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Benefits and Allowances > 7.6 Pensioner Education Supplement
This chapter contains details about the Pensioner Education Supplement (PES. Students getting FaCS or DVA income support payments because they are disabled, sole parents or carers cannot get ABSTUDY Living Allowance while in receipt of these income support payments but can get the ABSTUDY PES while studying.
Note: ABSTUDY PES students continuing study from 1999 into 2000 and 2001, who would otherwise be financially disadvantaged by the changes to the ABSTUDY PES will be maintained at 1999 levels of ABSTUDY PES until the completion of their current course of study, given the same personal, financial and academic circumstances apply. (See 7.3.4.3 for definition of ‘current course of study’)
Once a continuing student goes onto the 2000 rate they cannot then go back to the 1999 rate should a change in their circumstances make the 1999 rate more attractive.
Summary table
The table below summarises the Pensioner Education Supplement.
|
Feature of Allowance |
Details |
|
Availability |
Schooling B Awards, Tertiary Awards, and Masters and Doctorate Awards. |
|
Purpose |
To supplement the pension and assist with ongoing expenses associated with study. Also an inducement for pensioners to take up full-time study. |
|
Eligibility conditions |
Eligibility requirements for relevant award, and is a pensioner student. |
|
Entitlement |
Qualifying payment Group 1; Group 2 |
|
PES Rates for new students in 2000 who are not maintained at 1999 rates. |
Ineligible for ABSTUDY PES from 1/1/2000
ABSTUDY PES from 1/1/2000 $60 pfn
See more detail in 7.6.3.2 |
|
Payments period |
As for Living Allowance. |
|
Payment features |
|
|
Taxation status |
Tax exempt. |
|
Indexation status |
Not indexed. |
Students qualifying for the following awards may receive the Pensioner Education Supplement:
The purpose of the Pensioner Education Supplement is to provide a supplement to the pension to assist with ongoing expenses associated with study and as an inducement for pensioners to take up study.
The policy intent is that students who had entered into arrangements to undertake a particular course of study in 1999 (or earlier) and who were continuing in this course of study in 2000 and 2001 would be maintained on the 1999 rate of benefit for the duration of the course if this is beneficial to them. Continuing students aged 21 years or more in receipt of the ABSTUDY living allowance, who given their current personal and partner circumstances will not receive as high a level of overall benefit in 2000 as they would have received in 1999 given the same circumstances, will be maintained at the 1999 rate of living allowance until the completion of their current course.
For ABSTUDY maintenance purposes a ‘current course of study’ includes:
A continuing student is one who has not had a break in study between 1999, 2000 and 2001, except where, in exceptional circumstances that are generally beyond a student’s control, the break in study can be justified on:
A student is eligible for the Pensioner Education Supplement if s/he:
Pensioner Education Supplement (PES rate of entitlement is determined by the study load and the type of PES qualifying income support payment received.
For the purposes of ABSTUDY PES entitlement (not Living Allowance) is available to customers receiving the following income support payments:
Some part-time students may be eligible for PES (ie, eligible for a workload concession) if studying at least 25 percent but less than a full-time workload and receiving one of the following income support payments. (See Policy Manual 7.6.3.6)
Note: ABSTUDY PES students continuing study from 1999 into 2000 and 2001 who would otherwise be financially disadvantaged by the changes to the ABSTUDY PES will be maintained at 1999 levels of ABSTUDY PES until the completion of their current course of study, given the same personal, financial and academic circumstances apply. (See 7.6.2.4 for definition of ‘current course of study’). Once a continuing student goes onto the 2000 rate they cannot then go back to the 1999 rate should a change in their circumstances make the 1999 rate more attractive.
From 1 July 1995, the Department of Social Security (DSS), now FaCS, discontinued the payment of the Wife’s Pension, replacing it with the Parenting/Partner Allowance (PgA/PA). However, DSS subsequently decided that those who were receiving the Wife’s Pension prior to 1 July 1995 would be ‘grandfathered’ (that is, they would remain on the Wife Pension rather than be transferred to PgA/PA). Some former Wife Pension beneficiaries may have, however, been transferred to PgA/PA prior to DSS deciding to introduce ‘grandfather’ provisions. The entitlement of any such person contacting Centrelink about ABSTUDY PES eligibility should be checked and the possibility of transferring back to Wife’s Pension arrangements followed up.
There may be some cases where a former Wife Pension beneficiary, having been transferred to PgA, will not be moved back to the Wife’s Pension, regardless of the grandfathering provision. In these cases ABSTUDY PES should continue to be paid in 2001 where the person received PES in 1996, 1997, 1998, 1999 and 2000 on the basis of receiving the Wife’s Pension and the student’s circumstances have not changed other than for the transfer to PgA.
Previously, PES payments have been taxable. Amendments to the Income Tax Assessment Act however, means that PES is now a tax exempt payment Students can, however, continue to elect to have tax deducted from their PES entitlement.
For the purposes of ABSTUDY Pensioner Education Supplement entitlement a person:
the person has a dependent child aged less that 16 years and:
A pensioner student studying full-time may be entitled to receive a Pensioner Education Supplement, including the concession which permits part-time study to be treated as full-time study for ABSTUDY purposes.
Note: From 1 March 2000 the workload concession changed to:
Students receiving a DVA Invalidity Support or Invalidity Service Pension or a FaCS Disability Support Pension (Wife’s Pension) will be exempt from this legislation.
The period of entitlement for Pensioner Education Supplement is the same as for Living Allowance.
If a pensioner student transfers from one type of pension/payment to a pension/payment in the other Group, the pensioner will become entitled, or cease to be entitled to PES, as the case may be, from the day the student is entitled to the new type of pension.
From 1 January 2000 until March 2000, students who are undertaking at least 25% of the normal full-time workload (at all times) are to be regarded as full-time students and a Pensioner Education Supplement can be paid if they are receiving one of the following Department of Veterans’ Affairs (DVA) or Family and Community Services (FaCS) pensions or allowance;
the person has a dependent child aged less that 16 years and:
Rates of payment and eligibility criteria will be aligned with the Pensioner Education Supplement available under the Social Security Act 1991.
Note: From March 2000 the workload concession changed to:
Students receiving a DVA Invalidity Support or Invalidity Service Pension or a FaCS Disability Support Pension (Wife’s Pension) will be exempt from this legislation.
Pensioner Education Supplement is:
ABSTUDY PES is aligned with PES payable under Social Security law. An ABSTUDY PES Application must be lodged within 28 days from the commencement of a short course and 31 March for full year courses and 31 July for second semester courses (with a three month intent lodge provision see Policy Manual 2.1.3.1) or payment will only be made from the date of lodgement of the PES claim.
Refer to Policy Manual 7.1.2 to identify the responsible payee where an overpayment of this allowance has been made.
The Pensioner Education Supplement is not indexed.
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