This note is not part of the regulations, but is intended to indicate their general effect.
These regulations come into force on 1 September 2005 (see regulation 2). They amend the Student Allowances Regulations 1998.
The amendments apply to assessment and payment of allowances for weeks starting on and after 1 January 2006, whether the allowances were first payable before, on, or after that date (see regulation 3).
Regulation 5(2) increases (from $2,200 to $7,000) the amount of a student's parental income that is disregarded on account of other dependent students the parents support.
Regulation 5(3) inserts a new provision for $3,400 of parental income to be disregarded if the student's parents live in separate households (except where the income of only 1 of the parents is assessed, at the student's request).
The amendments also reduce the value of a student's basic grant and independent circumstances grant for a week if the student's personal income for the week exceeds $180. The reduction equals the excess. The reduction replaces the income limit based on the student's personal income (see regulation 16 and Parts 1 and 2 of new Schedule 2 set out in the Schedule). Regulations 4(a) and 6 to 14 make consequential amendments.
The amendments also increase the amount of the combined income of a married or partnered student and his or her spouse or partner for a week needed for a basic grant to the student to be paid at a lower rate or stopped for the week. A basic grant will be paid at a lower rate for a week if the combined income for the week is more than $360, and stopped if that income is $750 or more (see regulations 11 and 16 and subpart 1 of Part 1 of new Schedule 2 set out in the Schedule).
There are 4 other, minor, amendments.
The first fixes a wrong reference to an Act (see regulation 4(b)).
The second clarifies that, for a basic grant to a childless student under 25, the student's weekly parental income reduces the amount of the grant that would remain after a tax deduction based on tax code M, with the reduced value converted to a gross value that is subject to reduction for the student's personal income and to actual tax deduction (see regulation 4(c) and clause 3(3) and (4) of new Schedule 2 set out in the Schedule).
The third minor amendment clarifies that for the purposes of assessing parental income of a student with more than 2 parents, the 2 parents who are relevant are those nominated by the student (see regulation 5(1)).
The fourth minor amendment revokes items of the table in Schedule 1 of the principal regulations that are redundant given that parental income less than $665.50 a week, or $34,606 a year, does not affect the value of allowance payable (see regulation 15).