The
appropriate tax year for a current FAMT assessment is the tax year ending in the calendar year in which the customer claims ABSTUDY (base tax year + 1). Therefore all spending, savings and appropriate deductions for the current FAMT will be for the current tax year instead of the
base tax year. Where a customer applies for a current FAMT assessment, the base tax year details are required in order to assess the drop in the family's actual means.
The conditions for using a current FAMT assessment are that a reduction of actual means will last for 2 years, with the additional requirement that the decrease in actual means must be attributed to one or more of the following:
- a circumstance or circumstances beyond the control of an family member; OR
- there is no longer a designated parent for the FAMT; OR
- a family member has taken up full-time study.
These conditions provide an objective basis for granting a concession to families whose actual means was too high in the base tax year.
The following table shows the period of effect of current FAMT assessments according to the date of the event that caused the decrease in actual means.
|
If… |
Then period of effect is… |
|
the event occurred on or before 1 January of the current year, |
from 1 January until the end of:
- the calendar year; or
- the period of ABSTUDY qualification.
|
|
the event occurred after 1 January of the current year, |
from the date of the event until the earlier of:
- the end of calendar year; or
- the period of ABSTUDY qualification.
|
|
no event can be tied to the decrease in the current year, |
from the date after 1 January when the decrease started, until the end of:
- the calendar year; or
- the period of ABSTUDY qualification.
|
Customers MUST supply financial evidence of decreased actual means before current FAMT assessment is used. It should be noted that a current FAMT should not be approved on the basis of an expectation of reduced actual means. A customer needs to have assessed whether their actual means will indeed be lower and provide documentary evidence. Expectation of a decrease in profits in relation to a family company or business should NOT usually be granted for a current FAMT assessment.
For a current FAMT assessment to be used, the reasons for the decrease in actual means MUST be out of the control of a:
A current FAMT assessment can be used if, at the time of applying for the assessment, a
parent is no longer a
designated parent.
Current FAMT assessment is used if total family actual means decrease because a family gives up substantial employment to take up full-time or concessional study-load study. Generally, a full-time course of study, and the reduction in actual means, will need to last for at least 2 years. If the customer withdraws from the course, the current FAMT assessment is not usually withdrawn.
Current FAMT assessment is NOT used if a parent claims the decrease in actual means resulted from education costs.