Additional costs associated with travel for ABSTUDY 010-02100230

Item

Scenario

1

Overnight accommodation

In-transit stopover

Michael's home is in the remote community of Oombulgurri and Michael lives away from home to study in Perth. Michael is approved for end of term travel. Michael must take a flight from Perth to Broome and then catch a connecting flight from Broome to Kununurra. Michael then takes a charter from Kununurra to Oombulgurri. The flight from Broome to Kununurra is delayed due to mechanical problems and arrives in Kununurra at 7 pm.

The charter plane company does not land at Oombulgurri after 6 pm so Michael has to stay overnight in Kununurra and catch the charter plane to Oombulgurri at 10 am the next morning. Michael is entitled to overnight accommodation and meals in Kununurra due to the unforeseen in-transit stopover.

Michael submits an ABSTUDY Fares Allowance Claim (SY032) for the overnight accommodation and meals, including the following receipts:

• accommodation $265.00 + credit card fee $3.60
• dinner $52.60
• breakfast $32.00

Total costs paid = $353.20.

To calculate Michael's claim for additional costs, the Service Officer compares the amount Michael paid with the Australian Taxation Office (ATO) travel allowance rates. The 2019-2020 rates are:

• accommodation $204.00
• dinner $53.90
• breakfast $28.15

Total allowable ATO travel allowance = $286.05.

As the reimbursement is to the student traveller, Michael is entitled to the ATO travel allowance rate of $286.05.

2

Overnight accommodation

Secondary school student boarding away from home for the first time

Jedda is currently in year 6 at Muludja Remote Community School. There is no local high school so Jedda will be moving away from home to attend Wesley College next year for high school.

Jedda has already attended an orientation day and enrolled at Wesley College, South Perth WA. Wesley College offer a transition program in Term 4 for students entering year 7 in the coming year. The transition program requires Jedda and their parent/guardian to stay for one week near the college to undertake transition activities, including viewing the schools, boarding house and meeting staff.

Wesley College have submitted details of the transition program to the agency and this has been approved.

Jedda and their parent (non-student traveller) have been approved for ABSTUDY FAA under orientation travel. Additional travel costs for accommodation and meals can also be approved for the duration of the transition program for both Jedda and their parent.

3

Travel schedule

Example 1

Sarah's home is at the remote central desert community of Docker River. Sarah has an interview at 9 am at Yirrara College in Alice Springs for entry into the school. Sarah travels with a parent by plane to Alice Springs the day before the interview and travels home in the afternoon after the interview.

They are both entitled to overnight accommodation and meals for the night before the interview. This is because it is not possible for them to travel to Alice Springs on the morning of the interview and the interview cannot be rescheduled to a different time for same day travel to occur.

Sarah's parent submits an ABSTUDY Fares Allowance Claim (SY032) for the overnight accommodation and meals, including the following receipts:

• accommodation $70.00 + $4.20 afterpay fee
• dinner $30.00 each, total $60.00
• breakfast $15.00 each, total $30.00

Total costs paid = $164.20.

To calculate the claim for additional costs, the Service Officer compares the amount Sarah's parent paid with the Australian Taxation Office (ATO) travel allowance rates. The 2019-2020 rates are:

• accommodation $150.00
• dinner $53.90 each, total $107.80
• breakfast $28.15 each, total $56.30

Total allowable ATO travel allowance = $314.10.

Although the total of the receipts is lower, Sarah's parent is entitled to the total allowable ATO travel allowance rate and will be reimbursed $314.10.

Example 2

John is travelling to attend a residential block, but due to a medical condition, he cannot travel by plane. Services Australia have arranged transport for John by rail, but due to transport schedules, John will arrive 3 days before the residential block starts.

As this is unavoidable, John is eligible to the 3 extra night's accommodation, including meals. As John has requested this travel be authorised in advance, the agency arranges the additional 3 night's accommodation and meals as part of John's claim.

4

Private accommodation and/or meals provider

Example 1

Leonie submits a completed ABSTUDY Fares Allowance Claim (SY032) stating an overnight stay in a private residence. Leonie submitted a signed statement from a private residence including the date, address and cost of the room. The statement shows dinner and breakfast were included and details the cost of each meal. The statement is accepted with a completed SY032 to assess and pay Leonie's entitlement. Leonie's travel allowance entitlement would be the Australian Taxation Office (ATO) travel allowance rate.

Example 2

Samara submits a completed SY032 stating Samara's sister, Freda, provided accommodation and meals on the journey to a compulsory residential activity. Samara submits a signed handwritten note by Freda advising the date Samara stayed and the address. Freda states Samara was given accommodation and meals. The meals itemised include afternoon tea, dinner, supper, snacks, breakfast and a take away package for morning tea. The assessor calculates the amount of the total charged for the accommodation and meals, including the costs of dinner and breakfast only. Afternoon tea, snacks, supper and take away morning tea costs are not included as approved meals allowance costs. The assessor compares the amount paid to Samara's sister to the ATO's travel allowance rate and reimburses Samara the amount paid to Freda for the accommodation, dinner and breakfast, as this was lesser cost.

Example 3

Samara submits a completed SY032 stating Samara's sister, Freda, provided accommodation and meals on the return trip home. Freda has signed a note confirming this. Freda writes Samara was supplied with a fixed price board and accommodation package, covering all meals and accommodation. Freda has not listed the individual meal types or costs. The claim is assessed by the same Service Officer who processed Samara's previous claim. The separate amounts charged for the individual food items in Example 2 are equal to the fixed price package charged this time. Fixed board and accommodation packages must be used by the assessor when comparing the ATOs travel allowance figures. The amount reimbursed to Samara is the full accommodation and meals package charged by Freda, which is higher than the amount reimbursed for the forward trip. This is because where board and accommodation are provided at a fixed price, the fixed price must be used.

5

Compassionate travel for family member

Fred is living away from home to study at boarding school in Brisbane, becomes ill, and is hospitalised. Fred's parent travels from their home on Thursday Island to visit Fred as an approved traveller under compassionate travel entitlements. Fred's parent stays for 3 days to provide support while at the peak of the illness.

Fred's parent is entitled to accommodation and meals costs for the period they support Fred in Brisbane.

ATO Table

Description

Table 1

Employee's annual salary - $129,250 and below

The figures listed in the:

• Accomm column are to be used when calculating the amount payable for accommodation allowance. These figures apply to all FAA beneficiaries, regardless of their income
• Food and drink column are to be used when calculating the amount payable for meal allowance. These figures apply to all entitled FAA beneficiaries, regardless of their income
• Incidentals and Total columns are not applicable for ABSTUDY purposes and should not be used

Where a location is not listed in Tables 1, 4 or 5, the figures in Table 1 'other country centres' are to be used when determining Accommodation Allowance. These figures apply in respect of all entitled FAA beneficiaries, regardless of their income.

Table 4

High cost country centres - accommodation expenses

The figures listed in Table 4 are to be used when calculating the amount payable for accommodation allowance for locations identified as high cost country centres. These figures apply to all entitled FAA beneficiaries, regardless of their income.

Table 5

Tier 2 country centres

When calculating the amount payable for accommodation allowance for locations identified in Table 5, the figures listed for accommodation or food and drink in Table 1 for Tier 2 country centres are to be used. These figures apply to all entitled FAA beneficiaries, regardless of their income.