Commencing or returning to work for parents/guardians of ABSTUDY customers 102-07030140

Ask parents/guardians to advise their expected income for the year following the base tax year. Note: if the parent/guardian commences or returns to work after 1 July in the year of study the customer’s payments may not be affected until the following year.

Check the Household Income and Assets (NHI) screen.

Has the parent(s)/guardian(s) combined parental income increased or decreased in the year following the base tax year?

• increased, go to Step 3
• decreased, go to Step 5

Calculate the sum of all components of parental income for the base tax year. Advise the parents/guardians that if the parental income has increased by at least 25% since the base tax year, the PIT may be applied to the income from the year following the base tax year after 30 September.

Does the combined parental income for the year following the base tax year exceed that of the base tax year by 25%?

• Yes, go to Step 4
• No, the student’s entitlement will be based on the income from the base tax year. Record income details on the system and include a DOC. Procedure ends here

Determine whether the combined parental income for the tax year following the base year exceeds 125% of the Parental Income Free Area (PIFA). For the Parental Income Test, see Means test

Compare PIFA x 125% with combined parental income for the tax year following the base year.

• if the combined parental income (or estimate of) exceeds 125% of the PIFA, the appropriate tax year is the tax year following the base tax year. Ask the parent(s)/guardian(s) to provide full details of their income
  Procedure ends here
• code the parental income details on the NHI screen. See Increase or decrease in parental income for Youth Allowance (YA), ABSTUDY and Assistance for Isolated Children (AIC) Scheme to code the changes. Note: follow up any possible overpayment. Record income details on a DOC. Procedure ends here
• if the combined parental income (or estimate of) does not exceed 125% of the PIFA, the appropriate tax year is the base tax year. Code the income from the base tax year on the system on the NHI screen. Record income details on a DOC. Procedure ends here

If the customer's combined parental income has decreased or will decrease substantially in the year following the base tax year, ask the customer whether the decrease is likely to last for at least two years from either 1 January in the current tax year or the date of the decrease (whichever is the later).

A decrease in combined parental income is considered to be ‘substantial’ if it is enough to give the customer entitlement to ABSTUDY, or would cause an increase in the rate of ABSTUDY.

• Yes, the appropriate tax year is the year following the base tax year, go to Step 6
• No, the appropriate tax year is the base tax year

Ask the parent(s)/guardian(s) to provide details of their income for the current tax year.

Procedure ends here.

Record these details on the NHI screen. See Increase or decrease in parental income for Youth Allowance (YA), ABSTUDY and Assistance for Isolated Children (AIC) Scheme to code the income details.

Record details on a DOC.