The purpose of Remote Area Allowance (RAA) is to assist in meeting additional costs associated with residence in a remote area.
To qualify for Remote Area Allowance (RAA), the following criteria must be met:
- qualify for Living Allowance at a rate greater than zero; or
- be receiving a Defence Force Income Support Allowance-like (DFISA-like) payment under the Veterans’ Entitlements Act 1986; and
For the purposes of Remote Area Allowance, a remote area is an area listed the following parts of I & II of Schedule 2 of the Income Tax Assessment Act 1936 (ITAA):
- Taxation Zone A, including Special Taxation Zone A; and
- Special Taxation Zone B.
For Remote Area Allowance purposes, the following Taxation Zone A areas are not considered to be remote areas:
- Norfolk Island;
- Macquarie Island;
- the Territory of Heard Island;
- the McDonalds Islands; and
- the Australian Antarctic Territory.
Where the Commissioner of Taxation deems an area to be within an RAA specified area, then the area is considered to be a remote area for RAA purposes. The student/Australian Apprentice/parent may apply to the Commissioner for this ruling.
Where a student is receiving a maintained rate of Living Allowance under the provisions set out in 72.2.8, s/he does not qualify for Remote Area Allowance.
A student's or Australian Apprentice's usual place of residence is the area where they normally live, sleep and eat.
To change his/her usual place of residence, a student or Australian Apprentice has to completely abandon the former place of residence.
Where a student or Australian Apprentice lives away from home during the term to study, his/her usual place of residence is taken to be their permanent home.
If the postcode of a student's or Australian Apprentice's postal address is in an RAA remote area, s/he is eligible for RAA only where:
- the student’s or Australian Apprentice's usual place of residence is also in the postcode area; and
- the student or Australian Apprentice is physically present in that area.
In some circumstances payments can be made during temporary absences.
If a student’s or Australian Apprentice's usual place of residence is in a local government area that is partly in a RAA remote area, the student or Australian Apprentice is taken to be living in a RAA remote area.
This provision does NOT apply to postcodes that are partly a RAA remote area.
Payments of Remote Area Allowance are calculated on a daily rate and made fortnightly in arrears.
Where payments of Living Allowance are being made to a boarding school/hostel on a term-in-advance basis under the provisions set out in 71.5, Remote Area Allowance must also be paid on a term-in-advance basis under the same provisions.
The payee for Remote Area Allowance is the same as the payee for Living Allowance as set out in 71.7.
For details of the tax status of Remote Area Allowance, refer to Chapter 5 Taxation.
If, after applying the relevant means tests, the student or Australian Apprentice is entitled to ANY amount of Living Allowance, s/he receives the full rate of Remote Area Allowance.
Remote Area Allowance is payable from the date the student or Australian Apprentice becomes qualified for Remote Area Allowance, provided s/he is otherwise eligible for Living Allowance.
The entitlement period for Remote Area Allowance is the same as the entitlement period for Living Allowance as set out in Chapter 73.
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.