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

Is the customer under 18 years of age, and lodging a claim as a dependent?

• Yes, and they are claiming or receiving:
• Youth Allowance (YA), a MOD JY is required to set up or confirm the correct payment destination declared by the parent. See Table 2 > Step 1
• ABSTUDY as a secondary student, a MOD JY is required to set up or confirm the correct payment destination declared by the parent. See Table 2 > Step 1
• ABSTUDY as a tertiary student or Australian Apprentice, go to Step 2
• No, and the customer is:
• under 22 years of age, go to Step 2
• 22 years of age or older, the customer is independent. A MOD JY is not required. Procedure ends here

Parental Income Test (PIT) information is generally only required for dependent customers, though it is required for some independence criteria, see Independence for Youth Allowance (YA) customers or Independence for ABSTUDY customers.

If the customer is claiming UTLAH, Parental Income Test (PIT) information is not required unless the customer has asked to be assessed as dependent:

• while the UTLAH decision is pending, or
• after UTLAH has been rejected

If the customer is:

• not claiming UTLAH, or has asked to be assessed as dependent pending the UTLAH outcome, or after UTLAH has been rejected, go to Step 3
• claiming UTLAH and has not asked to be assessed as dependent, a MOD JY is not required
  Note: if the customer does not want a dependent assessment, their claim for payment will be held until a UTLAH decision has been made. Procedure ends here

Note: if customer initially claimed as UTLAH and this has been rejected, and the customer has advised they do not want to be assessed as a dependent do not request a MOD JY. Reject the claim. For:

• ABSTUDY, see Rejecting an ABSTUDY claim
• YA (student and apprentice), reject the claim PIA (Parental Income and Assets Not Provided). See Table 3 in Assessing and coding student and Australian Apprentice claims for Youth Allowance (YA)
• YA job seekers, reject the claim PIA (Parental Income and Assets Not Provided). See Table 3 in Processing Youth Allowance (YA) (job seeker) claims

Have the parent(s)/guardian(s) previously lodged a MOD JY for this customer for any YA or ABSTUDY claim in the same calendar year?

• Yes, go to Step 4
• No, go to Step 5

Has there been a change to the parental circumstances since the parent(s)/guardian(s) previously lodged a MOD JY?

• Yes, a MOD JY is required. See Table 2 > Step 1
• No, a MOD JY is not required. Note: Claims lodged between September and December request parental income for both the base and current tax years. If the current year is not collected, the claim can be assessed with only the base tax year information. An Annual Parental Income review will issue automatically after the claim is granted to collect current year information. Procedure ends here

Do not request a MOD JY if:

• the customer has a dependent sibling receiving YA or ABSTUDY
• the relevant PIT details are on the siblings Household income Assets (NHI) screen, and
• MIT information is not needed for the assessment

Note: do not tell the customer about parental income or re-using data from a sibling record for privacy reasons. If necessary, tell the customer:

Services Australia already has information on record. Your parent(s)/guardian(s) do not need to provide any more details.

Are PIT details available on a sibling's record and MIT information is not needed?

• Yes:
• the PIT information from the sibling's record can be used
• a MOD JY is not required
• see Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA)
• No, go to Step 6

Is the Maintenance Income Test (MIT) applicable to the customer?

• Yes, and MIT information:
• is recorded, on the MIT Youth screen in Process Direct, go to Step 7
• is not recorded, a MOD JY is required. See Table 2 > Step 1
• No, go to Step 7

Check if there is confirmed current PIT information already available on the customer's NHI screen from a previous assessment for the relevant tax year.

Where the relevant tax year is the current tax year and an estimate is recorded, the estimate Review Date must be after the date the claim is being finalised

Is there confirmed current PIT information on the customer's NHI screen?

• Yes, a MOD JY is not required. Procedure ends here
• No, a MOD JY is required. See Table 2 > Step 1

Encourage parent(s)/guardian(s) to complete the MOD JY using the Advise Parental Income (API) online service.

Can the parent(s)/guardian(s) complete the MOD JY using the API online service?

• Yes, go to Step 3
• No, and the parent(s)/guardian(s):
• can complete a verbal MOD JY at the time of contact, go to Step 2
• cannot complete a verbal MOD JY at the time of contact, go to Step 4

Accept a verbal MOD JY where the parent(s)/guardian(s) can provide all the required details at the time of contact.

Confirm with the parent(s)/guardian(s) that:

• the details they are providing are correct, and
• they acknowledge that giving false or misleading information is a serious offence

Note: income details can be sourced from existing data on the parent(s)/guardian(s) record. See Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA).

Record details in a Fast Note on the customer’s record- select Auto Text:

• for students use Students, ABSTUDY & Apprentices > Claims - Students > Verbal MOD JY
• for apprentices use Students, ABSTUDY & Apprentices > Claims - Apprentices > Verbal MOD JY
• for job seekers use Jobseekers > Claims > Verbal MOD JY
• Select Confirm
• Edit auto text with the details provided by the parent(s)/guardian(s)
• Select Continue to complete the DOC

To update parental income details based on the verbal MOD JY, see Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA).

Procedure ends here.

Parent(s)/guardian(s) can use API online service where:

• they can provide all details for both parents/guardians, and
• a dependent customer has lodged an online claim for YA or ABSTUDY
• parent(s)/guardian(s) have had a change in circumstances that has triggered a PIT review letter, or
• an annual PIT review letter has been sent to the dependent YA or ABSTUDY customer

Parent(s)/guardian(s) need an access code to use the API online service. Depending on the reason the information is required, this can be a:

• One Time Access Code (OTAC) for PIT reviews, or
• Verification Code for online claims

Note: If the OTAC is not working for the parent/guardian, see Troubleshooting Centrelink self service and return to this step.

If a PIT review letter is misplaced or lost, issue a replacement letter.

Can the parent(s)/guardian(s) use the API online service?

• Yes, see Table 3 > Step 1
• No, go to Step 4

Parent(s)/guardian(s) unable to use the API online service, or who cannot provide information for a verbal MOD JY at the time of contact, can use the MOD JY paper form. The form can be downloaded from the Service Australia website or issued using the Mail Forms guided procedure in Customer First. The MOD JY paper form can also be used:

• Instead of the Parent(s)/Guardian(s) details section of the Claim for Youth Allowance (SY001) or Claim for ABSTUDY (SY019) forms, when they do not want the customer to know details of their income and assets
• When there has been a significant change to the parental income. See Increase or decrease in parental income for Youth Allowance (YA), ABSTUDY and Assistance for Isolated Children (AIC)
• When there is a change of parents. See Changes which may affect the Parental Income Test (PIT)

When a MOD JY paper form is returned, see Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA).

Parent(s)/guardian(s) can access the API online service:

• from the Income and Assets > Family or parental income > Advise parental income menu in their Centrelink online account, or
• by searching for 'Advise Parental Income' on the Services Australia website

How the parent/guardian accesses the service will determine the questions asked. For example, a parent/guardian will not be asked to provide their CRN if they access the service through their Centrelink online account.

To assist the parent(s)/guardian(s) in completing the API service, go to Step 2.

To find and view parental information submitted, go to Step 8.

Upon first access, parent(s)/guardian(s) are presented with the Select what you want to do page.

There are four options to choose from, as follows:

"You are required to provide parental details:

• using a One Time Access Code (OTAC) printed on a letter sent to your child or their nominee
• for your dependent child's new claim for Youth Allowance using a Verification code provided to your child, or
• for your dependent child's new claim for ABSTUDY Living Allowance using a Verification code provided to your child
• for your child's new claim for Tertiary Access Payment using a Verification code provided to your child”

Parent(s)/guardian(s) choose the relevant option.

The parent(s)/guardian(s) then need to complete 3 sections:

• Provide basic details
• Provide financial details
• Review and submit

They must complete each section before they can move to the next. The API may not ask all questions, depending on what information is already recorded for them, and whether the parent(s)/guardian(s) is completing the API through their Centrelink online account.

The Provide basic details section asks for the following:

• Name
• Date of birth
• Tax File Number (TFN)
• CRN (if known)
• If they receive a government payment
• Address
• Telephone number, and
• if they have a partner

Parent(s)/guardian(s) with partners also need to provide their partner's:

• Name
• Date of birth
• TFN, and
• CRN (if known)

Dependent children will show on the Child details summary when submitting the API through Centrelink online services.

Parent(s)/guardian(s) need to select Add child if any children are missing. The service will ask if they have a One Time Access Code (OTAC) or verification code.

If the parent/guardian selects:

• Yes, they must enter the OTAC/Verification Code and child's CRN
• No, the API will ask for the child's full name, CRN and date of birth

Parent(s)/guardian(s) must select:

• Add to include a child in the assessment
• Add another if they have more than one child claiming/receiving a payment

For claims, parent(s)/guardian(s) can only add more children for the same claim type. For example, if one child claims YA and another claims ABSTUDY, they must complete separate APIs.

Note: if the OTAC or verification code does not work, another one cannot be issued. See Troubleshooting Centrelink self service and return to this step.

Parent(s)/guardians(s) will need to provide their information verbally or use a paper MOD JY.

Parent(s)/guardian(s) may need to confirm their family home address.

If the system cannot find the exact coordinates of the family home, it will ask the parent(s)/guardian(s) to:

• locate the family home on a map, or
• enter the latitude and longitude of the family home

This information is used to assess entitlement to Relocation Scholarship.

For claims, parent(s)/guardian(s) will be asked if:

• they receive voluntary maintenance
• they are getting a payment from another government department. If so, they must provide more details
• their income will decrease substantially from the base tax year to the current tax year. If so, they must confirm if the reduction will last 2 years or more, and
• they currently pay rent. If so, how much

Note: rent details are used to assess the Maximum notional Family Tax Benefit (FTB) rate (as applied to Youth Payments only) when calculating the family pool.

Parent(s)/guardian(s) must confirm:

• the date of issue of the Notice of Assessment (NOA), and
• their taxable income for the relevant tax year, if already assessed by the ATO

Parent(s)/guardian(s) who do not have their NOA, must provide:

• an estimate of their taxable income for the relevant tax year, and
• when they expect to receive their NOA

If not required to lodge a tax return, parent(s)/guardian(s) will be asked why. For example, because their income was less than the tax-free threshold.

The system will not present the full financial details questions, where the parent(s)/guardian(s):

• are receiving a payment or service that exempts the dependent YA or ABSTUDY customer from PIT, or
• their actual taxable income details for the relevant tax year are on the FAO Income for Previous Year (FIPY) screen. See Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA)

Parent(s)/guardian(s) must confirm the following details for themselves and their partner (if applicable) to complete the service:

• Taxable income
• Reportable Fringe Benefits
• Foreign income
• Net investment losses
• Child maintenance paid
• Tax-free pensions and benefits
• Reportable superannuation contributions

Note: if the parent/guardian is receiving compensation and they are unsure if it is taxable or not, tell them to contact the Australian Taxation Office.

Where the parent/guardian has indicated a decrease in income that will last for 2 years or more, they may be asked income questions for the base tax year and the current tax year.

If a PIT parent has indicated they are not required to lodge a tax return, they are required to provide responses for all the above income sources, but the API may only ask for:

• foreign income
• tax-free pensions and benefits, and
• maintenance paid

A MOD JY form or verbal MOD JY is needed where the API has not asked a confirmed non-lodger for income from all sources.

Parent(s)/guardian(s) must accept the declaration on the Review and submit page before they can submit their API. They must agree that:

• the details they have provided are correct, and
• they acknowledge that giving false or misleading information is a serious offence

When they submit their details, the service:

• may ask for:
• their NOA (for estimates, the API will ask for this to be supplied within 14 days of issue)
• evidence of a decrease in income
• will provide a receipt number

For new claims, extra information requested through the API must generally be supplied within 14 days from the:

• claim commencement, or
• submission date (where the customer is vulnerable)

To review the parent(s)/guardian(s) details, go to Step 8

Information provided using the API is only available to view in Process Direct.

To view the details provided using the API service for:

• go to the Transactions icon
• select the Review - PIT Review transaction
• view Notes to see the reason the system was unable to automatically apply the review details provided
• select the transaction overview slider to review the parental details provided

To assess the PIT review, see Youth Allowance (YA) and ABSTUDY Parental Income Test (PIT) reviews

• go to the Transactions icon
• select the claim transaction
• select the Transaction Ref No for the Online MOD JY via the Tasks icon, or
• select the claim overview slider, and toggle to the MOD JY tile

Parent(s)/guardian(s) accessing the API online service in Centrelink online services may not be asked all the parental income questions, depending on information already held on their record. When this occurs, only the parental income collected from the API will be displayed.

For the relevant tax year, the API asks a reduced question set where there is an amount on the PIT parent’s FAO Income for Previous Year (FIPY) screen in the:

• Actual Income table in Process Direct, or
• Actl AMT column in Customer First

Occasionally the API will ask this reduced question set where there is no actual income on the FIPY screen. For claims, where confirmed PIT information cannot be sourced from anywhere, attempt a verbal MOD JY. If unsuccessful, issue a paper MOD JY. See Requesting information (CLK).

Parents who advise through the API of a decrease in income that will last for at least 2 years will be asked for evidence of this when they submit their update. This request does not appear in the MODJY online form submitted DOC. To assess the claim, see:

• Assessing and coding student and Australian Apprentice claims for Youth Allowance (YA)
• Processing Youth Allowance (YA) (job seeker) claims, or
• Processing an ABSTUDY claim