ABSTUDY, Means Tests: Chapter 56 - Introduction to Means Testing

The following allowances are subject to means tests to determine the level of entitlement payable:

• Living Allowance, including Rent Assistance, Remote Area Allowance, Pharmaceutical Allowance;
• Group 2 School Fees Allowance greater than the non-income tested amount.

56.1.1 Allowances subject to indirect means testing

The following allowances are not subject to the means tests covered in Part VII, however applicants are required to be in receipt of certain means-tested payments to qualify for these allowances:

• School Term Allowance;
• Group 1 School Fees Allowance; and
• Pensioner Education Supplement.

Refer to the chapters on specific allowances for details.

The following allowances are not subject to means tests to determine the level of entitlement payable:

• Group 2 School Fees Allowance (non-income-tested amount)
• Incidentals Allowance
• Additional Incidentals Allowance
• Fares Allowance
• Lawful Custody Allowance
• Additional Assistance
• Away-from-base entitlements
• Relocation Allowance
• Thesis Allowance
• Assistance to pay for compulsory course fees or Commonwealth supported places, previously known as the Higher Education Contribution Scheme (HECS).

Dependent customers applying for Living Allowance (plus Rent Assistance, Remote Area Allowance and Pharmaceutical Allowance) and/or Group 2 School Fees Allowance are subject to one or more of the following tests:

• Parental Income Test;
• Family Assets Test;
• Family Actual Means Test (FAMT); and
• Personal Income Test.

Where all four tests are applied, the test that produces the higher rate out of the Parental Income Test and the FAMT is disregarded.

Dependent customers aged under 16 years are not subject to the personal income test.

Independent customers applying for Living Allowance (plus Rent Assistance, Remote Area Allowance and Pharmaceutical Allowance) are subject to the following tests:

• Personal Assets Test (if the customer is partnered, this test includes the assets of the customer’s partner);
• Partner Income Test; and
• Personal Income Test (with the exception of Independent students aged under 16 years, who are exempted from the Personal Income Test).

Australian Apprentices who are independent and under 16 years of age will have the Personal Income Test applied to their Living Allowance (plus Rent Assistance, Remote Area Allowance and Pharmaceutical Allowance) as they are considered to be earning an income working full-time as an apprentice, trainee or trainee apprentice.

Customers in State Care who are applying for Living Allowance are subject to the following test:

• Personal Income Test (with the exception of students in State Care aged under 16 years, who are exempted from the Personal Income Test).