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Qualification for ABSTUDY Lump Sum Bereavement Payment 099-02020030



This document outlines the qualification criteria of Lump Sum Bereavement Payment (LBP) for customers in receipt of ABSTUDY Living Allowance.

Eligibility

An ABSTUDY customer will be eligible for LBP if:

  • the student or Australian Apprentice qualifies for one of the following Awards:
  • the student or Australian Apprentice is in receipt of ABSTUDY Living Allowance at the time of the event, and has been in receipt of Living Allowance continuously for a period of 52 weeks prior to the date of their partner's death, or
  • if the student or Australian Apprentice has not been in receipt of ABSTUDY Living Allowance continuously for the previous 52 weeks, they must have been in receipt of ABSTUDY Living Allowance on the date which is 52 weeks prior to their partner's death, and Living Allowance has not ceased for more than six weeks in that 52 week period and
  • the student or Australian Apprentice is a member of a couple and
  • the person's partner dies and
  • immediately before their partner died, the partner was:
    • receiving ABSTUDY Living Allowance, a Social Security benefit, allowance or any combination of the above allowances for the previous 52 weeks, or was in receipt of one of these allowances on the date 52 weeks prior and not had more than six weeks loss of recipient status in that 52 week period, or
    • was in receipt of a Social Security Pension and
  • The rate of the new single fortnightly ABSTUDY Living Allowance payable to the student or Australian Apprentice is lower than the previous combined member of a couple rate paid

Note: this customer and partner qualification is the same as the requirement for Bereavement Payment for Social Security benefits where customers are deemed as 'long term social security recipients'. See Assessing entitlement to a Lump Sum Bereavement Payment (LBP). The ABSTUDY requirement is based on the Social Security Act requirement.

Claiming

A Manual Follow-up (MFU) is created on the surviving partner's record where qualification for LBP has been met. This identifies that an ABSTUDY LBP is to be calculated and paid, see Calculation of a Lump Sum Bereavement payment.

Students or Australian Apprentices can claim an ABSTUDY LBP verbally if no MFU has prepopulated.

Rate

The rate of entitlement to ABSTUDY Lump Sum Bereavement Payment is calculated by:

  • the amount that, if the student's or Australian Apprentice's partner had not died, would have been payable to the applicant immediately prior to the passing of their partner and
  • the amount (if any) that, if the partner had not died, would have been payable to the partner prior to their passing

Minus

  • the surviving partner's new fortnightly single rate

See Calculation of a Lump Sum Bereavement Payment (LBP).

Payment

A Lump Sum Bereavement payment is not taxable and is paid as a one-off lump sum after the death of a partner.

The Resources page contains a link to the Services Australia website with information on what to do when someone has passed away.

Assessing entitlement to a Lump Sum Bereavement Payment (LBP)

Calculation of a Lump Sum Bereavement Payment (LBP)

Lump Sum Bereavement Payment (LBP)

Adjusting tax details for Bereavement Payments