Confused Definitions

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3 yrs ago

Hi there. I am a 56 year DSP recipient. I am also studying for a Bachelor Degree. To "help" with my studies, Centrelink advised me that I would be able to get a "SUPPLEMENT" called Pensioner Education Supplement added to my pension. What this equated to was a Once a year payment (usually at March) of $260, with a fortnight payment of an extra $64. This of course was great, extra money to help with the costs of studying, Yipeee...

But, what was never told to me, nor does it even hint at it on the Centrelink website (https://www.servicesaustralia.gov.au/individuals/services/centrelink/pensioner-education-supplement) that...

This is in fact a loan.. Yep so now on top of my HECS I have accrued $4820 which they charge me 1.8% interest indexed each year..

I only found this out because it now appears on my Taxation file as a "Student Financial Supplement Scheme (SFSS) 553" and appears as an income for taxation purposes.

And yes I feel ripped off... Any advise or help would be appreciated.. Forgive me if I am wrong but how can a "supplement" suddenly become a "loan" and "income" with an interest rate I certainly did not agree to or approve..

Is this another sneaky ROBODEBT disguise????

9 comments

Early

3 yrs ago

Watchout for government quicksand. That is how they make a living. Deliberately unhelpful. Shocking

legislation administered in an obfuscatory manner.

Sophie

3 yrs ago

I see from your avatar you are a pensioner who is furthering studies. That's good. However, why shoud you get a free education ahead of all the young people struggling to pay their fees. Stop whinging please!

Pensioner 007

3 yrs ago

Thank you for your reply Sophie, yes I am a pensioner, but it is a Disability Pension and YES I am doing University to give myself a better chance at employment. No where in my post did I even hint at the fact that I wanted a free education ahead of all the younger students, in fact I mentor some 300 Undergraduates as a volunteer. My complaint was, Why say something is a Supplement, but in reality it is a loan. If you travel the link I posted about the supplement, NO WHERE does it say its a loan and has to be paid back.. That is my complaint..

Sophie

3 yrs ago

The student financial supplement scheme, which operated for a decade from 1993, enticed students to take out “low-cost” loans by trading in their entitlements to youth allowance, Austudy or pensioner education supplement.

https://www.theguardian.com/australia-news/2017/jul/05/students-who-forfeited-welfare-under-unfair-loan-scheme-owe-government-21bn

if this is the scheme you are speaking of Pensioner 007, then you do not start repaying anything until your income exceeds a certain amount.

McDaddy

3 yrs ago

What a grumpy rude mole you are Sophie.

Sophie

3 yrs ago

Bet you wouldn't dare say that to my face...oh no...you are probably the little big mouth who used to run and hide behind mommy's petticoats. Mind your own business in future and "mole" right back at you.

McDaddy

3 yrs ago

Oh no Sophie, I am definitely not one to hide, I would say this to your face for sure, I love confronting asreholes like you.

Sophie

3 yrs ago

Well I am not going to get into a barney with you. You are nothing but a tiny little person, with tiny itty bitty anatomical parts, which obviously do not serve you well….so he does his confronting on social media to relieve his frustration. A very confused person.

McDaddy

3 yrs ago

Maybe you should stop spewing your venom at people trying to get ahead in life such as the original poster, you obviously are a very sad and lonely person who has had a shit life.

Sophie

3 yrs ago

LOL….poor old thing…enjoy your day!

Lucca

3 yrs ago

ROFL, itty bitty yellow polka dot bikini dum de dum

Sophie

3 yrs ago

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3 yrs ago

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McDaddy

3 yrs ago

PES is a non-taxable, non-income and assets tested payment of $62.40 or $31.20 per fortnight, and is available to recipients who are undertaking at least 25% of a full-time study (1.1.F.230) load. It is not a loan, I think you are talking about something else.

DG1406

3 yrs ago

Pensioner 007 - here are 2 government websites which indicate the PES is not taxable:

https://guides.dss.gov.au/guide-social-security-law/5/3/1/10

Look at the section "Non-Taxable Payments" / "Supplementary Benefits" and you'll see PES in the list

https://www.ato.gov.au/Individuals/Tax-Return/2020/Before-you-start/Amounts-that-you-do-not-pay-tax-on-2020/

In the section Exempt Australian Government Education Payments, you'll see PES included. It may still be the case that it's entered in your Tax return automatically because elsewhere it says that the government uses this information to determine whether you're entitled to any other benefits (in other words, its included in your total income and may affect another benefit you get - e.g. family benefit - but it's not taxed).

Pensioner 007

3 yrs ago

Cheers DG1406

DG1406

3 yrs ago

And I don't believe any government benefit is ever a loan - so talk to Centrelink and/or the ATO about it.

ImOKJack

3 yrs ago

The Pensioner Education Supplement is a Non-taxable benefit, unlike the Student Loan Scheme which is repayable after your income reaches a certian amount.

RaglanNZ

3 yrs ago

McDaddy Pensioner007 ... great feedback

Confused Definitions

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