Circumstances when the Parental Income Test (PIT) does not apply 108-02020030

Not all ABSTUDY allowances are affected by the PIT. The following allowances are affected by PIT:

• ABSTUDY Living Allowance
• Rent Assistance
• Remote Area Allowance
• Pharmaceutical Allowance
• means test component of the School Fees Allowance Group 2
• AIC Additional Boarding Allowance (ABA)

The PIT will not apply to a dependent YA or ABSTUDY customer during the period where at least one of their parent(s)/guardian(s) receives a certain social security benefit or pension, ABSTUDY Living Allowance or a Department of Veterans' Affairs (DVA) payment.

The parent(s)/guardians(s) are not taken to be receiving an income support payment if:

• they are serving an Income Maintenance Period that reduces their rate to nil
• they are in an employment income nil rate period
• the income support payment is cancelled or suspended, or
• have an AGE/CZR PLS status (indicating receipt of Home Equity Access Scheme (HEAS) payments only)

Note: an additional exemption applies to dependent AIC and ABSTUDY customers if a parent holds a current Health Care Card.

Subject to notification provisions affecting ABSTUDY and AIC, the PIT exemption applies from the date the parent commences to receive the payment or hold a current HCC until the payment or HCC ceases.

A parent/guardian commencing or ceasing to receive a certain social security benefit or pension, ABSTUDY Living Allowance or a DVA payment is a notifiable event. Where a parent/guardian contact to advise a change in circumstances that reassesses their eligibility to such a payment, the date they notify is deemed as the Date of Event. If that change has a negative impact on the YA, ABSTUDY or AIC customer which results in a debt, see Raising Parental income debts for information on how these overpayments are managed. If the customer or parent advise there is another sibling also receiving YA or ABSTUDY or attracting AIC ABA, the sibling's record should also be reassessed if necessary.