7.5 Lawful Custody Allowance

Introduction

This chapter outlines the details of the Lawful Custody Allowance for ABSTUDY students who are incarcerated in correctional institutions. Released prisoners are subject to normal ABSTUDY rules and must fill in an ABSTUDY claim to receive ABSTUDY Living Allowance the Supplementary Benefits and the ABSTUDY Financial Supplement Loan.

7.5.1 Summary of Lawful Custody Allowance

Summary table
The table below summarises the Lawful Custody Allowance

Feature of Allowance	Details
Availability	To students who are eligible for the Students in Lawful Custody Award.
Purpose	To assist in meeting expenses associated with study in the approved course, such as general purpose education institution fees, textbooks, equipment, stationery and daily travel costs.
Eligibility conditions	· Meets relevant Award criteria, · allowance is not income tested.
Entitlement	Reimbursement of actual cost of essential course expenses.
Other entitlement features	Entitlement is established by commencement of study in the approved course.
Payment features	Payment is to be made following lodgement of a claim supported by evidence of expenditure.
Taxation status	Non taxable.
Indexation status	Not applicable.

7.5.2 Eligibility and Entitlement to Lawful Custody Allowance

7.5.2.1 Eligibility

A student is eligible for the Lawful Custody Allowance if s/he meets the criteria for the Students in Lawful Custody Award, (also see 5.7.2.3).

Note: Where a student in lawful custody has permission to attend an Away-from-base course component, s/he may be eligible for Away-from-base entitlements of Fares Allowance and residential expenses (see Policy Manual 7.9.5.5 and 7.10.3).

7.5.2.2 Purpose

The purpose of the Lawful Custody Allowance is to assist in meeting essential course costs associated with study, such as general purpose education institution fees, textbooks, equipment and stationery. It may also be used to meet the daily travel costs of the individual student.

7.5.2.3 Essential Course Costs

Essential course costs are those costs which all students in a course are obliged to incur in order to undertake their course (see Policy Manual 7.7.4.7 for examples of costs considered to be essential course costs).

There is no upper limit to this allowance, however, CSOs should be satisfied that claims include only costs which are essential to undertake the course. Benefits for students in lawful custody are not income tested.

Note 1: Prior approval must be sought from Centrelink for art and photographic materials and other items where the annual cost per student will exceed $394.90 per year of course, or if the student is undertaking two part-time courses which exceed $789.80.

Note 2: For the purposes of this allowance only, daily travel expenses (where the student has permission to travel between the correctional institution and the education institution) may be included as essential course costs.

Note 3: Extra education costs incurred because of the student's legal status may also be met, eg the cost of additional photocopying incurred because the student cannot borrow library books on restricted access where reading chapters of these books is essential.

7.5.3 Payment of Lawful Custody Allowance

7.5.3.1 Payment

Payment of Lawful Custody Allowance is not to be made direct to the student unless such an arrangement has been approved by the correctional institution.

Payments may be made:

to the correctional institution for reimbursement to the student;
to the correctional institution as reimbursement for purchases made on behalf of the student; or
to the education institution or supplier of textbooks or materials for services provided to the student

7.5.3.2 Lodgement of a Claim

Payment is to be made following lodgement of a claim supported by evidence of expenditure. An itemised claim of essential course costs must be verified in writing by the Head of School/Faculty or equivalent representative of the course provider as being an essential requirement for all students undertaking the course. Evidence of expenditure such as receipts must be provided.

Claims for reimbursement of daily travel costs must be verified by the correctional institution.

Claims must be submitted before 1 April in the year following the year of study. Prior approval must be sought from Centrelink for art and photographic materials and other items where the annual cost per student will exceed $394.90 per year of course, or if the student is undertaking two part-time courses which exceed $789.80.

7.5.3.3 Continuing Students in Lawful Custody

For Lawful Custody Allowance, a continuing student is one who was studying an approved course before imprisonment, continues the same study in jail, and then continues the same course when released from prison. In this circumstance the student need only fill in a Change of Circumstances Form on release, to begin receiving normal ABSTUDY entitlements if all other ABSTUDY criterior are met. Deductions, however, should be made for any benefit, besides course costs, already paid for while in custody that semester.

7.5.3.4 Responsibility for Overpayments

Refer to Policy Manual 7.1.2 to identify the responsible payee where an overpayment of this allowance has been made.

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