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graphic bullet You are here: ABSTUDY > 7 Benefits and Allowances > 7.6 Pensioner Education Supplement

7.6 Pensioner Education Supplement


Introduction

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.

7.6.1 Summary of Pensioner Education Supplement

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

  • Age pension or age service pension;
  • Bereavement allowance (previous widowed person Allowance);
  • Defence widow(er) pension, war widow(er) pension or partner service pension where the pensioner does not have any dependent children;
  • Wife pension where the husband receives the age pension;
  • Partner service pension where the partner receives the age service pension;
  • Mature age allowance; or
  • Mature age partner allowance

ABSTUDY PES from 1/1/2000 $60 pfn

  • Disability support pension or invalidity service pension;
  • Widow allowance, Widow B pension;
  • Special benefit if a sole parent;
  • Defence widow(er) pension, war widow(er) pension or partner service pension if the pensioner has a dependent child;
  • Wife pension where the husband receives the disability support pension or a disability wage supplement;
  • Partner service pension where the partner receives the invalidity service pension;
  • Parenting payment (single); or
  • Carer service pension or carer payment.

See more detail in 7.6.3.2

Payments period

As for Living Allowance.

Payment features

  • initiated from assessment of claim form;
  • paid fortnightly; and
  • paid to the student.

Taxation status

Tax exempt.

Indexation status

Not indexed.

7.6.2 Introduction to Pensioner Education Supplement

7.6.2.1 Qualification

Students qualifying for the following awards may receive the Pensioner Education Supplement:

7.6.2.2 Purpose

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.

7.6.2.3 1/1/2000 Maintenance

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.

7.6.2.4 Current Course of Study

For ABSTUDY maintenance purposes a ‘current course of study’ includes:

7.6.2.5 Continuing Student

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:

7.6.3 Eligibility and Entitlement for Pensioner Education Supplement

7.6.3.1 Eligibility

A student is eligible for the Pensioner Education Supplement if s/he:

7.6.3.2 Entitlement

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.

7.6.3.3 Wife’s Pension Recipients

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.

7.6.3.4 Is PES Taxable?

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.

7.6.3.5 Type of Pension

For the purposes of ABSTUDY Pensioner Education Supplement entitlement a person:

the person has a dependent child aged less that 16 years and:

7.6.3.6 Rates of Entitlement

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.

7.6.3.7 Period of Entitlement

The period of entitlement for Pensioner Education Supplement is the same as for Living Allowance.

7.6.3.8 Change of Pension

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.

7.6.3.9 Workload Concession

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.

7.6.3.10 Payment

Pensioner Education Supplement is:

7.6.3.11 Lodgement of PES Application

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.

7.6.3.12 Responsibility for Overpayments

Refer to Policy Manual 7.1.2 to identify the responsible payee where an overpayment of this allowance has been made.

7.6.3.13 Indexation

The Pensioner Education Supplement is not indexed.


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