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You are here: ABSTUDY > 7 Benefits and Allowances > 7.8 School Fees Allowance

7.8 School Fees Allowance

• 7.8.1 Summary of School Fees Allowance
• 7.8.2 Eligibility for School Fees Allowance
  • 7.8.2.1 Eligibility
  • 7.8.2.2 Approval for Group 1 School Fees Allowance
  • 7.8.2.3 Commonwealth Government Assistance
  • 7.8.2.4 Students Without Parents
  • 7.8.2.5 Students in State Care
  • 7.8.2.6 CDEP Recipients
  • 7.8.2.7 Health Care Card/Low Income Card
• 7.8.3 Entitlement to School Fees Allowance
  • 7.8.3.1 Entitlement Factors
  • 7.8.3.2 Rates
  • 7.8.3.3 Indexation
  • 7.8.3.4 Excess Fees Charged By School
• 7.8.4 Definition of School Fees
  • 7.8.4.1 Definition of School Fees
  • 7.8.4.2 School Costs Not Payable as Fees
• 7.8.5 Payment of School Fees Allowance
  • 7.8.5.1 Entitlement Commences
  • 7.8.5.2 Payment
  • 7.8.5.3 School Fees Payable for Group 2 Students
  • 7.8.5.4 Responsibility for Overpayments
• 7.8.6 Transfer of School Fees Allowance to Pay Boarding Costs
  • 7.8.6.1 Transfer to Meet Outstanding Boarding Fees
  • 7.8.6.2 Entitlement Not to be Exceeded
  • 7.8.6.3 Transfer Not Automatic
  • 7.8.6.4 Approval Requirements for Transfer
  • 7.8.6.5 Disparity in Fees Levied
• 7.8.7 Change of School
  • 7.8.7.1 Change of School - No Further Payment
  • 7.8.7.2 Change of School - Further Payment
  • 7.8.7.3 Notification Before Leaving School

Introduction

This chapter contains details about the School Fees Allowance.

Purpose
The purpose of the School Fees Allowance is to assist students and their parent(s)/guardian(s) to meet the costs of school fees levied by the approved education institution.

7.8.1 Summary of School Fees Allowance

Summary table
The table below summarises the School Fees Allowance.

 

Feature of Allowance	Details
Availability	Schooling A and Schooling B Awards.
Purpose	To assist in meeting the costs of school fees levied by the approved education institution for the student.
Eligibility conditions	Meets the relevant award criteria and is either: Group 1 under 16 years of age and living at home or does not meet the criteria for the away, independent or pensioner rates, and: the applicant or the applicant's partner qualifies for a prescribed form of Commonwealth Government assistance, or the student would, but for age, qualify for independent status as an orphan, a student whose parent(s) cannot exercise parental responsibilities, or as a homeless student, or the student is in State care and living with foster parents, or the applicant or the applicant’s partner is receiving a CDEP wage as a participant of the project, not as the administrator, or the applicant or the applicant’s partner has a current Health Care Card/Low Income Card; or Group 2 meets the criteria for the away rate; would meet a criterion for the away rate but for the presence of a local non-government school which the student attends; or qualifies for independent status as a homeless student, an orphan or a student whose parent(s) cannot exercise parental responsibilities.
Level of entitlement	DIFFERENT TO YA/AUSTUDY PAYMENT Group 1 up to $156 for students under 16 years of age on 30 June in the year of assistance; up to $78 for students turning 16 years of age in the period 1 January - 30 June in the year of assistance. Group 2 Up to $4,999.00 per annum - the rate payable is set at $4,999.00 or the amount of school claim, whichever is the less. $4,049.00 income test free. The remaining $950.00 will be subject to the income test.
Other entitlement features	Entitlement is through commencement of study in the school year. Institutional board students may qualify for excess boarding costs to be met from unused School Fees Allowance
Payment features	Group 1 Annual entitlement paid direct to the school or reimbursed to the applicant on producing a school receipt of payment. Group 2 Paid to school annually or by the term on lodgement of a claim or paid to person incurring expense on a claim for reimbursement.
Taxation status	Not taxable if used as School Fees Allowance. Taxable as income of students 16 years and older if used to pay excess boarding costs.
Indexation status	Group 1 - Not indexed. Group 2 - Indexed to CPI and adjusted annually.

7.8.2 Eligibility for School Fees Allowance

7.8.2.1 Eligibility

A student is eligible for School Fees Allowance if s/he meets the Schooling Award criteria, and is either:

• under 16 years of age and living at home or does not meet the criteria for the away rate, and
• the parent/guardian is eligible under 7.8.2.2 below; or

• meets the criteria for the away rate; and
• satisfies the income test requirements; or
• would meet a criterion for the away rate but for the presence of a local non-government school which s/he attends; or
• qualifies for independent status as a homeless, an orphan or a student whose parent(s) cannot exercise parental responsibilities.

Note: It is expected that for students 16 years of age or over and living at home, school fees will be met from Living Allowance entitlement.

7.8.2.2 Approval for Group 1 School Fees Allowance

Group 1 School Fees Allowance may be approved if the student meets the award eligibility criteria, is of dependent status and satisfies one of the following criteria:

• the applicant or partner of the applicant qualifies for one of the prescribed forms of Commonwealth Government assistance listed below;
• the student would, except for reasons of age (being under the minimum school leaving age - see Policy Manual 5.5.1.3), qualify for independent status as an orphan, a student whose parent(s) cannot exercise parental responsibilities or as a homeless student;
• the student is in State care, under minimum school leaving age (see Policy Manual 5.4.1.3) and living with foster parents;
• the applicant or partner of the applicant is receiving a CDEP scheme wage (except where it is paid to administer a CDEP project) from ATSIC; or
• the applicant or partner of the applicant is holding a current Health Care Card/Low Income Card.

These criteria are described on the next page.

7.8.2.3 Commonwealth Government Assistance

Prescribed forms of Commonwealth Government assistance, referred to above are:

• a FaCS income support benefit, eg new start allowance, sickness or special benefit;
• a social security pension, eg sole parent pension, disability support pension, age pension, bereavement allowance, carer pension; or
• a Department of Veterans’ Affairs pension; eg age service pension, pension, war widow(ers) pension.

Note: An applicant, or applicant’s partner, does not need to actually receive one of the forms of Commonwealth Government assistance listed above (but must hold a current Health Care Card/Low Income Health Care Card) - eligibility for Group 1 School Fees Allowance is on the basis of qualifying for the assistance.

7.8.2.4 Students Without Parents

Students may be approved for this allowance if they are under the minimum school leaving age (see Policy Manual 5.5.1.3) but who, because of their circumstances, would be expected to meet the other ABSTUDY criteria as a homeless student, an orphan or a student whose parents cannot exercise parental responsibilities (see Policy Manual 5.3.4.7, 5.3.4.10 and 5.5).

7.8.2.5 Students in State Care

Students may be approved for Group 1 School Fees Allowance if they are under the minimum school leaving age (see Policy Manual 5.4.1.3) but who have been placed in substitute care through a State or Territory welfare authority or through legal process. In such cases, the foster parent’s circumstances are not taken into account.

7.8.2.6 CDEP Recipients

7.8.2.7 Health Care Card/Low Income Card

When one or both of the student’s parent(s)/guardian(s) has a current Health Care Card/Low Income Health Care Card, Group 1 School Fees Allowance may be approved. This does not apply where a parent/guardian has a Health Care Card/Low Income Health Care Card because the child disability allowance is received.

7.8.3 Entitlement to School Fees Allowance

7.8.3.1 Entitlement Factors

Entitlement to School Fees Allowance is determined by:

• the status of the student;
• the age of the student;
• whether or not the student commences study; and
• (for Group 1 School Fees Allowance) the income test described at 7.8.2.2 is met.

7.8.3.2 Rates

The table below lists the different rates of entitlement for eligible students.

DIFFERENT TO YA/AUSTUDY PAYMENT

7.8.3.3 Indexation

The level of School Fees Allowance is:

• not indexed for Group 1 students, and
• is indexed annually to the CPI for Group 2 students.

7.8.3.4 Excess Fees Charged By School

Where a student attends a school which charges fees in excess of the maximum amounts prescribed in this chapter, the applicant is responsible for meeting the additional costs. In signing the ABSTUDY claim form the applicant accepts this responsibility.

7.8.3.5 School Fees Allowance paid directly to the School

From 2001 Schools Fees Allowance will be paid directly to the school wherever possible. The full amount will be paid and the school will be expected to expend any excess school fees allowance on indigenous education. If applicants elect to pay the school fees, they can only be reimbursed for the amount of school fees actually paid, up to the maximum payable. Both applicant and the school will be advised of payments.

7.8.3.6 School Fees Allowance not paid directly to the School

In cases where the school fees allowance is not paid directly to the school, applicants will only be reimbursed for the amount of school fees actually paid, up to the maximum amount payable.

7.8.4 Definition of School Fees

7.8.4.1 Definition of School Fees

School fees are those charged by a school for all students enrolled in a particular program.

For the purposes of this section, school fees include:

• fees associated with school subjects, including charges for consumable materials and charges for sporting activities where sport is taken as a school subject and a subject fee is levied;
• general purpose fees for services and amenities;
• tuition fees; and
• fees for items such as school magazines, locker hire, book hire, and examinations.

7.8.4.2 School Costs Not Payable as Fees

School fees do not include:

• charges for the issue of stationery, or the use or purchase of school clothing including sports clothing or special clothing, eg aprons for Home Economics or Manual Arts;
• charges to cover incidental expenses incurred by a student during term, eg purchases from school shop;
• charges for laundry;
• levies on behalf of a Parents’ and Citizens’ Association or similar organisation;
• contributions (whether or not compulsory and/or refundable) to school building funds; or
• charges for insurance cover for school-related activities.

7.8.5 Payment of School Fees Allowance

7.8.5.1 Entitlement Commences

Entitlement to School Fees Allowance is established when the student commences study during the school year.

7.8.5.2 Payment

School fees allowance is payable as follows:

School fees allowance is paid directly to the school by Centrelink or reimbursed by Centrelink to the applicant on presenting a receipt from the school which shows the fee amount paid.

School fees allowance may be paid to:

• the school, on lodgement of a claim for school fees from the school; or
• the person incurring the expenses, on submission of a claim for reimbursement with a school receipt attached from the parent or other person incurring costs.

Note: Group 2 students includes students eligible for the away rate of Living Allowance and, in some circumstances, those students who fall under the independent rate for Group 2 School Fees (see Policy Manual 7.8.2.1) who are attending government schools. 

7.8.5.3 School Fees Payable for Group 2 Students

School fees allowances for Group 2 students are payable as follows:

• for students attending a non-government school the entitlement is payable for each term;
• for students attending a government school the entitlement is payable in a lump sum at the beginning of the year,
• the first $4,049 is income test free, but
• the additional payment of $950 is income tested
• up to a maximum of $4,999 per year where a student changes schools during the year.

7.8.5.4 Responsibility for Overpayments

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

7.8.6 Transfer of School Fees Allowance to pay Boarding Costs

7.8.6.1 Transfer to Meet Outstanding Boarding Fees

If a student is eligible to receive the away rate of Living Allowance and boards at a hostel or boarding school where the level of boarding fees charged by the boarding institution is more than the Living Allowance entitlement for the full year, then the remaining School Fees Allowance may be used to meet outstanding board fees.

Note 1: These provisions do not apply to those students who failed the relevant income, assets and family actual means test(s).

Note 2: These provisions do not apply to students in private boarding arrangements.

7.8.6.2 Entitlement Not to be Exceeded

Where a transfer as described above occurs, the combined School Fees Allowance and Living Allowance entitlement is not to be exceeded.

Any residual entitlement is not to be used for any other purpose, eg to pay prior overpayment deductions or be directed to the student.

7.8.6.3 Transfer Not Automatic

Transfer of unused School Fees Allowance to meet excess board costs is not automatic.

7.8.6.4 Approval Requirements for Transfer

The delegate must be satisfied that the fees are reasonable before approving the transfer of School Fees Allowance to pay excess board fees.

7.8.6.5 Disparity in Fees Levied

Fees levied for ABSTUDY students should be at the same level as those set for non-ABSTUDY students at the school/hostel.

If Centrelink discovers a disparity in charges for ABSTUDY students, the matter should be referred to the Benefits Control Section.

7.8.7 Change of School

7.8.7.1 Change of School - No Further Payment

Where School Fees Allowance has been paid for the term or the year and a student subsequently changes school, no further payment will be made for the period for which payment has already been made.

7.8.7.2 Change of School - Further Payment

Where School Fees Allowance has been paid for the term or year and a student subsequently changes school, payments can be made to the new school:

• for the period that the previous school has refunded part or all of the allowance to Centrelink; or
• where the student boards and attends a government school.

7.8.7.3 Notification Before Leaving School

Where it is the policy of the boarding education institution that a specified period of notification of intention to withdraw must be given or fees of the specified period or part thereof must be paid, Centrelink should try to negotiate non-payment or a reduction in the amount payable where a student leaves without fulfilling the requirements.

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