Determining the Entitlement End date for the Assistance for Isolated Children (AIC) Scheme 106-05010140

An AIC student is generally eligible to 31 December if they continue to study to the end of the school year. Short-term boarders are eligible to the date they cease to board.

If the student ceases study before the end of the school year they would be eligible to be paid to the date they last attended class. Students who discontinue on the last day of a term other than the final term, are paid to the later of:

• the end of the relevant instalment period, or
• the last date of the school term

This may result in a debt, even if an applicant notifies within 14 days, because most AIC payments are made in advance. Students are not eligible for AIC from the date they stop boarding or living in a second home, cease undertaking distance education or approved home schooling.

AIC debts are usually the responsibility of the applicant. Funds paid incorrectly to a third party, such as an educational institution, may be recovered in some circumstances. Check to confirm which party directly received the payment.

Students may continue to be eligible for AIC as a deemed isolated student under the continuity of schooling concession.

If the student has resumed study:

• in the new term no later than the 14th day of the term (or if they were prevented from doing so due to unforeseen circumstances), they are eligible for the allowance applicable to that term from the beginning of the vacation period
• after the 14th day of the term, they are only eligible for the allowance applicable to that term from the date they resumed study

AIC is intended to assist students at primary, secondary or tertiary level, who cannot attend an appropriate state school due to geographical isolation or other reasons specified in AIC policy.

Therefore, AIC is only available for a tertiary student whose study comes under the state and territory minimum education or training requirements. This means a student who:

• has chosen TAFE or vocational education and training level study instead of attending a secondary school; and
• meets the geographical isolation rules in relation to the nearest appropriate state school

This means Services Australia is unable to approve AIC for a higher education student, because they are no longer required to attend an appropriate state school.