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graphic bullet You are here: ABSTUDY > 7 Benefits and Allowances > 7.2 School Term Allowance

7.2 School Term Allowance


Introduction

This chapter contains details about School Term Allowance.

7.2.1 Summary of Schooling A Award School Term Allowance

Summary table
The table below summarises the School Term Allowance

Feature of Allowance

Details

Availability

Schooling A Award applicants

Purpose

To assist with expenses associated with equipping the student for school, eg uniforms, textbooks, materials.

Eligibility conditions

  • Meets eligibility criteria for Schooling A Award, and
  • the student is of dependent status, 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.
Applicant Applicant is the dependent student's parent(s)/guardian(s).

Rate

$540.80 a year

Payments period

Four instalments as follows:

  • Term 1 $187.20 1 January - 31 March
  • Term 2 $83.20 1 April - 30 June
  • Term 3 $187.20 1 July - 30 September
  • Term 4 $83.20 1 October - 31 December

Other entitlement features

Entitlement established by commencement of study in the term.

Payment features

  • Initiated from assessment of claim form,
  • paid term in advance,
  • paid to the applicant.

Taxation status

Non taxable.

Indexation status

Not indexed.

7.2.2 Introduction to School Term Allowance

7.2.2.1 Qualification

Students on ABSTUDY Schooling A awards may qualify for a School Term Allowance subject to eligibility as detailed in this topic.

7.2.2.2 Purpose

The purpose of the School Term Allowance is to assist with expenses associated with equipping the student for school, eg uniforms, textbooks and materials.

7.2.3 Eligibility for School Term Allowance

7.2.3.1 Approval for Schooling A Award Payment of School Term Allowance

School Term Allowance may be approved for a term if the student meets the award eligibility criteria, is of dependent status and satisfies one of the following criteria:

These criteria are described below.

7.2.3.2 Commonwealth Government Assistance

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

Note: An applicant, or applicant’s partner, does not need to actually receive one of the forms of Commonwealth Government assistance listed above - eligibility for School Term Allowance is on the basis of qualifying for the assistance. Also see 6.2.2.4.

7.2.3.3 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).

7.2.3.4 Students in State Care

Students may be approved for this 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.

7.2.3.5 CDEP Recipients

To be eligible, a parent/guardian must be receiving the CDEP wage as a participant of the CDEP project (or for training purposes), not as the administrator of the project.

Note: An applicant of a continuing student may be eligible for maintained entitlements. For the entitlement to be maintained, the student’s parent/guardian must have been receiving a CDEP wage continuously since being assessed correctly as eligible for, and receiving, the Term 4 School Term Allowance payment in 1996.

7.2.3.6 Health Care Card

When one or both of the student’s parent(s)/guardian(s) has a current Health Care Card, School Term Allowance may be approved for the period of the issue of the card. This does not apply where a parent/guardian has a Health Care Card because the child disability allowance is received. There is no eligibility for School Term Allowance if a Card is cancelled and no longer valid.

7.2.4 Entitlement and Payments of School Term Allowance

7.2.4.1 Entitlement

The annual entitlement of School Term Allowance is $540.80 which is paid to the applicant in four quarterly instalments.

7.2.4.2 Entitlement Periods

The entitlement periods for School Term Allowance are listed in the table below.

Term

Entitlement Period

Term 1

1 January - 31 March

Term 2

1 April - 30 June

Term 3

1 July - 30 September

Term 4

1 October - 31 December

7.2.4.3 Entitlement is Established

Entitlement for the term is established when the student commences study in the period for which the payment is made.

7.2.4.4 Payable When

If claims are received in time School Term Allowance instalments are paid 1-2 weeks prior to the commencement of term. This is consistent with the purpose of the allowance since expenses associated with equipping the student for the term will generally be incurred at or prior to commencement of study.

7.2.4.5 Four Instalments

The School Term Allowance is paid in four instalments which correspond to the quarters of the year.

The pay-dates and amounts of each instalment are listed in the table below.

Term

Amount

Date

Term 1

$187.20

Before Term 1 commences

Term 2

 $83.20

Before Term 2 commences

Term 3

$187.20

Before Term 3 commences

Term 4

 $83.20

Before Term 4 commences

7.2.4.6 Payment in Advance

Only in exceptional circumstances is it possible to advance an instalment of School Term Allowance before the normal payment date. These circumstances are:

7.2.4.7 Responsibility for Overpayments

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

7.2.4.8 Taxation

The School Term Allowance is non taxable.

7.2.4.9 Indexation

The School Term Allowance is not indexed.

7.2.5 Change of Circumstance

7.2.5.1 Turning 16 During Term

Where a student turns 16 years of age during a term, s/he will be entitled to a pro rata School Term Allowance for the period leading up to the date of the birthday. Living Allowance entitlement may commence from the date of the 16th birthday.

7.2.5.2 If the Student Leaves School

There is no entitlement to a term’s payment where a dependent student does not commence in the term.

No overpayment has incurred where a dependent student commences, but leaves during the term.

7.2.5.3 Change Resulting in Gain of Eligibility

The table below lists what occurs when, during a term, a student previously assessed as eligible for away from home benefits, returns home from boarding and becomes eligible for School Term Allowance

If...

then...

Living Allowance has been paid for the full term to the boarding institution and under the conditions of enrolment will not be refunded

there will be no overpayment of Living Allowance but entitlement to School Term Allowance for that term will be forfeited.

Living Allowance has been paid to an applicant or private board-provider

entitlement to Living Allowance is to be assessed on a pro rata basis.

for the period after boarding ceased, Living Allowance is either not paid or is refunded by the payee

the student will be entitled to School Term Allowance provided s/he commences school at the home location in that term.

7.2.5.4 Cease to be Eligible

Students previously receiving the School Term Allowance who qualify for Living Allowance cease to be eligible for the School Term Allowance.


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