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Restoration of Assistance for Isolated Children (AIC) 102-10040040



Adjusting arrears example

Table 1

Item

Example

1

Term instalment adjustments on the One Off Payment (OOP) screen

The full AIC Term 1 instalment of $1,274.54 was paid on 24 January 2025 in AMR 78.

AIC payment was cancelled (CAN-FRC) on 20 February 2025 in AMR 79, which raised an overpayment of $566.46 for the period 20 February 2025 - 31 March 2025.

AIC payment was restored on 11 March 2025 in AMR 80, which generated arrears for Term 1. However, because the AIC payment had already been paid for the full Term 1 instalment, the arrears need to be adjusted.

Adjust the arrears

When the restoration activity is taken to the Assessment Result (AR) screen in Customer First:

  • on the left-hand menu expand the double chevron next to 'Assistance for Isolated Children'
  • select One Off Payment (OOP)

The Amount$ column shows the original amount paid 1,274.54 and the AMR column shows 78D79, indicating the AMR that issued the payment and the AMR that caused the overpayment.

The Amount$ column also shows a line of 708.08, with AMR column showing 79X80, indicating the previous entitlement based on the cancelation.

As the Assessment Result (AR) screen is showing an arrears payment of $566.46, the system is reducing the full term instalment by the previous entitlement amount ($708.08). Therefore, the Amount$ column on the provisional AMR 80 line is to be adjusted down to 708.08 to result in a net zero outcome, so the Assessment Result (AR) screen no longer displays arrears to be issued.

Note:

  • If the payment is restored via a new claim, the OOP screen must be adjusted to '0' because the previous entitlement is not recognised
  • If arrears are still showing on the Assessment Result (AR) screen where no further entitlement exists, the adjustment amount on the OOP screen is incorrect

The overpayment on the applicant's record is to be Finalised No Debt (FND).

Restoration or new claim examples

Table 2

Item

Example

1

AIC cancelled on 1 January - no gap in entitlement

In 2025 Alex received AIC for a child named Jamie. The AIC EOY Review was not returned, so AIC was cancelled from 1 January 2026.

Alex later contacts to request restoration of AIC, and confirms Jamie is continuing study, and there have been no changes to their circumstances.

As there is no AIC claim for 2026 and no gap in entitlement, the AIC EOY Review must be provided before AIC can be restored.

Alex completes the verbal AIC EOY review, and AIC is restored for Jamie.

2

AIC cancelled on 1 January - gap in entitlement

In 2025 Darcy received AIC for a child named Bailey while they were being homeschooled. The AIC End of Year (EOY) Review was not returned, so AIC was cancelled from 1 January 2026.

Darcy later contacts to request restoration of AIC and advises that Bailey commenced face to face schooling in Term 1 2026. After five weeks, this arrangement was found to be unsuitable and Bailey returned to homeschooling.

As there is no AIC claim for 2026 and there is a gap in entitlement, AIC cannot be restored. A new AIC claim is required for Bailey for the 2026 calendar year.

3

AIC cancelled more than 15 weeks in the past - no gap in entitlement

In 2026 Morgan received AIC for a child named Robin. AIC was cancelled on 1 February 2026 because the required information was not provided.

Morgan contacts on 25 June 2026 and provides the required information. Robin continues to meet all AIC eligibility requirements.

As more than 15 weeks have passed since the cancellation date, due to system limitations a new AIC claim must be indexed and assessed to restore payment.

4

AIC cancelled less than 15 weeks in the past - gap in entitlement

In 2026 Sasha received AIC for a child named Harper. AIC was cancelled on 1 March 2026 because a term enrolment check confirmed that Harper ceased full time studies.

Sasha contacts on 20 April 2026 and advises that Harper has now recommenced full time studies and circumstances have not changed. Sasha uploads proof of full studies. Harper now meets all AIC eligibility requirements again.

Although eligibility is re-established within 15 weeks of the cancellation, due to the gap in entitlement a new AIC claim must be indexed and assessed to restore payment.

5

AIC cancelled more than 15 weeks in the past - gap in entitlement

In 2026 Casey received AIC for a child named Quinn. AIC was cancelled on 1 May 2026 because Quinn ceased home schooling.

Casey contacts on 9 October 2026 and advises that Quinn has now recommenced home schooling.

As the cancellation of AIC occurred more than 15 weeks in the past and there is a gap in entitlement, AIC cannot be restored. Casey must lodge a new claim for AIC.