PROFESSIONAL
DEVELOPMENT DAY
Wednesday,
27th June, 2006.
Welfare
to Work Changes
Centrelink
Case Study Q & A
The
following is a number of Case Studies proposed by DEAN, and responses by Centrelink on the Welfare
to Work changes.
Contents
Case Study re: DSP & In-Country
Study
Case study re: Youth allowance / Austudy and Reduced
Workload
Questions in
relation to changes under Welfare to Work system
Case
Study re eligibility for Youth Allowance or Austudy for short study
periods
Case
Study – Actual (pre 1st July 2006)
Case Study – hypothetical (post 1st July 2006)
Welfare to Work – Disability Case Studies/Questions
Case Study re:
DSP & In-Country Study
- A student began
their combined degree, BA. Communications and International Studies
(involving in country study of one year)
- The student began
the degree in 2002 and studies a reduced workload of two subjects
per semester due to the impacts of their disability – Chronic
Fatigue & Arthritis.
- The student has
been receiving the DSP since their University study began (2002).
- According to
the current rules the student will only receive their DSP for up to
13 weeks whilst completing their in country study, then will not receive
any income support.
- Meanwhile students
who receive Youth Allowance or Austudy can receive their support for
the whole year of in-country study.
Questions: related
to the welfare to work changes
1. If the
student attends their in-country study are they still eligible to receive
the DSP for 13 weeks? (Centrelink
Response): Yes
2. Once
their DSP payments are stopped – will they have to undergo assessment
to be eligible for the DSP again – rather than be able to go straight
back on it? ie. Is there any guarantee they will be eligible for the
DSP if their conditions do not improve?
(Centrelink Response): For the
first 13 weeks they will be on payment.
For the next 13 weeks they will have their payment suspended.
After 26 weeks their payment will be cancelled.
Once
the payment is cancelled they will need to be reassessed for DSP under
the new rules. There is no guarantee they will be entitled to be put
back on DSP.
3. If they have to reapply - will they now come under the new DSP rules
(rather than those for people who were on the DSP prior to May 2005)?
(Centrelink Response): They will
be required to reapply under the new rules.
4. Can a
student on Youth Allowance or Austudy, under the welfare to work system,
attend their in-country study for one year and still receive their payments?
(Centrelink Response): If the
study is approved by the institution and is credited towards the Australian
course, then the student can be paid for the whole period of the approved
overseas study. Evidence must be provided to Centrelink of the following:
A
statement from the Australian education institution confirming:
- the
student will remain enrolled as a full-time student in the approved
course for the duration of the overseas study, and
- a
list of subjects to be undertaken at the overseas institution, and
- the
extent to which studies overseas will, if successfully completed,
be credited toward the approved course.
- The
intended date of departure from, and return to, Australia, and
- An
overseas contact address
Case study re: Youth allowance / Austudy and Reduced Workload.
- A student who
has a disability is not eligible for the DSP and is placed onto Youth
Allowance or Austudy.
- The student enrols
in a full time workload because they are advised to do so at the University
enrolment. The student has received medical advice that they will
not be able to cope with full time study. The Disability Liaison Officer
at their university also advises the student to study a reduced workload
of two subjects per semester.
- The student’s
medical condition is also episodic so there may be semesters when
they will only be able to do one subject.
- The course is
a three year Business degree, when studied full time.
- Therefore, it’s
estimated that it will take the student between 6 – 7.5 years
to complete their course.
(Centrelink
Response): Austudy:
If
the student continues to study, but at a reduced study load, they may
be entitled to continue to receive Austudy. To remain eligible for Austudy
payments the student must be enrolled, undertaking at least 75% of the
normal amount of full-time study and be making satisfactory
progress. If they are undertaking at least 25% of the normal
amount of full-time study and qualify for a 25% study
load concession for Austudy they also remain eligible for payment.
Youth Allowance:
If
the student is still enrolled in at least 75% of the normal
amount of full-time study in their course of study, then they
remain eligible for Youth allowance as long as they remain enrolled
and make satisfactory progress in their course.
If the student is still enrolled at less than 75% of the normal amount
of full time study then they no longer qualify for YA as a full time
student but should test their eligibility for payment as a part-time
student if they are under 21 years.
If the student is over 21 years they should test eligibility for Newstart
Allowance with a partial capacity to work. They could study part time
but would have other obligations to fulfill in relation to the Activity
Test.
Questions in relation
to changes under Welfare to Work system
1.
What is the total time limit that YA / Austudy will be available for
a course?
(Centrelink Response)The time
allowed for a course is based on the normal duration of that course
(sometimes called minimum time). The time allowed is also dependent
on the type of payment the student is receiving. Study load concessions
may further extend the duration for which payment can be made.
Austudy:
25 percent concessional students (due to a disability)
w are allowed twice the minimum time of the course. In particular cases
this may be extended to up to four times the minimum time.
Youth Allowance: an example is normal course duration is longer than
one year and does not have yearly subjects, then student may be paid
for normal course duration plus an additional study period. There are
other examples based on the type of course.
2. If the student does not negotiate at the Job Capacity Assessment
to study a reduced workload – can this be requested at a later
date? And what would this process be?
(Centrelink Response) Customers
do not negotiate reduced study loads with Job Capacity Assessors. Students
under 21 years may be referred to a Job Capacity Assessor for an assessment
of partial capacity to work. If they are assess as having a partial
capacity to work of less than 30 hours per week, then they may be eligible
for Youth Disability Supplement. A student who wants to reduce their
study load would negotiate with the institution. Refer to previous information
on the affect of more or less than 75% study load and the affect on
full time student status.
3.
Would a written request, with medical and University support letters
suffice? If so, what documentation would the university need to provide?
(Centrelink Response)
Refer
to previous information on the affect of more or less than 75% study
load and the affect on full time student status. Students are not referred
to Job Capacity assessors to assess capacity to study.
4.
How often would the student need to re-negotiate a reduced workload
arrangement?
(Centrelink Response)
Refer
to previous information on the affect of more or less than 75% study
load and the affect on full time student status.
5.
Will there be an opportunity for the student to re-negotiate their reduced
workload at times when their medical condition is having a further impact
upon their study? What is the process?
(Centrelink Response)
If
the incapacity is permanent and the customer is under 21, they may continue
to qualify for YA by undertaking a combination of activities (if a student)
or may need to claim a Disability Support Pension (DSP). Otherwise it
comes back to what percentage of the study load they can undertake as
a result of their medical condition.
Case Study re eligibility
for Youth Allowance or Austudy for short study periods
A student
studies one subject worth 6 credit points in Summer (commencing the
subject in December and finishing in February). They enrol in one full
semester subject in Autumn (March-June) worth 6 credit points, and an
intensive 6 week course worth 6 credit points in the middle of Autumn.
Questions:
1. Would the student be eligible for Youth
Allowance or Austudy? (whichever was applicable)
(Centrelink Response) The period
of eligibility of customers who qualify for payment and are undertaking
a short course is normally limited to the duration of the course. Therefore,
qualification for payment normally starts on the first day of the course
and ceases on the last day of the course. Payments do not continue for
the gap between ceasing a short course and commencing another course
(regardless of the length of the second course) unless the gap between
courses is less than 28 days, and the course is articulated with other
short courses.
If
a Youth Allowance (YA) or Austudy customer is studying in a short course
which is not an approved course under the Ministerial Determination,
they do not satisfy the Activity Test as a full-time student. These
customers may have their course approved as either a stand-alone activity
or as part of a combination of activities in a Preparing For Work Agreement
(PFWA). YA customers would need to satisfy the Activity Test as a job
seeker and Austudy customers would need to test their eligibility for
Newstart Allowance (NSA).
2.
Are credit points from Summer subjects counted with Autumn?
(Centrelink Response) As above
3
Is it Centrelink’s view that credit points for intensive courses
can be counted within the semester in which they are assessed?
(Centrelink Response) As above
4.
Where would credit points from a subject run in Winter be counted? (from
end of June to beginning of August)
(Centrelink Response) If this
study refers to a short course rather than a degree, then the answer
is as above.
Case Study –
Actual (pre 1st July 2006)
- Student lives
with ongoing medical condition – cystic fibrosis, and is in
receipt of Disability Support Pension
- Student is enrolled
in Bachelor of Arts in Communication and in International Studies
– an undergraduate degree consisting of 240 credit points.
- Compulsory component
within the course is to complete an in-country placement ie. live
in a particular country for two semesters, which is calculated as
48 compulsory credit points towards the Award
- Student is told
by Centrelink that they are not eligible to receive Disability Support
Pension for period longer than 13 weeks if they are out of the country.
Student told by Centrelink that “if they are on the pension
then they should be too sick to be out of Australia for longer than
13 weeks”. Meanwhile, student’s fellow students who are
in receipt of Youth Allowance or Newstart are eligible for benefit
for entirety of in-country study as they are completing compulsory
component of the Course.
- Student does
not want to be considered differently to their fellow students by
the university – wants to complete the compulsory 48 points
but faces financial disadvantage if they do so.
(Centrelink
Response) Student may wish to consider testing eligibility
for Youth Allowance as a full time student if they can manage the study
load required to be full time student. And then apply for approval to
study overseas as part of their approved course. This does not apply
to Newstart or YA jobseekers.
Case Study –
hypothetical (post 1st July 2006)
- Student is studying
at university part-time because they have Chronic Fatigue Syndrome
– this is a result of having had Glandular Fever post Year 12.
Student was a successful HSC student & was accepted into Bachelor
of Laws.
- Student works
10 hours per week ( 2 x 5 hr weekend shifts) at a takeaway food outlet
in her local shopping centre, and studies two subjects per semester
at university. This ensures that her Chronic Fatigue is not exacerbated
and that her recovery process continues unchallenged.
- She also receives
income support from Centrelink
- Under the Job
Capacity Assessment process the student is assessed as being able
to work between 15 and 29 hours per week. The student is offered more
work at their place of employment but the student wants to work towards
becoming a solicitor. If they work extra hours and study as well then
their health is put at risk.
Under the
new legislation will this student be forced to accept 15 hours per week
in a takeaway food outlet for example, and consequently have to withdraw
from study so as to not risk their health?
(Centrelink Response) As the
student is enrolled for less than 75 % study load, they do not qualify
for Youth Allowance as a full time student. If they are under 21 on
Youth Allowance as a jobseeker and part time student, then they can
do a number of other activities to make up a full-time activity load
so that they are considered to be satisfying the Youth Allowance (YA)
activity test. Other activities may include: part-time work, looking
for suitable part-time work, doing voluntary work , another approved
activity. Customers may however, have their activity test requirements
adjusted if they have a disability or carer responsibilities. In some
situations, the part-time study may be the only activity required of
the customer.
If the part-time student on Youth Allowance or Newstart has been assessed
by a Job Capacity Assessor as having a partial capacity to work of less
than 30 hours per week ( in blocks of 15 to 22 hours or 23 to 29 hours)
, they will be required to enter into an Activity Agreement, outlining
their participation requirements. If the customer transferred from Transitional
DSP to Newstart or Youth Allowance and they are participating in an
approved activity of study or part-time work up to at least their assessed
capacity to work, the Activity Agreement may not require a job search
component.
Usually
jobseekers can also undertake part-time study at any time if they can
fully meet all of their other activity test requirements. Jobseekers
should not restrict their job search to their usual occupation or work
that they would prefer to do. They should seek and be prepared to accept
any suitable employment. Jobseekers are not expected to take up or look
for unsuitable work. Jobseekers who are not able to work full-time or
are restricted to a limited range of duties because of incapacity are
expected to look for work to their capacity. If a person in this situation
is undertaking work up to their capacity they are taken to have satisfied
the activity test while their incapacity remains unchanged. The level
of the person's capacity must be confirmed by a JCA or medical evidence.
Jobseekers who are classified as having a partial capacity to work because
of a physical, intellectual or psychiatric impairment must also look
for work to their capacity but are taken to satisfy the activity test
if they work at least 30 hours per fortnight (3.2.8). (Guide 3.2.7.10)
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