Dealing with ABSTUDY customer enquiries about annual Parental Income Test (PIT) reviews 110-07060050

• Lost or misplaced their PIT review letter, go to Step 2
• No access to the Advise Parental Income option online, go to Step 3
• Request an extension of time to respond to the PIT review. See Step 1 in Table 2
• Customer's parent/guardian wants to provide a PIT estimate. See Step 3 in Table 2
• Customer's parent/guardian has previously provided a PIT estimate, and wants to provide an update to this estimate. See Step 3 in Table 2
• Customer's parent/guardian has provided a PIT estimate and requests an extension to provide actual figures. See Step 4 in Table 2
• Customer's parent/guardian has provided a PIT estimate and is now able to provide actual figures. See Step 6 in Table 2
• Payment is suspended or cancelled. See Step 7 in Table 2
• Other enquiry, see Resources for a link to information on the Services Australia Website about annual parental income test reassessments
• Record details of the discussion with the customer on a DOC

The PIT review letter may be reissued via the History Summary (HS) screen or by using the Archive and Culling Engine (ACE) to access archived letters.

Note: the One Time Access Code (OTAC) in the PIT review letter is only valid for 100 days. If the letter was issued more than 90 days (3 months ago) the customer may not receive it in time to provide their details via the Advise Parental Income online service, go to Step 3.

To Reissue the letter via the HS screen:

• letter code (LC) is ABYAPIR
• advise the customer or parent/guardian that if the information is not supplied by 31 December, the customer's living allowance will stop from 1 January
• if the customer has a Correspondence Nominee, consider issuing the nominee's version of the letter
• record details about forms issued and the new due date on a DOC
• Procedure ends here

To reissue the archived letter via the Archive and Culling Engine (ACE):

• follow the instructions in Using the Archiving and Culling Engine (ACE) to access archived letters
• print the PDF version of the letter to your local printer
• advise the customer or parent/guardian that if the information is not supplied by 31 December, the customer's living allowance will stop from 1 January
• mail the letter to the customer immediately
• if the customer has a Correspondence Nominee, consider re-issuing the nominee version of the letter
• record details about forms issued and the new due date on a DOC
• Procedure ends here

Manually issue a SY012(A). See Resources for a link to SY012A - Youth Allowance/ABSTUDY Parental Income Assessment (single year).

Issue the SY012(A) to the customer personally or by post:

• write the customer's name and Customer Reference Number (CRN) on the form and the date it is due to be returned; generally 28 days from the date of issue. If the 31 December occurs before day 28, the form should be returned by 31 December
• record details about forms issued and the new due date on a DOC

Procedure ends here.

Parent(s)/Guardian(s) have advised that the do not have the Tax Notice of Assessment available.

Advise parent(s)/guardian(s) that they can supply an estimate of their income.
Advise the customer that if the figure given is an:

• underestimate, then there may be an overpayment, or
• overestimate, they may be underpaid. If the customer is underpaid, arrears of Living Allowance may be issued when proof of income is provided

If proof of parental income can be provided prior to 31 December

Where parent(s)/guardian(s) advise they will be able to supply proof of actual income prior to 31 December, do not code an estimate with a review date. Advise the parent(s)/guardian(s) to contact with the proof of actual income when it is available, and record details of the conversation in a DOC.

There is no requirement to code a review date for an estimate unless it is indicated that there has been an increase of more than 25%. That is, a record should not suspend PIE (Failed to verify Parental Income) if proof of parental income has not been provided prior to 31 December.

This is because the customer has already established entitlement to their payment up to 31 December under the current base tax year assessment. Ensure the customer is advised that if their parents/guardians are subsequently not able to supply proof of income prior to 31 December, an estimate needs to be provided, otherwise the customer's payment will revert to a zero rate from 1 January.

Can the parent(s)/guardian(s) provide an estimate of their income details now?

• Yes, go to Step 2
• No, advise parent(s)/guardian(s) that they will need to provide income details by 31 December, otherwise the customer's payment will revert to a zero rate from 1 January
• Record details of the conversation in a DOC
• Procedure ends here

If there is doubt that the new estimate is a reasonable figure, the Service Officer may ask for written verification of the estimate. This may take the form of a letter from an accountant/tax agent (faxes are permissible) or other supporting documentation. For example, Payment Summaries and a statutory declaration).

If there is no doubt that the new estimate is a reasonable figure, code the updated estimate.

On the Household Income and Assets (NHI) screen:

• code the estimated taxable income and any other relevant income details
• code a Yes in the Estimate field
• code the date parent/guardian(s) expect to have verification of actual income available in the Review Date field
• code the Source: and Receipt Date: details as appropriate
• in the Action: field select Insert
• finalise the activity on the Assessment Results (AR) screen
• remind the customer about the impact of over or under estimating
• record details on a DOC
• advise the customer that they should provide their parent(s)/guardian(s) Tax Notice of Assessment (NOA) as soon as it is received

On the NHI screen, an error message may display such as:

• PIT linked sibling(s) not matched, update required
• Sibling CRN not present, update on NRS
• Dependent customer with no PIT link

If error message displays:

The record needs to have a sibling and/or parent/guardian link updated before the estimate can be coded:

• Use Fast Note select Auto Text use Students, ABSTUDY & Apprentices > Update > ABSTUDY callback required
• Record the required details and select Confirm

• link the sibling records or
• link the parent records
• continue to code the estimate

Check the Dependent Youth Rate Summary (!DYRSUMM) screen and confirm with the customer that these details are current and correct. If not, update the sibling details. Record details of the discussion and action taken on a DOC.

Procedure ends here.

If there is doubt that the new estimate is a reasonable figure, the Service Officer may ask for written verification of the estimate. This may take the form of a letter from an accountant/tax agent (faxes are permissible) or other supporting documentation. For example, Payment Summaries and a statutory declaration).

If there is no doubt that the new estimate is a reasonable figure, code the updated estimate on the system.

On the Household Income and Assets (NHI) screen:

• ensure the correct page is selected where the previously provided estimate of parental income details has been recorded
• code the new estimated taxable income and any other relevant income details
• code a Yes in the Estimate: field
• code the Review Date: field with the new date the parent/guardian(s) expect to have verification of actual income available
• code the Source: and Receipt Date: details as appropriate
• in the Action: select Update
  Note: if the original estimate was for an increase of more than 25% on the base tax year and the revised estimate is provided after 1 October, or where the estimate was not a 25% increase and the revised estimate is received after 1 January, code the Action: field with I (Insert)
• finalise the activity on the Assessment Results (AR) screen
• remind the customer about the impact of over or under estimating
• record details on a DOC

Procedure ends here.

Both service centre and Smart Centre Service Officers may grant an extension for the provision of proof of actual income to be provided at their own discretion.

Is this the first time an extension has been requested to extend the review date for return of proof of actual income following the use of a parental income estimate?

• Check whether customer's parents have an FTB record with verified income for the relevant year on the FAO Income for Previous Year (FIPY) screen. If so, go to Step 6
• Check the Document List (DL) screen to see if an extension has already been granted

Has an extension been granted previously?

• Yes, no further extension can be granted. details of the discussion and decision must be recorded on a DOC
• No, go to Step 5

On the Household Income and Assets (NHI) screen:

• ensure the correct page is displayed, that is, where the previously provided estimate of parental income details has been recorded
• code the Review Date: with the new date the parent/guardian expect to have verification of actual income available. Note: the review date should never be set beyond the customer's course end date or 30 August in the following financial year, whichever date is the earliest
• in the Action: field select Update
• code the Source: and Receipt Date: details as appropriate
  Action: field is coded with C (correct)
• finalise the activity on the Assessment Results (AR) screen
• advise the customer that if the Actual Income details are not provided by the due date, payments will be suspended and no further extensions can be given
• if payments have been suspended, restore the payment. For more information see Restoration of ABSTUDY payments
• record details on a DOC

Procedure ends here.

Proof of parental income for the annual PIT review is best verified over the phone with the parent(s)/guardian(s) supplying the date their Notice of Assessment (NOA) was issued by the Australian Taxation Office (ATO), or with an original or copy of the parent(s)/guardian(s) NOA. In all cases, the date of issue of the NOA must be recorded on a DOC.

Proof of actual income can also be taken from verified parental income data, as shown on the FAO Income for Previous Year (FIPY) screen. In some cases, the income details for the previous financial year recorded on the parent/guardian's FIPY screen will be automatically updated to the dependant's Household Income and Assets (NHI) screen via a process known as PIT Copy. No further proof of parental income is required

If this information is not available, one of the following may be accepted:

• copies of Income Tax Returns as lodged with the ATO
• a letter from the parent/guardian's accountant/tax agent stating that 'Income received by you (and/or your partner) is not expected to exceed $xxxxx'
• if the parent (or partner) received a taxable pension, benefit, payment or allowance from Centrelink or Department of Veterans' Affairs (DVA) for the full base tax year, a statement of benefit from that Department
• Payment Summaries and/or statements of benefits must be supported by a statutory declaration (or accountant certification) confirming that these show the full amount of taxable income received by the parent (or partner) during the base tax year

Note: if the parents/guardians did not have any income and were not required to lodge a tax return, the estimate they supply is recorded as an actual income.

Update the ABSTUDY actual parental income on the Household Income and Assets (NHI) page:

• ensure the correct page is displayed, that is, where the previously provided estimate of parental income details has been recorded
• delete the date in the Review Date: field
• code No in the Estimate: field
• amend the Taxable Income: field if necessary to the new income figure
• in the Action: field select Update
• code the Source: and Receipt Date: details as appropriate
• finalise the activity on the Assessment Results (AR) screen
• if payments have been suspended, restore the payment. For more information see Restoration of ABSTUDY payments
• record details on a DOC

Procedure ends here.

Customers whose parent(s)/guardian(s) have provided an estimate of parental income will have their payments suspended if proof of parent(s)/guardian(s) income is not provided within 21 days of the review date. A letter is issued to the customer on the estimate review date reminding them proof of their parent(s)/guardian(s) income is still required.

• If an extension is needed to provide proof of parental income and no previous extension has been given:
• update the Review Date: field on the NHI screen and restore the customer's ABSTUDY payment. For more information see Restoration of ABSTUDY payments
• record details on a DOC
• procedure ends here
• If parents/guardians are refusing to provide the proof of actual income:
• advise the customer that their payments will remain suspended until the evidence is returned
• record details of discussion on a DOC
• procedure ends here
• If proof of actual income has now been supplied (as a scanned document on the Document Tools screen), or parents/guardians are able to provide details of the NOA and date of issue over the phone:
• restore the customer's payments, and
• update the ABSTUDY actual parental income on the Household Income and Assets (NHI) screen
• record details on a DOC
  Note: if the parent/guardian has supplied details of the date their tax NOA was issued by the Australian Taxation Office over the phone, this is acceptable for proof of actual income and they do not need to supply their NOA to Services Australia. In all cases the date of issue of the NOA must be recorded on a DOC