Creating, updating and ending Parental Income Test (PIT) links with dependent student, Australian Apprentice and job seeker recipients or claimants 108-02010100
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Policy
ABSTUDY
Links to the ABSTUDY Policy Manual and the Assistance for Isolated Children (AIC) Scheme guidelines point to consolidated pdf and docx documents. Select the document and navigate to the appropriate reference(s) listed below.
The Parental Income Test (PIT) and limits are covered in the:
- 58.1, Exemptions from the Parental Income Test
- 58.2, Whose income is assessed under the Parental Income Test?
Assistance for Isolated Children (AIC) Scheme
For information on how family circumstances affect whether the applicant and their partner's income is taken into account for the PIT,
See: Assistance for Isolated Children (AIC) Scheme Guidelines
- 6.2, Whose income is taken into account?
- 6.10, Waiver of the Parental Income Test
Youth Allowance (YA)
Guide to Social Security Law, 1.1.P.40, Parental income test (YA)
Parental Income Test (PIT)
Guide to Social Security Law, 4.2.8.10, Dependent YA - Parental Income Test & Limits
Policy advice regarding step-parents
A step-parent is the partner of the parent who has primary care and responsibility of the dependent ABSTUDY or Youth Allowance (YA) recipient or claimant or AIC applicant.
See Social Security Act 1991, section 5(1), Dependent child-under 16
The income of the step-parent is taken into account for the Parental Income Test for the AIC Additional Boarding Allowance, ABSTUDY or YA where the step-parent lives with the parent and the recipient or claimant normally lives with the parent and step-parent. The earliest this may be applied is the date the parent and step-parent normally live together and this may include the event occurring while the recipient or claimant is absent from the home but normally lives with the parent.
Normally lives with means that the ABSTUDY or YA recipient or claimant's normal home is the same as the parent and step-parent. The recipient or claimant may live away from home to undertake study, to search for work or undertake other activities but still not establish their own permanent and separate home, i.e. they intend to return home.
However, should they have established a separate home with no intention of returning other than for a visit, it may be accepted that they do not normally live at home, subject to verification. Whether or not the recipient or claimant has ever normally lived with the step-parent once they cease to normally live at home is irrelevant and for the Parental Income Test the step-parent's income should not be included.
It is possible that over a period of time the recipient or claimant may claim to move in and out of the parent/step-parent's home on a permanent basis and, if proper verification process is applied each time, there is no impediment to such a change in circumstances being applied.
Legislation
Links to the Federal Register of Legislation site go to a 'Series' page. Select the 'Latest' version.
Youth Allowance (YA)
Social Security Act 1991, section 5, Family relationships definitions - children
Parental Income Test (PIT)
Social Security Act 1991, section 1067G, Module F, Parental income test