Raising ABSTUDY debts 107-09120050

Payment of benefits to students under 18 years of age under the ABSTUDY Scheme can go to:

• the student
• his/her parent/guardian, or
• the institution at which they reside

When an overpayment occurs, the person responsible for any overpaid amount is usually whoever received the ABSTUDY payment. Exceptions to this are where:

• a parent/guardian becomes responsible after redirecting payments to a private board provider for an approved boarding student
• the applicant for ABSTUDY becomes responsible after obtaining payments fraudulently. This is whether the ABSTUDY payments go to the applicant, another person or to an institution
• the applicant remains the responsible debtor during any period for when a payment nominee arrangement is in place where the nominee acted in the best interest of the applicant

Debts arise under the Student Assistance Act 1973.

The ABSTUDY Smart Centre Processing team manages ABSTUDY debts for:

• Students
• Apprentices
• Parents/Guardians
• Third Party Organisations

The Compliance team manages ABSTUDY debts for Compliance reviews.

ABSTUDY payments are part of the student's taxable income for taxation purposes if the student is over 16 years of age. Adjust the student's taxation record (either automatically by the system or manually) if an overpayment occurs.