ABSTUDY, Means Tests: Chapter 60 - Partner Income Test and Limits

The Partner Income Test is not applied where:

• a dependent ABSTUDY customer (including dependent ABSTUDY customers who have claimed but not yet been paid benefits) in a marriage-like or de facto relationship; and/or
• an ABSTUDY customer is in a marriage-like or de facto relationship with a dependent Youth Allowance or ABSTUDY customer (including dependent Youth Allowance or ABSTUDY customers who have claimed but not yet been paid benefits).

Exemption from the Partner Income Test will not apply where a customer has applied for Youth Allowance or ABSTUDY as a dependent person and that claim has been rejected.

The Partner Income Test applies where an independent ABSTUDY customer is considered to be partnered for ABSTUDY purposes.

60.2.1 Partner Income Test period

The Partner Income Test is applied for any period where an independent partnered student or Australian Apprentice is eligible to receive ABSTUDY assistance. Income is then assessed on a fortnightly basis.

A student's or Australian Apprentice's partner can have income up to defined limits, known as the Partner Income Free Area (PtrIFA), without it affecting the student’s or Australian Apprentice's ABSTUDY Living Allowance. Where the partner’s income exceeds the PtrIFA, the student’s or Australian Apprentice's ABSTUDY will be reduced by a specified amount.

The manner in which the ABSTUDY maximum basic rate (Living Allowance) plus add ons (i.e. Rent Assistance, Remote Area Allowance and Pharmaceutical Allowance) is affected is set out in Chapter 57, Calculating ABSTUDY Rates.

60.3.1 Student or Australian Apprentice is under 21 years, partner is under 21 years and not in receipt of any income support

For an ABSTUDY customer who is aged under 21 years old, where their partner is:

• aged under 21 years old; and
• not receiving an income support payment,

the PtrIFA (Partner Income Free Area) is the amount of the partner's income that would preclude payment of the maximum basic rate of Youth Allowance (YA) based on the personal income free area for a non-student.

The ABSTUDY is then reduced by an amount equal to (Partner’s Income – PtrIFA) x 0.6.

60.3.2 Student or Australian Apprentice is under 21 years, partner is 21 years or over and not in receipt of any income support

For an ABSTUDY customer who is aged under 21 years old, where their partner is:

• aged 21 years or over; and
• not receiving an income support payment,

the Partner Income Free Area is the amount of the partner's income that would preclude payment of the maximum basic rate of Newstart Allowance (NSA).

The ABSTUDY is then reduced by an amount equal to (Partner’s Income – PtrIFA) x 0.6.

60.3.3 Student or Australian Apprentice is under 21 years, partner is any age and not a student or Australian Apprentice and is in receipt of certain income support payments

For an ABSTUDY customer who is aged under 21 years old, where their partner is:

• any age; and
• receiving one of the following income support payments:

• Newstart Allowance;
• Youth Allowance (as a jobseeker);
• Sickness Allowance;
• Special Benefit;
• Parenting Payment (Partnered);
• Mature Age Allowance; or
• Mature Age Partner Allowance,

the Partner Income Free Area is the amount of the partner's income that would preclude payment of the maximum basic rate and add-ons (i.e. Rent Assistance, Remote Area Allowance, Pharmaceutical Allowance) for that benefit.

The ABSTUDY is then reduced by an amount equal to (Partner’s Income – PtrIFA) x 0.6.

60.3.4 Student or Australian Apprentice is under 21 years, partner is any age and is a student or Australian Apprentice and is in receipt of Youth Allowance, Austudy or ABSTUDY Living Allowance payments

For an ABSTUDY customer who is aged under 21 years old, where their partner is:

• any age; and
• receiving one of the following income support payments as a student or Australian Apprentice:

• Youth Allowance;
• Austudy;
• ABSTUDY Living Allowance,

the Partner Income Free Area is the amount of the partner's income that would preclude payment of the maximum basic rate and add-ons (i.e. Rent Assistance, Remote Area Allowance, Pharmaceutical Allowance) for that benefit.

The ABSTUDY is then reduced by an amount equal to (Partner’s Income – PtrIFA) x 0.6.

60.3.5 Student or Australian Apprentice is 21 years or over, partner is any age and is not a student or Australian Apprentice and is either in receipt of certain income support payments OR is not on an income support payment

For an ABSTUDY customer who is aged 21 years or over, where their partner is:

• any age; and
• either:
• receiving one of the following income support payments:
• Newstart Allowance;
• Youth Allowance (as a jobseeker);
• Sickness Allowance;
• Special Benefit;
• Parenting Payment (Partnered);
• Mature Age Allowance; or
• Mature Age Partner Allowance; OR
• not in receipt of an income support payment,

there is a set Partner Income Free Area when assessing partner income.

The base Partner Income Free Area is $731.34 per fortnight. Adjustments to the PtrIFA are then made for any dependent children.

The ABSTUDY is then reduced by an amount equal to (Partner’s Income – PtrIFA) x 0.5.

60.3.5.1 Adjustments to Partner Income Free Area for dependants

Additional amounts for other dependent children in the customer/partner’s care are added to the basic Partner Income Free Area. These are shown in dollars in the following table.

60.3.5.2 Calculation of Effect of Partner Income test for Student or Australian Apprentice 21 years or over

The following table shows the steps involved in applying the Partner Income test for students or Australian Apprentices aged 21 years or over.

60.3.6 Student or Australian Apprentice is 21 years or over, partner is any age and is a student or Australian Apprentice and is in receipt of Youth Allowance, Austudy or ABSTUDY Living Allowance payments

For an ABSTUDY customer who is aged 21 years or over, where their partner is:

• any age; and
• receiving one of the following income support payments as a student or Australian Apprentice:

• Youth Allowance;
• Austudy;
• ABSTUDY Living Allowance,

there is a set Partner Income Free Area when assessing partner income.

The base Partner Income Free Area is currently $731.34 per fortnight. Adjustments are then made for any dependent children, and for the partner’s Student Income Bank balance (if applicable).

The ABSTUDY is then reduced by an amount equal to (Partner’s Income – PtrIFA) x 0.5.

60.3.6.1 Adjustments to Partner Income Free Area for dependants

Additional amounts for other dependent children in the customer/partner’s care are added to the basic Partner Income Free Area. Refer to the amounts in the table in 60.3.5.1.

60.3.6.2 Calculation of Effect of Partner Income test for Student or Australian Apprentice 21 years or over

To calculate the effect of the Partner Income Test, refer to the table in 60.3.5.2, adding the partner’s Income Bank Balance to the base Partner Income Free Area at Step 2.

60.3.7 Student or Australian Apprentice is any age, partner is any age and is in receipt of a FaCS or DVA Pension

For an ABSTUDY customer of any age, where their partner is:

• any age; and
• receiving one of the following Family and Community Services (FaCS) pensions:

• Age Pension;
• Disability Support Pension;
• Wife Pension;
• Carer Payment;
• Parenting Payment (Single);
• Bereavement Allowance;
• Widow B pension; OR

• Receiving one of the following Department of Veterans’ Affairs (DVA) service pensions:

• an age service pension under part III of the Veterans’ Entitlements Act (VEA); or
• an invalidity service pension under Part III of the VEA; or
• a partner service pension under Part III of the VEA; or
• a carer service pension under Part III of the VEA,

there is no Partner Income Free Area.

Instead, the total combined income of the ABSTUDY student or Australian Apprentice and pensioner partner is halved. The ABSTUDY student’s or Australian Apprentice's half is then assessed under the ABSTUDY Personal Income Test, taking into account any Income Bank Balance.