Chapter 123 Assets Testing

This chapter describes the assets tests and limits which are applied for ABSTUDY.

Chapter content

This chapter contains the following topics:

Asset items

Family Assets Test

Personal Assets Tests

123.1 Asset items

123.1.1 Items included in testing

The following items are included for ABSTUDY Asset Testing purposes:

• All funds, investments, property, cars, boats, household contents and personal effects
• money in approved deposit-funds or other roll-overs which can be withdrawn
• ownership or interests in a trust or company
• the surrender value of life policies
• money lent out
• assets disposed of on or after 15 December 1998 (Government announced Assets Testing for ABSTUDY Living Allowance) for an unreasonably low value, and
• overseas assets.

123.1.2 Items not included in testing

The following items are excluded for ABSTUDY Asset Testing purposes:

• the principal family home which includes any land around the home used primarily for private and domestic purposes if the land and the ground floor of the home are 2 hectares or less
• a garage or storeroom of a flat or home unit that is used primarily for private or domestic purposes
• the principal behind an annuity or superannuation pension that can't be withdrawn, sold or borrowed against
• funds frozen in a financial institution (unless they can be withdrawn after a waiting period)
• assets which you have the right to use but which you may not sell or borrow against (eg. a life interest under a deceased estate)
• personal disability aids.

Note: non-taxable compensation payments paid in a lump sum are not regarded as an asset for ABSTUDY purposes.

123.2 Family Assets Test

ABSTUDY is not payable if the value of a family's total assets exceeds the designated limit³. All of the family's assets are included, except:

• the assets of independent children, and
• the assets of the partner's independent children, and
• farm assets, if a current drought relief exceptional circumstances certificate has been issued.

123.2.1 Exemptions from family assets test

The family assets test does not apply to parents or their partners who receive:

• an income support payment
• payment under the Farm Household Support Act 1992.

123.2.2 Discount for business assets

75% of a customer's interest in the value of a business, including farms, is disregarded if the customer owns the business and is wholly or mainly engaged in that business.

123.3 Personal Assets Tests

123.3.1 Personal and Spouse Assets Test

Asset limits are indexed each year and take effect from 1 July each year. ABSTUDY is not payable if the value of total assets exceeds these limits⁴.

123.3.2 Exemptions

The personal assets test does not apply to:

• dependent students, or
• independent students with a partner receiving:

• an income support payment
• a payment under exceptional circumstances provisions; or

• farm assets if the student or their partner has current drought relief exceptional circumstances certificate.