Australian Government Department of Education, Science & Training DEST Archive DEST Search
Home  Sectors  DEST information  Minister's website  News & media  Calendar & dates
About this site 
Site Map | A-Z Index

graphic bullet You are here: ABSTUDY > 7 Benefits and Allowances > 7.13 Pharmaceutical Allowance

7.13 Pharmaceutical Allowance


Introduction

This chapter contains details about Pharmaceutical Allowance.

7.13.1 Introduction to Pharmaceutical Allowance

7.13.1.1 Introduction

The Pharmaceutical Allowance (PhA) is a payment for eligible students who are incapacitated for study, to assist with the cost of pharmaceutical prescriptions under the Pharmaceutical Benefits Scheme. It is available to ABSTUDY students who have a temporary incapacity exemption.

For more information on eligibility for PhA, consult the Social Security Act 1991. ABSTUDY students over 21 years should be aligned with Newstart eligibility rules and ABSTUDY students under 21 years should be aligned with YA eligibility rules.

Advance PhA payments are available to a restricted group of pensioners (see 7.13.3.1).

7.13.1.2 How is PhA Paid

PhA cannot be claimed on its own. It may be paid if a student is temporarily incapacitated and as a component of:-

PhA is paid fortnightly with the student’s main payment.

7.13.1.3 Entitlement Year

An entitlement year for advance payments of PhA runs form 1 January to 31 December in the same calendar year.

7.13.1.4 Application for PhA

To qualify for Pharmaceutical Allowance a student must have a medical certificate that has the diagnosis, prognosis and the length of time she/he would be incapacitated for study. This should be submitted to the Centrelink Office for assessment. The time allowed for a temporary incapacity exemption could be from four to thirteen weeks.

7.13.2 Pharmaceutical Allowance – Current Rates

7.13.2.1 PhA Current Rates

The following are the current maximum rates of PhA per fortnight.

If the PhA payment is being made for periods of less than one week, the allowance is one-fifth of the weekly rate for each week day in the payment period.

7.13.2.2 Precluding Payments

PhA cannot be paid to a student if they, or their partner receive any of the following DVA payments:

Exception: The PhA is paid at half the combined rate for couples if:

7.13.2.3 Department of Veteran’s Affairs Repatriation Pharmaceutical Benefit Scheme (DVA RPBS) Card Holders

A student cannot receive PhA if:

7.13.3 Pharmaceutical Allowance – Advance Payment

7.13.3.1 PhA Advance Payment

Pensioner students may claim up to 7 times the fortnightly rate of PhA as an advance payment if they meet all of the following criteria:

7.13.3.2 Advance Payment Exemptions

A student who applies for an advance before the first payment delivery day in an entitlement year, will not have received any PhA payments in that entitlement year. The student is eligible for an advance and does not need to have purchased any prescription items in that entitlement year.

A student who makes a claim for pension or allowance may apply for an advance payment of PhA at the same time. If a pension or allowance is granted, the student is eligible for an advance from the date of grant. The student does not need to have purchased any prescription items in that entitlement year.

7.13.3.3 Multiple Advances

Students can be paid further advances as soon as they have spent all the PhA they have received for the calendar year on prescription items, provided they still qualify for PhA.

7.13.3.4 Documentation Required (Advance Payment)

Students must apply in writing for an advance because of the need to verify their circumstances. Students may also need to provide their prescription record form to verify that they have purchased sufficient prescription items.

Prescription record forms are available from most pharmacists and are completed by the pharmacist when prescriptions are provided.

7.13.3.5 Payment to Members of a Couple (Advance Payment)

Although combined income is used to determine qualification for advances involving couples, the advance can be paid independently. This means that one pensioner may receive an advance while their partner receives PhA on a fortnightly basis. Once a student receives an advance of PhA, the non-payment period remains the same regardless of whether the customer becomes single or partnered.

7.13.4 Income and Assets Testing for Pharmaceutical Allowance

7.13.4.1 PhA Income and Assets Testing

PhA is indirectly income tested on the basis of being in receipt of a DVA or social security pension, allowance, benefit or Centrelink payment.

If a student’s partner is receiving PhA from DVA, that amount is exempt from the student’s income for income test purposes.


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