Determining a dependent child for inclusion in the family pool for the Parental Income Test (PIT) 108-02010060

The PIT may be applied to the combined parental income of the parent(s)/guardian(s) of dependent YA, ABSTUDY and AIC Scheme ABA customers to determine the customer's entitlement. When assessing under the Parental Income Test (PIT) other dependant children in the family may affect the rate payable to the dependant YA, ABSTUDY, AIC or ABA customer.

A child is considered dependent and included in the family pool for PIT purposes if:

• they are wholly or substantially dependent upon the parent(s)/guardian(s) - this does not include the parent paying maintenance for the child, and
• they receive (or their parent(s)/guardian(s) qualifies on their behalf) one of these qualifying payments:
• YA
• ABSTUDY Living Allowance
• ABSTUDY Group 2 School Fees (means tested component)
• AIC Scheme ABA, or
• be defined as an FTB child or regular care child

Note: the parent(s)/guardian(s) do not need to be receiving FTB or Rent Assistance (RA).

A person can be included in the customer's family pool where they are a dependent and they have a parent in common.

Two or more people are determined to have parental income in common if a parent of one person is also a parent of the other person and:

• the PIT applies to each of them, or
• they are a sibling defined as an FTB child or regular care child

For FTB and regular care children aged 0-19 to be included in the family pool, the child must meet the following:

• recorded as 'in customer care' of the parent(s)/guardian(s)
• if 16-19 years, recorded as in full-time secondary study
• proof of birth is recorded for each child
• be alive, or if they have died they are within the FTB bereavement period

Note: children 16-19 years who receive ABSTUDY Living Allowance and/or School Fee Allowance Group 2 and who meet the definition of an FTB child will have both amounts included in the family pool calculation,

In addition, a regular care child will only be included if rent has been verified on the parent(s)/guardian(s) record.

If a family intends to claim FTB as a lump sum, the child needs to be assessed as in care at the time the sibling claims YA, ABSTUDY or the applicant claims ABA for the AIC student to be included in the family pool.

If there are no details of the sibling on the parent's record,(for example - the sibling record does not exist or it is linked to another parent/guardian). The parent who lodged the MOD JY or completed Advice of Parental income online should lodge an FTB claim for the sibling details to be assessed and determined if they can be considered an FTB child.

The contribution to the family pool of the FTB or regular care child will be the maximum notional FTB rate.

Siblings are not included in the customer's family pool and PIT calculations when they:

• are not receiving (or claiming) a payment that is subject to the PIT, or
• do not meet the definition of an FTB child, or
• do not meet the definition of a regular care child or
• do meet the definition of a regular care child but rent paid by the parent has not been coded as verified on the parent(s)/guardian(s) record
• have been granted a payment as an independent person, for example, Disability Support Pension (DSP), ABSTUDY or YA

This is the case even if they have the same parent(s)/guardian(s) or parents as the customer and regardless of the sibling's age or where they live.

There will be situations where the customer and their sibling(s) will have different people in their family pools. This can occur when:

• the customer has more than one sibling subject to the PIT
• at least one of their siblings has only one parent (Parent 1) in common with the customer, and
• at least one of their siblings has only the other parent (Parent 2) in common with the customer, and
• both siblings receive the Away From Home Rate of ABSTUDY or YA and have established a permanent home away from the family home
• an FTB or regular care child has shared care arrangements

Note: a person cannot be in more than three family pools, regardless of how many siblings are involved. The customer is always assessed based only on the people in that customer's family pool.

When making an unfavourable decision, speak to the customer:

• explain the decision
• give them a chance to provide more information, and
• advise their review and appeal rights. If required, record a request for an explanation or application for a formal review

Make 2 genuine attempts to contact the customer before finalising the decision.