ABSTUDY, Allowances and Benefits: Chapter 71 - Overview of Living Allowance

Living Allowance is for assistance in meeting the day-to-day living costs of the student or Australian Apprentice.

Students on the following ABSTUDY Awards may qualify for Living Allowance:

• Schooling B Award;
• Tertiary Award; or
• Masters and Doctorate Award.

Australian Apprentices may qualify for Living Allowance under the Tertiary Award.

71.2.1 Other income support

A student or Australian Apprentice cannot receive ABSTUDY Living Allowance and other Australian Government income support at the same time. See 12.1 Income Support.

71.2.2 Away-from-base assistance

Some students eligible for Away-from-base assistance may also qualify for Living Allowance for a short period. Different rules apply to payment of Living Allowance for these students. See Chapter 92 Away-from-base Living Allowance.

71.3.1 Payment frequency

Payments of Living Allowance in respect of Australian Apprentices or students who are studying at the secondary non-school, tertiary, or Masters & Doctorate level are calculated on a daily rate, and made fortnightly in arrears.

71.3.1.1 Advance payments

Advance payments of Living Allowance may be made in accordance with the provisions set out in Chapter 75.

71.3.1.2 Residential Costs Option

Where a student has opted for the Residential Costs Option, the reduced Living Allowance payments are made fortnightly in arrears.

71.4.1 Payment frequency

Payments of Living Allowance in respect of secondary school students who are not approved for away from home entitlements are calculated on a daily rate, and made fortnightly in arrears.

71.4.1.1 Advance payments

Advance payments of Living Allowance may be made in accordance with the provisions set out in Chapter 75.

The payment method and frequency for Living Allowance for secondary school students approved to live away from home depends on whether the student is either:

• boarding at a boarding school; or

• boarding at a hostel that is a signatory to the Standard Hostels Agreement; or

• boarding at a hostel that is NOT a signatory to the Standard Hostels Agreement; or

• boarding in a private board arrangement.

ABSTUDY assistance cannot be provided for out-of term accommodation where a student is unable to return home during a term break as it is expected that schools and boarding providers will have contingency plans for such occasions.

71.5.1 Secondary school student boarding at a boarding school, or at a hostel that is a signatory to the Standard Hostels Agreement

The student’s entitlement for the whole calendar year is used to help meet the annual amounts charged by the school and/or hostel for board, even though the entitlement may relate to periods prior to or after the school year.

These entitlements are calculated on a daily rate. Payments are made in a combination of term-in-advance and fortnightly in arrears, depending on the student’s entitlement and the board amount charged by the school/hostel.

71.5.1.1 Amounts paid term-in-advance

Payments are made, direct to the school/hostel, four times a year on a term-in-advance basis for the following periods:

• Term 1 01 January – 31 March;
• Term 2 01 April – 30 June;
• Term 3 01 July – 30 September;
• Term 4 01 October – 31 December.

These payments are made on a pro-rata basis for the lower of:

• the student’s maximum combined annual entitlement of Rent Assistance, Remote Area Allowance, Living Allowance, and unused Group 2 School Fees Allowance that has been transferred to meet board costs under the provisions set out in 85.8; or
• the annual amount of Rent Assistance, Remote Area Allowance, Living Allowance, and unused Group 2 School Fees Allowance that has been transferred to meet board costs under the provisions set out in 85.8 determined in that order, that is required to meet the value of the board amount charged by the school/hostel.

71.5.1.2 Amounts paid fortnightly in arrears to student or parent

Payments are made to the payee identified in 71.7.1, fortnightly in arrears, only where the student’s maximum combined annual entitlement of Rent Assistance, Remote Area Allowance, Living Allowance exceeds the board costs charged by the boarding school/hostel. In these circumstances, the difference between the maximum combined annual entitlement of Rent Assistance, Remote Area Allowance, Living Allowance and the annual board costs is paid.

71.5.1.3 Disparity in board fees

Fees levied for ABSTUDY students must be at the same level as those set for non-ABSTUDY students at the same boarding school or hostel.

71.5.2 Secondary school student boarding at a hostel that is NOT a signatory to the Standard Hostels Agreement

The student’s entitlement for the whole calendar year is used to help meet the annual amounts charged by the hostel for board, even though the entitlement may relate to periods prior to or after the school year.

These entitlements are calculated on a daily rate. Payments are made fortnightly in arrears to the hostel, and in some circumstances also to the payee identified in 71.7.1, depending on the student’s entitlement and the board amount charged by the hostel.

71.5.2.1 Amounts paid fortnightly in arrears to hostel

Payments are made direct to the hostel, fortnightly in arrears, on a pro-rata basis for the lower of:

• the student’s maximum combined annual entitlement of Rent Assistance, Remote Area Allowance and Living Allowance; or
• the annual amount of Rent Assistance, Remote Area Allowance and Living Allowance, determined in that order, that is required to meet the value of the board amount charged by the hostel.

71.5.2.2 Amounts paid fortnightly in arrears to the student or payee

Payments are made to the payee identified in 71.7.1, on a fortnightly in arrears basis, only where the student’s maximum combined annual entitlement of Rent Assistance, Remote Area Allowance and Living Allowance exceeds the board costs charged by the hostel. In these circumstances, the difference between the maximum combined annual entitlement of Rent Assistance, Remote Area Allowance and Living Allowance and the annual board costs is paid.

71.5.2.3 Disparity in board fees

Fees levied for ABSTUDY students must be at the same level as those set for non-ABSTUDY students at the same hostel.

71.5.3 Secondary school student boarding in a private board arrangement

A student is considered to board in a private board arrangement if a provider other than a boarding school or hostel provides him/her with board and lodgings during the school term.

71.5.3.1 Payment frequency

Payments of Living Allowance in respect of secondary school students who are boarding in a private board arrangement are made fortnightly in arrears.

71.5.3.2 Advance payments

Advance payments of Living Allowance may be made in accordance with the provisions set out in Chapter 75.

Where some or all of a student’s Living Allowance entitlement is being paid fortnightly in arrears, the student may, in certain circumstances, choose to receive these payments on a weekly basis.

Payments may be made weekly where the following conditions are met:

• the student is under 18 years of age; and
• the student is the payee; and
• special circumstances exist that would make it beneficial for the student to receive weekly payments e.g. a homeless student who is having difficulty budgeting over the full fortnight.

Payments cannot be made weekly in any of the following circumstances:

• the student is not the payee;
• the student has a dependent child; or
• the student has, or has had, regular casual earnings in the recent past.

71.7.1 Payee for fortnightly payments of Living Allowance

Where Living Allowance is being paid fortnightly, payments are to be made to the payee designated in the following table:

If…	Then…
the student or Australian Apprentice is in one or more of the following categories: studying at a secondary non-school, tertiary or Masters & Doctorate level; OR undertaking an Australian Apprenticeship; OR 18 years old or over; OR has Independent status	the payee is the student or Australian Apprentice
the student is 16-18 years old AND a secondary school student AND has dependent status…	the payee is: the parent; OR the private board provider, if requested by the parent; OR the student, if requested by the parent; OR the student, if the student is not benefiting from the allowance because the parent uses it for other purposes e.g. gambling, alcohol.
the student is under 16 years old AND a secondary school student AND has dependent status.	the payee is: is the parent; or the boarding school, if requested by the parent; or the private board provider, if requested by the parent; or the boarding hostel that is a signatory to the Standard Hostels Agreement, if requested by the parent.

71.7.1.1 Payee where student boarding at a hostel that is not a signatory to the Standard Hostels Agreement

Where the student is boarding at a hostel that is not a signatory to the Standard Hostels Agreement, payments must be made on a fortnightly in arrears basis direct to the hostel for the amount determined at 71.5.2.1.

71.7.2 Payee for term-in-advance payments of Living Allowance

Where Living Allowance is being paid on a term-in-advance basis under the provisions of 71.5.1, payments must be made direct to the boarding school or hostel for the amount determined at 71.5.1.

71.7.3 Payee for Residential Costs Option

Where a student has opted for the Residential Costs Option, payments of residential costs are to be made direct to the residential college or hostel. For fortnightly Living Allowance payments made under the Residential Costs Option, the provisions in 71.7.1 apply.

For details of the tax status of Living Allowance, refer to Chapter 5 Taxation.

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.