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You are here: ABSTUDY > 6 Income and Rates > 6.4 Assets Tests

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

Introduction

This chapter describes the assets tests and limits which are applied for ABSTUDY. The student advises the net asset worth at the time of application and must advise Centrelink of any changes in the asset value during the course of a year.

6.4.1 What Is Included / Not Included In An Assets Test

6.4.1.1 What Is Included In An Assets Test

• All funds, investments, property, cars, boats, household contents and personal effects.
• Money in approved deposit-funds or other roll-overs which can be withdrawn.
• Ownership or interests in a trust or company.
• The surrender value of life policies.
• Money lent out.
• Assets disposed of on or after 15 December 1998 (Government announced Assets Testing for ABSTUDY Living Allowance) for an unreasonably low value.
• Overseas assets.
• Self-deprived assets of more than $10,000 per year.

6.4.1.2 What Is Not Included in an Assets Test

• The principal family home which includes any land around the home used primarily for private and domestic purposes if the land and the ground floor of the home are 2 hectares or less.
• A garage or storeroom of a flat or home unit that is used primarily for private or domestic purposes.
• The principal behind an annuity or superannuation pension that can’t be withdrawn, sold or borrowed against.
• Funds frozen in a financial institution (unless they can be withdrawn after a waiting period).
• Assets which you have the right to use but which you may not sell or borrow against (eg. a life interest under a deceased estate).
• Personal disability aids.

6.4.2 Family Assets Tests

6.4.2.1 Family Assets Test

ABSTUDY is not payable if the value of a family’s total assets exceeds the designated limit of $438,250. The family assets limit is indexed and the new amount takes effect from 1 January of each year. All of the family’s assets are included, except:

• the assets of independent children; and
• the assets of the partner's independent children; and
• farm assets, if a current drought relief exceptional circumstances certificate has been issued.

6.4.2.2 Exemptions from the Family Assets Test

The family assets test does not apply to parents or their partners who receive:

• an income support payment
• payment under the Farm Household Support Act 1992.

6.4.2.3 Discount for Business Assets

75% of a customer’s interest in the value of a business, including farms, is disregarded if the customer owns the business and is wholly or mainly engaged in that business.

6.4.3 Personal Assets Tests

6.4.3.1 Personal and Spouse Assets Test

DIFFERENT TO YA/AUSTUDY PAYMENT

The following table shows assets value limits in dollars. These limits are indexed and the new amounts take effect from 1 July each year. ABSTUDY is not payable if the value of total assets exceeds these limits.

 

Personal and Spouse Assets	Assets value limit for full benefits as at 1 January 2002
Homeowner single	141,000
Homeowner couple	200,500
Non-Homeowner single	242,000
Non-Homeowner couple	301,500

Note: (Different to YA/AUSTUDY payment) Some ABSTUDY benefits and allowances are not means tested.  They are:

• Non means tested portion of Group 2 School Fees Allowance;

• Pensioner Education Supplement;

• Incidentals Allowance;

• Additional Incidentals Allowance;

• Fares Allowance;

• Lawful Custody Allowance; and

• Away-from-base Assistance.

6.4.3.2 Exemptions from the Personal Assets Test

The personal assets test does not apply to:

• dependent students; or
• independent students with a partner receiving:
  • an income support payment
  • a payment under exceptional circumstances provisions; or
• farm assets if the student or their partner has current drought relief exceptional circumstances certificate

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This page was last updated on Saturday, 23 April 2005
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