ABSTUDY, Allowances and Benefits: Chapter 74 - Residential Costs Option

The Residential Costs Option allows students who live in a residential college or hostel the option of having his/her residential costs paid directly by ABSTUDY, in addition to receiving a reduced amount of Living Allowance or nil rate of Pensioner Education Supplement (PES). For the periods residential fees are not charged, eligible students receive their full Living Allowance or PES entitlement.

Australian Apprentices are unable to access this entitlement.

To be eligible for the residential costs option students must be:

• eligible for one of the following Awards:

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

• either:

• a tertiary student; or
• a secondary non-school student undertaking approved studies of at least 30 weeks duration (full year course) at a university; and

• receiving either:

• an amount of Living Allowance; or
• Pensioner Education Supplement (PES); or
• payments of Defence Force Income Support Allowance-like (DFISA-like) payments under the Veterans’ Entitlements Act 1986; and

• either:

• a dependent student who has been approved for Away From Home entitlements; or
• an independent student or a PES recipient who would, if they were not independent or a PES recipient, meet one of the criteria for approval of Away from Home entitlements; and

• be residing at a residential college attached to an Australian education institution, or a hostel.

Where a student meets the eligibility criteria set out in 74.2, s/he may elect to take up the Residential Costs Option. The Residential Costs Option involves the following:

• residential costs are paid by ABSTUDY directly to the college or hostel; and
• during periods for which residential fees are charged, the student forfeits their normal fortnightly amount of Living Allowance or Pensioner Education Supplement (PES):

• Living Allowance recipients receive a reduced fortnightly rate of Living Allowance; and
• PES recipients forfeit their fortnightly PES payments; and

• during periods for which residential fees are not charged, Living Allowance/PES payments return to the normal fortnightly amounts.

74.3.1 Reduced rate of Living Allowance

Eligible Living Allowance recipients who elect to take up the Residential Costs Option will receive a reduced rate of Living Allowance during periods for which residential fees are charged. The amount they will receive each fortnight is the lesser of:

• the prescribed Residential Costs Option fortnightly allowance (for details of this rate, see “A Guide to Australian Government payments    ”.); or
• the student’s normal Living Allowance entitlement.

A student who chooses the RCO is ineligible for Additional Assistance or Meals Allowance to supplement the reduced rate of Living Allowance.

For the purpose of the Residential Costs Option, residential costs include:

• accommodation fees; and
• meals provided; and
• laundry charges; and
• other compulsory fees.

Residential costs do not include bonds or other refundable fees.

74.4.1 Reasonable residential costs

There is no set upper limit on the residential costs payable by ABSTUDY for approved students who choose the Residential Costs Option; however, residential charges must be reasonable.