Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY) 106-07100080

A MOD JY is used to collect parent(s)/guardian(s) details, such as:

• Relationship details
• Base tax year income
• Current tax year income
• Family home address, for Relocation Scholarship purposes
• Bank account destination for under 18 year olds
• Sibling details for Family Pool purposes
• Parent(s)/Guardian(s) Tax File Number (TFN)

These details are used to assess dependent Youth Allowance (YA) and ABSTUDY customer's entitlement under the Parental Means Test.

One parent or guardian can respond for both parent(s)/guardian(s) if they know the details required for all parties.

Parent(s)/guardian(s) can submit a MOD JY:

• online using the Advise Parental Income (API) online service:
• in paper MOD JY form. This can be:
• posted to the customer
• posted to the parent(s)/guardian(s) overseas address (if known), or
• downloaded from the Services Australia website
• verbally, for
• for ABSTUDY customers only:
• using the ABSTUDY Claiming Tool, or
• Claim for ABSTUDY (SY019) form

Note:

• A verbal MOD JY must be recorded using the Verbal Mod JY Fast Note
• Parent(s)/guardian(s) living permanently overseas who do not know their Customer Reference Number (CRN) must complete a paper MOD JY

The main income components collected in the MOD JY are:

• Taxable Income
• Foreign Income
• Maintenance Paid
• Maintenance Received
• Passive Business/Investment loss
• Reportable Superannuation
• Tax Free Pensions/Benefits
• Reportable fringe benefits

Note: consider obtaining income details from existing data on the parent(s)/guardian(s) record. See Process.

For the purposes of the PIT, parent includes:

• natural or adoptive parents, or
• any other person who is taking on parental responsibilities, such as a foster parent or guardian

See Applying the PIT for ABSTUDY and Youth Allowance (YA) and Applying the PIT for Assistance for Isolated Children (AIC).

Consider a parent's partner a step-parent for the Parental Means Test if they are:

• the married or de facto partner of the parent, and
• not the natural or adoptive parent of the dependent YA or ABSTUDY customer

Include the step-parent's income for the Parental Means Test, when

• they live with the parent, and
• the customer normally lives with both the parent and step-parent

Apply this from the date the parent and step-parent normally live together. This includes events occurring while the customer is absent from the home, but normally lives with the parent.

A MOD JY is required to collect details from the parent/guardian of a YA or ABSTUDY customer if:

• Current PIT details for the relevant tax year are not already recorded on either:
• the customer’s record, or
• the record of a dependent sibling receiving YA or ABSTUDY, where Maintenance Income Test (MIT) information is not required
• The parent/guardian has not supplied their details in the:
• YA or ABSTUDY online claim
• Claim for Youth Allowance form (SY001)
• ABSTUDY Claiming Tool, or
• Claim for ABSTUDY (SY019)
• The customer is under 18 years of age, to set up or confirm the correct payment destination declared by the parent
  Note: this does not apply for ABSTUDY tertiary students and Australian Apprentices under 18 years
• A current tax year assessment, rather than a base tax year assessment, is appropriate
• There have been certain changes to the parent(s)/guardian(s)' circumstances. See Changes which may affect the Parental Income Test (PIT)

Note: a MOD JY may be required even when a PIT parent receives a social security benefit, or pension, ABSTUDY or a Department of Veterans' Affairs (DVA) payment. See the Process page to determine if a MOD JY is required.

In some cases, a MOD JY is not required. For example, when the customer is claiming Unreasonable to Live at Home (UTLAH).

There is no need to get parent(s)/guardian(s), customer or sibling permission to re-use parental information previously provided or recorded. See Parental Income Test (PIT) for more information.

Receipt by a PIT parent of a social security benefit, or pension, or a payment paid by the Department of Veterans' Affairs (DVA) is not sufficient reason to not collect a MOD JY. See the Process page for full details on when a MOD JY is not required.

The base tax year is the default tax year to assess for the PIT. Where there has been a substantial change in parental income since the base year, a current tax year assessment may be appropriate.

The details required for the assessment depend on:

• the time of year, and/or
• the parent or guardian's circumstances

See Increase or decrease in parental income for Youth Allowance (YA), ABSTUDY and Assistance for Isolated Children (AIC).

MOD JY for claim or reassessment between 1 January and 31 August.

Parent(s)/guardian(s) completing a MOD JY between 1 January and 31 August must provide details for the base tax year.

If their income has decreased and the change will last 2 financial years, they should provide details for:

• the base tax year, and
• the current tax year

MOD JY for claim or reassessment between 1 September and 31 December

Parent(s)/guardian(s) completing a MOD JY between 1 September and 31 December are asked for details of:

• the base tax year, and
• the current tax year

Parent(s)/guardian(s) may not have their current tax year income details. For example, income tax returns not lodged or Notice of Assessment (NOA) not yet received.

In this case the parent/guardian should provide:

• an estimate of their income, and
• an estimated date the NOA will be available

Note: this does not apply to MOD JY for YA claims for students who are FTB children.

FTB children can choose a 1 January start date for YA payment if they are:

• lodging a YA claim between 1 October and 31 December, and
• completing year 12 in November or December

Only request current tax year details for 1 January start dates.

Parent(s)/guardian(s) completing a MODJY for a student who has lodged an early claim, must provide income for the appropriate year.

Note: see Determining the appropriate tax year for the Parental Income Test (PIT) for Youth Allowance (YA), ABSTUDY and Assistance for Isolated Children (AIC).

The Maintenance Income Test (MIT) includes voluntary maintenance income received by the parent (s)/guardian(s), for the customer. This must be recorded. See Maintenance Income Test (MIT) for ABSTUDY and Youth Allowance (YA).

The API online service allows parent(s)/guardian(s) to give the agency the details required to apply the PIT.

The service can be found:

• under the Income and Assets menu, in their Centrelink online account
• by searching for 'Advise Parental Income' on the agency's website

To use this service, parent(s)/guardian(s) need an access code, which is provided to the customer, in:

• an online claim, located in the MOD JY Task on the Next Steps page is a Verification Code
• an annual PIT review letter is a One Time Access Code (OTAC)
• a PIT review letter, issued when the parent(s)/guardian(s) have had a change in circumstances, is an OTAC

Additional information will need to be provided verbally or via a paper MOD JY when a parent/guardian, who has already submitted information via the API, needs to:

• provide additional information, and
• is unable to reuse their OTAC or verification code