Eligibility for Assistance for Isolated Children (AIC) Scheme Boarding Allowance (BA/ABA) 010-03040010

Example

Description

At a hostel

Genevieve is living away from home to study Year 12 at Study College and will be residing in accommodation at Student Housing Hostel. A tenancy agreement is required to be signed and services such as the supplying of linen, meals and laundry are Genevieve's responsibility. This is therefore not a boarding arrangement but may be payable as Second Home Allowance.

At a school

Alistair is studying Year 11 at a Senior College in Tasmania and will be living away from home in the accommodation provided by the College at their Boarding Association. As the Association is providing the room and the full range of services (that is, meals and laundry), this can be assessed for Boarding Allowance.

Alistair's sibling, Arabella is also studying at the Senior College in Tasmania, and living away from home. However, Arabella will be living at the College in a self-contained unit rented by their parents. Boarding Allowance is not appropriate but Second Home Allowance may be payable.

With a sibling

An AIC claim is lodged for Jerome for boarding away from home for secondary study and states Jerome will be living with an elder sibling, Thomas. A check of Thomas' record shows Thomas is 21 years old and in receipt of the dependent rate of Youth Allowance (that is, based on the parent's income). As Jerome is living with an older dependent sibling, Boarding Allowance is not payable. However, Second Home Allowance may be payable as the cost of maintaining the term residence is being met by Jerome's family.

Casey is boarding away from home for secondary studies and will be living with an older sibling. The sibling is 21 years of age and in receipt of the Independent rate of Youth Allowance because of being married with a child. As the sibling is independent of the parent's income and is providing the full boarding services, the Boarding Allowance may be payable in this private boarding arrangement.

With a grandparent/other person

Ernestina's parents lodge an AIC claim for Boarding Allowance stating Ernestina will be living with a grandparent in a home the family have set up in town. The grandparent has signed the lease and will be providing the cooking and laundry. As a person who is not part of the student's immediate family maintains the residence it is a private boarding arrangement and Boarding Allowance may be payable.

Napoleon's parents have claimed AIC Boarding Allowance stating Napoleon will be living with an uncle in a home the family have set up in town. The parents have signed the lease and the uncle will be providing the cooking and laundry. In this case, even though the uncle is providing the services, the parents are maintaining the residence by paying for all the rent, utilities and food. In this situation, Second Home Allowance is the more appropriate payment.

Shared home

Two families, the ZZZ family and the YYY family, have set up a shared home in town for their children to live away from home and go to the local secondary school. They are eligible for AIC as their principal family homes are geographically isolated. The ZZZ family have signed the lease and 1 parent resides in the 'in-town' home with the children during the school week, while the other parent lives at the principal family home. The YYY family share the costs of running the home, but are not on the lease. The ZZZ parent does all the cooking and cleaning, etcetera. In this case, the ZZZ family may be paid the Second Home Allowance. The YYY family may claim the Boarding Allowance. If both families were on the lease and/or sharing the duties, then both could only claim the Second Home Allowance.

Boarding fees paid/to be paid with BAHA or other state or territory boarding subsidies

Example 1

Suzanne will be boarding at an approved boarding institution for 2023. The applicant has advised within the new claim, the boarding fees will be $14,823 for the full year.

During a phone call the applicant advises they will be claiming their states BAHA payment.

This will now reduce the Actual Boarding charges payable for this student.

The EILA screen will be coded or updated, with the actual boarding charge payable, i.e.

$14,823 less BAHA payment of $1,323* = $13,500.

This reassessment of the ABA may reduce the amount of ABA payable, and could create an overpayment. Note: some reassessments might create arrears.

Example 2

Johnny has been boarding at an approved boarding institution for 2022. The EILA is coded with information from 2022 as $9,900 and the applicant has been paid ABA for all of 2022. The applicant has called and now wants a copy of the grant letter for 2022 so they can claim the WA BAHA payment for that year. A re-assessment for ABA 2022 will need to take place.

$9,900 less BAHA payment of $1,323* = actual boarding charges $8,577 for 2022.

As the actual boarding charges are less than the maximum annual Basic Boarding Allowance Rate less a further $250 for incidentals) - the applicant's entitlement to ABA is nil. The reassessment will be an overpayment for ABA for the year of 2022, i.e.

$8,577 is less than $8,606 (the min boarding threshold for 2022), then ABA is not payable.

* figure may not be accurate at time of publication. See the state specific website for up to date subsidies.