ABSTUDY School Fees Allowance (SFA) (Group 2) 010-02050110
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School Fees Allowance Group 2 Invite letter
ABSTUDY Living Allowance and School Fees Allowance Group 2 calculations template
School fees charge
Table 1
Manually calculating payments for SFA (Group 2)
These amounts may not be current. They are examples only. For current payments, see Rates and Thresholds.
For the purposes of SFA (Group 2) School Fees calculations, the student's 'boarding' entitlement, may include Living Allowance, Rent Assistance (RA) and Remote Area Allowance (RAA), may also be known as Living Allowance.
Note: RAA is not included in the calculation of the customer's maximum payment rate or the family pool maximum payment rate.
Table 2: This table describes scenarios for the manual calculation of SFA (Group 2). Rates are examples only. For current rates, see Rates and Thresholds.
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Payment Details (PD) screen display explanation
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Example 1 - Tuition charges lower than tuition entitlement, boarding charges higher than boarding entitlement (transfer of unused SFA (Group 2) to pay boarding costs) Chrissy's usual place of residence is in a remote area. Chrissy's parents receive an income support payment, so Chrissy's entitlements are PIT exempt. Chrissy has been granted ABSTUDY assistance to live away from home for the full academic year and is eligible for the period 1 January to 31 December. The boarding school that Chrissy is attending charges the following amounts:
To calculate Chrissy's maximum ABSTUDY entitlements for the year:
Note: RA entitlement is calculated on the boarding costs of the school, that is $17,480.00/365 x 14 = $670.46, and then applying the 2/3 board and lodging rules: $670.46/3 x 2 = $446.98 per fortnight to be assessed for RA entitlements. This would therefore qualify the student for the maximum rate of RA per fortnight of $139.60. Total Boarding entitlement = $16,172.12 per year ($12,058.05 Living Allowance + $3,639.57 RA + $474.50 RAA) Total Tuition entitlement SFA (Group 2) = $11,011.00 per year. As the boarding charges from the school ($17,480.00) are greater than Chrissy's ABSTUDY boarding entitlement ($16,172.12) there is still $1,307.88 in excess boarding fees Chrissy must cover. To assist with this, Services Australia can assess whether Chrissy will have any unused SFA (Group 2) that can be transferred to cover the excess boarding fees. Calculating entitlement to transfer unused (Group 2) School Fees to pay excess Boarding costs: $11,011.00 maximum SFA (Group 2) entitlement - $1,200.00 school's tuition fees = $9,811 unused SFA (Group 2) available. As the excess boarding amount is only $1,307.88, this is the amount that can be paid to the school. Payments are made on an instalment basis to the boarding school. A calculation of the amount to be paid for each ABSTUDY boarding instalment period must be completed. Using Term 1 as an example, the first instalment has 45 days, so the Payment Details (PD) screen on Chrissy's record would display:
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Example 2 - Tuition charges lower than tuition entitlement, boarding charges lower than boarding entitlement In this example, the boarding school that Chrissy is attending charges the following amounts:
To calculate Chrissy's maximum ABSTUDY entitlements for the year:
Total Boarding entitlement = $16,172.12 per year ($12,058.05 Living Allowance + $3,639.57RA + $474.50 RAA) Total Tuition entitlement SFA (Group 2) = $11,011 per year If the boarding charges of the school are lower than the student's boarding entitlement (Living Allowance + RA + RAA) under the ABSTUDY scheme, the residual amount of boarding entitlement is paid to the applicant (for example, the student), in fortnightly instalments. If the tuition charges of the school are also lower than the student's SFA (Group 2) entitlement, the residual amount of the SFA (Group 2) remains with Centrelink. The applicant is not entitled to receive any residual SFA (Group 2). The only time the residual SFA (Group 2) is paid out is when it is paid directly to the school to assist with excess boarding charges (SFA2B). As Chrissy's boarding charges are only $8,000.00, Chrissy would receive a residual boarding entitlement paid as follows:
For term 1 (45 days in the first ABSTUDY boarding instalment period), the Payment Details (PD) screen on Chrissy's record would display the following components that are paid directly to the boarding school:
The Payment Summary (PS) screen would display an ABSTUDY Basic Payment of $313.45 per fortnight that is paid to the appropriate payee (for example, the student). Note: there will be no SFA2B displayed on the PD screen as Chrissy's boarding entitlement is greater than the boarding charges from the school. As there are no excess boarding charges, there is no need for a 'top-up' of SFA (Group 2). |
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Example 3 - Tuition charges higher than tuition entitlement, boarding charges lower than boarding entitlement In this example, the boarding school that Chrissy is attending charges the following amounts:
To calculate Chrissy's maximum ABSTUDY entitlements for the year:
Total Boarding entitlement = $16,172.12 per year ($12,058.05 Living Allowance + $3,639.57 RA + $474.50 RAA) Total Tuition entitlement (Group 2) SFA = $11,011.00 per year If the boarding charges of the school are lower than the student's boarding entitlement (Living Allowance + RA + RAA) under the ABSTUDY scheme, the residual amount of boarding entitlement is paid to the appropriate payee (for example, the student) in fortnightly instalments. Although there is excess boarding entitlement, it does not transfer to cover the excess school fees if the tuition charges of the school are higher than the student's tuition entitlement. The student must meet the costs. They may wish to forward the excess boarding entitlements they receive fortnightly to the boarding school. However, this can only be done once Centrelink has already paid it to the appropriate payee (for example, the student). As Chrissy's boarding charges are only $8,000.00 and tuition charges are high at $10,000.00, and the excess boarding entitlement does not assist with any excess tuition charges, Chrissy would still receive a residual boarding entitlement as follows:
For Term 1 (45 days in the first ABSTUDY boarding instalment period), the Payment Details (PD) screen on Chrissy's record would display the following components that are paid directly to the boarding school:
The Payment Summary (PS) screen would continue to display an ABSTUDY Basic Payment of $313.45 per fortnight that is paid to the appropriate payee, even though there is an excess in tuition charges owing to the boarding school. Chrissy will need to pay the excess tuition charges direct to the school. |
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Example 4 - Tuition charges higher than tuition entitlement, boarding charges higher than boarding entitlement In this example, the boarding school that Chrissy is attending charges the following amounts:
To calculate Chrissy's maximum ABSTUDY entitlements for the year
Total Boarding entitlement = $16,172.12 per year ($12,058.05 Living Allowance + $3,639.57 RA + $474.50 RAA) Total Tuition entitlement SFA (Group 2) = $11,011.00 per year If the school's boarding charges and tuition fees are higher than the student's boarding and SFA (Group 2) entitlement, there will be no excess School Fees entitlement available to cover the difference. As Chrissy's boarding charges are $17,540.00 and her tuition charges are $13,350.00, Chrissy will have to cover the excess, The Payment Details (PD) screen will display as follows:
There will be no SFA2B displayed on the PD screen as Chrissy's tuition fees are greater than the maximum entitlement to SFA (Group 2) and therefore, there are no unused School Fees that can be transferred to meet the extra boarding costs. Chrissy will need to pay the excess board and tuition charges direct to the school. |
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Example 5 - Parental income above Parental Income Free Area (PIFA) with no siblings in the family pool Tuition charges higher than tuition entitlement, boarding charges higher than boarding entitlement. In this example, Chrissy is not PIT exempt and Chrissy's combined parental income is $84,590.00 with no siblings within Chrissy's family pool. The family pool calculation is still required to be undertaken to ensure the percentages are calculated for Living Allowance and School Fee Allowance Group 2. From 1 January 2020, where ABSTUDY Living Allowance and/or School Fee Allowance Group 2, and FTB payments are issued simultaneously, both amounts will be included in the family pool calculation. Chrissy's Board and Tuition charges:
Calculating Chrissy's maximum entitlement to ABSTUDY Living Allowance will be as follows: Note: Remote Area Allowance (RAA) is not included when calculating the maximum payment rates. See Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA) to calculate the Parental Income Test. Step 1: Calculate the excess parental income.
Step 2: Calculate the fortnightly taper reduction.
Step 3: Calculate Chrissy's Maximum Payment Rate (MPR) for the family pool. The MPR includes the following payment components:
The MPR used for this example is:
Step 4: Deduct the Parental income taper amount of $230.10 from Chrissy's MPR $609.10 = $379.00 per fortnight. ($609.10 - $230.10 =$379.00) Step 5: Calculate the Maximum Notional Family rate (MNFR). The MNFR is the calculation used for the family pool contribution for all customer and siblings receiving/attracting FTB A. See Calculating Family Tax Benefit (FTB) Part A (Method 1).The rate is calculated over a calendar year including the supplement rate (in this example there is no other siblings in the family only the customer is receiving/attracting FTB A):
To calculate the fortnightly MNFR contribution to the family pool divide the yearly FTB A figure by 365. ($7,325.55/365 =$20.07) round to 2 decimal points $20.07 and multiply by 14 ($20.07 x 14 =$280.98).
It is calculated once, regardless of how many relevant siblings. It is then applied when working out the Parental Income Test Result for each ABSTUDY claimant/recipient with parental income in common with those siblings. Step 6: Calculate the Family Pool Maximum Rate.
The family pool maximum rate is $890.08 per fortnight. Step 7: Calculate Chrissy's family pool percentage for ABSTUDY Living Allowance.
Note: the family pool percentage on the NSFP or DYRSUMM! screens displays the overall percentage that includes both the Living Allowance and School Fee Allowance group 2. Step 8: Calculate Chrissy's Maximum Living Allowance under the Parental Income test.
Therefore Chrissy's maximum ABSTUDY Living Allowance entitlement for the year will be:
Total Boarding entitlement = $12,066.90 per year ($7,952.83 Living Allowance + $3,963.57 RA + $474.50 RAA) To calculate Chrissy's maximum entitlement to SFA (Group 2): Step 1: Calculate the excess parental income.
Step 2: Calculate the fortnightly taper reduction.
Step 3: Calculate Chrissy's Maximum Payment Rate (MPR). The MPR used for this example is:
Step 4: Calculate Chrissy's family pool percentage for SFA (Group 2).
Step 5: Calculate Chrissy's payment reduction for SFA (Group 2).
Step 6: Calculate Chrissy's SFA (Group 2) payment rate.
Total Tuition entitlement SFA (Group 2) = $11,011.00 ($8,557.00 + $2,454.00)
As Chrissy's boarding charges are $13,680 and her tuition charges are $13,350.00, Chrissy will have to cover the excess. The Payment Details (PD) screen will display as follows:
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Example 6 - Parental income above Parental Income Free Area (PIFA) and siblings within the family pool Tuition charges higher than tuition entitlement, boarding charges higher than boarding entitlement. Chrissy is 16 years old and living away from home. Chrissy's usual place of residence is in a remote area. Chrissy is attending boarding school and the combined parental income is $80,000. Chrissy has 2 siblings in the family pool. Siblings are Katherine 15 years of age living at home as a full time secondary student and Michael 18 years of age living at home receiving YAL JSK. Chrissy is not in receipt of any income. The boarding school Chrissy is attending charges the following amounts:
To calculate Chrissy's maximum Living Allowance entitlement: See Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA). Step 1: Calculate the excess parental income.
Step 2: Calculate the fortnightly taper reduction.
Step 3: Calculate Chrissy's Maximum Payment Rate (MPR). The MPR used for this example is:
Step 4: Calculate the 'pooled' MPR. The 'pooled' MPR is the combined total of the maximum rates payable of the ABSTUDY, AIC or YA recipients in the family.
Step 5: Calculate the Maximum Notional Family rate (MNFR). The MNFR is the calculation used for the family pool contribution for all siblings receiving/attracting FTB A. The rate is calculated over a calendar year including the supplement rate (in this example there is only 1 sibling receiving FTB A - Kathryn):
To calculate the fortnightly MNFR contribution to the family pool divide the yearly FTB A figure by 365, ($7,208.75/365 =$19.75) round to 2 decimal points $19.75 and multiply by 14 ($19.75 x 14 =$276.50).
It is calculated once, regardless of how many relevant siblings. It is then then applied when working out the Parental Income Test Result for each ABSTUDY claimant/recipient with parental income in common with those siblings. Step 6: Calculate the Family Pool Maximum Rate.
Step 7: Calculate Chrissy's family pool percentage for ABSTUDY Living Allowance.
Step 8: Calculate Chrissy's payment reduction for ABSTUDY Living Allowance.
Step 9: Calculate the amount ABSTUDY Living Allowance that Chrissy will receive.
Therefore Chrissy's maximum ABSTUDY Living Allowance entitlement will be:
Total Boarding entitlement = $13,580.61 per year. Calculating Chrissy's maximum entitlement to SFA (Group 2) will be as follows: The maximum entitlement to SFA (Group 2) is $11,011.00, of which the first $8,557.00 is free from parental income testing. The remaining $2,454.00 is subject to normal Parental Income Testing (PIT) rules. Step 1: Calculate the excess parental income.
Step 2: Calculate the fortnightly taper reduction.
Step 3: Calculate Chrissy's Maximum Payment Rate (MPR). The MPR used for this example is:
Step 4: Calculate Chrissy's family pool percentage for SFA (Group 2).
Step 5: Calculate Chrissy's payment reduction for SFA (Group 2).
Step 6: Calculate Chrissy's SFA (Group 2) payment rate.
Total Tuition entitlement SFA (Group 2) = $10,226.35 ($8,557.00 + $1,669.35). As Chrissy's boarding charges are $14,469.00 and her tuition charges are $10,000.00, Chrissy will have to cover the excess. The Payment Details (PD) screen will display as follows:
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Example 7 - Parental income above Parental Income Free Area (PIFA) and siblings within the family pool Customer is in receipt of income. Tuition charges higher than tuition entitlement, boarding charges higher than boarding entitlement. Chrissy is 16 years old and living away from home. Chrissy's usual place of residence is in a remote area. Chrissy is attending boarding school and the combined parental income is $80,000.00. Chrissy also receives an Equity and Merit Scholarship of $20,000.00 and Chrissy has no income bank. Chrissy has 2 siblings in the family pool. Siblings are Katherine 15 years living at home and Michael 18 years living at home receiving YAL JSK. The boarding school Chrissy is attending charges the following amounts:
As Chrissy's parent's income is above the Parental Income free area and Chrissy has scholarship income, the rate of Living Allowance will be reduced by the greater of:
Note: personal income only affects the customer's rate of Living Allowance, Rent Assistance (RA) and other add-ons. Personal income will not affect the rate of SFA (Group 2). SFA (Group 2) is only affected by Parental Income. Calculate Chrissy's maximum entitlement to Living Allowance will be as follows: Parental Income Test: See Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA). Step 1: Calculate the excess parental income.
Step 2: Calculate the fortnightly taper reduction.
Step 3: Calculate Chrissy's Maximum Payment Rate (MPR). The MPR used for this example is:
Note: SFA (Group 2) amount of $94.12 is the maximum SFA (Group 2) minus the income free area SFA (Group 2). ($11,011.00 - $8,557.00 = $2,454.00/365 X14 = $94.12) Step 4: Calculate the 'pooled' MPR. The 'pooled' MPR is the combined total of the maximum rates payable of the ABSTUDY, AIC or YA recipients in the family.
Step 5: Calculate the Maximum Notional Family rate (MNFR). The MNFR is the calculation used for the family pool contribution for all customers and siblings receiving/attracting FTB A, (in this example there is only 1 sibling receiving FTB A - Kathryn) the rate is calculated using the per year including the supplement rate:
To calculate the fortnightly MNFR contribution to the family pool.
Step 6: Calculate the Family Pool Maximum Rate.
Step 7: Calculate Chrissy's family pool percentage for ABSTUDY Living Allowance.
Step 8: Calculate Chrissy's payment reduction for ABSTUDY Living Allowance.
Step 9: Calculate the amount ABSTUDY Living Allowance that Chrissy will receive.
Personal Income Test: As Chrissy is receiving an Equity and Merit Scholarship, the first $8,223.00 is exempt income. See Assessing scholarship income. $25,000.00 - $8,223.00/26 = $645.27 personal income per fortnight. $645.27 - $462.50 x .6 + $43.50 = $153.16 Affecting Personal income. Maximum Living Allowance under Personal Income Test = $309.34 ($463.50 - $153.16). As the Personal Income Test applies a greater reduction to the maximum payment rate this will be the Income Test that is applied to Chrissy's Living Allowance. Therefore Chrissy's maximum ABSTUDY Living Allowance entitlement will be:
Total Boarding entitlement = $12,179.01 per year. Calculating Chrissy's maximum entitlement to SFA (Group 2) will be as follows: The maximum entitlement to SFA (Group 2) is $11,011.00 of which the first $8,557.00 is free from parental income testing. The remaining $2,454.00 is subject to normal Parental Income Testing (PIT) rules. Step 1: Calculate the excess parental income.
Step 2: Calculate the fortnightly taper reduction.
Step 3: Calculate Chrissy's Maximum Payment Rate (MPR). The MPR used for this example is:
Step 4: Calculate Chrissy's family pool percentage for SFA (Group 2).
Step 5: Calculate Chrissy's payment reduction for SFA (Group 2).
Step 6: Calculate Chrissy's SFA (Group 2) payment rate.
Total Tuition entitlement SFA (Group 2) = $10,227.13 ($8,557.00 + $1,670.13). As Chrissy's boarding charges are $14,469.00 and Chrissy's tuition charges are $10,000.00, Chrissy will have to cover the excess. The Payment Details (PD) screen will display as follows:
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