The parental income test is waived where:
- special assessment applies (see 6.4.2); or
- the applicant or the applicant’s partner has been directed or authorised by a Court, Minister or government authority to care for the student (away from their natural or adoptive parents) under a substitute or foster care arrangement (see 6.4.9); or
- an organisation / institution is considered to be an approved applicant under 2.1.14 (see 6.4.9).
The special assessment concession waives the parental income test for any period during which either the applicant or the applicant’s partner:
- receives one of the types of income support specified in 6.4.3; or
- holds a valid Health Care Card (see 6.4.4).
This means that the income test is not applied to either person’s income and, subject to boarding costs (see 5.2.7), the student is entitled to the maximum Additional Boarding Allowance during that period.
Special assessment applies for the period (at least one of) the applicant or the applicant’s partner is receiving assistance under:
- a social security pension, income support benefit or allowance;
- a Department of Veterans’ Affairs pension (excluding the Disability Pension);
- Farm Help;
- Exceptional Circumstances Relief Payment;
- the New Enterprise Incentive Scheme (NEIS);
- a Textiles Clothing and Footwear (TCF) Special Allowance;
- Youth Allowance/Austudy/ABSTUDY;
- an allowance for full-time vocational training or education; or
- Community Development Employment Projects (CDEP) Scheme wage and meets the conditions outlined in 6.4.5.
The concession also applies for the period an applicant or their partner holds a valid Health Care Card (HCC) for low-income earners (see 6.4.4).
Special assessment applies for the period the applicant or the applicant’s partner holds a valid Health Care Card (HCC) for low-income earners.
However, the special assessment concession does not apply:
- for a period after the expiry date on the card; or
- where a parent holds a HCC because they receive a social security Mobility Allowance or Carer Allowance (in respect of a disabled child); or
- if the applicant or the applicant’s partner holds only a Pensioner Concession Card or a Commonwealth Seniors Health Card (CSHC).
A special assessment applies where the applicant or applicant’s partner is receiving a Community Development Employment Projects (CDEP) Scheme wage as a participant and which is not paid to administer a CDEP project.
Special assessment will commence from 1 January of the year for which assistance is sought or the date the applicant or applicant’s partner commences receiving one of the types of income support specified in 6.4.3 (or commences to hold a valid Health Care Card), whichever is later.
Special assessment will lapse on the date the applicant or applicant’s partner ceases to receive the applicable type of income support (or ceases to hold a valid Health Care Card).
If the applicant or applicant’s partner continues to receive one of the types of income support specified in 6.4.3 (or continues to hold a valid Health Care Card) to the end of the year for which assistance is sought, Special Assessment will carry through to the end of the year.
Note: Where an applicant or their partner’s Exceptional Circumstances Relief Payment ceases as a result of the drought recovery period ending, he or she is taken to be receiving a payment under that scheme until the end of the year in which payments cease. As a result special assessment continues to apply until the end of the calendar year.
Where special assessment lapses the parental income test is applied to determine eligibility for Additional Boarding Allowance from the date on which the applicant or applicant’s partner ceased to receive one of the types of income support specified in 6.4.3 or ceased to hold a valid Health Care Card. The parental income test should be applied to the adjusted parental income (see 6.2.1) for the previous tax year unless current income assessment conditions are satisfied (see 6.7).
Example 1: Parents reunite after separating during year of study
Joanne’s mum is seeking AIC for 2001. Her parents separate on 1 February 2001. Her mother receives a Parenting Payment (single) and Joanne remains with her. Her parents reunite seven months later on 1 September 2001.
Assessment basis:
1.1.01 - 31.1.01 normal assessment on both parents’ incomes for 2000-01
1.2.01 - 31.8.01 special assessment (income test waived)
1.9.01 - 31.12.01 normal assessment on both parents’ income for 2000-01
Example 2: Parent gains employment
Cameron’s father is seeking AIC for 2001. Cameron’s father becomes unemployed on 11 April 2001, and receives Newstart Allowance. He starts work again on 23 May. His mother has a part-time job.
Assessment basis:
1.1.01 - 10.4.01 normal assessment on both parents’ incomes for 2000-01
11.4.01 - 22.5.01 special assessment
23.5.01 - 31.12.01 current income or normal assessment (special assessment may again apply if another period of unemployment occurs later in the year and Newstart Allowance is received).
A student in State authorised care or foster care arrangement may, subject to boarding costs (see 5.2.7), receive maximum Additional Boarding Allowance if the foster carer is not in receipt of a foster care allowance (or other similar allowance intended for the upkeep or personal use of the student) from a government authority (see 5.2.6 for eligibility for Additional Boarding Allowance and evidence requirements).
In this circumstance the applicant should be the official foster parent (or his/her partner) and the parental income test is waived.
Where an organisation or institution is the approved applicant under 2.1.14, the parental income test is waived and maximum Additional Boarding Allowance is payable subject to boarding costs (see 5.2.7).