ABSTUDY, Allowances and Benefits: Chapter 90 - Fares Allowance Entitlement

An approved traveller is entitled to undertake an approved journey at the rate specified in 90.3 Rate of Fares Allowance where the following apply:

• the student meets the qualifications for Fares Allowance set out in 87.2; and
• the student, or other approved traveller has been approved for Fares Allowance in relation to a type of specified travel.

Certain additional travel costs may also be payable.

The rate of Fares Allowance will be determined by the provisions of 90.3 Rate of Fares Allowance regardless of the actual mode of travel used by the student.

90.1.1 Means testing

Fares Allowance entitlement is not subject to means testing.

90.1.2 Unused entitlements

A student who does not use all her/his travel entitlements in one year may not carryover the unused entitlements to the next year.

Where Fares Allowance has been approved, the student, or other approved traveller, must undertake travel between the locations appropriate to the type of specified travel being undertaken. Fares Allowance is not payable for a student to travel to a destination other than those appropriate to the type of specified travel being undertaken, even where travel to the requested location may be less expensive.

90.2.1 Travel assessed to/from normal travel terminal

In determining entitlements under Fares Allowance, travel is to be assessed to and from the location used as the normal travel terminal, eg a train station, bus stop or airport/airfield, servicing the permanent home or the term address.

90.2.2 Indirect route or broken journey

Additional costs for taking an indirect route or for breaking the journey are not included in Fares Allowance unless a break in the journey cannot be avoided.

90.2.3 Travel to destination other than the permanent home

Where the type of specified travel being undertaken entitles a student, or other approved traveller, to a journey to or from the permanent home, the student/approved traveller may travel from, or return to, a location other than her/his permanent home in the following circumstances:

• the parent has temporarily moved; and
• the student is undertaking the travel in order to join the family.

Costs must not exceed the level of Fares Allowance entitlement for previously approved travel.

The rate of Fares Allowance will be determined by the rate of the mode of travel that is:

• the most practicable and cost-effective mode of transport for the journey; and
• reasonable in the circumstances.

It is considered that it is practicable, cost-effective and reasonable for a student, or other approved traveller, to receive Fares Allowance at the rate of the economy class rail or bus fare for a journey, unless one of the following apply:

• the conditions for approval of the cost of a rail fare with a sleeping berth or economy air fare are met are met; or
• the conditions for approval of the cost of Motor Vehicle Allowance (MVA) are met ; or
• the conditions for approval of the cost of chartered transport are met.

The cost of economy air travel or a rail fare with sleeping berth, whichever is most applicable, may be approved if any of the following circumstances apply:

• no rail or bus service exists for the journey; or
• the total travelling time for the journey, by surface public transport, exceeds:

• 8 hours by rail or bus, for a secondary school student travelling alone; or
• 10 hours (including waiting time between connections), by rail or bus for other secondary level students; or
• 18 hours (including waiting time between connections), by bus for tertiary students and secondary level students at a tertiary institution; or
• 36 hours (including waiting time between connections), by rail for tertiary students and secondary level students at a tertiary institution; or

• the approved traveller is unable to make the journey by economy class rail or bus due to illness or incapacity; or
• due to travel schedules:

• an overnight journey by surface transport is unavoidable, or
• a secondary school student would have to leave the departure point or arrive at the destination unreasonably late at night or early in the morning, eg between 9:00pm and 7:00am; or
• the approved traveller is undertaking Away from Base activity travel and the total travelling time for a one-way journey (including waiting time between connections) would exceed the length of the Away from Base activity for which the travel is being undertaken.

A student will not be entitled to Fares Allowance at the level covering economy air travel or rail fare with sleeping berth simply because s/he cannot secure a booking at the desired time.

90.4.1 Sydney Airport noise tax

Where an approved traveller who is travelling by air is required to land at Sydney Airport, an additional “noise tax” will be added on to the cost of the ticket. This cost is payable as part of the student’s Fares Allowance entitlement.

The cost of Motor Vehicle Allowance (MVA) may be approved if any of the following circumstances apply in respect of all or part of the journey:

• if no regular public transport services exists, i.e. neither surface nor air services; or
• it is unreasonable or impracticable, eg due to infrequent services or poor connections, to travel by public transport; or
• the student is unable, due to injury, disability or other circumstances beyond her/his control, to travel by public transport; or
• travel by private vehicle is cost-effective.

90.5.1 Rate of Motor Vehicle Allowance (MVA)

Where MVA is able to be approved under the provisions of 90.3.3 for all or part of a journey, the rate payable will be the distance in kilometres by the shortest practicable route between the locations for which MVA is approved, multiplied by the relevant MVA rate for the engine capacity of the vehicle.

Current MVA rates can be viewed at Section 3.8.9.30 of the Guide to Social Security Law. 

90.5.1.1 Rate of MVA where third party transports one or more students

Where a third party uses a private vehicle to transport one or more ABSTUDY students as passengers, and these ABSTUDY students are qualified for Fares Allowance for the journey, the rate of Fares Allowance payable to the third party is:

• the rate of economy class rail or bus fare (including concessional rate, if applicable) for that journey; plus
• an additional one-third of this rate for each passenger transported.

90.5.1.2 Rate of MVA where student transports one or more other students

Where an ABSTUDY student uses his/her private vehicle to transport one or more other ABSTUDY students as passengers, and both the driver and passenger/s are qualified for Fares Allowance at the MVA rate for that journey, the rate of Fares Allowance payable to the driver is:

• the MVA entitlement of the student as set out in 90.5.1; PLUS
• an additional 0.63 of one cent per kilometre.

90.5.1.3 Rate of MVA for journey without students

Where either a third party or an ABSTUDY student has transported other ABSTUDY student/s in a private vehicle, and is undertaking the return journey without ABSTUDY students as passengers, the standard rate of MVA set out in 90.5.1 is payable.

90.5.2 Assessment where public transport available for part of the journey

Where suitable public transport is available for part of the journey, Fares Allowance entitlement will be the sum of:

• MVA entitlement for that part of the journey where suitable public transport is not available; plus
• the standard rate of Fares Allowance as set out in 90.3 for that part of the journey where suitable public transport is available.

The cost of chartered transport, including taxis, hire cares, ferries or helicopters, may be approved in respect of all or part of the journey where either of the following circumstances apply:

• there is no public transport or regular air service available; or
• the use of chartered transport for the student/s is cost-effective.

90.6.1 Travel by hire car

Travel by hire car should be approved only in exceptional circumstances. Where it is approved, Fares Allowance entitlement is equivalent to the rate of:

• the contracted hiring fee for the minimum period necessary for the travel; and
• the most suitable vehicle for the journey; and
• any distance levy charged by the hire company for the shortest practicable route; and
• petrol costs.

Hire car contracts are to be entered into by the approved traveller and not by the Australian Government.

Where a student or other approved traveller has been approved to undertake a journey, the following additional travel costs may also be payable:

• transport terminal transfers;
• excess baggage; and
• overnight accommodation.

90.7.1 Transport terminal transfer costs

A student, or other approved traveller, who is required to use a transport service to transfer between an air, coach or train terminal and the board or accommodation location, may incur costs. Fares Allowance for this transport terminal transfer cost is to be assessed at the rate of:

• the fee levied for all students, or a reasonable fee if levied for ABSTUDY students only, where a boarding establishment or accommodation provider provides transport facilities; or
• taxi fare where:

• public transport is not available; or
• it is unsafe to use public transport considering the age of the school student and/or the time of day at which the travel occurs; or
• the student is travelling to the place of study for the first occasion and is unfamiliar with the public transport routes; or
• there are other compelling and justifiable factors which deem a taxi to be suitable; or

• public transport bus and/or rail fare.

90.7.2 Excess baggage

Where the student or other approved traveller has baggage in excess of that carried free of charge by whatever means of public transport is being used, the cost of excess baggage will be payable as part of Fares Allowance up to the following limits:

• where the baggage allowance is given in linear measure, one additional piece of baggage within the linear limits; or
• where the allowance is based on weight, excess baggage up to 18 kilograms.

90.7.3 Overnight accommodation

Costs associated with overnight accommodation may be met in the following circumstances:

• the student or other approved traveller is required to stay one or more nights at an in-transit location (except where these costs are the responsibility of the carrier); or
• the approved traveller is undertaking the journey under the provisions of family member travellers, supervisor travellers or travelling companion travellers and either:

• as a result of transport schedules, the approved traveller is unable to avoid staying one or more nights at the destination to which s/he accompanied the student/s before returning to his/her usual place of residence; or
• for family member travellers only, the approved traveller is required to stay a reasonable amount of time at/near the student’s term address in order to visit the student; or

• the approved traveller is an education institution representative who is undertaking the journey under the education institution representative travel provisions in order to undertake an orientation/special purpose visit and either:

• as a result of transport schedules, the approved traveller is unable to avoid staying one or more nights at the location of the orientation/special purpose visit; or
• the approved traveller stays a reasonable amount of time at the location of the orientation/special purpose visit in order to undertake the visit.

90.7.3.1 Costs payable for overnight accommodation

Where the costs associated with overnight accommodation are able to be met under the provisions of 90.7.3, the following expenses are payable:

• the reasonable cost of meals and accommodation for the stopover, where accommodation is arranged by the education institution, Centrelink or community; or
• travel allowance, where accommodation is arranged by the student or approved traveller.

Where the accommodation provider provides reception services as part of an all-inclusive charge, this may also be met.

90.7.3.2 Overnight accommodation also payable for chartered transport drivers/pilots

The costs of overnight accommodation as defined in 90.7.3.1 may also be met for chartered transport drivers/pilots where s/he is unable to avoid staying one or more nights at the destination to which s/he travelled the student/s or other approved travellers.