Raising Family Pool debts 107-09120070
Expand allThis document outlines information about the 20% family taper for the Parental Income Test (PIT) and how it is applied when calculating a dependent child's rate.
Family taper
The family taper was introduced on 1 July 2010 to:
- align the PIT threshold with Family Tax Benefit (FTB) rates, and
- replace the sibling concession
A 20% taper rate is applied on parental income as a 'per family' taper rate.
Affected payments include:
- Youth Allowance (YA)
- ABSTUDY Living Allowance
- ABSTUDY Group 2 School Fees (means tested component)
- Assistance for Isolated Children (AIC) Scheme
- Additional Boarding Allowance (ABA)
A change in circumstances that affects one YA ABSTUDY/AIC customer may effect each sibling within the family.
Maximum payment rate
For a dependent customer's entitlement under the PIT, calculate the Maximum Payment Rate (MPR) Calculate each member of the family pool's MPR.
Siblings and Parental Income Test
A sibling is included in the family pool if they are in receipt of:
- Youth Allowance (YA)
- ABSTUDY Living Allowance
- Assistance for Isolated Children (AIC) Scheme Additional Boarding Allowance (ABA), or
- a sibling who meets the definition of an FTB child or regular care child and aged 0 - 15 or 16 - 19 and in full-time secondary study
See Parental Income Test.
Independent status
Independence reasons (PSE and PSP) are non-reviewable. These are permanent independence reasons. See Independent Status.
The Resources page contains links to examples of rate calculations and scenarios.
Related links
Using the correct date of effect when raising debts
Determining a dependent child for inclusion in the family pool for the Parental Income Test (PIT)