Assessing independence for full time or concessional study load students from regional and remote areas under the self-supporting through employment criterion 010-06050010

Customers, whose parental home is in a regional or remote area, are considered independent if they meet either of the following self-supporting criteria:

Since last leaving secondary school, a period of:

• 14 months must have elapsed, and they have earned at least 75% of the National Training Wage schedule rate included in a modern award in any 14 month period, or
• 2 years must have elapsed, and they had part-time employment of at least 15 hours per week for at least 2 years in a row at any time

As well as meeting one of the above criteria, the customer must meet all of the following:

• Be required to live away from home to study
• They are undertaking a full-time or concessional study-load
• The location of their family home (as determined by the Australian Statistical Geography Standard (ASGS)), is in an area classified as:
• Inner regional
• Outer regional
• Remote, or
• Very Remote
• Their combined parental income in the appropriate tax year is less than $160,000, plus $10,000 for each additional child included in the Family Unit Regional (FUR)

The FUR counts anyone aged under 22 who has a parent in common with the YA or ABSTUDY customer. This is regardless of whether the child is employed, unemployed, studying, or whether they live at home, away from home or are overseas. This is for the purpose of calculating the parental income threshold. However, the following exclusions apply if they are:

• in State care
• receiving ABSTUDY, YA or Disability Support Pension (DSP) as independent because it is unreasonable for them to live at home
• living away from the family home and is/was a member of a couple, or
• living away from the family home and has/had a dependent child

Note: do not count the YA or ABSTUDY customer as an additional child.

If a student's family home is outside of Australia and not in one of the qualifying areas, they do not qualify under this criterion.

There is also a safety net for disadvantaged customers. See Assessing independence when a customer is self-supporting through full-time paid employment.

The COVID-19 concession period could apply between 25 March to 24 September 2020 (inclusive) to customers claiming independence under workforce criteria between 1 January 2021 and 24 September 2022.

Students from regional and remote areas claiming independence through employment criterion have a parental income cut-off of $160,000 in the appropriate tax year.

The threshold increases by $10,000 for each eligible additional child in their family.

They can use parental income from 1 of 3 financial years where it is more beneficial for them. This may be the financial year:

• before they take a gap year (pre-gap tax year)
• of their gap year (base tax year), or
• following their gap year (post base year/current tax year)

Note: the 'pre-gap tax year' is the year before the qualifying 14-month period began. If the student worked for more than 14-months, and has multiple qualifying 14-month periods, there may be several 'pre-gap tax years'. In these cases, use the most beneficial year.

Paid employment includes periods:

• of overseas employment
• of paid leave
• of unpaid leave due to employer shut down that are outside the control of the young person (for example, mandatory Christmas shutdown)
• undertaking a full-time apprenticeship or traineeship
• receiving workers compensation and the customer can demonstrate they are still connected to their employment
• receiving Community Development Program (CDP) wages
• receiving JobKeeper Payment (only to determine amount earnt not the number of hours worked)

Includes income earned through self-employment, income earned while overseas, fringe benefits, Defence Force Reserves, insurance payments paid specifically to cover lost earnings, paid leave, scholarships, and board and lodging paid in lieu of income from employment.

Income from Training Allowance such as the Skills for Education program cannot be included as earned income.

Income or employment status must be verified through payslips, group certificates or other employer statements unless the online claim has automatically determined that verification is not required.

The Independence Calculator is located in Process Direct. Use the Independence Calculator for Youth Allowance (YA), ABSTUDY and Special Benefit (SpB) customers to assess the following criteria:

• Self-supporting through full-time paid employment (30 hours per week for 18 months)
• Earned at least 75% of the National Training Wage Schedule rate in a 14 month period (regional and remote)
• Part-time employment of at least 15 hours per week for at least 2 years (regional and remote)
• Participated in the workforce for at least 3 of the last 4 years (ABSTUDY)
• Undertook approved agricultural work between 20 November 2020 and 31 December 2021

Where the customer has received overseas income, the foreign income must be converted to Australian Dollars (AUD). The exchange rate for each of the months worked, must be applied when converting to AUD.

Independence under this self-supporting criterion is mostly non-reviewable, even if any of the following changes of circumstances occurs after independence is granted:

• the person returns to secondary school
• the person ceases to be a full-time or concessional study-load student or Australian Apprentice
• the person's family home moves from an area considered to be Inner regional, Outer regional, Remote or Very Remote to an area that does not meet this requirement
• an update to the Remoteness Structure results in their family home being in an area no longer considered to be Inner regional, Outer regional, Remote or Very Remote
• the person's combined taxable parental income increases above the threshold in a subsequent tax year
• the person returns to the family home

However, if a customer is granted self-supporting independent status based on an estimate of combined parental income below the threshold and verification shows that the actual combined parental income was above the threshold, revoke the independent status from the date of the Tax Notice of Assessment (plus 14 days for notification).

Customers who complete a YA (student) or ABSTUDY claim indicating they are independent under the self-supporting criteria, will be asked to provide past employment information (including employer's name, hours worked and income earned). Where the system determines the self-supporting eligibility requirements:

• have been met:
• The Next Steps page of their online claim will request the parent(s) to lodge a completed Parent(s)/Guardian(s) additional details for Youth Allowance or ABSTUDY customers (A2115) form via the Advise Parental Income online service. See Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY)
• have not been met:
• The Next Steps page of their online claim will request the parent(s) to lodge a completed Parent(s)/Guardian(s) details - for the BASE Tax Year and CURRENT Tax Year for dependent Youth Allowance or ABSTUDY Customers (MOD JY) form via the Advise Parental Income online service. See Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY)

Customers currently receiving a student payment, must provide evidence such as payslips or payroll reports to complete an independence assessment under this criterion.

Customers completing a YA or ABSTUDY online claim may not need to provide evidence.

The customer's online claim responses will determine whether evidence needs to be provided. If evidence:

• is requested, Service Officers must review the evidence provided and determine if the customer is independent
• is not required:
• the student will be advised to retain evidence of their employment history for 2 years. Services Australia may request this information if conducting a self-supporting independence review after the claim is processed
• Service Officers can use the information collected in the claim to assess independence