The purpose of Additional Incidentals Allowance is to assist students to meet essential course costs associated with study in an approved tertiary course. The Additional Incidentals Allowance is only payable where these costs must be incurred by all students in the course. This allowance is not intended to cover the full cost of such items.
Additional Incidentals Allowance is not available to Australian Apprentices.
For the purposes of assessing Additional Incidentals Allowance, essential course costs are considered to be those costs that are mandatory to the course but that the education institution would not reasonably be expected to provide. The Head of School/Faculty must certify in writing that the costs incurred by the student are for mandatory items, that is, all students in the course are obliged to incur these costs in order to undertake their course. Such costs may include:
- education institution fees, including union, sports, library, administration, amenities, laboratory fees or levies or the like charged by an approved education institution; and
- textbooks and equipment, including clinical instruments, books, published articles, stationery and other equipment items.
For the purposes of assessing Additional Incidentals Allowance, the following are not included as essential course costs (even where certified by the Head of School/Faculty as being mandatory):
- tuition or course fees charged by an education institution, including the flying time and associated fees charged by institutions offering pilot (aviation) courses; and
- items that education providers would normally be expected to make available for student use, for example assets such as musical instruments, cameras, videos, sewing machines, typewriters or computers.
To qualify for Additional Incidentals Allowance, the following criteria must be met:
- the student must commence in the course; and
- the student has incurred essential course costs that exceed the prescribed amount.
- the claim must be verified in writing by the Head of School/Faculty as being an essential requirement for all students undertaking the course.
A student does not qualify for Additional Incidentals Allowance in the following circumstances:
The Additional Incidentals Allowance entitlement is the amount by which essential course costs exceed the prescribed amount. There is a maximum to the amount of Additional Incidentals Allowance that can be claimed in a year.
For details of the maximum annual Additional Incidentals Allowance payable, see “A Guide to Australian Government Payments 
”.
The prescribed amount is the amount of expenditure on essential course costs required before an entitlement to Additional Incidentals Allowance is established. This amount includes the normal Incidental Allowance level plus a student contribution to costs.
The prescribed amounts vary depending upon the period of the student’s enrolment in the course during the year of assistance. Different prescribed amounts apply for the following periods of enrolment:
- less than 12 weeks;
- 12 to 16 weeks;
- 17 to 23 weeks; and
- 24 weeks to 1 year.
For details of the prescribed amounts for Additional Incidentals Allowance, see “A Guide to Australian Government Payments ”.
The prescribed amounts for Additional Incidentals Allowance are subject to annual Consumer Price Index (CPI) changes at 1 January each year.
The maximum annual amount of Additional Incidentals Allowance that is payable is not subject to indexation.
A claim for Additional Incidentals must be submitted with details of the cost of each item of essential course expenditure and account for the full level of the expenditure including the initial Incidentals Allowance amount and student contribution.
The student must provide confirmation in writing by the Head of School/Faculty that the items are essential to all students undertaking the course.
Payment of Additional Incidentals Allowance can only be made as a reimbursement of actual expenditure by the student up to the maximum value.
Additional Incidentals Allowance is paid to the student.
Additional Incidentals Allowance is paid in one instalment at the time the entitlement is approved.
Additional Incidentals Allowance is not means tested.
For details of the tax status of Additional Incidentals Allowance, see Chapter 5 Taxation.
Early discontinuation of study does not affect the rate of Additional Incidentals Allowance. Entitlement is established by commencement in the course for which the expenses have been incurred.
The student is not entitled to more than the maximum rate of Additional Incidentals Allowance specified in 83.4 where a change of course occurs.
Where payments in excess of entitlement have occurred, refer to Chapter 3 Overpayment and Recovery of Allowances to determine what is a recoverable debt and from whom this amount should be recovered.