Assessing and coding parental income for ABSTUDY, Assistance for Isolated Children (AIC) Scheme and Youth Allowance (YA) 108-02010090

Sam receives YA as a dependent person. Sam's YA has been suspended because Services Australia did not receive their parent(s)/guardian(s) actual taxable income by the estimate review date recorded on the Household Income and Assessments (NHI) screen plus 21 days.

Sam uploaded their parent(s)/guardian(s) tax Notice of Assessment (NOA) on 1 March and is asking for payment to be restored.

Key information

• Sam's payment was suspended on 10 February
• Sam called and uploaded the required information on 1 March
• Estimated income and actual income are both above the PIFA
• Estimate recorded on NHI is $70,000
• Actual income is $62,000

As the actual income is lower than the estimate, a debt will not be generated. The Service Officer must update NHI with the actual taxable income and complete a restoration within the same activity.

Outcome

• As the actual income is less than the estimate, the system may generate arrears from the event date recorded on NHI 1 January
• Sam is only entitled to arrears from the suspension date (10 February)
• Sam has provided their parent's actual taxable income on 1 March, after the suspension date
• Service Officers must zero off any arrears from NHI Event Date to the day before the date of suspension date for the period 1 January to 9 February if they appear
• Sam's new rate of payment based on their parents' actual taxable income applies from the date their payment resumed 10 February

Josh receives YA as a dependent person. Josh's YA has been suspended because they did not provide their parent's actual taxable income by the estimate review date recorded on NHI plus 21 days.

Josh contacts Services Australia and advises their parent's tax Notice of Assessment (NOA) was uploaded on 13 March and is asking for their payment to be restored.

Key information:

• Josh's YA was suspended on 10 February
• Josh uploaded their parent's NOA on 13 March
• Josh contacted on 25 March
• Estimate recorded was $56,000
• Actual income is $67,000

Outcome

• As the actual taxable income is higher than the estimate and PIFA, the system will generate an overpayment
• The NHI update with actual income of $67000, will result in an overpayment sent for investigation
• As Josh uploaded their parent’s NOA within 13 weeks of the suspension date, Josh is entitled to arrears from the suspension date
• Josh's YA will be restored in a second activity to prevent arrears being offset by an overpayment
• Josh's rate of payment is based on their parent's actual income from the date their payment resumed 10 February. The system will correctly calculate their rate from this date

Josh is entitled to arrears from 10 February until 12 March based on the actual income of $67,000.

Sarah is receiving Youth Allowance (YA) as a dependent person. Sarah's payment has been suspended because they did not provide their parent(s)/guardian(s) actual taxable income by the estimate review date recorded on NHI plus 21 days.

Sarah contacts Services Australia as their parent(s)/guardian(s) have not received their tax Notice of Assessment (NOA) and wish to provide a new estimate. Sarah contacts with their mother on 19 April.

Key information

• Sarah has an entitlement period code of 'C' on the Centrelink Payments calendar with last EPED on 13 April
• Payment suspended on 15 April
• Sarah calls on 19 April
• Estimate recorded is $30,000
• New estimate provided by parents is $40,000

Outcome

In this scenario, the previous and new estimates provided are both below the PIFA, and an entitlement period end date (EPED) has not passed since Sarah's payment was suspended. This means Sarah is not entitled to arrears as they are already receiving the maximum rate, and there are no outstanding EPEDs.

The Service Officer should update NHI with the new estimate, record a new review date and restore the payment within the same activity.