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Youth Allowance (YA) annual Parental Income Test (PIT) reviews 110-07090000



This document outlines the process for annual PIT reviews for YA customers.

Parental Income Test

The rate of payment of a dependent recipient's YA is based on the combined parental income in the appropriate tax year. As this figure may change each year, Services Australia requires updated details after the end of the financial year to ensure that the correct rate of YA is paid.

Base tax year

Normally, when the PIT is applied, YA recipients are assessed using income from the base tax year. This is the financial year that ended immediately prior to the current calendar year (for example, for the 2018 calendar year, the 2016/2017 financial year would be considered). In most circumstances, this enables an accurate assessment of the rate of payment since the financial year has been completed, and actual combined parental income figures are generally available.

Annual review action to be undertaken

All dependent YA recipients, except those whose parent(s)/guardian(s):

  • are PIT exempt, or
  • received Family Tax Benefit, Child Care Benefit or Child Care Subsidy for the appropriate tax year and a PIT Copy has occurred by the second Monday of September each year

will be sent a PIT review letter and a One Time Access Code (OTAC) with a request to have their parent(s)/guardian(s) provide the necessary information using the Advise Parental Income online service.

Information to be provided by parent/s

The parent(s)/guardian(s) are required to provide:

  • actual or estimated income figures for the most recently completed financial year for all components of combined parental income that form part of the Parental Income Test (PIT). All estimates of income need to be verified by providing supplementary evidence
  • date of issue of their Notice of Assessment (NOA) from the Australian Taxation Office or an estimated date it will be available

Some parent(s)/guardian(s) will also be required to provide current income assessment information.

Contents

Youth Allowance (YA) and ABSTUDY Parental Income Test (PIT) reviews

Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA)

Assistance for Isolated Children (AIC) End of Year (EOY) reviews

Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY)