (4) sets out criteria for determining whether a student will be resident in Australia for the duration of the accelerator program course.
41. New section 128B-35 sets out processes for the selection of students for receipt of SY-HELP assistance, and provides that the SY-HELP Guidelines may set out principles and procedures that higher education providers must follow in deciding whether to select persons for receipt of SY-HELP assistance. These decisions must be made in accordance with the SY-HELP Guidelines, which may set out matters including the number of students who can be selected and how that number is to be determined.
Division 128C - How are amounts of SY-HELP assistance worked out?
42. New section 128C-1 provides that the amount of SY-HELP assistance to which a student is entitled for an accelerator program course is the difference between the student’s accelerator program course fee and the sum of any up-front payments made in relation to the course.
43. New section 128C-5 defines up-front payments for accelerator program courses, and provides that these payments must be made on or before the census date for the course.
44. New section 128C-10 provides that the maximum accelerator program course fee for an accelerator program course that has an EFTSL value of one is the maximum student contribution amount for a non-grandfathered student in Medicine, Dentistry or Veterinary Science, and for a course that has an EFTSL value of less than 1 this amount is pro-rated based on the EFTSL value of that course.
Division 128D - How are amounts of SY-HELP assistance paid?
45. New section 128D-1 provides that if a student’s enrolment in an accelerator program course at a higher education provider entitles them to SY-HELP assistance, the Commonwealth must lend the student the SY-HELP assistance and pay to the provider the amount lent in discharge of the student’s accelerator program course fee payment.
46. New section 128D-5 sets out the obligations of a provider if an amount of SY-HELP assistance is reversed. It provides that if, under Division 128E, an amount of SY-HELP assistance that a person received for an accelerator program course is reversed, the provider must pay to the Commonwealth an amount equal to the amount that was paid to the provider for the course, and pay to the person an amount equal to the payment or the sum of the payments that the person made in relation to the course fee.
47. New section 128D-10 provides that, if an amount of SY-HELP assistance received by a person for an accelerator program course is reversed under Division 128E, the person is discharged from all liability to pay or account for so much of the person’s accelerator program course fee for the course as is equal to that amount.
Division 128E - Reversal of SY-HELP Assistance
Subdivision 128E-A - Reversal in special circumstances
48. This Subdivision sets out the requirements for when a person’s SY-HELP assistance is reversed in special circumstances.
49. New section 128E-1 provides for the main case of reversing a person’s SY-HELP assistance, where an application is made and special circumstances apply to the person. The section provides that a decision that this section does not apply to a person is reviewable under Part 5-7. Subsection (2) explains that, if a provider determines that this section applies to a person in relation to the amount of assistance, the amount is reversed. Subsection (3) goes on to explain that if the provider is unable to act for the purposes of subsection (1), the Secretary may act as if those references to provider in subsection (1) were a reference to the Secretary.
50. New section 128E-5 sets out the criteria for special circumstances for the purposes of section 128E-1, including the requirement that any relevant circumstances in the Administration Guidelines must be taken into account.
51. New section 128E-10 provides that the application period for an application for reversing of a student’s SY-HELP balance under section 128E-1 is 12 months after the day the student’s withdrawal from the course takes effect, or if no withdrawal occurred, 12 months after the period during which the person undertook, or was to undertake, the course.
52. New section 128E-15 provides that where an application is made under paragraph 128E-1(1)(d) before the end of the relevant application period or a waiver provided, the provider must consider the matter and notify the applicant of the decision. Subsection (2) provides that the notice must include a statement of reasons for the decision.
Subdivision 128E-B - Reversal in other circumstances
53. Subdivision 128E-B deals with reversal of SY-HELP assistance not relating to special circumstances.
54. New section128E-20 provides for reversing a person’s SY-HELP assistance where subsection 193-20(1) (no entitlement to SY-HELP assistance for students without tax file numbers) applies.
55. New section 128E-25 provides for reversing a person’s SY-HELP assistance if the provider completes the request for Commonwealth assistance that the student is required to complete.
56. New section 128E-30 provides for reversal of SY-HELP assistance where the Secretary is satisfied that the person was not entitled to receive SY-HELP assistance for the course with the provider.
57. New section 128E-35 provides for reversal of SY-HELP assistance where the person has not been assessed by the provider as academically suited to undertake the course.
Item 26: Section 134-1
58. Section 134-1 of HESA outlines the purpose of Part 4-1 of HESA, which deals with Higher Education Loan Program (HELP) debts.
59. Item 26 inserts ‘SY-HELP assistance’ into the list of types of HELP assistance available.
Item 27: After paragraph 137-1(ca)
60. Section 137-1 of HESA is a list of the type of HELP debts a student can have.
61. Item 27 inserts a new paragraph (cb) to add SY-HELP debts to this list.
Item 28: After section 137-16
62.
Item
28 inserts new
section 137-17, which sets out how a student can incur an
SY-HELP debt, when those debts are incurred, and when SY-HELP debts
may be remitted.
Items 29 to 32: Sections 140-5 and 140-25
63. The method statements in subsections 140-5(1) and 140-25(1A) of HESA set out how to work out a person’s former accumulated HELP debt and accumulated HELP debt, respectively. These items amend these method statements so that any SY-HELP debts the person may have accumulated are included in the calculation.
64. Item 29 inserts new paragraph (eb) into step 2 of the method statement in subsection 140-5(1), which identifies SY-HELP debts as a type of debt relevant to the method statement in this subsection.
65. Item 30 is a technical amendment which inserts “(eb)” into the note under step 2 of the method statement in subsection 140-5(1), which identifies groups of debts which may be owed by a particular student.
66. Item 31 inserts new paragraph (eb) into step one of the method statement in subsection 140-25(1A), which identifies SY-HELP debts as a type of debt relevant to the method statement in this subsection.
67. Item 32 is a technical amendment which inserts “(eb)” into the note under step one of the method statement in subsection 140-25(1A), which identifies groups of debts which may be owed by a particular student.
Item 33: Subparagraph 154-55(1)(a)(iii)
68. Item 33 is a technical amendment which omits the word ‘and’ after ‘period’ in subparagraph 154-55(1)(a)(iii).
Item 34: At the end of paragraph 154-55(1)(a)
69. Item 34 inserts new paragraph (iv) at the end of paragraph 154-55(1)(a), which identifies SY-HELP assistance as a type of HELP assistance relevant to the requirement that higher education providers give the Commonwealth certain information they retain about students receiving HELP assistance.
Item 35: After subsection 169-5(1)
70. Section 169-5 of HESA provides for when notices must be given by a higher education provider.
71. Item 35 inserts new paragraph (1A), which provides that a higher education provider must give such notices as are required by the Administration Guidelines to a person who is enrolled with the provider for an accelerator program course, and who is seeking Commonwealth assistance under HESA for the accelerator program course or for a student services and amenities fee imposed on the person by the provider. This mirrors the requirements in subsection 169-5(1) for other types of courses.
Item 36: After section 169-15
72. Item 36 inserts a new section 169-16, which provides that a higher education provider must require any domestic student to pay an accelerator program course fee and must not require any other course fee from domestic students. It further provides that a higher education provider must repay any payments of the person’s accelerator program course fee if the person is no longer enrolled in the course by census date.
Item 37: After section 169-17
73. Item 37 inserts a new section 169-18, which sets out requirements related to withdrawal from accelerator program courses. Subsection (2) provides that the Higher Education Provider Guidelines may specify particular matters in relation to withdrawing from accelerator program courses. Subsection (3) provides that a higher education provider contravenes the subsection if the provider is subject to a requirement in that section and fails to comply with that requirement. This section is a civil penalty provision, with a penalty of 120 penalty units.
Item 38: After subsection 169-25(1)
74. Section 169-25 of HESA outlines requirements for determining census dates and EFTSL values for courses.
75. Item 38 inserts new paragraph (1A) into the section, which is a requirement that a higher education provider determine a census date and EFTSL for any accelerator program course it provides.
Item 39: Subsection 169-25(2)
76. Section 169-25(2) of HESA provides that a census date determined under the paragraphs referenced in section 169-25 must be determined in accordance with the Administration Guidelines.
77. Item 39 inserts paragraph (1A)(a), which requires higher education providers to determine census dates for accelerator program courses, to make it clear that this paragraph is subject to the requirement.
Item 40: Paragraphs 169-25(3)(a) and (b)
78. Subsection 169-25(3) of HESA requires the provider to publish both the census date and EFTSL value for units of study by the date ascertained in accordance with, and in the manner specified in, the Administration Guidelines.
79. Item 40 inserts the words “or course” into both paragraphs (a) and (b) to expand this requirement to accelerator program courses.
Item 41: Subsection 169-25(4)
1. Item 41 makes EFTSL and census dates for accelerator program courses subject to the same variation requirements (outlined in subsection 169-25(4)) as for other units.
Item 42: Subsection 169-27(1)
80. Item 42 repeals and substitutes the definition of EFTSL in subsection 169-27(1). The new subsection (1) retains the existing definition of EFTSL in respect of courses of study, and specifies that an EFTSL is a measure of the study load, in respect of an accelerator program course, for the period of the accelerator program course of a student undertaking that course on a full-time basis.
Item 43: Subsection 169-27(2)
81. Item 43 omits the words “A particular amount of EFTSL is an amount of study, undertaken with a higher education provider as part of a course of study” and substitutes the words “For the purposes of a course of study, a particular amount of EFTSL is an amount of study, undertaken with a higher education provider as part of the course”, from subsection 169-27(2).
Item 44: Before subsection 169-28(1)
82. Item 44 inserts ‘EFTSL value of a unit of study’ as a subheading to subsection 169-28(1).
Item 45: After subsection 169-28(3)
83. Subsection 169-28 of HESA defines EFTSL value.
84. Item 45 inserts a new subsection (3A) into section 169-28, to insert a definition of EFTSL value of an accelerator program course.
Item 46: At the end of section 169-30
85. Section 169-30 of HESA sets out requirements regarding identifiers used for students in communications between providers and the Commonwealth.
86. Item 46 inserts a new subsection (3) into this section which provides for identifiers which must be used for students and prospective students of accelerator program courses.
Item 47: Paragraph 169-35(1)(a)
87. Paragraph 169-35(1) of HESA provides that if more than 6 weeks after the census date for a unit of study, a person gives a higher education provider information indicating that they were entitled to a particular kind of Commonwealth assistance other than SA-HELP assistance due to an error in their request for Commonwealth assistance, this Act applies as if they had never been entitled to that assistance.
88. Item 47 clarifies that this provision is also applicable to accelerator program courses.
Item 48: Subsection 187-1(1)
89. Item 48 inserts “or in an accredited accelerator program course” into subsection 187-1(1), which outlines when a person meets the tax file number requirements in relation to a course of study. This makes the section applicable to accelerator program courses.
Item 49: Subsection 187-1(1AA)
90. Item 49 repeals subsection 187-1(1AA) and substitutes a new subsection, to provide that the tax file number requirements need to be complied with separately for each accelerator program course completed by a student.
Item 50: After subsection 187-1(2)
91. Item 50 inserts a new subsection (2A) into section 187-1 which provides that the relevant date to meet the tax file number requirements for an accelerator program course is on or before the course’s census date.
Item 51: Subsection 187-1(3)
1. Item 51 adds the words “ from a student enrolled or proposing to enrol in a unit of study” to subsection 187-1(3), so that only applies to notifications from students enrolled or proposing to enrol in units of study. New subsection 187-1(3AA), inserted by item 52, applies to students enrolled or proposing to enrol in accelerator program courses .
Item 52: After subsection 187-1(3)
92. Item 52 inserts new subsection (3AA) which provides that a notification under section 187(1)(a) (which sets out requirements for notification of a student’s tax file number to the relevant provider) may be included in a request for Commonwealth assistance, except one referring to a student services and amenities fee, which the student has given to the provider in relation to the accelerator program course fee. This clarifies how the section operates in relation to accelerator program courses.
Item 53: Subsection 187-1(3B)
93. Item 53 amends subsection 187-1(3B) to expand its operation to accelerator program courses.
Item 54: Subsection 187-1(3C)
94. Item 54 repeals existing subsection 187-1(3C) of HESA and substitutes a new subsection, which expands the operation of the existing subsection to accelerator program courses.
Item 55: At the end of subsection 187-1(3E)
95. Item 55 expands the operation of this subsection to accelerator program courses.
Items 56 and 57: Subsections 190-1(1), 190-5(1) and 190-20(1)
96. Items 56 and 57 insert “accelerator program courses” into subsections 190-1(1), 190-5(1) and 190-20(1) as a situation where the Commissioner must give notice to a provider regarding a student’s tax file number.
Items 58 and 59: Subsection 193-1(4A)
97. Items 58 and 59 expand the operation of existing paragraphs 193-1(4A)(a) and 193-1(4A)(c) to include accelerator program courses, to facilitate students undertaking accelerator program courses who are charged a student services and amenities fee to receive SA-HELP assistance.
Item 60: After subsection 193-1(4B)
98. Section 193-1 of HESA concerns giving information about the tax file number requirements.
99. Item 60 inserts new subsections (4C) and (4D) which provide for when and how a higher education provider is required to give a student of an accelerator program course information about how to meet the tax file number requirements.
Item 61: Paragraph 193-1(5)(a)
100. Subsection 193-1(5) of HESA deals with cases where there is no obligation to notify a person of the tax file number requirements.
101. One of these cases is where the person has requested a type of assistance but does not qualify for that assistance. Item 61 inserts SY-HELP assistance into the paragraph which deals with this case.
Item 62: At the end of Division 193 of Part 5-5
102. Item 62 inserts new section 193-20, which provides that there is no entitlement to SY-HELP assistance for students without tax file numbers, and outlines where this section applies and how it is managed. The section further provides that a guideline issued under new subsection 193-20(4) is a legislative instrument.
Item 63: Section 206-1 (after table item 2A)
103. Item 63 inserts decisions related to accelerator program course as new table items 2AAA, 2AAB and 2AAC in the table in section 206-1, which sets out reviewable decisions under HESA.
104. New table item 2AAA provides that a decision that a student is not entitled to SY-HELP assistance under section 128B-10 (student is not a genuine student) is a reviewable decision. New table item 2AAB provides that a decision that a student is not entitled to SY-HELP assistance under subsection 128B-15(2) (unreasonable study load) is a reviewable decision. New table item 2AAC provides that a decision that section 128E-1 does not apply to a person (i.e. the person’s SY-HELP assistance will not be reversed due to special circumstances) is a reviewable decision.
Item 64: Subsection 238-10(1) (table item 6)
105. Table item 6 of the table in subsection 238-10(1) of HESA references the Higher Education Provider Guidelines as a set of Guidelines which can be made under HESA.
106. Item 64 omits section 169-17 from this table item, and replaces it with both sections 169-17 and 169-18, which deals with similar requirements to 169-17 for accelerator program courses.
Item 65: Subsection 238-10(1) (after table item 7)
107. Item 65 inserts a reference to the SY-HELP Guidelines as a new item 7A of the table in subsection 238-10(1), which lists matters about which the Minister may make guidelines.
Items 66 to 76: Subclause 1(1) of Schedule 1
108. Subclause 1(1) of Schedule 1 of HESA is the definitions section. These items make amendments to this section to include definitions relevant to accelerator program courses.
109. Item 66 inserts definitions of ‘accelerator program course’ and ‘accelerator program course fee’.
110. Item 67 amends the definition of ‘census date’ to refer to the correct subsection for census dates relating to Open Universities Australia, now that a new subsection referring to census dates for accelerator program courses has been added.
111. Item 68 inserts a new paragraph to the definition of census date, which provides that for an accredited accelerator program course for a period ascertained in accordance with the Administration Guidelines - the census date is the date determined for that period under subsection 169-25(1A).
112. Item 69 repeals the definition of EFTSL value, and substitutes a new definition which adds a reference to the definition of EFTSL value of an accelerator program course at subsection 169-28(3A).
113. Item 70 inserts into the definition of enrolled a new paragraph (aa), which provides that a person enrolled in an accelerator program course includes a person undertaking an accelerator program course.
114. Item 71 amends paragraph (ba) of the definition of request for Commonwealth assistance, so that the definition also includes accelerator program courses.
115. Item 72 inserts paragraph (bb) into the definition of ‘request for Commonwealth assistance’ so that it includes a request for SY-HELP assistance in accordance with new subsection 128B-1(6).
116. Item 73 inserts a definition of reversed, referring to relevant provisions where an amount of SY-HELP assistance that a person received for an accelerator program course with a higher education provider is reversed.
117. Item 74 inserts a new paragraph in the definition of ‘student’, to include a person enrolled in an accredited accelerator program course .
118. Item 75 inserts definitions of SY-HELP assistance and SY-HELP debt.
119. Item 76 replaces the definition of ‘up-front payment’ with a definition that includes up-front payments related to accelerator program courses.
Part 2 - Student payments
1. This Part amends the Social Security Act 1991 (Social Security Act), Social Security (Administration) Act 1999 (Administration Act) and Student Assistance Act 1973 (Student Assistance Act) to provide that students undertaking accelerator program courses, who are entitled to SY-HELP assistance, may qualify for relevant social security payments. This will assist in supporting these students while studying, consistent with students undertaking other approved tertiary courses.
2. Subject to students satisfying all eligibility criteria, the amendments will support payment of youth allowance, austudy payment, pensioner education supplement, fares allowance, relocation scholarship payment and student start-up loans.
3. It is intended that these amendments will be supported through changes to relevant legislative instruments.
Social Security Act 1991
Item 77: Subsection 23(1)
4. Item 77 inserts two new definitions into subsection 23(1) of the Social Security Act.
5. The new definition of “accelerator program course” provides that this term has the same meaning as in the Higher Education Support Act 2003 . This is inserted by the amendments to HESA in Part 1 of Schedule 1 above.
6. The new definition of “SY-HELP assistance” provides that this term has the same meaning as in the Higher Education Support Act 2003 . This is inserted into HESA by the amendments in Part 1 of this Schedule above.
Items 78 to 81: Subsection 541B(1)
7. Items 78 to 81 amend subsection 541B(1), which sets out the general requirements relating to “undertaking full-time study”, for the purposes of youth allowance qualification.
8. Item 78 inserts a new paragraph 541B(1)(ca) following paragraph 541B(1)(c). New paragraph 541B(1)(ca) provides that if the relevant course of education is an accelerator program course or a combined course that includes an accelerator program course, the person must be entitled to SY-HELP assistance for the accelerator program course. Whether a person is entitled to SY-HELP assistance is determined under HESA.
9. It is intended that a student may only qualify for youth allowance while undertaking a standalone accelerator program course, or a combined course that includes an accelerator program course, if the student is entitled to SY-HELP assistance under HESA. If a student has received youth allowance on the basis of being entitled to SY-HELP assistance for an accelerator program course, and then it is later determined under HESA that the student was not so entitled, this may result in the student losing qualification for youth allowance, and a debt may arise.
10. Item 79 amends paragraph 541B(1)(d) in relation to satisfactory progress for youth allowance purposes. This amendment inserts the words “if the course is a combined course or a course other than an accelerator program course-” at the beginning of the paragraph. This ensures that the satisfactory progress requirements in paragraph 541B(1)(d) will only apply if the relevant course is a combined course, or a course that is not an accelerator program course.
11. In these cases, the Secretary must form the opinion that the person is making satisfactory progress towards completing the course, under paragraph 541B(1)(d). Subsection 541B(3A) provides that in forming an opinion about whether a person is making satisfactory progress for the purpose of paragraph 541B(1)(d), the Secretary is to have regard to the guidelines made under subsection 541B(3B). Currently, these guidelines are the Youth Allowance (Satisfactory Study Progress) Guidelines 2014 . It is intended that amendments will be sought to these guidelines to expressly provide for progress rules for combined courses that include an accelerator program course.
12. The satisfactory progress requirement in paragraph 541B(1)(d) does not apply to students undertaking a standalone accelerator program course. This is because in accordance with new paragraph 541B(1)(ca) inserted by item 78 above, and the amendments to HESA in Part 1, students will only qualify for youth allowance when they are entitled to SY-HELP assistance, and this can only occur for a maximum of two accelerator program courses. Accordingly, specific progress rules for these students are not required as they will be not able to qualify for youth allowance for additional accelerator program courses.
13. Item 80 amends the note following subsection 541B(1) to rename it as “Note 1”.
14. Item 81 inserts a new note 2 following subsection 541B(1). New note 2 refers readers to the legislative instrument made under section 5D of the Student Assistance Act in respect of combined courses (as referred to in new paragraph 541B(1)(ca) and paragraph 541B(1)(d)).
15. Currently, this instrument is the Student Assistance (Education Institutions and Courses) Determination 2019 . It is intended that amendments will be sought to this instrument to ensure that accelerator program courses, and combined courses that include an accelerator program course, are included as approved courses for youth allowance qualification purposes.
Items 82 to 85: Section 569A
16. Items 82 to 85 amend section 569A, which sets out the requirements relating to “undertaking qualifying study”, for the purposes of austudy payment qualification.
17. Item 82 inserts a new paragraph 569A(ba) following paragraph 569A(b). New paragraph 569A(ba) provides that if the relevant course of education is an accelerator program course or a combined course that includes an accelerator program course, the person must be entitled to SY-HELP assistance for the accelerator program course. Whether a person is entitled to SY-HELP assistance is determined under HESA.
18. It is intended that a student may only qualify for austudy payment while undertaking an accelerator program course, or a combined course that includes an accelerator program course, if the student is entitled to SY-HELP assistance under HESA. If a student has received austudy payment on the basis of being entitled to SY-HELP assistance for an accelerator program course, and then it is later determined under HESA that the student was not so entitled, this may result in the student losing qualification for austudy, and a debt may arise.
19. Item 83 amends paragraph 569A(d) in relation to the austudy progress rules. This amendment inserts the words “if the course is a combined course or a course other than an accelerator program course-” at the beginning of the paragraph. This ensures that paragraph 569A(d) will only apply if the relevant course is a combined course, or a course that is not an accelerator program course. In these cases, the progress rules in sections 569G and 569H must be satisfied, as applicable. Item 86 below amends section 569H in respect of the progress rules for students undertaking a combined course that includes an accelerator program course.
20. Item 84 amends the note following section 569A to rename it as “Note 1”.
21. Item 85 inserts a new note 2 following section 569A. New note 2 refers readers to the legislative instrument made under section 5D of the Student Assistance Act in respect of combined courses (as referred to in new paragraph 569A(ba) and paragraph 569A(d)).
22. Currently, this instrument is the Student Assistance (Education Institutions and Courses) Determination 2019 . It is intended that amendments will be sought to this instrument to ensure that accelerator program courses, and combined courses that include an accelerator program course, are included as approved courses for austudy qualification purposes.
Item 86: After subsection 569H(2)
23. Section 569H of the Social Security Act provides the austudy progress rules relating to tertiary students. These are based on the student’s study in tertiary courses at specified levels.
24. Item 86 inserts a new subsection 569H(2A) after subsection 569H(2), which provides for progress rules for combined courses that include an accelerator program course.
25. New subsection 569H(2A) provides that if the relevant tertiary course is a combined course that combines an accelerator program course with a course at a particular level, the progress rules in subsections 569H(1) and 569H(2), relating to “other tertiary courses at the same level”, is taken to be a reference to other tertiary courses at that particular level.
26. This means that where an accelerator program course is being undertaken as part of a combined course (such as together with an undergraduate Bachelor degree under one course code), the current progress rules for austudy payment should be applied as if this whole course were at the same level as the course that has a particular existing level. That is, the accelerator program course should not be separated out. The whole course, including the accelerator program course component, should be assessed under the current progress rules in subsections 569H(1) and 569H(2), at the applicable level relating to the other (non-accelerator) part of the combined course.
27. For example, a student may be undertaking an accelerator program course as part of a recognised combined course with an undergraduate Bachelor degree. The Bachelor degree is a Level B course for austudy payment under subsection 569H(10). If the Bachelor degree part of the combined course is three years and the accelerator course component is another year, the whole four years of the entire course should be treated as a four year Level B course for the purposes of the current austudy progress rules in subsections 569H(1) and 569H(2).
28. The progress rules do not apply to students undertaking a standalone accelerator program course. This is because in accordance with new paragraph 569A(ba) inserted by item 82 above, and the amendments to HESA, students will only qualify for austudy payment when they are entitled to SY-HELP assistance, and this can only occur for a maximum of two accelerator program courses. Accordingly, specific progress rules for these students are not required.
Item 87: After subsection 592N(1)
29. Subsection 592N(1) of the Social Security Act provides a power for the Minister to determine, by legislative instrument, that a course of study or instruction is an “approved scholarship course” for the purposes of the Act. Currently, this instrument is the Social Security (Approved Scholarship Courses) Determination 2020 . This is relevant to qualification for relocation scholarship payments in Part 2.11B of the Social Security Act, and student start-up loans in Chapter 2AA of the Social Security Act.
30. Item 87 inserts a new subsection 592N(1A) following subsection 592N(1). New subsection 592N(1A) is intended to clarify, for the avoidance of doubt, that a course of study or instruction, as referred to in subsection 592N(1), includes an accelerator program course.
31. It is intended that amendments to the Social Security (Approved Scholarship Courses) Determination 2020 will be sought to ensure that accelerator program courses, and combined courses that include an accelerator program course, are “approved scholarship courses” under this instrument. This will enable students undertaking such courses to qualify for relocation scholarship payments and student start-up loans, subject to satisfying all other eligibility criteria.
Items 88 to 90: Subsection 1061PB(1)
32. Items 88 to 90 amend subsection 1061PB(1), which sets out the requirements relating to “undertaking qualifying study”, for the purposes of qualification for pensioner education supplement.
33. Item 88 inserts a new paragraph 1061PB(1)(ba) following paragraph 1061PB(1)(b). New paragraph 1061PB(1)(ba) provides that if the relevant course of education is an accelerator program course or a combined course that includes an accelerator program course, the person must be entitled to SY-HELP assistance for the accelerator program course. Whether a person is entitled to SY-HELP assistance is determined under HESA.
34. It is intended that a student can only qualify for pensioner education supplement while undertaking an accelerator program course, or a combined course that includes an accelerator program course, if the student is entitled to SY-HELP assistance under HESA. If a student has received pensioner education supplement on the basis of being entitled to SY-HELP assistance for an accelerator program course, and then it is later determined under HESA that the student was not so entitled, this may result in the student losing qualification for pensioner education supplement, and a debt being raised.
35. Item 89 amends paragraph 1061PB(1)(d) in relation to the progress rules for pensioner education supplement. This amendment inserts the words “if the course is a combined course or a course other than an accelerator program course-” at the beginning of the paragraph. This ensures that paragraph 1061PB(1)(d) will only apply if the relevant course is a combined course, or a course that is not an accelerator program course. In these cases, the progress rules in sections 1061PH and 1061PI must be satisfied, as applicable. Item 91 below amends section 1061PI in respect of the progress rules for students undertaking a combined course that includes an accelerator program course.
36. Item 90 inserts a new note following subsection 1061PB(1). The note refers readers to the legislative instrument made under section 5D of the Student Assistance Act in respect of combined courses (as referred to in new paragraph 1061PB(1)(ba) and paragraph 1061PB(1)(d)).
37. Currently, this instrument is the Student Assistance (Education Institutions and Courses) Determination 2019 . It is intended that amendments will be sought to this instrument to ensure that accelerator program courses, and combined courses that include an accelerator program course, are included as approved courses for the purposes of qualifying for pensioner education supplement.
Item 91: After subsection 1061PI(2)
38. Section 1061PI of the Social Security Act provides the pensioner education supplement progress rules relating to tertiary students. These are based on the student’s study in tertiary courses at specified levels.
39. Item 91 inserts a new subsection 1061PI(2A) after subsection 1061PI(2), which provides for progress rules for combined courses that include an accelerator program course.
40. New subsection 1061PI(2A) provides that if the relevant tertiary course is a combined course that combines an accelerator program course with a course at a particular level, the progress rules in subsections 1061PI(1) and 1061PI(2), relating to “other tertiary courses at the same level”, is taken to be a reference to other tertiary courses at that particular level.
41. This means that where an accelerator program course is being undertaken as part of a combined course (such as together with an undergraduate Bachelor degree under one course code), the current progress rules for pensioner education supplement should be applied as if this whole course were at the same level as the course that has a particular existing level. That is, the accelerator program course should not be separated out. The whole course, including the accelerator program course component, should be assessed under the current progress rules in subsections 1061PI(1) and 1061PI(2), at the applicable level relating to the other (non-accelerator) part of the course.
42. The progress rules do not apply to students undertaking a standalone accelerator program course. This is because in accordance with new paragraph 1061PB(1)(ba) inserted by item 88 above, and the amendments to HESA, students will only qualify for pensioner education supplement when they are entitled to SY-HELP assistance, and this can only occur for a maximum of two accelerator program courses. Accordingly, specific progress rules for these students are not required.
Social Security (Administration) Act 1999
Items 92 and 93: Paragraph 195(2)(i)
43. Items 92 and 93 amend section 195 of the Administration Act. This is an information-gathering power which enables the Secretary to require a person to give information about a class of persons to the Department for relevant purposes, including to verify the qualification of persons who have made claims for social security payments under the social security law.
44. Paragraph 195(2)(i) sets out the information that the Secretary may require a person to give in relation to a course of study being undertaken by each person in the class of persons.
45. Item 92 amends paragraph 195(2)(i) to make it clear that a course of study includes an accelerator program course.
46. Item 93 inserts a new subparagraph 195(2)(i)(xix) at the end of paragraph 195(2)(i). New subparagraph 195(2)(i)(xix) provides that if the course of study being undertaken by the person is an accelerator program course, the Secretary may require another person to give information about whether the first person is entitled to SY-HELP assistance for the course. This information is relevant to whether the student is qualified for student payments under the Social Security Act (such as youth allowance) while undertaking an accelerator program course.
47. In practice, these amendments will enable delegates in Services Australia to efficiently seek information about a student’s SY-HELP assistance status directly from education institutions, to assist in verifying whether the student is qualified for payment under the Social Security Act.
Student Assistance Act 1973
Item 94: After subsection 5D(1)
48. Subsection 5D(1) of the Student Assistance Act provides a power for the Minister to determine in writing, for the purposes of the Act, that a course of study or instruction is a secondary course, or a tertiary course, or that part of a course of study or instruction is a part of a secondary course, or a part of a tertiary course. Approved courses are currently contained in the Student Assistance (Education Institutions and Courses) Determination 2019 . These relate to qualification for relevant student payments including youth allowance, austudy payment, pensioner education supplement and fares allowance.
49. Item 94 inserts a new subsection 5D(1A) following subsection 5D(1). New subsection 5D(1A) is intended to clarify, for the avoidance of doubt, that a course of study or instruction, as referred to in subsection 5D(1), includes an accelerator program course, within the meaning of HESA.
50. It is intended that amendments to the Student Assistance (Education Institutions and Courses) Determination 2019 will be sought to ensure that accelerator program courses, and combined courses that include an accelerator program course, are determined as approved courses under this instrument. This will enable students undertaking such courses to qualify for relevant student payments.
Item 95: Application provision
51. Item 95 is the application provision for the amendments made by Part 2 of Schedule 1. This provides that the amendments to the Social Security Act, Administration Act and Student Assistance Act apply for working out if a person is qualified for any allowance, payment, supplement or loan, in respect of days that occur on or after Schedule 1 commences. This will be the case regardless of whether the person first qualified for that allowance, payment, supplement or loan before Schedule 1 commences.
Schedule 2 - Australian Research Council
Australian Research Council Act 2001
Item 1: At the end of subsection 48(2)
1. Division 1 of Part 7 of the ARC Act provides for financial assistance for approved research programs. Section 48 sets out the years to which this Division applies.
2. Item 1 inserts a new paragraph into subsection 48(2), the effect of which is to provide that Division 1 of Part 7 also applies to the financial year starting on 1 July 2025.
Items 2 to 4: Section 49
3. Section 49 of the ARC Act specifies the annual funding caps for the purposes of Division 1 of Part 7 (financial assistance for approved research programs).
4. Currently, paragraphs 49(w) to (y) provide that the annual funding cap for the financial year starting on 1 July 2022 is $815,288,000, the cap for the financial year starting on 1 July 2023 is $812,207,000, and the cap for the financial year starting on 1 July 2024 is $811,169,000.
5. Items 2, 3 and 4 increase the annual funding caps for these financial years to $831,594,000, $851,414,000 and $871,694,000 respectively. This adjusts funding from 2021-22 to 2022-23 price levels to support ARC’s research programs. The increases reflect current indexation rates to adjust funding levels commensurate with price increases.
Item 5: At the end of section 49
6. Item 5 inserts a new paragraph (z) into section 49 to specify that, for the financial year starting on 1 July 2025, the proposed annual funding cap is $893,036,000. This adds a new maximum cap for the financial year 2025-26.
Schedule 3 - Avondale University
Higher Education Support Act 2003
Item 1: Subsection 16-20(1) (table)
1. The table in subsection 16-20(1) of HESA lists those Australian universities that are Table B providers for the purposes of HESA (sometimes known as “private universities”). Table B providers are automatically approved higher education providers for the purposes of HESA (although their approval can be revoked).
2. Item 1 amends this subsection to add Avondale University as a Table B provider.
Item 2: Application provision
3. Item 2 is an application provision which provides that this amendment has effect:
a. in relation to the making of grants - on and after 1 January 2024; and
b. otherwise - on and after the day the amendment commences.
4. This means that Avondale University will start being eligible for grants as a Table B provider from 1 January 2024.