Payment of Residential Costs Option (RCO) for ABSTUDY and ABSTUDY Pensioner Education Supplement (PES) 010-24092536

Scenario

Description

1

ABSTUDY Pensioner Education Supplement (PES) student approved to live Away from Home (AFH)

Deborah is an ABSTUDY PES student who is approved to live away from home. Deborah is staying at a hostel that charges $40 per week and is not eligible for the Relocation Scholarship (RS).

If Deborah:

• pays the fees, they will receive ABSTUDY PES of $62.40 per fortnight but will have to pay $80 per fortnight for accommodation
• chooses the RCO, there will be a nil entitlement to PES but the hostel fees of $80 per fortnight will be covered. Deborah will not be out of pocket

Deborah must decide which option is better.

2

Private accommodation then moving to residential accommodation

Isaac is accepted into a course at the University of Western Australia. Then applies for a position at St Catherine's College and is successful.

In semester one, Isaac lives in private accommodation and is paid the RS in February as part of their entitlements.

After 3 months in private accommodation, Isaac realises moving into a residential college would allow more success in the course. Isaac moves into St Catherine's College in June.

Isaac is not eligible for RCO because of being offered a place in February before receiving the Relocation Scholarship payment and choosing not to accept the offer.

3

Paid a Relocation Scholarship (RS) and then accepting a position

Lilly is in the second year of a course at Melbourne University. They apply for a position at Trinity College but is unsuccessful due to a long wait list. Lilly is paid an RS in February.

Trinity College offers Lilly a position when one becomes available in June. Lilly accepts the offer and is eligible for RCO because of being offered the position after the RS was paid.

4

Receiving a scholarship under the Indigenous Student Success Program (ISSP) for accommodation costs, living in an on campus residential college and wanting to take up RCO

Edward is in the first year of a Bachelor of Paramedicine at the Australian National University and is living on campus. Edward is in receipt of a scholarship under the ISSP to help with costs of living away from home.

As Edward receives a scholarship under the ISSP for accommodation costs, they do not qualify for RCO.

Edward assesses the most beneficial financial outcome and asks the university to cancel the scholarship under the ISSP from the beginning of the year and takes up RCO instead.

Edward provides confirmation of retrospective scholarship cancellation and RCO is now payable.

5

Applied for an accommodation scholarship and is moving into campus accommodation and taking up RCO

Charlotte is starting the second year of a Bachelor of Education at University of Southern Queensland. Charlotte decides to live on campus from the start of their second year of study.

Charlotte is now living on campus and has applied for and is granted a Rural Residential Scholarship of $3,350 which contributes to the accommodation costs.

As the Rural Residential Scholarship is not considered an equivalent Commonwealth scholarship, it does not preclude Charlotte from RCO but does reduce the total amount of residential costs payable by $3,350.

Charlotte is eligible and takes up RCO.

6

Applying for RCO while studying a distance education/correspondence course

Jamison has started a year-long course at Marr Mooditj Training and applies for ABSTUDY.

The course is a distance education/correspondence course that is studied externally, but Jamison chooses to move into a residential campus affiliated with the education institution and applies for RCO.

Although the Away from Home rate is not normally paid when studying a distance education/correspondence course, Jamison has been approved the Away from Home rate under the Home Conditions criteria and is therefore eligible to RCO.

7

Receiving RCO and ABY Living Allowance payment is suspended Departure Overseas (DOT) for a period charged by accommodation provider

Jasmine is studying a Bachelor of Arts at the University of Technology Sydney and is currently taking up RCO.

Jasmine goes on an overseas holiday during the semester break and returns home after the first week of semester 2. ABSTUDY is suspended DOT for the period of the overseas absence.

Jasmine provides an invoice from the accommodation provider for residential fees for the full semester 2 period. As Jasmine received at least $1 of Living Allowance during semester 2, RCO is payable for the full Semester 2 period.

8

Receiving RCO and ABY Grant Date is after the accommodation provider's first date of the period charged

Rose is studying a Bachelor of Veterinary Biology / Bachelor of Veterinary Science at Charles Sturt University, Wagga Wagga campus and is currently taking up RCO.

Rose will be residing on campus at the Butler Halls First Year College. The period charged on the invoice supplied is 2 weeks before the ABSTUDY grant date. As Rose is to receive at least $1 of Living Allowance during the period charged by the accommodation provider, RCO is payable for the full period.

9

Change of Residential College prior to end of contract

Amy lives in a residential college whilst studying a Bachelor of Engineering at the Australian National University. At the end of Amy's 3rd year of study, Amy chooses to complete her studies at another campus closer to home.

The charges at the new residential provider overlaps the current one by 4 weeks. The residential college charges a contract break fee of $750 and the remainder of the 4 weeks residential charges of $2,300.

Amy is unable to pay the whole amount and requests ABSTUDY assistance. Amy has negotiated with the college and reduced the residential charges down to 2 weeks with a balance of $1,150. Amy applies for ABSTUDY Additional Assistance. Additional Assistance can be approved as Amy and her family would be placed in significant financial hardship and risk of withdrawing from studies to cover these costs.

10

Receiving an amount of Living Allowance after commencing living on campus

Jake has recently been assessed for ABSTUDY. Due to parental income Jake is not entitled to receive Living Allowance while residing in the family home. Jake contacts to discuss the eligibility criteria for RCO. Jake meets the Away from Home conditions under the travel time and access criteria. Jake advises the on campus, residential fees are $400 per week.

After coding the Accommodation (AC) screen with the residential details, it is determined that Jake is eligible to receive $14.00 of RA per fortnight. As RA is deemed an amount of Living Allowance, Jake is eligible for RCO. Jakes fortnightly payment while in receipt of RCO will remain at $14 as this is less than the RCO allowance of $41.60.

11

Payment of RCO during the vacation break

Sam had eligibility for RCO assessed at the start of the school year for the full year and will remain at the residential college over the vacation break. As Sam's contract has already been negotiated with the provider and assessed as meeting eligibility for RCO, Sam will be eligible for residential fees for the whole period being charged. This includes any semester or vacation breaks.

12

Payment of RCO for State care customers who cease being in State care only because of their age

Dylan is living on campus whilst studying a Bachelor of Science at the University of Western Australia. Dylan contacts to discuss the eligibility criteria for RCO. Dylan has ceased being in State care only because of their age. Dylan is eligible and takes up RCO.

As Dylan has ceased being in State care only because of their age, Dylan does not need to meet one of the criteria for approval of Away from Home entitlements to be eligible for RCO.