The Parental Means Test 108-02000000

The Parental Means Test applies to ABSTUDY Living Allowance, Group 2 School Fees Allowance, Assistance for Isolated Children (AIC) Scheme Additional Boarding Allowance (ABA) and Youth Allowance (YA) customers considered to be dependent on another person (other than their partner) such as their parent(s)/guardian(s).

The Parental Means Test is made up of two tests:

• Parental Income Test (PIT), and
• Maintenance Income Test (MIT)

From 1 January 2019, the MIT no longer applies to ABSTUDY Living Allowance (under 16yrs), Group 2 School Fees Allowance and AIC ABA. These payments are calculated based on the Parental Income Test.

From 1 January 2020, if FTB is being received in relation to a student aged 16-19 yrs who is receiving a means tested ABSTUDY Living Allowance or Group 2 School Fee allowance the MIT will not be applied to the ABSTUDY payment. The MIT will apply to the FTB payment for the child.

These tests are calculated based on the parent(s)/guardian(s) financial circumstances and reduce the customer’s rate of payment by one of the following

• PIT reduction amount, or
• Maintenance Income Test Reducible Amount (MRA), or
• Maintenance Income Test notional reduction (MITNR)

The parental means test does not apply to ABSTUDY or YA customers who satisfy the independence criteria.

The Parental Income Test (PIT) reduction amount applies to:

• ABSTUDY Living Allowance (under 16yrs), Group 2 School Fees Allowance and AIC ABA
• ABSTUDY Living Allowance (16-19yrs), Group 2 School Fee Allowance where FTB is being paid at the same time, or
• Youth Allowance and ABSTUDY Living Allowance (16 yrs and over) where there is no maintenance income received in respect of the customer, or where the parental income test reduction is equal to or more than the Maintenance Income Test Reducible Amount (MRA)

The MITNR is calculated where maintenance income is received in respect of the customer and the PIT reduction amount is less than the MRA. The lower of the MITNR and the MRA will apply.

Note: for dependent customers who are subject to the personal income test as well as the parental means test, the system will apply the test that causes the highest reduction to the customer’s rate for that fortnight.