Home Sectors DEST information Minister's website News & media Calendar & dates About this site  Site Map | A-Z Index

You are here: ABSTUDY > 6 Income and Rates

Part 6 : Income and Rates

6.1 Income Requirements

• 6.1.1 Introduction to Income
  • 6.1.1.1 Eligibility and Providing Income Details
  • 6.1.1.2 General Income
  • 6.1.1.3 All Assessable Income
  • 6.1.1.4 Maintenance Received or Paid
  • 6.1.1.5 Negative Income by One Parent
  • 6.1.1.6 Income Averaging
  • 6.1.1.7 Compensation
  • 6.1.1.8 Compensation Payments That Do Not Affect ABSTUDY
  • 6.1.1.9 Compensation Payments Affecting ABSTUDY
  • 6.1.1.10 ABSTUDY Entitlements Affected by Compensation
  • 6.1.1.11 Taxable Compensation Lump Sum Payments
  • 6.1.1.12 Non-taxable Compensation Lump Sums.
  • 6.1.1.13 Effect of Compensation on ABSTUDY Living Allowance
  • 6.1.1.14 Affect of Compensation on ABSTUDY School Fees Allowance (Group 2)
• 6.1.2 Income Testing Periods
  • 6.1.2.1 Normal Period of Income Testing
  • 6.1.2.2 Another Accounting Period
  • 6.1.2.3 Current Income Assessment
• 6.1.3 Types of Income Tests
  • 6.1.3.1 Three Types of Income Test
  • 6.1.3.2 Income Tested Allowances
  • 6.1.3.3 Non Income Tested Allowances 
  • 6.1.3.4 Effect for Different Students 
  • 6.1.3.5 Summary of Each Type of Income Test
• 6.1.4 Proof of Income
  • 6.1.4.1 Documentation Required
  • 6.1.4.2 Exemption
  • 6.1.4.3 Certification That Income Details are Correct
  • 6.1.4.4 Hard to Obtain
• 6.1.5 Overseas Income
  • 6.1.5.1 Calculating Overseas Income
    • 6.1.5.1.1 Converting Taxable Overseas Income to Australian Amounts
    • 6.1.5.1.2 Use of Exchange Rates to Convert Overseas Income
  • 6.1.5.2 Currency Exchange Rates

6.2 Income Tests

6.3 Current Income and Special Assessment

• 6.3.1 Current Income Assessment
  • 6.3.1.1 Reasons for a Current Income Assessment
    • 6.3.1.1.1 Acceptable Reasons for all Students
  • 6.3.1.1.2 Other Acceptable Reasons for Dependent Students
  • 6.3.1.1.3 Reasons Not Accepted for Current Income Assessment
• 6.3.1.2 Size and Date of Drop in Income
  • 6.3.1.2.1 Size of Drop in Income
  • 6.3.1.2.2 Discretion May Be Used
  • 6.3.1.2.3 Example of Use of Discretion
  • 6.3.1.2.4 Date of Drop in Income
  • 6.3.1.2.5 Current Income Assessment Not Needed
  • 6.3.1.2.6 No Precise Date
  • 6.3.1.2.7 Lump Sum Leave Payments
  • 6.3.1.2.8 Example of Lump Sum Payments
  • 6.3.1.2.9 Normal Duration of the Drop in Income
  • 6.3.1.2.10 Period of Current Income Assessment
• 6.3.1.3 Calculating Adjusted Income
  • 6.3.1.3.1 Calculation for Dependent Students
  • 6.3.1.3.2 Rise in Income
  • 6.3.1.3.3 Married and Independent Students
  • 6.3.1.3.4 Warning to Applicants
• 6.3.2 Increase in Current Year Income
  • 6.3.2.1 Increase in Income
  • 6.3.2.2 Income After the Current Financial Year
  • 6.3.2.3 Example
  • 6.3.2.4 How the Arrangement Operates
  • 6.3.2.5 When Does Reverse Current Income Apply?
  • 6.3.2.6 Financial Accounting Period Other Than I July - 30 June
• 6.3.3 Special Assessment
  • 6.3.3.1 Basis for Special Assessment - Pensions and Allowances
  • 6.3.3.2 Basis for Special Assessment –Health Care Card
  • 6.3.3.3 Basis for Special Assessment – CDEP
  • 6.3.3.4 Basis for Special Assessment - Exceptional Circumstances Relief Payment
  • 6.3.3.5 Basis for Special Assessment - Farm Family Restart (FFRS)
  • 6.3.3.6 Effect of Special Assessment
  • 6.3.3.7 Period of Special Assessment
  • 6.3.3.8 Exceptional Circumstances Relief Payment Ceases

6.4 Assets Tests

• 6.4.1 What is Included / Not Included in an Assets Test
  • 6.4.1.1 What is Included in an Assets Test
  • 6.4.1.2 What is Not Included in an Assets Test
• 6.4.2 Family Assets Tests
  • 6.4.2.1 Family Assets Test
  • 6.4.2.2 Exemptions from the Family Assets Test
  • 6.4.2.3 Discount for Business Assets
• 6.4.3 Personal Assets Tests
  • 6.4.3.1 Personal and Spouse Assets Test
  • 6.4.3.2 Exemptions from the Personal Assets Test

6.5 Family Actual Means Test

• 6.5.1 Introduction to Family Actual Means Test
  • 6.5.1.1 Introduction
  • 6.5.1.2 Exemption from FAMT
• 6.5.2 Designated Parents
  • 6.5.2.1 FAMT Designated Parent
  • 6.5.2.2 Interest in a Trust, Private Company or Unlisted Public Company
  • 6.5.2.3 Self-Employment
  • 6.5.2.4 Partner in a Partnership
  • 6.5.2.5 Overseas Income at or Above $A2,500
  • 6.5.2.6 Salary or Wage Earner With a Business Loss
  • 6.5.2.7 Overseas Assets at or Above $A2,500
  • 6.5.2.8 Business Migrant
• 6.5.3 Actual Means
  • 6.5.3.1 What is Included as Actual Means
  • 6.5.3.2 Areas of Family Spending
  • 6.5.3.3 Family Saving
• 6.5.4 Exempt Funds
  • 6.5.4.1 Exempt Funds
  • 6.5.4.2 Tax Deductible Business Expenditure
  • 6.5.4.3 Government Income Assistance
  • 6.5.4.4 Sale of Assets
  • 6.5.4.5 Non-Taxable Compensation Payments
  • 6.5.4.6 Dependent Children's Employment Income Deduction
  • 6.5.4.7 Spending on AIC or Secondary Boarder
• 6.5.5 Current Year Means Assessments
  • 6.5.5.1 Current Year Means Assessment
  • 6.5.5.2 Current Year Assessment Conditions
  • 6.5.5.3 Period of Effect of Assessment
  • 6.5.5.4 Expectations of Decreased Profits
  • 6.5.5.5 Reasons for a Decrease in Actual Means
  • 6.5.5.6 Actual Means Decreased Due to Study
• 6.5.6 Definition of Base Tax Year
  • 6.5.6.1 Definition of Base Tax Year
• 6.5.7 Definition of Family Members
  • 6.5.7.1 Definition of Family Members

6.6 Taxation

• 6.6.1 Taxable ABSTUDY Allowances
• 6.6.1.1 Taxable Income
• 6.6.1.2 Living Allowance Only
• 6.6.1.3 Taxation Installments
• 6.6.1.4 Group Certificates Issued
• 6.6.1.5 Lodgement of a Taxation Return
• 6.6.2 Tax File Number (TFN)
• 6.6.2.1 Applicants Who Must Provide a TFN
• 6.6.2.2 Applicants Who Need Not Provide a TFN
• 6.6.2.3 Commencing ABSTUDY Payments
• 6.6.2.4 Lodgement of Claims
• 6.6.2.5 Difficulty in Applying for a TFN
• 6.6.2.6 Regarded as Having Provided a TFN
• 6.6.2.7 Taxation Queries

6.7 ABSTUDY Rates

• 6.7.1 Calculation of ABSTUDY Rates
  • 6.7.1.1 Introduction
  • 6.7.1.2 Factors in Calculating Entitlement
  • 6.7.1.3 Calculating UILs
  • 6.7.1.4 Definition of Upper Income Limit
  • 6.7.1.5 Qualifying for Maximum Living Allowance
  • 6.7.1.6 Qualifying for a Reduced Living Allowance
  • 6.7.1.7 No Minimum Payment
  • 6.7.1.8 Dependent Child/Student Adjustment
  • 6.7.1.9 Definition of Dependent Student
  • 6.7.1.10 Definition of Dependent Child
  • 6.7.1.11 Children Who Do Not Attract Adjustment
  • 6.7.1.12 Dependent Adjustment Calculations
  • 6.7.1.13 Change in Number of Dependent Students
  • 6.7.1.14 Change in Number of Dependent Children
  • 6.7.1.15 Dependent Adjustment Checking Related Claims
  • 6.7.1.16 Example 1
  • 6.7.1.17 Example 2
  • 6.7.1.18 Automatic Calculation
  • 6.7.1.19 Ready Reckoner for Parental and Partner Adjustments
  • 6.7.1.20 Examples
  • 6.7.1.21 Adjusted Family Income
  • 6.7.1.22 How is Parental Income Calculated?
  • 6.7.1.23 How is Partner Income Calculated?
  • 6.7.1.24 Income Bank Formula and How It Works
  • 6.7.1.25 Maintenance Payments
  • 6.7.1.26 Negative Income By One Parent
  • 6.7.1.27 Averaged Income
  • 6.7.1.28 Calculating Adjusted Family Income
  • 6.7.1.29 Adjusted Income Figure
  • 6.7.1.30 Comparison of AFI/API Income Limits
• 6.7.2 ABSTUDY Living Allowance Rates 2000
  • 6.7.2.1 Maximum Rates
  • 6.7.2.2 Other ABSTUDY Rates 2000
• 6.7.3 Rates in 2000 for Continuing Students Aged 21 Years or More
  • 6.7.3.1 Introduction
  • 6.7.3.2 Policy Intent
  • 6.7.3.3 Definition of a ‘Current Course of Study’
  • 6.7.3.4 Break in Study Exemptions

6.8 Student Income Bank

• 6.8.1 Introduction to the Student Income Bank
  • 6.8.1.1 Introduction of the Student Income Bank
• 6.8.2 Rules of the Student Income Bank
  • 6.8.2.1 Rules of the Student Income Bank
• 6.8.3 Access to the Student Income Bank and Higher Income Free Area
  • 6.8.3.1 Access to the Student Income Bank and Higher Income Free Area
• 6.8.4 Operation of the Student Income Bank
  • 6.8.4.1 Operation of the Student Income Bank
  • 6.8.4.2 Review of Student Income Bank

6.9 Negative Gearing/Net Passive Business Losses

• 6.9.1 Description of Negative Gearing Losses
  • 6.9.1.1 Definition: Rental Property Losses
  • 6.9.1.2 What is Rental Property
  • 6.9.1.3 Definition: Property Losses
  • 6.9.1.4 What is Included?
  • 6.9.1.5 Valuing Negative Gearing
• 6.9.2 Implementation Issues
  • 6.9.2.1 Self Declaration
  • 6.9.2.2 Forms
  • 6.9.2.3 Compliance

6.10 Fringe Benefits

• 6.10.1 Description of Fringe Benefits
  • 6.10.1.1 Introduction
  • 6.10.1.2 Overseas Fringe Benefits
  • 6.10.1.3 Use of Exchange Rates to Convert Overseas Fringe Benefit Values
  • 6.10.1.4 Exemptions
• 6.10.2 Car Fringe Benefits
  • 6.10.2.1 Definitions
  • 6.10.2.2 When?
  • 6.10.2.3 Example
  • 6.10.2.4 Conditions
  • 6.10.2.5 Exemptions
  • 6.10.2.6 Example 1
  • 6.10.2.7 Example 2
• 6.10.3 Housing Fringe Benefits
  • 6.10.3.1 Definitions
  • 6.10.3.2 When?
  • 6.10.3.3 Example 1
  • 6.10.3.4 Example 2
  • 6.10.3.5 Conditions
  • 6.10.3.6 Exemptions
• 6.10.4 Low interest Loan Fringe Benefit
  • 6.10.4.1 Definition
  • 6.10.4.2 When?
  • 6.10.4.3 Example 1
  • 6.10.4.4 Example 2
  • 6.10.4.5 Conditions
  • 6.10.4.6 Exemptions
  • 6.10.4.7 Example 1
  • 6.10.4.8 Example 2
• 6.10.5 School Fees Fringe Benefit
  • 6.10.5.1 Definitions
  • 6.10.5.2 When?
  • 6.10.5.3 Example
  • 6.10.5.4 Conditions
  • 6.10.5.5 Exemptions
• 6.10.6 Private Health Insurance Fringe Benefit
  • 6.10.6.1 Definitions
  • 6.10.6.2 When?
  • 6.10.6.3 Example
  • 6.10.6.4 Conditions
  • 6.10.6.5 Exemptions
• 6.10.7 Expense Payment Fringe Benefit
  • 6.10.7.1 Definitions
  • 6.10.7.2 When?
  • 6.10.7.3 Example
  • 6.10.7.4 What is the Value
  • 6.10.7.5 Exemptions
• 6.10.8 Cash Management Trust and Financial Investment Fringe Benefit
  • 6.10.8.1 Definitions
  • 6.10.8.2 When?
  • 6.10.8.3 Cash Value
  • 6.10.8.4 Exemptions
• 6.10.9 Valuing Fringe Benefit
  • 6.10.9.1 Definitions
  • 6.10.9.2 Cars
  • 6.10.9.3 Example
  • 6.10.9.4 Housing
  • 6.10.9.5 Is Housing in a Metropolitan Non-Metropolitan or Special Location?
  • 6.10.9.6 What is a "Special Housing Location"?
  • 6.10.9.7 Definitions: "Urban Centre" "Census Population" and "Eligible Urban Areas"
  • 6.10.9.8 What Places Are in Zone A or Zone B?
  • 6.10.9.9 Value to be Reduced Because of Employee Contributions
  • 6.10.9.10 Example
  • 6.10.9.11 Australian Defence Force Housing Fringe Benefits
  • 6.10.9.12 Loans
  • 6.10.9.13 Loan Fringe Benefit Calculation
  • 6.10.9.14 Example
  • 6.10.9.15 School Fees and Health Insurance
• 6.10.10 Matrix of Car Values
• 6.10.11 Matrix of Housing Values

About Us  |  Careers  |  Education  |  Higher Education  |  Indigenous  |  International 
New Apprenticeships  |  Research  |  Schools  |  Science  |  Training

contact details  |  publications  |  search  |  site map  | subscribe

Any comments or queries should be sent to: wwweditor@dest.gov.au

This page was last updated on Saturday, 23 April 2005
Department of Education, Science and Training
Copyright © Commonwealth of Australia
DEST Web Site Privacy Statement
Disclaimer