This document outlines information to assist in determining if a student is eligible for independent status for Youth Allowance (YA) or ABSTUDY based on being self-supporting through employment.
On this page:
Assessing independence through work for Youth Allowance (YA) and ABSTUDY customers from regional and remote areas
Assessing employment
Assessing parental income threshold and eligible siblings in Family Unit Regional (FUR)
Coding independence for YA and ABSTUDY
Assessing independence through work for Youth Allowance (YA) and ABSTUDY customers from regional and remote areas
Table 1: this table describes the process to determine independence when a customer is self-supporting.
Expand tableStep | Action |
1 | Assessing independence through work for YA and ABSTUDY customers from regional and remote areas
A YA and ABSTUDY customer undertaking full-time study, or an approved concessional study load may be considered independent if since leaving secondary school, a period of: - 14 months must have elapsed, and they have been employed and within a 14 month period, have total earnings of at least 75% of Wage Level A of the National Training Wage schedule included in a modern award, or
- 2 years must have elapsed, and they had part-time employment of at least 15 hours per week for at least 2 years
It is recommended that staff use the Independence calculator in Process Direct to assess the customer for the independent rate. Service Officers undertaking an independence assessment for a current customer must check for a CoC (Change of circumstance) transaction from the Check independence through work history online tool. Has the customer provided information indicating they may be considered independent? |
2 | Full-time study in approved course
Is the YA and ABSTUDY customer undertaking full-time study, or an approved concessional study load in an approved course? |
3 | Live away from the parental home to study?
Does the customer need to live away from home to study? |
4 | Parental home in regional or remote area
Obtain the regional classification of the customer's parental home. The Resources page contains a link to the Student Regional Area Search tool. Is the customer's parental home in an area classified as 'Inner regional', 'Outer regional', 'Remote' or 'Very Remote'? |
Assessing employment
Table 2: this table describes the steps required to establish whether a customer satisfies the employment requirements for self-supporting independence for students from regional or remote areas.
Expand tableStep | Action |
1 | Evidence of employment is required
Customers may meet the self-supporting independent criteria if they: - had part-time employment of at least 15 hours per week for at least 2 years (which must be in one consecutive period) since the customer last left secondary school, or
- have been employed in a 14 month period since they last left secondary school with cumulative earnings totalling at least 75% of Wage Level A of the National Training Wage schedule included in a modern award. See the References page for a link to the National Training Wage schedule
Customers applying for either of the self-supporting independence criteria, are required to supply appropriate evidence, such as: - letter(s) from employers which outline periods of employment and hours worked
- payslips, payroll reports or letters from their employer showing the amount earned and periods of employment
Do not use documents such as Tax Notices of Assessment, which show an amount of income for a financial year, but not the source of the income. The income must be from paid employment. Go to Step 2. |
2 | Self-supporting criteria
If the customer has requested an assessment of independence, and evidence: - indicates the customer has undertaken part-time work of at least 15 hours per week for 2 consecutive years since last leaving secondary school, go to Step 3
- indicates the customer has earned 75% of Wage Level A of the National Training Wage schedule rate in any time in a 14 month period since leaving secondary school, go to Step 4
- has not been provided, and:
- was a Required task for a claim, see Table 4 > Step 3
- YA or ABSTUDY is current, tell the customer that independence can be assessed when evidence is supplied. Record details on a Note/DOC. Procedure ends here
Note: If evidence was requested because of a customer completing the Check independence through work history service using their Centrelink online account and evidence is not supplied by the due date, the transaction will automatically change to ‘Cancelled’ in Process Direct and the Task to upload evidence on the customers online service will be automatically removed. |
3 | Part-time work - at least 15 hours per week for 2 years since the person last left secondary school
Check the period of employment and the number of hours worked per week during the 2 consecutive years since the customer last left secondary school. Only work undertaken after the customer left secondary school counts towards the 2 years. The date the customer last left secondary school is the later of the following: - the date after their last exam in a secondary course, if this completed all requirements of their course
- the date after they were required to submit their last school assignment for their secondary course, or
- the date after the last day they attended a secondary course
A secondary course is Year 7 to Year 13 conducted by a secondary school. A Registered Training Organisation (RTO) such as a TAFE or private provider, is not considered a secondary school. Customer works then returns to secondary school: If the customer has had more than one period at secondary school, then the assessable period of paid work must be from the date the customer last left secondary school. However, once a customer gains independence under this criterion it cannot be revoked if the customer subsequently returns to secondary school as this independent criterion is not reviewable. If the customer has been receiving income support and working part-time (at least 15 hours per week), these periods are counted. Condition of 15 hours per week: The employment must be for at least 15 hours per week. If the customer works a roster of 20 hours in one week and 10 hours the following week, the hours cannot be averaged over the 2 weeks. In this case, only the weeks the customer worked 20 hours would be counted towards the 2 years. Has the customer worked for at least 15 hours per week (must be part-time) for 2 consecutive years since last leaving secondary school? |
4 | Customer last left secondary school at least 14 months ago
The date the customer last left secondary school is the later of the following: - the date after their last exam in a secondary course, if this completed all requirements of their course
- the date after they were required to submit their last school assignment for their secondary course, or
- the date after the last day they attended a secondary course
A secondary course is Year 7 to Year 13 conducted by a secondary school. A Registered Training Organisation (RTO) such as a TAFE or private provider, is not considered a secondary school. If a customer discontinued secondary school before the end of the school year, the last date will be their last date of attendance. Note: if the customer has had more than one period at secondary school, then the assessable period of paid work must be from the date the customer last left secondary school. However, once a customer gains independence under this criterion it cannot be revoked if the customer subsequently returns to secondary school, as this independent criterion is not reviewable. If the customer has recommenced secondary school and is undertaking secondary study at the time of the claim, it is still the date that they last left secondary school that is used. Has the customer last left secondary school at least 14 months ago? |
5 | Earned 75% of Wage Level A of the National Training Wage schedule rate at any time in a 14 month period since leaving secondary school
The appropriate National Training Wage schedule (Wage Level A) is the rate that applied at the start of the period of employment. See the References page for a link to the National Training Wage schedule. To be independent on these grounds, the income must have been earned in a 14 month period since the customer last left secondary school. This does not mean that the customer needed to be employed for a continuous period of 14 months. For example, the customer may have earned 75% of Wage Level A of the National Training Wage schedule rate in a 6 month period. As long as a period of 14 months has elapsed since they last left secondary school, the customer will be independent based on this criterion. It is recommended that staff use the Independence calculator to determine if the customer meets eligibility for the independent rate. Has the customer had a period or periods of employment in a 14 month period since last leaving secondary school in which they earned at least 75% of Wage Level A of the National Training Wage schedule included on a modern award? |
Assessing parental income threshold and eligible siblings in Family Unit Regional (FUR)
Table 3
Expand tableStep | Action |
1 | Determine the parental income year and threshold
The parental income threshold is $160,000, plus $10,000 for each eligible additional child in their Family Unit Regional (FUR). The count of children in the FUR does not include the customer. This parental income is calculated using the same rules as the Parental Income Test (PIT). Assess parental income using the relevant tax year that is more beneficial to the customer. Consider: - the tax year that ended before the start of the qualifying 2 year or 14 month employment period depending on the independence criterion (pre-gap tax year)
- base tax year, or
- where applicable, the post-base year/current tax year
Note: for the qualifying 14 month criteria, if the customer has multiple qualifying 14 month periods, there may be several 'pre-gap tax years'. These changes occurred from January 2019. To view historical versions of this procedure from the Background page, select the Page history icon on the Page tools menu. Select the relevant date. If the parent(s)/guardian(s) have previously lodged a MOD JY or A2115 for the customer or any YA or ABSTUDY claim for the financial year being assessed the parental income details should already be available. Are the required parental income details available? |
2 | Locate and view the parental income details submitted
To view parental income details are provided via a MOD JY See Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY) then return to this process. A2115 submitted via the API online service
For Youth Allowance claims in Process Direct: - Select Inbox
- Claim ID: field, enter the claim ID
- Select Go
- Select the appropriate claim
- On the Transaction Summary (TS) screen, select Tasks and locate A2115
For ABSTUDY claims in Process Direct: - Select Inbox
- Claim ID: field, enter the claim ID
- Select Go
- Select the appropriate claim
- On the Claim Application page
- Select the Tasks icon
- Select the Transaction Ref No for the Online A2115
- The A2115 responses will open
A2115 details submitted are displayed under heading MOD JY Review and Submit Details. A2115 submitted as a scanned document
New claims in Process Direct: - Select Inbox
- Claim ID: field, enter the claim ID
- Select Go
- Select the appropriate claim
- Select Documents tab and locate A2115
Current YA and ABSTUDY customers: - Process Direct:
- Select Customer Summary
- Enter CRN
- Select Go
- Select the appropriate customer
- Select Documents tab and locate A2115
- Customer First:
- CRN/BP: field, enter the customer's CRN
- Select Document Tools under Quick Links
- Form type: select A2115
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3 | Assess parental income threshold in the appropriate tax year
Calculate the combined parental income for pre-gap tax year and base tax year. Is the combined parental income less than $160,000 for either the pre-gap or base tax year? |
4 | Family Unit Regional (FUR) eligible children
For each pre-gap and base tax year being assessed: - identify the number of eligible FUR children on 30 June of that tax year
- do not include the customer in the FUR child count
- calculate the parental income threshold:
- $160,000 + ($10,000 x number of FUR children)
Only where the parents have included FUR children through the API A2115, the FUR screen will display: - Year Type: displays both pre-gap tax year and base tax year
- Assessment Year
- Census Date: 30 June of the relevant tax year for assessment
- Income Amount: this is the total combined amount of parental income
- Number of FUR Children: this is the total number of eligible siblings in customer's FUR, excluding the customer
- Parental Income Cut-off Threshold: this displays the current threshold of $160,000
- Calculated Threshold: this displays the adjusted threshold after FUR number is taken into consideration
If the total number of FUR children provided via the 'Advise Parental Income' online is not correct and needs to be updated: YA: - In the Super Key, enter FUR
- Update Number of FUR children
- Select Save
- Updated the Number of FUR children and new Calculated Threshold will display
ABSTUDY: - Select FUR tab
- update the number of FUR children
- select Simulate
- updated Number of FUR children and new Calculated Threshold will display
Calculate the parental income threshold: $160,000 + ($10,000 x number of FUR siblings.) Is the combined parental income less than the 'calculated threshold' for either pre-gap tax year or base tax year? |
5 | Check if post-base/current tax year can be used
Consider whether using the post-base tax year would be more beneficial to the customer because: - there has been a substantial decrease in parental income that is likely to continue for at least 2 years, or
- using the customer’s date of claim submission for independence as the FUR census date because of a change in family size
If there is - a substantial decrease in parental income, go to Step 6
- an increase in FUR children on the date of claim submission, go to Step 7
- neither, the customer does not qualify for this independence assessment. See Table 4 > Step 3
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6 | Substantial decrease of parental income in post-base tax year
Evidence of the substantial decrease in income is required. Examples of evidence may include (but are not limited to): - payslips
- a notice indicating change or loss of employment, or
- medical evidence about work limitations
The paper A2115, MOD JY and API online service, request evidence where parents advise of a substantial decrease in income. Has the required evidence been provided? - Yes, assess the combined parental income for the post-base tax year:
- No, and the evidence:
- has not previously been requested, see Requesting information (CLK). Procedure ends here until the information is supplied or the request falls due
- has not been provided by the due date, the customer does not qualify for this independent assessment. See Table 4 > Step 3
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7 | Increase of the FUR children number after the census date of base tax year or the date of claim submission
Where there has been an increase of the FUR children number after the census date of base tax year or the date of claim submission, use: - the post-base tax year, and
- the customer’s date of claim submission as the census date for determining the number of eligible FUR children
Identify the number of eligible FUR children on the date of claim submission. Do not include the customer in the FUR count. Calculate the parental income threshold: $160,000 + (number of FUR children x $10,000) Compare the combined parental income of post-base tax year with the new adjusted threshold. Is the combined parental income less than the calculated threshold? - Yes, customer meets the parental income threshold for this independence assessment. See Table 4 > Step 1
- No, customer does not qualify for this independence assessment as parental income is over the calculated threshold. See Table 4 > Step 3
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Coding independence for YA and ABSTUDY
Table 4: this table describes the steps required to code independence when a customer is self-supporting through employment from a regional or remote area (full-time and concessional study-load students only).
Expand tableStep | Action |
1 | Coding independent status
Verification of combined parental income needs to be provided. See Documents accepted as evidence of parental income. Estimates may be accepted where the parent(s)/guardians(s) have not provided verification. If the customer meets an independence criterion, complete the appropriate independence coding: In Process Direct:
- Go to the Independence/Homeless/Away from Home Details (NIH) screen using the Super Key
- Act: field, key 'IND'
- Start/Reject Reason: field, code one of the grant reasons as follows:
- PSP - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school
- PSG - earning at least 75% of Wage Level A of the National Training Wage schedule included in a modern award within a period of 14 months since leaving secondary school
If the COVID-19 concession period was required to determine independence, code one of the grant reasons as follows: - PPC - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school including the COVID-19 concession period
- PGC - earning at least 75% of Wage Level A of the National Training Wage in a period of 14 months since leaving school, including the COVID-19 concession period
- Start Date field, code the later of the:
- YA or ABSTUDY start date, or
- event date the customer qualifies for independence for YA or ABSTUDY. See the Resources page for examples
- Parental Income Financial Year: field, key the relevant financial year
- Parental Income Estimate Ind: field, key 'Y' if the parental income is provided as an estimate, otherwise key 'N'
- Review Date: field, code the review date to verify parental information if an estimate has been recorded
- To update regional classification details: field, go to Step 2
In Customer First:
- Next: field, Independent/Homeless/Away From Home Details (NIH) screen
- Action: field, key 'IND'
- Start Date: field, code the later of the:
- YA or ABSTUDY start date, or
- event date the customer qualifies for independence for YA or ABSTUDY. See the Resources page for examples
- Start/Reject Reason: field, code one of the grant reasons as follows:
- PSP - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school
- PSG - earning at least 75% of Wage Level A of the National Training Wage schedule included in a modern award within a period of 14 months since leaving secondary school
If the COVID-19 concession period was required to determine independence, code one of the grant reasons as follows: - PPC - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school, including the COVID-19 concession period
- PGC - earning at least 75% of Wage Level A of the National Training Wage in a period of 14 months since leaving school, including the COVID-19 concession period
- Parental Income Financial year: field, key the relevant financial year
- Parental Income Estimate Ind: field, key 'Y' if the parental income is provided as an estimate, otherwise key 'N'
- Review Date: field, code the review date to verify parental information if an estimate has been recorded
- Source: field, as appropriate
- DOR: field, date must match the Start Date: field for payment to backdate correctly
- Action: field, key 'I' Insert
- Select [Enter] to update NIH details
- To update regional classification details: field, key 'Y'. Record the regional classification of the family home
- To update regional classification details, go to Step 2.
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2 | Regional Location Details (RLD) screen
The Regional Location Details (RLD) screen is used to obtain the customer's regional classification. Complete the following fields on the RLD screen: In Process Direct:
- Go to the Regional Location Details (RLD) screen using the Super Key
- Select
 to add a new row. The Create Regional Location modal will display - Event Date: field, code the date of grant on independence under the relevant self-supporting criterion
- Address Reason: field, key 'SSI' (Self-supporting Independence)
- Year: field, code the calendar year for which independence is being assessed
- Address Date: field, code the date of grant on independence under the relevant self-supporting criterion
- Address: field, code the customer's current family home address as per either the existing information on the record or the information provided in the new claim
- Select the Address Latitude search. RLD will conduct a check against the Australian Statistical Geography Standard (ASGS) to determine the regional classification of the address
- Campus Region Verification: field, use code 'CNR' (Campus Verification Not Required)
- Select Save
In Customer First:
- Next: field, go to the Regional Location Details (RLD) screen
- Event Date: field, code the date of grant on independence under the relevant self-supporting criterion
- Address Reason: field, key 'SSI' (self-supporting Independence)
- Year: field, code the calendar year for which independence is being assessed
- Address Date: field, code the date of grant of independence under the relevant self-supporting criterion
- Address: field, code address details including the start date of the customer's current family home address as per either the existing information on the record or the information provided in the new claim
- Action: field, key 'I' Insert
- RLD will conduct a check against the Australian Statistical Geography Standard (ASGS) to determine the regional classification of the address
- Complete the assessment on the Assessment Results (AR) screen, and make sure the outcome is correct
Go to Step 4. |
3 | Customer does not meet the independence criteria of self-supporting through employment from a regional or remote area
If rejecting, or if the customer has not selected either of the 2 self-supporting criteria, consider other grounds for independence or assess the customer as a dependent. See: If the customer does not meet the independence criterion, complete the appropriate independence coding: In Process Direct:
- go to the Independent/Homeless/Away From Home Details (NIH) screen using the Super Key
- Action: field, key 'IND'
- Start Date: field, code the date the customer was rejected for independence under self-supporting
- Start/rejection reason:
- RSG - earning at least 75% of Wage Level A of the National Training Wage schedule included in a modern award within a period of 14 months since leaving secondary school - not supported
- RSP - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school - not supported
If the COVID-19 concession period was required to determine independence, code one of the rejection reasons as follows: - RGC - earning at least 75% of Wage Level A of the National Training Wage in a period of 14 months since leaving school including the COVID-19 concession period - not supported
- RPC - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school including the COVID-19 concession period - not supported
- Check if the customer can, and wants be assessed under the Parental Income Test (PIT):
Go to Step 5. In Customer First:
- Next: field, go to the Independent/Homeless/Away From Home Details (NIH) screen
- Action: field, key 'IND'
- Start Date: field, code the date the customer was rejected for independence under self-supporting
- Start/rejection reason:
- RSG - earning at least 75% of Wage Level A of the National Training Wage schedule included in a modern award within a period of 14 months since leaving secondary school - not supported
- RSP - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school - not supported
If the COVID-19 concession period was required to determine independence, code one of the rejection reasons as follows: - RGC - earning at least 75% of Wage Level A of the National Training Wage in a period of 14 months since leaving school including the COVID-19 concession period - not supported
- RPC - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school including the COVID-19 concession period - not supported
- Check if the customer can, and wants to be assessed under the Parental Income Test (PIT):
- Source and DOR: field, code as appropriate
- Action: field, key 'I' Insert
- Select [Enter] to update NIH details
Go to Step 5. |
4 | Assets update required
Students granted independence are no longer exempt from the Assets Test. For more information, see Personal Assets Test for allowances, Austudy and independent Youth Allowance or ABSTUDY customers. The student must provide details and verification of any income and asset changes where required. If there is enough information to make the updates now, see Coding income and assets for Centrelink payments and services. Go to Step 5. |
5 | Complete the assessment
If a determination is made in the new claim activity, a separate Note/DOC is not required. The assessment information must be included within the Grant/Reject Note/DOC. The information recorded in the Note/DOC should indicate: - the grounds on which the customers claim for independence has been granted/rejected, and
- all relevant facts and evidence that led to the decision
Finalise the activity. In Process Direct: - Select Assess and address any errors/warnings
- Select Assess again, then select Finish. Record details of the update on the Finalise screen
- Select Finalise to complete the transaction
In Customer First: - Complete the assessment on the Assessment Results (AR) screen
- Create an IND Granted/Rejected DOC:
- Use Fast Note - select Auto text, use Students, ABSTUDY & Apprentices > Update > IND Granted/Rejected
- Select Confirm
- Complete the DOC outlining the reasons for grant/rejection
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