Family and Community Services
Student Financial Supplement Scheme - repeal
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Family and Community Services | - | -1.7 | -5.1 | -8.4 |
| Department of Education, Science and Training | -0.3 | -0.4 | -1.3 | -2.2 |
The Government will repeal the Student Financial Supplement Scheme (SFSS) from 1 January 2004 in response to increasing levels of bad and doubtful debt and reduced take-up of loans under the scheme. The take-up rate for the scheme has declined by 28 per cent over the past three years. This has followed the introduction of Youth Allowance and increased access to alternative commercial loan products and opportunities for students to supplement their income. It is currently expected that more than one half of loans under the SFSS are never likely to be repaid.
Repeal of the scheme will not affect entitlements for Youth Allowance, Austudy, Abstudy or Pensioner Education Supplement. The scheme previously required students to trade in part of their entitlements in order to access loans under the scheme.
The forward estimates assumed repayments from additional loans had the scheme continued. There will be a reduction in revenue of $19.4 million over four years due to indexation of a lower level of outstanding loans than if the scheme had continued.
This measure impacts on the Department of Family and Community Services and the Department of Education, Science and Training.
See also the related expense measure titled Student Financial Supplement Scheme - repeal in the Family and Community Services portfolio.