Determining the appropriate mode of transport for ABSTUDY Fares Allowance (FAA) 010-02100090

Corporate Travel Management (CTM) requires Services Australia's approval in writing where chartered transport costs exceed $5,000 per approved traveller. CTM will send an email to ABSTUDY travel requesting approval.

Has an email been received from CTM seeking travel expenditure approval?

• Yes, go to Table 2 > Step 10
• No, go to Step 2

It is generally considered practical, reasonable and cost-effective for a student or non-student traveller to travel by economy class rail or bus.

Check the journey planner to determine if there is a rail or bus service.

Does a rail or bus service exist between the student's or non-student traveller's approved permanent home and the study location?

• Yes, go to Step 3
• No, see Table 2

Where a rail or bus service can provide transport for a substantial part of the journey, an alternative mode of transport may be approved for the remainder. For example, the remainder of a journey may be transporting the student/approved traveller between the:

• transport pick-up or drop-off point, and
• permanent home or study location

Does the rail or bus service provide a transport service for a substantial part of the journey between the permanent home and the study location?

• Yes, go to Step 4
• No, see Table 2

Travel by economy class rail or bus should only be approved where the total travel time by surface public transport is reasonable.

It is considered unreasonable when the total travelling time for the journey, by surface public transport (including wait time between connections), exceeds:

• 8 hours by rail or by bus, for a secondary school student travelling alone
• 10 hours by rail or bus for two or more secondary students travelling together (including accompanying travellers)
• 18 hours by bus for a tertiary or secondary non-schooling student, or
• 36 hours by rail for tertiary and secondary non-schooling students

To determine the total duration of the journey, check the journey planner.

Is the duration of the journey by economy class rail or bus unreasonable?

• Yes, see Table 2
• No, go to Step 5

An alternative mode of transport may be approved where a traveller has a medical condition or illness which prevents them from travelling by economy class rail or bus service. The traveller must provide medical evidence that clearly states this.

Evidence can include a medical certificate or statement from a:

• doctor
• treating health professional (such as a physiotherapist)
• hospital

Is the student or non-student traveller unable to make the journey by economy class rail or bus due to an illness or incapacity?

• Yes, see Table 2
• No, go to Step 6

Travel by economy class rail or bus is not considered reasonable if, due to travel schedules:

• an overnight journey by surface transport is unavoidable, or
• a secondary school student would have to leave the departure point or arrive at the destination unreasonably late at night or early in the morning, that is, between 9:00 pm and 7:00 am, or
• the total duration of the trip (including waiting time between connections) for Away from Base travel would exceed the length of the Away from Base activity. For example, a 10 hour bus trip to attend a 4 hour testing and assessment activity would not be considered reasonable

Note: a traveller is not entitled to economy air travel or rail fare with sleeping berth because they cannot secure a booking at a desired time unless it meets the above criteria.

Check the journey planner to determine departure and arrival times.

Is it unreasonable for the student or non-student traveller to travel by economy class rail or bus due to schedules?

• Yes, see Table 2
• No, go to Step 7

Public transport can be considered unreasonable or impractical because of:

• infrequent services
• poor connections
• the service often being weather affected, or
• additional living and/or study items that are required to be transported to the study location at the start of the course in the year of study

Check the journey planner for information about service frequency and connections.

Is it unreasonable or impractical for the student or non-student traveller to use an existing public transport service due to one of the reasons above?

• Yes, see Table 2
• No, go to Step 8

Economy class rail or bus travel is the most reasonable, practical and cost-effective mode of transport for all or a substantial part of the journey.

Where CTM is unable to book all legs of the journey in advance, the traveller can keep their ticket/s and seek reimbursement.

Is alternative transport necessary for part of the journey?

• Yes, go to Step 9
• No, see Table 2 > Step 12

An alternative mode of transport may be approved for the remainder of the journey. For example, to transport the student or non-student traveller between the:

• transport pick-up or drop-off point, such as a bus/train station or airport, and
• permanent home, study location, accommodation provider or term address

Is the traveller required to use a transport service for the remainder of the journey?

• Yes:
• see Additional costs associated with travel for ABSTUDY for terminal transfer approval requirements, then
• see Table 2 > Step 12
• No, if the traveller:
• will drive/has driven a private motor vehicle, determine the rate of motor vehicle allowance (MVA), see Table 2 > Step 6
• will not/did not drive a private motor vehicle, see Table 2 > Step 12

Alternative transport services can be approved for all or part of the journey based on what is the most practical, reasonable and cost-effective in the circumstance.

Check the journey planner to determine what alternative modes of transport are available for the journey.

Is the student or non-student traveller seeking reimbursement for Motor Vehicle Allowance (MVA)?

• Yes, go to Step 6
• No, go to Step 2

The cost of economy air travel or a rail fare with sleeping berth, whichever is most appropriate, may be approved.

A traveller will not be entitled to economy air travel or rail fare with sleeping berth because they cannot secure a booking at the desired time.

Is any part of the journey not serviced by public transport or regular air service or is the use of chartered transport reasonable in the circumstance?

• Yes, go to Step 3
• No, go to Step 6

The cost of chartered transport, including taxis, hire cars, ferries, planes or helicopters, may be approved for all or part of the journey where:

• public transport or regular air service is not available, or
• the use of chartered transport for the student/s is reasonable in the circumstance. This includes reducing absences from school because of travel

Can chartered transport be approved for all or part of the journey?

• Yes, for travel by:
• hire car, go to Step 4
• taxi and ferry, go to Step 5
• plane or helicopter, go to Step 7
• No, go to Step 6

Travel by hire car should only be approved in exceptional circumstances. For example, where the student or non-student traveller is ill and needs to return home by the quickest mode of transport possible.

Hire car contracts are to be entered into by the approved traveller, not by the Australian Government. Where travel by hire car is approved, the cost may be reimbursed.

The most suitable vehicle for the journey should be selected. For example:

• a people mover would not be considered reasonable for a trip for two people
• a four-wheel drive may be considered reasonable and practical for travel in a remote location

Where the most suitable vehicle has not been selected, review the hire car provider's website to determine the contracted hiring fee of the most suitable vehicle.

Fares Allowance (FAA) entitlement is equivalent to the rate of:

• the contracted hiring fee for the minimum period necessary for the travel, and
• the most suitable vehicle for the journey, and
• any distance levy charge by the hire company for the shortest practicable route, and
• petrol costs

Go to Step 7.

Taxi

Where travel by taxi is approved, the cost may be reimbursed. The FAA entitlement is equal to the number of kilometres travelled multiplied by the appropriate rate per kilometre. The References page contains a link to the rate per kilometre in the Guide to Social Security Law, to be used when determining taxi fare reimbursement for ABSTUDY customers.

Note: do not use this method when travel by taxi has been approved for a terminal transfer. See Additional costs associated with travel for ABSTUDY for taxi terminal transfer approval requirements and rate.

Ferry

Where travel by ferry is approved, the actual cost of the ticket may be paid.

Go to Step 7.

Travel by private motor vehicle for all or part of the journey may be approved where:

• there is no regular public transport service, or
• it is unreasonable or impracticable, for example, where public transport has infrequent services or poor connections, or
• the student cannot travel by public transport due to injury, disability or other circumstances beyond their control, or
• travel by private vehicle is cost-effective

Where travel by private motor vehicle is approved, the relevant rate of MVA will be reimbursed.

To determine the standard rate of MVA:

• calculate the distance in kilometres by the shortest practicable route between the MVA approved locations
• multiply that distance by the relevant MVA rate (cents per kilometre) for the engine capacity of the vehicle

Where engine capacity is not stated, see Redbook on the Resources page to determine this.

See the References page for a link to the Social Security Guide MVA rates relevant to ABSTUDY FAA.

Note: Google Maps can be used to find the distance in kilometres for MVA assessments, see the Resources page for a link.

Only the standard rate of MVA is payable when an ABSTUDY student or third party:

• transports other ABSTUDY student/s in a private vehicle, then
• undertakes the return journey without ABSTUDY students as passengers

Go to Step 7

FAA is payable to a third party where:

• the third party uses a private vehicle to transport one or more ABSTUDY students as passengers, and
• the ABSTUDY students are qualified for FAA for the journey

Where public transport is

• available, the rate of FAA payable to the Third Party is:
• the rate of an economy class rail or bus fare (including concessional rate, if applicable), and
• an additional one third (0.333333) of this rate for each passenger transported
• not available, the rate of FAA payable to the Third Party is:
• the standard rate of MVA, and
• an additional $0.0063 per kilometre paid once for each trip, no matter how many passengers are transported.
  For example, 200 km x $0.0063 = an additional $1.26

Only the standard rate of MVA is payable when an ABSTUDY student or third party:

• transports other ABSTUDY student/s in a private vehicle, then
• undertakes the return journey without ABSTUDY students as passengers

Go to Step 7

FAA is payable to a student where:

• they are the driver of a private vehicle, and
• they transport one or more ABSTUDY students as passengers, and
• the ABSTUDY students are qualified for FAA for the journey

The rate of FAA payable to the driver is:

• the standard rate of MVA, and
• an additional $0.0063 per kilometre, if at least one of the passengers is qualified for MVA for the journey. For example, 68 km x $0.0063 = an additional $0.43
  Note: the additional $0.0063 per kilometre for transport of other qualified passengers is paid once for each trip, no matter how many passengers are transported

Only the standard rate of MVA is payable when an ABSTUDY student or third party:

• transports other ABSTUDY student/s in a private vehicle, then
• undertakes the return journey without ABSTUDY students as passengers

Go to Step 7

Where there is more than one alternative mode of transport available for all or part of the journey that is practical and reasonable in the circumstance, a cost comparison must be completed. This will help to determine the most appropriate mode of transport.

Does a cost comparison need to be completed?

• Yes, go to Step 8
• No, for travel by:
• chartered transport, go to Step 10
• another means of transport, go to Step 12

To determine the cost of public transport or economy air fare for all or part of the journey:

• use the journey planner to locate the relevant travel provider
• visit the travel providers website to obtain the cost of the ticket/s. Where possible, ticket/s should be fully flexible

To determine the cost of a chartered plane or helicopter for all or part of the journey:

• email CTM using the 'Request for Quote' template in the Quickstep Guide on the Resources page
• request the cost of providing a charter for transport between:
• the permanent home and study location, or
• the arrival and departure points of alternative transport for a part of journey to connect with the other alternative mode of transport

Note: when assessing a reimbursement for a past travel date, request a quote for a similar date. For example, if travel occurred on a Wednesday, request a quote for the following Wednesday.

Go to Step 9.

Compare the costs of each alternative mode of transport approved in the circumstance to determine which is the most cost-effective. If the most cost-effective method is:

• chartered transport, go to Step 10
• another means of transport, go to Step 12

If chartered transport has been deemed the most appropriate mode of transport, make sure that the expenditure is within the delegation level. See the Resources page for delegations.

Does the Service Officer have the delegation level to approve the chartered transport?

• Yes, go to Step 12
• No, tell the person requesting travel that the request will be escalated for approval:
• Email site leadership using the 'Chartered transport expenditure approval email template' on the Resources page. For delegate, go to Step 11
• The Booking Status of the traveller/s is to remain as New until a response is received from the delegate
• Record details of the travel request and escalation on the traveller/s booking/s
• Once a response is received, go to Step 12

For ABSTUDY Fares Allowance, where there are charted transport costs, delegation levels apply.

• Travel or Away from Base Service Officers must escalate amounts above their delegation to their Team Leader for approval
• Team Leaders must escalate amounts above their delegation, to their site EL1 or EL2 for approval

The delegate must:

• review the request provided within the template, and
• determine whether the expenditure can be approved

Chartered air or land transport, may be approved for all or part of the journey where:

• public transport or regular air service is not available, or
• the use of chartered transport for the student/s is reasonable in the circumstances. This includes reducing absences from school because of travel

The Resources page includes scenarios and delegations.

Where EL1 or higher delegation is required, the delegate must respond to the email from the Service Officer and include ABSTUDY.AIC.PROGRAMS in their response.

Procedure ends here.

Tell the person requesting travel of the appropriate mode/s of transport for the journey. Record details of the decision on the Notes tab against the relevant Booking ID# in the Travel Management Application (TMA).

Additional costs associated with travel, may also be claimed, including transport terminal transfers.

Upload all emails relating to costs requiring delegate approval to the appropriate travel booking, for:

• Travel request from education or board providers for multiple travellers, upload all emails to the relevant group booking
• Travel booking for an individual, upload all emails to the approved traveller's booking

If the mode of transport will be:

• booked in advance of travel, see Authorising and coding pre-booked Fares Allowance (FAA) entitlements for ABSTUDY and ABSTUDY Pensioner Education Supplement (PES)
• reimbursed after travel has been undertaken, see Processing Fares Allowance and Away from Base entitlements in advance or reimbursements

Was delegate approval required for a CTM travel expenditure approval request?

• Yes, go to Step 13
• No, procedure ends here

Advise CTM of the outcome of the travel expenditure approval requests via reply email:

• remove any:
• text added to the subject line when the email was categorised, and
• notes added to the body of the original email
• use the relevant email template in the Quickstep guide on the Resources page
• upload a copy of the email to the appropriate travel booking