Eligibility for Assistance for Isolated Children (AIC) Scheme Second Home Allowance (SHA) 010-03040030

SHA contributes towards the cost incurred by mainly geographically isolated families in maintaining a second family home for a student to have daily access to appropriate schooling. A family may decide to set up a second family home rather than having their child(ren) board at a school, hostel or in a private boarding arrangement because of the age of the children, or lack of boarding facilities, or other family circumstances.

SHA is intended for families with student(s) who attend school on a daily basis while living in the second family home. SHA is not payable for students in the second home who study via distance education or home schooling methods.

A common second home scenario is where one parent remains in the principal family home and the other parent lives in the second home with children during the school weeks and stay at the principal family home from Friday night to Sunday night or Monday morning. There are variations to this scenario, but it is not necessary for a parent to live in the second home. Sometimes the children may be supervised during the week by a grandparent or older sibling.

General AIC Scheme eligibility criteria must be met for the applicant and student.

The family's nominated principal family home must be an approved principal family home.

The second family home must be maintained by the family for the purpose of providing easier daily access to appropriate education for at least one student who would not have such access from the family's principal home. The student must live in the second home for at least four nights of the school or education provider week for the full rate of SHA to be payable. For students living in an approved second home for less than 4 nights of a school or education provider week, pro-rata payment of Second Home Allowance may be available. For advice, contact the AIC Level 2 helpdesk. The Resources page has a link to the AIC Level 2 helpdesk contact information.

A family may rent, lease or have purchased, or be purchasing the second home and still be eligible for SHA. However:

• receiving, or having ever received, the First Home Owners Grant (or since 1 January 2011 having received state or territory based first home owner assistance or incentives) for the property will exclude eligibility for SHA. The First Home Owners Grant is only intended to be received in relation to the principal family home
• receiving, or having ever received any financial concession such as Home Builders Grant, stamp-duty concession or similar assistance when buying the home will exclude eligibility for SHA
• receiving Rent Assistance (RA) will generally exclude eligibility for SHA as the payments are mutually exclusive (as per 3.8.1.90 of the Social Security Guide and 5.3.3 of the AIC Policy). Rent Assistance is usually only intended to be received in relation to the principal family home. However, in some cases, RA is payable for a non-principal family home address under the temporary accommodation provision in 3.8.1.90 of the Social Security Guide. Where this is the case, the family may have a choice between AIC Second Home Allowance and Rent Assistance for the second home address. If a retrospective decision is made to pay AIC SHA for a period, in which Rent Assistance was paid for a temporary address, it is necessary to recover any rent assistance for that period. Based on current legislation, a Rent Assistance debt amount could not be offset on AIC SHA arrears, so the RA must first be raised as a debt before the SHA is approved

The References page has links to the Policy described above.

If a family chooses to have someone other than a parent live with the student during study term, the following factors that will assist in determining whether the living arrangement is a second home or a private boarding arrangement and which allowance is payable.

• It is a second home arrangement where the parent or a close family member (dependent child) contributes to maintaining the residence and property, such as paying rent, lease or mortgage, utilities (gas, electricity and water) charges, and/or property rates
• It is private board arrangement where the parent pays a boarding fee or board and lodging for accommodation, meals and laundry services charged by the boarding supervisor/provider in respect of the student

If the student is living with a dependent sibling (who may be eligible for SHA, Youth Allowance or ABSTUDY Living Allowance) and they or a parent is maintaining the residence, this circumstance should be assessed as a second home and SHA may be payable.

If the student is living with an older sibling (who is not dependent on the parent(s)) or an extended family member or other person (who is not a family member) who are responsible for maintaining the residence/property, this should be assessed as a private boarding arrangement as long as the parent pays a boarding fee for the student. See Eligibility for Assistance for Isolated Children (AIC Scheme Boarding Allowance (BA/ABA).

If an AIC allowance is being claimed by a parent but the student lives during the study term with another parent (from whom the parent is separated or divorced) and the residence is being claimed to be a second home or a private board arrangement, the AIC Scheme Guidelines specifically prohibit the payment of SHA or other AIC allowance.

Where the parent doesn't pay a boarding fee or cost of maintaining the residence (claimed as a second home), no AIC allowance is payable.

For examples of Boarding Allowance versus Second Home Allowance, see the Resources page of Eligibility for Assistance for Isolated Children (AIC Scheme Boarding Allowance (BA/ABA).

If the student receives Disability Support Pension (DSP) or Parenting Payment Single (PPS), and is undertaking primary or equivalent ungraded study, and would otherwise be eligible for SHA, the appropriate payment would be AIC Pensioner Education Supplement (PES).

During the COVID-19 pandemic, some students may have been unable to reside in their approved second home. Additionally, some applicants may not have been able to reside in the principal home.

SHA was still payable for Term2, 3 and 4 of 2020 and Term 3 or 4 of 2021 or Term 1 or 2 of 2022 where:

• a student did not reside in their approved second home, because they could not attend school due to COVID-19 measures, or
• an applicant could not reside in the approved principal family home due to COVID-19 measures