3 February 2009

Fact Sheet - 2009 Updated Economic and Fiscal Outlook

Note

Training and Learning Bonus

The Government's $511.2 million Training and Learning Bonus provides a one‑off bonus to eligible student social security recipients to assist with the costs for the 2009 academic year.

This will cover students undertaking approved courses that generally include secondary education courses, undergraduate courses, associate diplomas and some other diplomas, TAFE courses and some postgraduate courses.

The Training and Learning Bonus consists of two categories:

Category 1
  • The one-off $950 bonus (for 2009 only) for recipients at 3 February 2009 of: Youth Allowance (student and apprentices); Austudy; ABSTUDY and other student and related payments (Sickness Allowance and Special Benefit (under age pension age)).
  • If a student attracts the Government's Back to School Bonus they are not eligible for the one-off $950 Learning and Training Bonus.
Category 2 (Applies from 1 January 2009 to 30 June 2010)
  • A temporary supplement to the Education Entry Payment (EdEP) of $950. This is in addition to the existing EdEP payment of $208. EdEP is currently paid to a range of social security recipients who are commencing study, including Newstart Allowance and Parenting Payment Partnered recipients.
  • A temporary extension of EdEP to Youth Allowance (other) recipients and relaxation of eligibility to a one month qualifying period for all eligible recipients.

Questions and Answers

How much is the payment? When and how will it be paid?

Category 1
  • The lump-sum bonus is $950. It will be paid to eligible recipients by Centrelink in the fortnight beginning 24 March 2009.
Category 2
  • Those eligible for the supplement through EdEP will receive $950 on top of the existing EdEP payment (currently $208). This means they will receive a total repayment of $1158.
  • Those eligible for the EdEP bonus will receive it when they receive their EdEP payment. If you have already received your EdEP payment you will receive the supplement from 24 March 2009.

Who will receive the Training and Learning Bonus?

Category 1
  • A one-off $950 lump sum will be provided to eligible recipients at 3 Febuary 2009 of:
    • Youth Allowance (student and apprentices);
    • Austudy;
    • ABSTUDY;
    • Payments under the Veterans' Children Education Scheme (VCES);
    • Payments under the Military Rehabilitation and Compensation Act Education and Training Scheme (MRCAETS); or
    • Families entitled to Family Tax Benefit Part A (FTB-A) for each eligible dependent full-time student aged 21 to 24 years, (on the date of announcement) or who were subsequently determined to be entitled to receive FTB-A on the date of announcement.
  • The one-off bonus will also be available to recipients of Sickness Allowance and Special Benefit (under Age Pension age).
Category 2
  • From 1 January 2009 until 30 June 2010 recipients of the EdEP will receive an additional $950 payment on top of the $208 they would have received, eligibility to EdEP will be extended to Youth Allowance (other) recipients and the qualifying period for all eligible recipients will be reduced from 12 to 1 month.

What happens if I enrol in full time study after 3 February 2009?

  • Under the provisions of the Household Stimulus Bill, the Minister will be able to grant a payment to those that sit within the intent of the legislation through an administrative scheme.
  • The administrative scheme's intent is to ensure that all those who enrol in and commence full time study this semester who are granted one of the qualifying student income support payments (that is, Youth Allowance, Austudy or ABSTUDY Living Allowance) after 3 February 2009 receive a bonus. This will assist students intended to be in scope who have not qualified for a Bonus under the legislative provisions.
  • The Government will also ensure that full time postgraduate students receiving Australian Postgraduate Awards (stipends) this semester receive a Training and Learning Bonus payment through an administrative scheme.

Can an individual receive both the Back to School Bonus and the Training and Learning Bonus?

  • If an individual has received the Government's Back to School Bonus they are not eligible for the one-off $950 Training and Learning Bonus. However, they are not precluded from receiving the EdEP temporary supplement if they received either of the one-off payments.

What is the Education Entry Payment (EdEP)?

  • The EdEP is a payment available to some social security recipients to assist them with the costs of returning to study.
  • Recipients of the following payments may qualify for an EdEP: Newstart Allowance; Parenting Payment Partnered; Youth Allowance (other) recipients (from 1 January 2009 to 30 June 2010); Partner Allowance; Widow Allowance; Carer Payment (adult); Carer Payment (child); Disability Support Pension; Parenting Payment Single; Special Benefit (in certain circumstances); Widow B Pension; or Wife Pension.

What are the qualification requirements for the $950 EdEP supplement?

  • The $950 supplement is available to recipients of EdEP from 1 January 2009. If an individual received a payment before this date they will not receive the supplement this calendar year, however, if they are eligible to claim the EdEP before 30 June 2010 they will receive the supplement when they next claim.

What courses does EdEP apply to?

  • If a person is an eligible social security recipient for EdEP, and they have commenced or intend to commence a course of education that is approved, they may qualify for EdEP.
  • In general an approved course includes secondary education courses, undergraduate courses, associate diplomas and some other diplomas, TAFE courses and some postgraduate courses.
  • Qualifying for the EdEP payment differs depending on the social security payment the recipient receives.
  • The Government therefore encourages individuals to contact Centrelink to discuss whether they are eligible for an EdEP payment.

Can the recently unemployed get a bonus?

  • If an individual has been on Newstart or Youth Allowance (other) continuously for 1 month they may be eligible to receive the bonus, if they intend to commence a course of education.
  • The Government has temporarily (from 1 January 2009 to 30 June 2010) relaxed the requirement that an individual must have been receiving an eligible social security payment from 12 months to 1 month.

How will the payments be treated for taxation and social security purposes?

Category 1
  • This payment is non-taxable and will not be treated as income for social security purposes.
Category 2
  • This supplement is non-taxable and will not be treated as income for social security purposes. The base EdEP payment of $208 will remain taxable and treated as income for social security purposes.