The purpose of the School Fees Allowance is to assist Indigenous families to meet the costs of school fees levied by the
approved education institution for the student.
There are two categories of School Fees Allowance:
To qualify for Group 1 School Fees Allowance in respect of a school year, the following criteria must all be met on any one day during that school year:
- the student meets the Schooling A Award criteria; and
- the student is enrolled in and attending studies at the secondary school; and
- one of the following apply:
- one or both of the student’s parent/s are one of the following:
- in receipt of an income support payment; or
- in receipt of Farm Help Income Support or Exceptional Circumstances Relief payment under Part 5 or 6 of the Farm Help Income Support Act, 1992; or
- holders of a current Health Care Card (HCC) or a Low Income Card, including a HCC issued on the basis of receipt of maximum rate Family Tax Benefit Part A; or
- in receipt of ABSTUDY Living Allowance; or
- in receipt of a Community Development Employment Projects (CDEP) wage as a participant; or
- taken to be receiving their income support payment during an employment income nil rate period; OR
- in State Care; and
- under the minimum school leaving age for his/her State or Territory; and
- does not meet the criteria for Away from Home entitlements set out in Chapter 25; OR
To qualify for Group 2 School Fees Allowance, the following criteria must be met:
- the student meets the Schooling B Award criteria; and
- the student is a secondary school student; and
- one of the following apply:
85.3.1 Group 1 School Fees Allowance
There are two different rates of Group 1 School Fees Allowance:
- the lower rate for a student turning 16 years old prior to 1 July in that year; and
- the higher rate for a student who is aged less than 16 years old at 30 June in that year.
For details of these rates, see “A Guide to Australian Government Payments 
”.
There are two components of Group 2 School Fees Allowance entitlement:
- An annual amount free from means-testing; and
- An additional annual amount that is subject to the Parental Income Test, Family Assets Test and Family Actual Means Test to determine the amount payable. Refer to 57.2 for details of the effect of these tests upon Group 2 School Fees Allowance.
For details of these amounts, see “A Guide to Australian Government Payments ”.
The level of School Fees Allowance is indexed as follows:
- Group 1 School Fees Allowance is not indexed;
- Group 2 School Fees Allowance is subject to annual indexation against the Consumer Price Index (CPI) at 1 January.
Group 1 School Fees Allowance is payable as follows:
- Payment, upon approval of the entitlement, in one instalment direct to the school for the maximum amount of School Fees Allowance entitlement specified in 85.3.1; or
- Reimbursement/s to the applicant upon presentation of receipt/s from the school that show the school fees amount paid. In total, reimbursement will be made for the lesser of:
- the amount of school fees paid; or
- the maximum amount of School Fees Allowance entitlement specified in 85.3.1.
Group 2 School Fees Allowance is payable as follows:
- Payment direct to the school for the amount determined by 85.5.1; or
- Reimbursement/s to the person who has incurred the expenses, upon presentation of receipt/s from the school that show the school fee amount paid. In total, reimbursement will be made for the lesser of:
- the amount of school fees paid; or
- the maximum amount of School Fees Allowance entitlement specified in 85.3.2.
Where Group 2 School Fees Allowance is being paid to the school, the payment frequency and calculation is affected by whether the student is either:
Where the student is boarding at a boarding school or a hostel that is a signatory to the Standard Hostels Agreement, Group 2 School Fees Allowance payments are calculated on a daily rate and paid 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 lesser of:
- the student’s maximum entitlement of Group 2 School Fees Allowance as set out in 85.3.2; or
- the annual school fees amount charged by the school.
Where the student is boarding at a hostel that is NOT a signatory to the Standard Hostels Agreement or in a private board arrangement, Group 2 School Fees Allowance is paid in one instalment for the lesser of:
- the student’s maximum entitlement of Group 2 School Fees Allowance as set out in 85.3.2; or
- the annual school fees amount charged by the school.
For details of the tax status of Group 1 and 2 School Fees Allowance, see Chapter 5 Taxation.
For the purposes of School Fees Allowance, school fees are those fees charged by a school for all students enrolled in a particular programme. This includes:
- fees associated with school subjects, including charges for consumable materials and charges for sporting activities where sport is taken as a school subject and a subject fee is levied;
- general purpose fees for services and amenities;
- tuition fees;
- fees for items such as school magazines, locker hire, book hire, and examinations.
For the purposes of School Fees Allowance, school fees do not include:
- charges for the issue of stationery, or the use or purchase of school clothing including sports clothing or special clothing e.g. aprons for Home Economics or Manual Arts;
- charges to cover incidental expenses incurred by a student during the term e.g. purchases from the school shop;
- charges for laundry/purchase of linen;
- levies on behalf of Parents’ and Citizens’ Association or similar organisation;
- contributions (whether or not compulsory and/or refundable) to school building funds; or
- charges for insurance cover for school–related activities.
Fees levied for ABSTUDY students must be at the same level as those set for non-ABSTUDY students at the school.
Group 1 School Fees Allowance is not subject to the means tests outlined in Chapter 56 Introduction to Means Testing.
There are two components of Group 2 School Fees Allowance entitlement:
- An amount free from means testing; and
- An additional amount that is subject to the Parental Income Test, Family Assets Test and Family Actual Means Test to determine the amount payable. Refer to 57.2 for details of the effect of these tests upon Group 2 SFA.
Entitlement to Group 1 School Fees Allowance is established when the student commences study in the school year. The entitlement is not affected if a student subsequently discontinues study.
Entitlement to Group 2 School Fees Allowance is established upon commencement at the school, and is determined on a pro-rata basis, in accordance with the provisions outlined in Chapter 73 Living Allowance entitlement periods.
The same maximum rates of Group 1 and 2 School Fees Allowance apply where a student changes school during the year; payments of School Fees Allowance in respect of the student for a year may total up to the maximum rate of School Fees Allowance.
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.
Unused Group 2 School Fees Allowance may be transferred to meet outstanding board fees in the following circumstances:
Transfer of Group 2 School Fees Allowance to pay boarding costs may not be approved in the following circumstances:
- no Living Allowance is payable in respect of the student as a result of the application of the means tests; and/or
- the student is boarding at a hostel that is NOT a signatory to the Standard Hostels Agreement or is in a private board arrangement.
Where the transfer of unused Group 2 SFA to pay boarding costs has been approved, these payments are calculated on a daily rate and paid 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.
Payment is made for the lesser of:
Where unused Group 2 School Fees Allowance has been transferred to meet any outstanding board fees under the provisions of 85.6, any residual amount of Group 2 School Fees Allowance cannot be used for other purpose e.g. to pay existing overpayments, or to be directed to the student.