Chapter 133 Overpayment and Recovery of Allowances

Chapter content

This chapter contains the following topics:

Legislation

Responsibility for Overpayments

Parent / guardian as responsible payee

Student as responsible payee

Boarding institution as responsible payee

School as responsible payee

Tertiary education as responsible payee

133.1 Legislation

The Student Assistance Act 1973 is the legislation covering, among other things, ABSTUDY overpayment and recovery matters.

133.2 Responsibility for Overpayments

The person responsible for repaying any overpaid amount is usually the person who received the ABSTUDY payment.

133.2.1 Exceptions

Exceptions are:

• where a parent/guardian redirects payments to a private board provider for an approved boarding student, the parent/guardian is responsible for repaying any overpaid amount, and
• where payments are obtained fraudulently, the person who applied for ABSTUDY assistance is responsible for repaying any overpaid amount whether paid to themselves, to another person or to an institution.

133.3 Parent / guardian as responsible payee

For ABSTUDY Schooling students, a parent/guardian as the applicant, will be responsible for overpayments of:

• School Term Allowance paid to the parent/guardian
• School Fees Allowance paid to the parent/guardian
• Living Allowance paid to the parent/guardian
• Living Allowance (in the case of an approved boarding student),paid on behalf of the parent/guardian to a private board provider
• Fares Allowance paid for under 16 boarding students, and
• Additional Assistance paid for an under 16 year old student.

133.4 Student as responsible payee

An applicant will be responsible for the overpayments if the following allowances are paid to the student:

• Living Allowance
• Pensioner Education Supplement
• Incidentals Allowance
• Additional Incidentals Allowance
• Masters and Doctorate Allowances
• Away-from-base assistance paid as travel allowance
• Fares Allowance
• Pharmaceutical Allowance
• Remote Area Allowance
• Rent Assistance, and
• Additional Assistance.

133.5 Boarding institution as responsible payee

A boarding institution will be responsible for overpayments of:

• Pharmaceutical Allowance, Rent Assistance, Remote Area Allowance, Living Allowance paid fortnightly, term-in-advance or on account to the boarding school, hostel or residential college
• Under 16 Boarding Supplement, and
• Additional Assistance paid to the boarding institution.

The amount of the overpayment will be dependent on an individual boarding institution's policy on refunds as stated in its terms and conditions.

133.6 School as responsible payee

A school will be responsible for overpayments of:

• School Fees Allowance, and
• Additional Assistance paid to the school.

The amount of the overpayment will be dependent on an individual boarding school's policy on refunds as stated in its terms and conditions.

133.7 Tertiary education as responsible payee

A tertiary education institution will be responsible for overpayments of:

• Away-from-base assistance paid as residential costs and fares to the tertiary education institution
• Additional Assistance paid to the tertiary education institution
• Lawful Custody Allowance where paid to the tertiary education institution
• Payments made to the institution under the Residential Costs Option in respect of board and lodgings if the student is not eligible for the Residential Costs Option, and
• HECS or course fees where paid to the tertiary education institution.