Assessing and coding parental income for ABSTUDY, Assistance for Isolated Children (AIC) Scheme and Youth Allowance (YA) 108-02010090
This page contains the process for assessing and coding parental income for ABSTUDY, AIC Scheme Additional Boarding Allowance (ABA) and Youth Allowance (YA) customers.
On this page:
Coding parental income when Youth Allowance (YA) payment is suspended
Assessing parental income
Table 1:
Step |
Action |
1 |
Parental income actual income or reasonable estimate + Read more [1] See Parental Income Test (PIT) for a description of all sources of income that are assessed under the PIT. Select one of the options below: Actual income + Read more [2] If actual income is being provided, check if the income needs to be verified. See documents accepted as evidence of parental income. If a request for evidence is required, see Requesting information. If the customer is on:
Estimate + Read more [3] Service Officers recording an estimate of parental income, should only accept the estimate if it is considered reasonable. For YA customers, see Increase or decrease in parental income for Youth Allowance (YA), ABSTUDY and Assistance for Isolated Children (AIC) Scheme. Services Officers must request written verification/evidence if the estimate is not reasonable or there is doubt in the information supplied. To request evidence, see Requesting information. If the estimate is reasonable and the customer is on:
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2 |
Check if YA payment is current or suspended + Read more [4] Does the customer receive YA, and their payment is suspended?
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3 |
What action is needed? + Read more [5] If the update is to:
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4 |
Coding estimates on the Household Income and Assessments (NHI) screen + Read more [6] To code estimates select below: Customer First or Customer Record + Read more [7] If updating in Customer First or Customer Record, make sure to select the correct system. For:
ABSTUDY or YA For ABSTUDY or YA, update the NHI screen:
AIC ABA For AIC ABA update the NHI and EILA screens. Suitable proof of income must be provided to confirm the advised parental income for payment of ABA.
Process Direct (ABSTUDY and YA) + Read more [8]
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5 |
Extension requested to provide actual income + Read more [9] Before extending the Parental Income Test (PIT) estimate review date, check the parent(s)/guardian(s)' FAO Income for Previous Year (FIPY) screen. If there is verified actual income for the relevant financial year, go to Step 7. For YA or ABSTUDY Living Allowance: In Customer First, update the existing NHI entry:
In Process Direct, edit the existing NHI entry:
When the review date on the NHI screen is reached, a letter is issued requesting verification of the estimated income. If there is no reply within 21 days, the customer's payment automatically suspends PIE - Failed to verify Parental Income. If the evidence is still not available, an extension may be given to restore the customer's payments. For ABSTUDY Living Allowance, when the review date on the NHI screen is reached, a Manual Follow-up (MFU) is created with the review reason PIT Estimate Reminder PIT Estimate Review. This MFU is not required and can be cancelled. Procedure ends here until verification of actual income supplied. For AIC ABA: Suitable proof of income must be supplied for payment of ABA. If the Annual Board Fees amount on the EILA screen:
Procedure ends here. |
6 |
Verification of parental income + Read more [10] Parent/guardian has provided actual income, including where they have previously provided an estimate and has now provided actual income details. Any parent/guardian who is:
Notice of Assessment (NOA) consideration: A superannuation withdrawal under the First Home Super Saver (FHSS) Scheme is not included as assessable income for calculating the Parental Income Test. The treatment of these withdrawals is different between Services Australia and the ATO:
If the parent(s)/guardian(s)' FAO Income for Previous Year (FIPY) screen has been updated with verified actual income, use this information. However, if the parent/guardian contacts:
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7 |
Coding actual parental income + Read more [11] Update the NHI screen when verification of the parental income is provided, or available via the parent(s)/guardian(s) FIPY screen. In Customer First:
For AIC: code the Annual Boarding Fees field on the EILA screen with the actual boarding costs for that year
In Process Direct (ABSTUDY and YA):
The system will automatically code $1 in the Taxable Income: field on NHI if income of $0 is coded. This is to avoid the payment cancelling PIA (Parental Income and Assets Not Provided) inappropriately.
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8 |
Overpayment occurs because of parental income update + Read more [12] The system will create an overpayment where:
The system will create an overpayment from the entitlement period which commenced immediately before:
Until the Entitlement Period End Day (EPED) of when the customer was last paid. Where an overpayment has occurred for a YA customer:
For ABSTUDY and AIC customers, see Raising Parental Income Test (PIT) debts. |
9 |
Arrears because of parental income update + Read more [13] For YA If YA payment is current and NHI is being updated with a date of receipt (DOR) that is between:
If the arrears are not correct Service Officers must determine if:
Where a manual adjustment is required, Service Officers must complete this using the Rate Details (RATS) screen in Customer First, or the Daily Rate Component (RAC) screen in Process Direct. See How to manually calculate arrears
Where arrears have been incorrectly paid, Service Officers will need to Create a 'Stop Payment'. For ABSTUDY ABSTUDY customers are entitled to arrears for any period where:
Service Officers must check the NHI screen to ensure arrears are paid from the Event Date to the date the customer was last paid. For AIC AIC applicants are entitled to arrears for ABA for any periods where:
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10 |
Finalise the Activity + Read more [14] Once all actions have been taken, finalise the activity via
Record details in a DOC including any of the following information where appropriate:
It is important to record any additional information as per the GIR DOC Minimum Standards. Service Officers with relevant skills, must select all activities/scans to complete on the customer's record. This will ensure that once all work is completed, that all relevant work items are completed. |
Coding parental income when Youth Allowance (YA) payment is suspended
Table 2
Step |
Action |
1 |
Payment is suspended + Read more [15] If YA is suspended, to restore the payment Service Officers may need to:
Two separate activities are sometimes necessary to prevent arrears being offset by an overpayment that needs to be reviewed by Service Officers trained in Debt Raising. If the customer:
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2 |
Check the new income estimate or actual income amount + Read more [16] Is the new income estimate or actual taxable income higher than the estimate currently recorded on NHI, and Parental Income Free Area (PIFA)?
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3 |
Update the NHI screen + Read more [17] Update NHI with the income amount provided. In Customer First:
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4 |
Restoring the payment + Read more [18] When the NHI screen has been updated and finalised, in a separate activity go to the Benefit Action (BA) screen In Customer First:
Has the system created an arrears payment?
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5 |
Extension requested to provide actual income + Read more [19] In Customer First:
In Process Direct:
On the Review Date, the system automatically sends a letter asking for verification of the estimated income. In the same activity, go to the Benefit Action (BA) screen to restore the payment:
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6 |
Coding a new estimate or actual parental income + Read more [20] Update the NHI screen with the:
In Customer First:
In the same activity, go to the Benefit Action (BA) screen to restore the payment
If the system has created arrears, go to Step 7. Otherwise, go to Step 9. |
7 |
Arrears from PIT update + Read more [21] This information is for arrears generated from the PIT reassessment only. To work out a customer's entitlement to other arrears generated, see Payment of arrears after reassessment and stopping a payment. If the arrears from the PIT update have been created from the:
Is a manual adjustment required?
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8 |
Manual adjustment of rate + Read more [22] Where a manual adjustment is required, this must be completed via the Rate Details (RATS) screen in Customer First In Customer First:
If Service Officers encounter E241NS – Basic rate entered cannot be more than $XXX.XX when adjusting RATS, do not finalise the activity. Service Officers must contact Local Peer Support (LPS) to have the record escalated to a Service Support Officer (SSO). The SSO will need to issue a PYAJ. See Technical Support Model. |
9 |
Finalise the activity + Read more [23]
Once all appropriate actions have been taken, finalise the activity via
Service Officers with relevant skills, must select all relevant activities/scans to complete on the customer's record. This will make sure that once all work is completed, that all relevant work items are completed. |