1.2 Outline of the AIC Scheme

The Assistance for Isolated Children (AIC) Scheme helps the families of primary, secondary, and certain tertiary students who are unable to attend an appropriate state school on a daily basis because of geographic isolation.  An appropriate state school is one which offers tuition at the student’s level, that is, the year or grade for which the student is qualified to enrol. If a student has a disability or other health-related condition or a special education need that requires a special school programme, special facilities and/or a special environment, an appropriate state school may be regarded as a state school that has or can provide access to the special programme, facilities and/or environment required for the student.

The underlying principle of AIC is that all Australian children should have reasonable daily access to an appropriate state school without regard to parents' income. Families living in areas without access to such a school incur additional costs in educating their children. The purpose of AIC is to provide financial assistance in recognition of the additional expenditure incurred by mainly geographically isolated families for the education of their children.

It is not an aim of AIC to assist families to send children to a school of their choice where an appropriate state school is available.  However, if a student does not have reasonable daily access to an appropriate state school, families are free to send him or her to the school of their choice.

AIC assistance is payable if all of the following conditions are met:

• the applicant meets the general eligibility conditions (see Part 2), and
• the student meets the general eligibility conditions (see Part 3), and
• the student is (or is deemed to be) geographically isolated from appropriate schooling (see Part 4), and
• the student boards away from home, lives in a second family home or studies by distance education methods (see Part 5).

Depending on the student’s circumstances, AIC provides:

• Boarding Allowance (see 5.2),
• Additional Boarding Allowance (see 5.2)
• Second Home Allowance (see 5.3),
• Distance Education Allowance  (see 5.4), or
• Pensioner Education Supplement (see 5.5).

With the exception of the Additional Boarding Allowance, all allowances are free of means testing in recognition of the extra costs faced by isolated families in accessing education.

AIC is a special educational assistance scheme, as defined by the Student Assistance Act 1973 (the Act).  Funding for AIC is appropriated under section 55A of the Act.

Aspects of AIC, detailed in Parts 6 and 7 of the Act include:

• matters relating to the recovery of overpayments;
• provision of tax file numbers;
• the applicant’s obligation to notify certain events,
• certain offences; and
• the provision of evidentiary certificates.

The policy and procedures of AIC which are not set out in the Act are contained within these Guidelines.

Policy responsibility for AIC lies with the Department of Education, Science and Training (the Department). Policy changes are approved by the responsible Parliamentary Secretary.

AIC is delivered by Centrelink under terms contained within the 2005-2008 DEST - Centrelink Business Partnership Agreement.  Centrelink conducts assessments and the processing of AIC Claims and making the respective payments.

The AIC Guidelines are updated once a year with subsequent changes published on the Department’s internet site and provided to Centrelink in writing.

Where the Parliamentary Secretary approves a change to these Guidelines (for example, as a result of upholding an appeal) then that change should be taken into account in all current and subsequent cases, including internal reviews of assessment decisions (see 1.5.3) and in appeals to the Parliamentary Secretary regarding assessment decisions (see 1.5.4).

Under section 5B of the Act, the Department Secretary is responsible for general administration of the Act, subject to any directions from the Minister. Under section 338(1) of the Act, the Secretary may delegate all of the Secretary’s powers that relate to the administration of AIC to the Centrelink Chief Executive Officer.

Also, under sections 44(1) and 53(1) of the Financial Management and Accountability Act 1997, the Department Secretary may delegate to the Centrelink Chief Executive Officer the power to approve, cancel, vary or suspend proposals for expenditure of AIC funds.

The Centrelink Chief Executive Officer may subsequently confer these powers on certain Centrelink staff.

Instruments effecting these delegations may be changed or revoked at any time. Centrelink personnel must at all times ensure that they are familiar with the current delegations