3.8.15.20 Payability of Relocation Scholarship

Payability

The relocation scholarship is payable if:

• the person is qualified for and receives at least the minimum basic rate of YA and is studying full-time in an approved scholarship course (1.1.A.218), and
• the person is expected to commence or continue undertaking the course in the period of 35 days immediately after qualification for the relocation scholarship, and
• the person is not likely to receive a Commonwealth Accommodation Scholarship (CAS) in the next 12 months, and
• the person has not qualified for a relocation or similar scholarship payment in the preceding 12 months. This can be shortened to a period of at least 3 months if such a determination would enable the person to qualify for the relocation scholarship on or near 1 January in a year, provided they do not receive more than 2 relocation scholarships in a period of 2 successive calendar years.

Similar scholarship payments are:

• ABSTUDY relocation scholarship,
• DVA relocation scholarship payment, and
• CAS, provided the person has received the amount or was entitled to it but full entitlement was not received as the scholarship was suspended.

Where a student's enrolment pattern means that there will be a gap of less than 12 months between when they first received their relocation scholarship payment and when the next payment is due in January of the following year, the 12 month period may be shortened to a period of at least 3 months.

Example: Erika becomes qualified for a relocation scholarship in July 2011 (she has commenced her new course in the second semester of 2011). Erika continues her course in 2012. Ordinarily, Erika would not become qualified for another relocation scholarship payment until July 2012 (i.e. 12 months). However, a decision maker decides to reduce the 12 month period to 8 months to allow Erika to qualify for and receive a relocation scholarship in February 2012, in time for the commencement of the 2012 academic year.

Act reference: SSAct section 592J Qualification for relocation scholarship payment, section 592K Circumstances in which person is not qualified for relocation scholarship payment

Transitional arrangement for 2010

Transitional arrangements for 2010 provide that, where a full-time student becomes qualified for YA as a result of the implementation of changed parental income test arrangements on 1 July 2010, they can qualify for the $4,000 rate of relocation scholarship payment in certain circumstances.

A dependent young person who is required to live away from home may receive the greater amount of $4,000 if the person:

• qualifies for a relocation scholarship payment on or after 1 July 2010 but before 29 July 2010, and
• is undertaking full-time study in an approved scholarship course on 1 April 2010, and
• was required to move away from home for the purposes of undertaking that study not more than 6 months before the person started full-time study in the course in 2010.

Act reference: Social Security and Other Legislation Amendment (Income Support for Students) Act 2010, see Schedule 2 item 4B Transitional rule for relocation scholarship payment

CAS & relocation scholarship

A student cannot qualify for a relocation scholarship if they are likely to receive a CAS in the same period.

If a student has received a relocation scholarship on the basis that they were not likely to receive a CAS in the next 12 months, and they are subsequently made an offer of a CAS for that period that they intend to accept, then the Secretary may review the original decision and find that the student did not qualify for the relocation scholarship at the qualification time. This would mean the relocation scholarship becomes a debt and is subject to existing debt recovery provisions (see below).

Overpayments

If a student is paid an amount of relocation scholarship to which they were not qualified, or cease to be qualified for, the amount paid will be a recoverable amount and an overpayment may be raised.

Unless exceptional circumstances apply which are beyond the student's control, a student will cease to be qualified for a relocation scholarship if:

• they do not commence full-time study, or
• they started the course but are not undertaking the same course, or another approved scholarship course, as a full-time student at the end of 35 days after the course commences, or
• they were undertaking a course but are not undertaking the same course, or another approved scholarship course as a full-time student at the end of 35 days after payment qualification.

Where a person has received a CAS and a relocation scholarship for the same period, the relocation scholarship would normally be raised as an overpayment, unless the CAS was paid in error.

Act reference: SSAct section 592J Qualification for relocation scholarship payment, section 592K Circumstances in which person is not qualified for relocation scholarship payment, section 1223ABE Debts in respect of scholarship payments

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Last reviewed: 3 January 2012