The Parental Income Test is normally applied to determine eligibility for Additional Boarding Allowance. However, the Parental Income Test may be waived if:
- Special assessment applies (see 6.4) because the applicant or the applicant’s partner is getting a Australian Government income-tested pension, benefit or allowance (see 6.4.3), or is in receipt of a Health Care Card (see 6.4.4); or
- the student is in State authorised care (see 6.4.9); or
- the student is living with or in an organisation or institution accepted as an approved applicant under 2.1.13.
Where the Parental Income Test applies, assessment is normally based on the adjusted parental income for the tax year ending on 30 June of the year preceding the year for which benefits are sought (i.e. tax year 2004/2005 if seeking benefits for 2006).
However, this is not the case if:
- the income of the applicant and/or the applicant’s partner is assessed on a tax year other than July to June (see 6.1.3); or
- the applicant and/or the applicant’s partner is in receipt of an employer provided fringe benefit (see 6.6); or
- current income assessment (see 6.7) applies.
To calculate the parental income see 6.2.
The end of the relevant tax year may not fall on June 30 in the following circumstances:
- where the applicant and/or the applicant’s partner has, under Section 18 of the Income Tax Assessment Act 1936, adopted a 12 month accounting period that ends on a date other than 30 June, (evidence of the different accounting period approved by the Australian Taxation Office (ATO) is required as there will be very few cases where this will apply); or
- where the income of the applicant and/or applicant’s partner consists principally of income from a foreign country that uses a different taxation accounting period from that ending on 30 June (for example, New Zealand has a taxation period of 1 April to 31 March).
In such cases the tax year ending before 1 January of the year for which assistance is sought is considered unless current income assessment applies (see 6.7).
Where the income test applies (see 6.1.1) the applicant and (if applicable) the applicant’s partner must provide proof of income to support the Claim. Normally evidence should take the form of a Taxation Assessment Notice (TAN).
If a TAN is not available, the following are acceptable forms of interim evidence:
- a copy of the person’s tax return;
- a letter from a qualified practising accountant or tax agent stating that "(applicant/partner’s name)’s income for the 20XX/XX tax year is expected to be $XXXX" or "... is not expected to exceed $XXXX";
- where the person received a taxable pension, benefit or allowance from Centrelink (i.e. a social security pension, benefit or allowance) or the Department of Veterans’ Affairs for the full tax year, a Statement of Benefit from the paying Department or Office; or
- group certificates and/or Statements of Benefit supported by a Statutory Declaration (or Accountant certification) confirming that these show the full amount of taxable income received by the person during the tax year.
Payment of Additional Boarding Allowance based on evidence other than a TAN must be followed up for verification at a later date. (The applicant should be asked to submit the TAN as soon as it becomes available.)
If acceptable evidence is not presented to verify the income of the applicant or the applicant’s partner, only the non-means tested Basic Boarding Allowance may be paid (subject to the student being otherwise eligible).