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You are here: ABSTUDY > 6 Income and Rates > 6.7 ABSTUDY Rates

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 2002
  • 6.7.2.1 Maximum Rates
  • 6.7.2.2 Other ABSTUDY Rates 2002
• 6.7.3 Rates in 2002 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

Introduction

This chapter explains how the rates are calculated and lists the rates of Living Allowance

6.7.1 Calculation of ABSTUDY Rates

6.7.1.1 Introduction

Annual ABSTUDY Living Allowance rates are calculated by multiplying last year’s annual rate by the CPI index factor and rounding to the nearest dollar.

The fortnightly rate is then calculated by dividing the new annual rate by the number of days in the year and multiplying by 14 days.

6.7.1.2 Factors in Calculating Entitlement

The allowable income limits abatement intervals and abatement rate needed to calculate Living Allowance entitlement and the upper income limits (UILs) are in the table below.

6.7.1.3 Calculating UILs

To calculate the UILs you need to use the allowable income limit, abatement interval and abatement rate (shown above) and the maximum fortnightly rates of Living Allowance (see 6.7.2.1).

6.7.1.4 Definition of Upper Income Limit

The UIL is the last amount of income guardian or partner can earn before the student becomes ineligible for ABSTUDY Living Allowance

6.7.1.5 Qualifying for Maximum Living Allowance

To qualify for the maximum rate of ABSTUDY Living Allowance, the student’s income and her/his parents'/guardians' or partner’s income must not be higher than the allowable income limits. All relevant income tests must be met.

The allowable income limits shown in the table at 6.5.1.2 apply where students are eligible for Living Allowance for the full calendar year.

A pro rata amount applies where the students’ relevant period is less than the full calendar year.

6.7.1.6 Qualifying for a Reduced Living Allowance

A reduced rate of Living Allowance may be payable where income is above the allowable income limits, but less than the upper income limits shown in the table at 6.7.2.1.

The table also shows the abatement intervals and abatement rate to use if you need to manually calculate a student’s entitlement according to student and parental or partner income.

6.7.1.7 No Minimum Payment

Since the ABSTUDY changes for 2000, in 2002 the minimum amount of Living Allowance payable of $250 a year no longer applies. A student can be paid any amount of entitlement owed.

6.7.1.8 Dependent Child/Student Adjustment

Each dependent child in the student’s family provides an adjustment to the parents'/guardians' or partner’s income for partnered students over 21. Children are defined as either dependent students or dependent children - see 6.7.1.9 and 6.7.1.10.

The amounts of the dependent child and dependent student adjustments are shown at 6.7.1.28.

6.7.1.9 Definition of Dependent Student

An eligible dependent student is any other child who is dependent on the student's parents/guardians, eg sister, brother, step-sister, step-brother, foster sister, foster brother, who is not an eligible dependent child as defined below and is either:

• 16 years of age or more and:
  • in a full-time secondary or tertiary course approved for ABSTUDY/AIC,
  • not eligible for the independent rate of ABSTUDY/YA, and
  • not receiving assistance from a Commonwealth education allowance other than ABSTUDY/YA/AIC; or
• under 16 years of age and:
  • is receiving ABSTUDY/AIC, and
  • is not eligible for the independent rate of ABSTUDY.

Note : In no case can a dependent child attract both the dependent child adjustment and the dependent student adjustment.

6.7.1.10 Definition of Dependent Child

An eligible dependent child is any other child who is dependent on the student's parents/guardians, eg sister, brother, step-sister, step-brother, foster sister, foster brother, who:

• is not an eligible dependent student as defined above;
• was dependent upon the parents at 30 June in the year preceding the year for which assistance is sought; and
• is under 16 years of age and not receiving benefits under ABSTUDY/AIC.

6.7.1.11 Children Who Do Not Attract Adjustment

The following children do not attract a dependent child/student adjustment:

• a child who is regarded as independent under the ABSTUDY rules or is in State care;
• a child who is living with the parents/guardians under a student exchange program; or
• a child who does not live with the/a parent but for whom that parent is paying maintenance.

6.7.1.12 Dependent Adjustment Calculations

All dependent adjustments are calculated on the number of dependent children on a continuing basis. ABSTUDY must be reassessed if the number of, or circumstances of dependent children in a family, changes.

See 6.7.1.19 which gives a ready reckoner for parental and a partnered student 21 years and over for income adjustments.

6.7.1.13 Change in Number of Dependent Students

Where there is a change in the number of dependent students, reassessment of ABSTUDY benefits will take place as described below:

Loss of a dependent student
If a student received income-tested assistance due to a dependent student adjustment causing the Adjusted Family Income (AFI) or Adjusted Partner Income (API) (for partnered students 21 years and over) to fall below the Family or Partner Income Limit, the claim must be reassessed with effect from the day that the dependent student:

• ceases to be a full-time student, or
• is granted independent status under ABSTUDY/YA.

If the student does not qualify for income-tested assistance without the dependent student, entitlement ceases from that day.

New dependent student
If a student who has not qualified for income-tested assistance gains a dependent student through the year, the claim should be reassessed to take into consideration the effect of a dependent student in adjusting the AFI or API (for partnered students 21 years and over) to below the Family or Partner Income Limit.

The student's entitlement commences on the day s/he gains the dependent student.

Note: The upper income limits are set out in the table at 6.7.2.1

6.7.1.14 Change in Number of Dependent Children

When there is a change in the number of dependent children, reassessment of ABSTUDY benefits will take place as described below:

Loss of a dependent child
If a student received income-tested assistance due to a dependent child adjustment causing the AFI/API (for partnered students 21 year and over) to fall below the Family or Partner Income Limit, the claim must be reassessed with effect from:

• the date from which s/he commenced receiving benefits under ABSTUDY/AIC;
• the date from which s/he commences to be a dependent student (as defined on the previous page); or
• the date from which s/he ceases to be dependent upon the parents/ guardians.

If the student does not qualify for income-tested assistance without the dependent child, entitlement ceases from that day.

New dependent child

If a student who has not qualified for income-tested assistance gains a dependent child through the year, the claim should be reassessed to take into consideration the effect of a dependent child in adjusting the AFI/API (for partnered students 21 years and over) to below the Family or Partner Income Limit.

The student's entitlement commences on the day s/he gains the dependent child.

6.7.1.15 Dependent Adjustment Checking Related Claims

Where a student ceases full-time study and is a tertiary student who ceases to be eligible for the away from home rate or is granted independent status, the student assistance eligibility of a parent, brother or sister (ie ‘siblings’) may be affected. The student’s parent or sibling(s) should normally advise Centrelink about such a change. Prompt action should be taken to update all claims, whether the applicant’s entitlement is affected or not.

6.7.1.16 Example 1

6.7.1.17 Example 2

6.7.1.18 Automatic Calculation

The impact of student and parental or partner income on ABSTUDY entitlement is calculated automatically by the computer system.

The method of calculation is the same whether or not ABSTUDY is payable for the whole period. This includes if a student:

• is transferring from Family Tax Benefit A & B;
• becomes eligible very late in the period of eligibility, for example, where a student in a full-year secondary course turns 16 after the end of the school year but before 31 December, the daily rate is payable from the student’s birthday; or
• turns 18 during a period, two daily rates are calculated:
  • using the relevant 16-17 year old rate until the day before the student’s 18th birthday, and
  • using the relevant 18-20 year old rate on and from that day.

6.7.1.19 Ready Reckoner for Parental and Partner Adjustments

The following ready reckoner table can be used to calculate the parental or partner income adjustments. The size of the adjustment depends on the number of dependent children and/or dependent students in the family.

Note: For students 21 years and over with partners and dependent children the size of the adjustment for partner income is the fortnightly equivalent.

Note: A tertiary student who receives the away-from-home rate of allowance will attract the higher rate of adjustment, $7,585 for every other tertiary student in the family who also receives the away from home rate.

For example:

6.7.1.20 Examples

6.7.1.21 Adjusted Family Income

For the test on the parents’ or partner's income figures called the Adjusted Family Income (AFI) or Adjusted Partner Income (API) (for partnered students 21 years and over with dependents) are required.

6.7.1.22 How is Parental Income Calculated?

This table shows the procedure for calculating parental income.

6.7.1.23 How is Partner Income Calculated?

This table shows the procedure for calculating partner income for students 21 years and over.

6.7.1.24 Income Bank Formula and How It Works

The formula is:

(Income-Income Bank) = Excess

If the Excess is less than $236 there is NO reduction to the YA rate.

If the Excess is between $230 and $316:

then (Excess – $236) x 0.5 = Affecting Income

If the Excess is greater than $316 then:

[(Excess - $316) x 0.7] + 40 = Affecting Income

If the income is equal to the free area there is no effect on payment or income bank.

6.7.1.25 Maintenance Payments

The income taken into account in the case of divorced or separated parents includes any payments made by way of maintenance to the parent/guardian on whom the student is dependent. Maintenance includes:

• payments made in respect of the student and any other children (including step children) as well as for the upkeep of the custodial parent,
• payments made to a third party for school fees, household utilities, rates, rent, mortgages or for any other purpose that is for the parent's, or their child's direct or indirect benefit, and
• payments made by the Child Support Agency as these have originated from the non-custodial parent.

6.7.1.26 Negative Income By One Parent

It is not possible for one parent's loss or negative income to reduce the effect of the other parent's positive income. The loss should be treated as zero income and the other parent's income will be the family's total taxable income

6.7.1.27 Averaged Income

Averaged income as used for certain taxation purposes eg, by primary producers, is not taken into account for ABSTUDY purposes. Income for the previous financial year (2000/01) is used unless current income or special assessment applies.

6.7.1.28 Calculating Adjusted Family Income

Add the following to the parent income threshold (AFI).

• a dependent child adjustment which is the sum of $1,230 for the first child and $2,562 for each other child (other than the applicant) who is not an eligible dependent student as defined in 6.7.1.9; and
• a dependent student adjustment of $3,792 for each dependent student (other than the applicant) who is not an eligible dependent child as defined in 6.7.1.10.
• a dependant student adjustment of $7,585 that applies to a tertiary student approved to live away from home who has a tertiary student sibling also approved to live away from home

See Ready Reckoner for parental income in 6.7.1.19.

6.7.1.29 Adjusted Income Figure

The final figure is the AFI and is compared to the Family (parental) Limit.

6.7.1.30 Comparison of AFI/API Income Limits

If the AFI exceeds the family (parental) limit the student is not entitled to any income tested form of assistance.

In the calculation of allowance entitlement, limits apply to the income of the student's parents or partner and to the student's own income. When income exceeds either of those upper limits the student has no entitlement to income tested assistance.

6.7.2 ABSTUDY Living Allowance Rates 2002

6.7.2.1 Maximum Rates

The following table shows the available Living Allowance rates at 1 January 2002. Living Allowance rates are subject to the Consumer Price Index (CPI) changes each year.  Maximum rates for students 21 years and over are indexed by the CPI in March and September. Refer to the Centrelink Rate Guide for updated rates.

6.7.2.2 Other ABSTUDY Rates 2002

6.7.3 Rates in 2002 for Continuing Students Aged 21 Years or More

6.7.3.1 Introduction: Maintenance of Rates Due to Policy Changes in 2000

Rate Maintenance: Continuing students aged 21 years or more in receipt of the ABSTUDY Living Allowance in 1999 will be maintained at the 1999 rate of Living Allowance until the completion of their course . A similar provision applies to Pensioner Education Supplement recipients.

6.7.3.2 Policy Intent

The policy intent is that students studying in 1999 who undertook a particular course of study and who were continuing in this course of study in 2000, 2001 and 2002, would be maintained on at least the 1999 rate of benefit for the duration of the course. This would ensure that students who had legitimate expectations about the level of ABSTUDY Living Allowance or Pensioner Education Supplement that would be available when they commenced their courses would not be financially disadvantaged by the changes.

6.7.3.3 Definition of a ‘Current Course of Study’

The definition of a ‘current course of study’ means:

• regular undergraduate courses;
• articulated courses, such as those where a series of courses can be linked to count towards a higher level of qualification;
• a continuing course in the same field of study undertaken at different institutions or at a different campus;
• a natural progression of courses, such as:
  • a Bachelor of Laws and Letters followed by a Graduate Diploma of Legal Studies, or
  • an access or bridging course undertaken as a prerequisite entry to a tertiary qualification, or
  • a Bachelor degree that is a prerequisite for a Graduate degree, or
  • an Honours or Masters Qualifying year followed by a Masters.

6.7.3.4 Break in Study Exemptions

A continuing student is one who has not had a break in study between 1999, 2000, 2001 and 2002. Exemptions to this rule are exceptional circumstances beyond the student’s control. A break in study can be justified on:

• medical grounds;
• personal circumstances; or
• academic course requirements or availability.

A decision concerning the circumstances of any student that is not covered by the above categories should be referred to the ABSTUDY manager or, where necessary, Centrelink National Office.

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