Family taper for the Parental Income Test (PIT) 108-02010080

The family taper rate used to calculate the PIT result is 20%, $0.20 reduction for every $1.00 over the Parental Income Free Area (PIFA). For the PIFA amounts, see Rates and Thresholds. The family taper rate for the PIT is aligned with the Family Tax Benefit (FTB) Part A income test. Once the 20% taper rate is calculated, it is applied as a 'per family' taper rate.

Affected payments include:

• Youth Allowance (YA)
• ABSTUDY Living Allowance
• ABSTUDY Group 2 School Fees Allowance (means tested component)
• Assistance for Isolated Children (AIC) Scheme Additional Boarding Allowance (ABA)

The family taper commenced from 1 July 2010. Prior to this, siblings in the family pool provided a sibling concession towards the PIT.

For more information about PIFA, see Parental Income Test (PIT).

A person is included in the family pool for calculating the PIT reduction amount if the PIT applies to each of them. A dependent person has the PIT applied if they are:

• qualified and payable, or
• qualified and not payable due to an Income Maintenance Period (IMP), Seasonal Worker's Preclusion Period (SWPP), or a compliance penalty period

Other siblings may also be included in the family pool. For further information see Determining a dependent child for inclusion in the family pool for the Parental Income Test (PIT).

Members of the family group include:

• siblings sharing one or two parent(s)/guardian(s)
• blended families/step parents

Note: young people who do not normally live with a step parent can have the step parent's income disregarded for Youth Allowance (YA) and ABSTUDY PIT purposes. When calculating the PIT reduction amount, sibling/s are included in the family pool of children if the PIT applies to each of them, and they share at least one parent/guardian.

See Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA) for who is a parent/guardian for parental income assessment.

If a change in circumstance affects an ABSTUDY/AIC ABA/YA claimant or recipient, it may affect each sibling. For example, a grant, restoration or cancellation on a sibling record can result in follow-up action on a sibling's record. For further information see Youth Allowance at pending status (YAL/PSA) and dependent siblings.

YA recipients whose payment is current at nil rate for a maximum of 6 consecutive fortnights are treated as in receipt of payment for the purposes of being included in the family pool, after which Youth Allowance will cancel.

ABSTUDY recipients whose payment is current at nil rate, are treated as in receipt of payment for the purposes of the family pool.