Assessing eligibility for Fares Allowance (FAA) for Youth Allowance (YA), Austudy and Pensioner Education Supplement (PES) 010-04060020

FAA is payable to eligible tertiary students who have to live away from their permanent home to study (including external students undertaking a compulsory on site component of their course), and their permanent home is in Australia.

FAA is payable to tertiary students eligible for YA, Austudy or PES as a tertiary student who are:

• dependent and receiving the Away from Home rate of YA
• independent, and required to live away from their partner because they are studying
• required to live away from their dependent children because they are studying
• required to live away from home, and have become independent through work or age in the study year
• studying an approved distance or online course at an Australian institution in Australia and have to travel to the institution for a compulsory residential component of the course

Single independent students without dependent children are generally not eligible for FAA (except for the compulsory on site component of an external course). This is because their permanent home is wherever they are living at the time. Other than for short periods, they cannot be considered to be living away from the permanent home.

FAA is not payable:

• if the customer is away from their institution for a practical part of the course, for example, field excursions, practical teaching sessions or hospital residency
• to an Australian Apprentice
• to students who travel overseas to undertake approved study
• to students for daily travel to and from their institution
• for travel for a reunion with family if this occurs at a place other than the student's permanent home
• for accommodation costs incurred during travel
• to students on a medical exemption when the trip is made (even if they remain enrolled, they are not undertaking full-time study), or
• to students serving a waiting period or non-payment period at the time of the journey

There are special provisions for a YA student who has become independent during the current year of study, either through:

• turning 22 years of age, or
• being self-supporting through paid employment

These students remain eligible for FAA for that study year as long as they were eligible for FAA before achieving independence.

If the student is living away from home to study, before making a trip to their permanent home they must be receiving a qualifying payment for a period of:

• less than 3 months (or less than 6 months if before 1 January 2021), to be entitled to a return trip from their permanent home to the institution at the start and finish of the course of study
• 3 months or more in a study year (or 6 months or more if before 1 January 2021), to be entitled to a return trip from their permanent home to the institution to cover the start and end of studies for the academic year. They are also entitled to one additional return trip during the year if, before undertaking the return journey, they have been receiving a qualifying payment as a tertiary student for a total of 3 months (whether continuous or not), commencing from 1 January in the study year
  Note: 'study year' means the period in which one complete year of an approved tertiary course starts and finished

FAA can be approved and travel undertaken by a student before the commencement of their course. The customer does not need to wait until their student payment is granted to undertake the travel. Note: customers can travel before YA being granted or after the course has completed or ceased studies early and continue to remain eligible for FAA as long as the customer will receive YA within the study year.

External students are entitled to one return journey during the study year between the educational provider and home to attend the institution for a period of time as a compulsory on site component of the course.

The amount of FAA paid depends on the mode of transport available to the student; generally, it is paid for the cheapest type of public transport available, and at a concessional rate if the student is eligible. If a customer chooses to travel by a more expensive means and does not meet one of the exemptions shown below, then they will still be paid for the cheapest mode of transport regardless of their cost. Students can be paid for the next cheapest mode of travel if:

• they are unable through illness or incapacity to travel by a cheaper mode of travel
• a journey by bus would exceed 18 hours, including waiting time between connections
• a journey by train would exceed 36 hours including waiting time between connections

Determining whether the cost of a mode of transport is reasonable depends on the circumstances.

FAA will cover reasonable costs of transport by a private vehicle if:

• the student needs to transport living necessities or personal belongings from their family or permanent home in order to undertake study (such as essential kitchenware and bedding), and
• it is not practicable (able to be used) to transport the items by public transport. For example, due to strict luggage limits or if the amount of luggage is difficult to manoeuvre

As each journey is assessed separately, travel by private vehicle:

• may be considered reasonable for some journeys, for example where the student has a large amount of essential luggage to transport, but
• may not be considered reasonable for journeys along the same route for the same student if the student is not required to transport essential luggage

In addition to the cheapest mode of public transport, the student can claim:

• the cost of a sleeping berth of second class rail travel if it is not possible for the journey to be made by day
• using a taxi or private car which is paid based on a kilometre rate and type of vehicle used, if there is no public transport available
• an economy air fare if the customer would face rail travel longer than 36 hours, or it is not possible to travel by other means of public transport
• compulsory booking fees
• taxes
• credit card fees (if booking online by credit card), and
• travel agent booking fees

The following travel costs would not be covered by FAA:

• airport parking fees
• manual check-in fees
• SMS itinerary costs
• travel insurance
• entertainment bundles
• seat allocation

There are different levels of 'economy' airfares. For example, saver lite, saver and flexi fares. However, for FAA any class of economy airfare may be reimbursed.

FAA is reimbursed at the cheapest, most practicable, mode of public transport. Therefore, the Service Officer would choose the cheapest fare that provides one economy seat plus one piece of baggage.

It is not possible to obtain historical fare prices. Corporate Travel Management (CTM) does not keep a list of past fares. If an applicant is claiming reimbursement for a flight already taken, it would be reasonable for the Service Officer to obtain the best fare of the day over a 5 business day period commencing 7 days after date claim is being processed, to obtain an average to use.

FAA can generally be paid to students to cover the costs of one standard piece of checked in luggage.

If an airline charges extra for one piece of luggage, FAA may be paid for this luggage. This applies whether the person has pre-booked the fare and luggage together, or the luggage is purchased at the time of check-in.

In some cases, additional luggage costs may be covered by FAA if the cost of the excess baggage for a flight is required to transport living necessities or personal belongings, such as essential kitchenware. While it would be reasonable to expect a student may require excess baggage if they are moving to a premises for the first time, it would not be reasonable for excess baggage to be booked if they are returning home for a holiday period and maintaining their residence where they study. FAA may also cover excess baggage costs to transport necessary course equipment. For example, a music student has to transport their musical instrument as it is required for their course of study.

To claim for reimbursement, customers need to lodge their form before 1 April in the year following the year of study. FAA can be paid in advance of travel in certain circumstances.

Claims for pre-booked FAA should generally be lodged at least 7 days in advance of the planned journey to allow Services Australia to book the student's travel. However, subject to availability, Services Australia will attempt to fulfil any travel requests lodged within 7 days of travel.

When making an unfavourable decision, speak to the customer:

• explain the decision
• give them a chance to provide more information, and
• advise their review and appeal rights

Fares Allowance claims are processed only by Fares Allowance Skilled Student Processing Staff.

General enquiries can be answered at the first point of contact.