ABSTUDY, Allowances and Benefits: Chapter 99 - Additional Assistance

The purpose of Additional Assistance is to provide a means by which, in exceptional circumstances, financial benefit over and above ABSTUDY entitlements is available for students and Australian Apprentices who experience severe financial difficulties meeting associated education and training costs. The intended outcome is to reduce the risk of students or Australian Apprentices withdrawing from education or training.

To qualify for Additional Assistance, the following criteria must be met:

• the student or Australian Apprentice is eligible for Living Allowance; and
• the application of an ABSTUDY eligibility or entitlement provision is harsh or inequitable in the student's or Australian Apprentice's circumstance; and
• the student's or Australian Apprentice's circumstances are unique i.e. the grant of Additional Assistance is not likely to result in the inconsistent delivery of benefits nor establish a precedent for a potentially significant number of students or Australian Apprentices; and
• the basis of the Additional Assistance claim is directly related to a factor associated with the student's or Australian Apprentice's study or training programme which has resulted in the student or Australian Apprentice or family experiencing significant hardship and which may be overcome by the grant of Additional Assistance; and
• the circumstances have not been caused or contributed to by action taken by the student or Australian Apprentice or applicant which may be regarded as negligent or imprudent; and
• there is no other Australian Government or State Government agency or private organisation that is a more appropriate source of assistance.

99.2.1 Significant hardship

The student or Australian Apprentice or family are considered to experience significant hardship in the following circumstances:

• fortnightly expenditure on essential items is equal to or exceeds the fortnightly income of the student/Australian Apprentice or student's/Australian Apprentice's family; and
• there are no financial reserves for the student/Australian Apprentice or student's/Australian Apprentice's family to draw upon.

99.2.1.1 Income of the student/Australian Apprentice or student’s/Australian Apprentice's family

For the purposes of assessing significant hardship, the income of the student/Australian Apprentice or student’s/Australian Apprentice's family includes:

• wage and salary payments after tax and Medicare levy are deducted;
• maintenance received; and
• Australian Government benefits including:

• any other form of regular income.

Maintenance paid for the support of a previous partner or children should be deducted.

99.2.1.2 Essential items

In general, only expenditure on any of the following essential items is to be considered in assessing Additional Assistance claims:

• accommodation, eg rent, mortgage repayment instalments and essential costs such as insurance and rates;
• food;
• utility services, eg gas, electricity;
• clothing;
• medical/dental costs in excess of refunds from health insurance (non essential medical/dental costs to be excluded);
• pharmaceutical costs;
• school costs and child care costs of dependents if incurred to meet course requirements;
• daily travel costs of student and family (public transport equivalent costs should be used if student has a car);
• hire purchase instalments for purchase of essential household furniture;
• maintenance paid; and
• miscellaneous expenses such as essential course costs.

99.2.1.3 Non-essential items

The following items would not normally be considered as essential items, unless it can be demonstrated that the items are necessary for a person's employment or similar compelling reason:

• car expenses i.e. repayments, registration, petrol, insurance and maintenance, above public transport costs;
• telephone costs, i.e. installation, rent and call costs;
• expenses not associated with studies, e.g. club fees for interests not catered for by the education institution; and
• debt repayment, including hire purchase of items other than household furniture.

Where a student or Australian Apprentice qualifies for Additional Assistance, the rate payable will be set at whichever is the lesser of that amount required to:

• meet the cost of the particular factor associated with the student's study programme or Australian Apprentice's training which has contributed to the financial difficulties; or
• overcome the hardship, i.e. address the imbalance between income and essential expenditure.

99.4.1 Payment frequency

Where approved, Additional Assistance may be provided in the form of:

• a regular supplement to the student’s Living Allowance; or
• a once-only payment where this will overcome the hardship.

99.4.2 Payee

The payee for Additional Assistance will be the applicant.

99.4.3 Taxation Status

For details of the tax status of Additional Assistance, see Chapter 5 Taxation.

99.4.4 Overpayments

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.