Cancellation or suspension of Assistance for Isolated Children (AIC) 102-10030040

An applicant may have their AIC payments cancelled if:

• they or the student has a change in their circumstances
• they or the student fail to comply with the requirements for payment
• another type of payment is more beneficial, or
• they voluntarily cease payments

Payments may be suspended if:

• a customer is temporarily not qualified for payment, or
• the payment is not payable as a result of:
• changes in their circumstances
• failure to comply with the requirements for payment, or
• details are required to make sure that payments are directed correctly (such as a valid address or bank account details)

The decision to cancel or suspend a customer’s payment is an action which has potentially a great impact on a customer.

Automatic cancellation

Automatic cancellation can occur after reassessments where no continuing entitlement exists. For example, where an AIC applicant advises the student has discontinued study, the coding on the system for this change in circumstances will result in payments being automatically cancelled.

Manual cancellation

Manual cancellation occurs when a Service Officer makes the decision to cancel an applicant's payment based on the AIC Guidelines.

Before a payment is suspended, information must be requested from the applicant. An appropriate request for information must be issued and the appropriate time for a response must have passed. For further information, see the Process page.

For information on requesting information, see Requesting information (CLK).

The decision maker must be satisfied that there is sufficient evidence that the applicant/student is either temporarily not qualified for the payment or the payment is not payable. A decision to suspend a payment has the potential to impact on the applicant and must be made in accordance with legislation and the relevant process to avoid causing financial hardship.

Suspension does not necessarily indicate a loss of qualification, and full arrears may be issued if payment is subsequently restored.

If the applicant has a correspondence nominee, contact must be attempted with the nominee before the payment is suspended.

Applicants must be told of the decision to cancel or suspend their payment. If an automatic letter is not issued by the system, a manual letter must be issued with:

• the reason for the cancellation or suspension
• date of effect
• the information or documentation required to enable payments to be restored
• reference to the relevant act, and
• the applicant's review and appeal rights

When the payment is cancelled or suspended, additional appropriate actions may also be required. For example, issue a letter, code a manual review, record details of the decision on a DOC, etc. For further information, see the Process page.

When making an unfavourable decision, speak to the customer:

• explain the decision
• give them a chance to provide more information, and
• advise their review and appeal rights

Explain the reason for cancellation or suspension. Tell the applicant what documents are required or what is required for the payment to be restored.