ABSTUDY, Means Tests: Chapter 57 - Calculating ABSTUDY Rates

Step 1.

Work out the person's maximum basic rate by referring to Chapter 72 Living Allowance and the Guide to Australian Government Payments    .

Step 2.

Step 3.

Work out the amount a fortnight (if any) of Pharmaceutical Allowance by referring to Chapter 80 Pharmaceutical Allowance and the Guide to Australian Government Payments    .

Step 4.

Work out the applicable amount (if any) for Rent Assistance by referring to Chapter 76 Rent Assistance  and the Guide to Australian Government Payments    .

Step 5.

Add up the amounts obtained in Steps 1 to 4: the result is the maximum payment rate.

Step 6.

If the person is not independent and the parental income test applies to the person, work out the reduction for parental income using Chapter 58 Parental Income Test and Limits and take the reduction away from the maximum payment rate: the result is the parental income test reduced rate.

Step 7.

If the parental income test reduced rate is nil, then ABSTUDY Living Allowance (plus Rent Assistance and Pharmaceutical Allowance) is not payable to the person and the following steps are to be disregarded.

Step 8.

If the person is not independent and the family actual means test applies to the person (Refer to Chapter 66 Family Actual Means Test), work out the person's reduction for actual means using Chapter 69 Application of the Family Actual Means Test and take the reduction away from the maximum payment rate: the result is the actual means test reduced rate.

Step 9.

If the actual means test reduced rate is nil, then ABSTUDY Living Allowance (plus Rent Assistance and Pharmaceutical Allowance) is not payable to the person and the following steps are to be disregarded.

Step 10.

Apply the Personal Income Test, referring to Chapter 61 Personal Income Test to work out the person's income reduction.

Step 11.

Take the person's income reduction away from:

(a)  if the person is not independent and Steps 6 and 8 did not apply to the person-the maximum payment rate; or

(b)  if the person is not independent and Step 6 applied to the person but Steps 7 and 8 did not-the parental income test reduced rate; or

(c)  if the person is not independent and Step 8 applied to the person but Steps 6 and 9 did not-the actual means test reduced rate; or

(d)  if the person is not independent and Steps 6 and 8 applied to the person but Steps 7 and 9 did not-the parental income test reduced rate, or (if the actual means test reduced rate is lower) the actual means test reduced rate; or

(e)  if the person is independent -the maximum payment rate;

the result is the personal income test reduced rate.

Step 12. 

If the person is independent  and has a partner, apply the Partner Income Test using Chapter 60 Partner Income Test and Limits to work out the reduction for partner income. Take the reduction away from the personal income test reduced rate.  The result is the provisional fortnightly payment rate.

Note: If a person's rate is reduced under Step 6, 8, 11 or 12, the order in which the reduction is to be made is Living Allowance first, then Rent Assistance, then Pharmaceutical Allowance.

Step 13.

The rate of allowance is the amount obtained by:

(a)  subtracting from the provisional fortnightly payment rate any advance payment deduction (see 75.4 Repayment of Advance Payments); and

(b)  adding any amount payable by way of Remote Area Allowance (see Chapter 79 Remote Area Allowance).

Step 1. 

Determine if the annual school fees charged by the school exceed the annual income-test-free component of Group 2 School Fees Allowance.  Refer to “A Guide to Australian Government payments    ” for this amount.

Step 2. 

If the annual school fees charged by the school do not exceed this amount, then the annual amount of Group 2 School Fees Allowance payable is equal to the annual school fees charged by the school. Disregard the following steps.

Step 3.

If the annual school fees charged by the school do exceed this amount, then determine if the annual school fees charged by the school exceed the maximum annual amount of Group 2 School Fees Allowance.  Refer to “A Guide to Australian Government payments    ” for this amount. 

• If yes, go to Step 4.
• If no, go to Step 6.

Step 4. 

Where the annual school fees charged by the school exceed the maximum annual amount of Group 2 School Fees Allowance, the Parental Income Test (Refer to Parental Income Test and Limits Chapter 58) is applied to the School Fees Allowance amount subject to income testing.

The School Fees Allowance amount subject to income testing is the difference between the annual income-test-free component of Group 2 School Fees Allowance and the maximum annual amount of Group 2 School Fees Allowance.

Work out the reduction for parental income using Chapter 58 Parental Income Test and Limits and take this reduction away from the School Fees Allowance amount subject to income testing.

Step 5. 

Add this amount to the annual income-test-free component of Group 2 School Fees Allowance. The total is the annual Group 2 School Fees Allowance entitlement. Disregard the following steps.

Step 6. 

Where the annual school fees charged by the school does not exceed the maximum annual amount of Group 2 School Fees Allowance, the Parental Income Test (Refer to Parental Income Test and Limits Chapter 58) is applied to the School Fees Allowance amount subject to income testing.

The School Fees Allowance amount subject to income testing is the difference between the annual income-test-free component of Group 2 School Fees Allowance and the annual school fees charged by the school.

Work out the reduction for parental income using Chapter 58 Parental Income Test and Limits. Use the annual amount obtained at Step 5 of 58.5, which is referred to as the Parental Income Excess, and take this annual amount away from the School Fees Allowance amount subject to income testing.

Step 7.

Add this amount to the annual income-test-free component of Group 2 School Fees Allowance.

The total is the annual Group 2 School Fees Allowance entitlement.