Ms Julie Bishop (Curtin, Liberal Party, Minister Assisting the Prime Minister for Women's Issues) Share this | Hansard source

I thank all members of the House for their contribution today to the debate on the Social Security Legislation Amendment (2007 Budget Measures for Students) Bill 2007, particularly the member for O’Connor. The purpose of this bill is to amend three acts: the Student Assistance Act 1973, the Social Security Act 1991 and the Income Tax Assessment Act 1997. The measures contained in the bill enhance the delivery of income support for students and provide a significant benefit to students and their families at a cost to budget of $135 million over four years.

The amendment to the Student Assistance Act 1973 will allow for the recovery of payments under Abstudy and the Assistance for Isolated Children’s Scheme that are made to incorrect financial institutions. The amendment also allows notices for data transfer to be issued electronically. Current technologies and data transfer processes that are used by Centrelink for other student income support payments will now be extended to Abstudy and the Assistance for Isolated Children’s Scheme. The amendment to the Social Security Act 1991 will provide rent assistance to students aged 25 years and over who receive Austudy. Extending rent assistance to Austudy supports measures to attract more mature age people to participate in education and training. The bill also extends eligibility for youth allowance and Austudy to students enrolled in an approved master’s by coursework program, which is required for entry to a profession, the fastest pathway to professional entry or the only pathway provided by the higher education institution, following a restructure of existing course delivery. Extending income support for student payments to approved coursework master’s degrees will assist these students to acquire the skills and training they need for careers, which will make a significant contribution to the Australian economy.

The amendment to the Income Tax Assessment Act 1997 will ensure that crisis and bereavement payments under the Abstudy scheme are treated in the same way as crisis and bereavement payments under the Social Security Act 1991—that is, Abstudy crisis payment and Abstudy bereavement payments are wholly or partly exempt from income tax. Extending crisis and bereavement payments to Abstudy recipients will allow Indigenous students to receive these payments, which were not previously available under Abstudy. The measure itself will be introduced under the Abstudy ministerial guidelines. The bill also provides for a multiple exclusion clause to prevent crisis payment under the Social Security Act 1991 for the same event being claimed also under Abstudy. This provision will also be mirrored in the Abstudy guidelines.

In summing up, these measures demonstrate the importance that the Australian government places on ensuring that all Australians, regardless of age, location or background, have the opportunity to participate in education and training and to contribute to the nation’s continued prosperity. The Australian economy depends on its most precious and important resource—its people. A well-educated and skilled population increases workforce participation and allows every Australian to make a contribution to the broader Australian community. I commend the bill to the House.

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