Skip to navigation Skip to content

Changes which may affect the Parental Income Test (PIT) 108-02020000

Expand/Collapse all sectionsExpand all



This is a Family and Domestic Violence Interaction Point. If the customer is with another person, on speaker phone or already identified with family and domestic violence concerns, continue with the current business conversation. Otherwise, go to the Family and domestic violence procedure to conduct the risk identification and referral process.

If you have concerns about a child's safety, follow Risk identification and management of threats to the safety or welfare of a child.

This document outlines changes in families' circumstances, which may affect the application of the Parental Income Test (PIT).

On this page:

Changes to parent(s)/guardian(s) circumstances

Parent(s)/guardian(s) or siblings have a change in circumstances or the customer chooses to live with a different parent

Reassessing a customer when their last known linked parent has died

Change in customer or sibling circumstances

Parental Income Test (PIT) exemption


Changes to parent(s)/guardian(s) circumstances

Table 1

Expand table

Step

Action

1

Determining change of circumstance

If the customer:

If an ABSTUDY High Priority Action required fast note or an activity with the keyword PITINDP has been allocated, see Table 3 > Step 1

2

Customer advises a change in parent(s)/guardian(s) circumstances

If an AIC student’s parent(s)/guardian(s) has died, see Applying, assessing and coding parental income for Assistance for Isolated Children (AIC). Procedure ends here.

If the customer's:

  • parents have died, go to Step 3
  • parent(s)/guardian(s) have had a change in relationship status, have gone overseas, or the customer decides to live with another parent or guardian, see Table 2 > Step 1

3

Death of one, or both, parent(s)/guardian(s)

Offer the customer a referral to a Services Australia social worker for support, if appropriate, and make any other referrals to external support services, as needed. For more information, see Social work services.

  • If only the custodial parent has died, go to Step 5
  • If the customer’s sole parent has died (and the surviving parent’s whereabouts are unknown) or both parents have died, go to Step 4

4

Death of YA/TAP or ABSTUDY customer's parent(s)/guardian(s)

Select the relevant payment below.

YA/TAP

If a customer's sole parent has died (and the surviving parent's whereabouts are unknown), or both parents have died, the circumstances will be assessed by the Over 18 (O18) Unreasonable to Live at Home (UTLAH) processing Team.

    • If the customer has contacted, to notify of the death of parent(s)/guardian(s):when the death action has been completed, an activity will be created and allocated to a suitably skilled O18 Service Officer
    • tell the customer that they will receive a call from Services Australia. Let them know these calls are not made in the 10 days after their parent’s death to respect their immediate grieving period
    • Procedure ends here
ABSTUDY

If the customer is over 16 years, their sole parent has died and the surviving parent’s whereabouts are unknown, the circumstances will be assessed by the Over 18 (O18) Unreasonable to Live at Home (UTLAH) team. Customers should also be referred to the O18 team if there is any indication they cannot live with their surviving parent.

For:

  • Initial contact by the customer to advise of the death of parent(s)/guardian(s):
    • ensure any death actions are completed on the parent(s)/guardian(s) records before completing any updates on the customer’s record. See Notification of death
    • tell the customer that they will receive a call from Services Australia. Let them know these calls are not made in the 10 days after their parent’s death to respect their immediate grieving period
  • Procedure ends here
  • O18 processing team, see Table 3 > Step 1

If the customer is under 16 years of age:

  • ask them if they have adequate support (from friends, family and/or services) and if they do not then immediately refer them to a social worker, procedure ends here.
  • If part of the O18 processing team, refer the ABSTUDY cases to the ABSTUDY processing team:
    • Create an open Fast Note:
    • Ensure the Service Reason field is updated to ABSTUDY
    • Select Auto text, use Students, ABSTUDY & Apprentices > Update > Template: ABSTUDY High Priority Action required. Select Confirm
    • Edit the template text to include the details known about the parent's death and action required
    • Include advice to processing staff member to return to OB 108-02020000 to action request
    • If a PITINDP activity exists, place it on hold for 7 days
    • Procedure ends here.

5

Custodial parent/guardian has died

If the custodial parent has died, ask the customer if there is another parent/guardian that they can live with without any safety/parental concerns.

If the customer advises that it is:

6

Death of custodial parent(s)/guardian(s) of a YA customer

If the customer has contacted to advise of the death of their custodial parent(s)/guardian(s):

Procedure ends here.

7

Death of custodial parent(s)/guardian(s) of an ABSTUDY customer

If the customer has contacted to advise of the death of their custodial parent(s)/guardian(s):

  • request a Parental Income Assessment (SY012A) or a Parent(s)/Guardian(s) details for the base tax year and current tax year for dependent Youth Allowance or ABSTUDY customers (MOD JY) form, see Requesting information (CLK). Note: a verbal MOD JY may also be accepted if appropriate
  • determine who the parent(s)/guardian(s) are for the Parental Means Test
  • record the details on a DOC

On return of SY012A or MOD JY at a service centre:

  • ensure the form is fully completed
  • scan the form to the customer’s record
  • record the details on a DOC. Select Auto Text, use Students, ABSTUDY & Apprentices > Update > ABSTUDY action request

On return of SY012A or MOD JY details:

Procedure ends here.

8

Death of a custodial parent(s)/guardian(s) of a TAP customer

Customers must complete a Tertiary Access Payment parent(s)/guardian(s) details form (SY105) to update parental information:

  • the SY105 is part of the Claim for Tertiary Access Payment (SY104) and is not available as a stand-alone form
  • print the SY105 section of the SY104 to issue to customers
  • the SY104 is available on Online Forms on the intranet

If the customer has contacted to advise of the death of their custodial parent(s)/guardian(s) before the course commencement date:

  • request an SY105, see Requesting information (CLK)
  • determine who the parent(s)/guardian(s) are for the Parental Means Test
  • record the details on a DOC

SY105 returned

  • Determine who the parents are for the purposes of TAP
  • Determine the appropriate tax year for assessment
  • Update the details in Process Direct, including the TAP Circumstance Details (TPCD) screen:
    • TAP Parental Income table with appropriate parent(s)/guardian(s) and income components
    • Parental income exemption where relevant
  • Record details on a DOC

Note: if the TAP benefit status shows as TAP/PND or TAP/PND, only reassess a change to parental income if the change occurred before the course commencement date.

Procedure ends here.


Parent(s)/guardian(s) or siblings have a change in circumstances or the customer chooses to live with a different parent

Table 2

Expand table

Step

Action

1

Risk identification - referral process

If the customer has experienced family and domestic violence (FDV):

2

Determine the change in circumstance

Rate of payment may change where there is a change in circumstances for a parent/guardian or a sibling. If:

  • a parent/guardian become widowed, separated or divorced, or the customer changed which parent/guardian they live with, go to Step 3
  • a parent/guardian started a relationship with a new partner, or reconciled with a previous partner, go to Step 5
  • a parent/guardian stopped attracting a PIT exemption, see Table 5 > Step 1
  • a parent/guardian has gone overseas, go to Step 6
  • there has been a change in circumstances for a sibling, see Table 4

3

Parent(s)/guardian(s) have become widowed, separated/divorced, or customer changes parent(s)/guardian(s)

If the contact is from a parent/guardian who has become separated or divorced, see Separating safely - protecting personal details to make sure the customer's personal details are safe before progressing.

If the customer's parent(s)/guardian(s) were:

  • receiving a Services Australia income support payment at the time of notification of widowing, separation or divorce, a Parental Income Assessment (SY012A) will automatically be sent to the customer to determine the relevant parent/guardian for the purposes of Parental Means Test. A review will automatically be set up on the Future Activity List (FAL) screen for return of the form
  • not receiving a Services Australia income support payment at the time of notification of widowing, separation or divorce, or the customer leaves the care of one parent to live with the other parent (where parents are separated or divorced), a Parental Income Assessment (SY012A) or Tertiary Access Payment parent(s)/guardian(s) details form (SY105) will not automatically be sent to the customer

Note: a Separation Details (MOD S) is not required if the customer's parent(s)/guardian(s) record show they are partnered but neither parent/guardian receives an income support payment

If the:

  • student is receiving ABSTUDY, go to Step 4
  • SY012A or SY105 has not been issued automatically, or the customer/parent/guardian is unable to provide sufficient information verbally, request a Parent(s)/Guardian(s) details for the base tax year and current tax year for dependent Youth Allowance or ABSTUDY customers (MOD JY) form or SY105. Procedure ends here until the form is returned
  • customer can provide sufficient information at the time of contact about a change of parent/guardian, or an SY012A, SY105 or MOD JY has been returned, go to Step 7
  • customer is Tertiary Access Payment (TAP) (only), go to Step 13.

4

ABSTUDY student changes the parent/guardian they live with

If the ABSTUDY student changes the parent/guardian they live with and they are receiving:

  • ABSTUDY Schooling A, a new claim is required:
    • go to the Benefit Action (BA) screen
    • cancel the ABT reason 'ANQ' (applicant not qualified) from the date of the change. For more details, see Cancellation or suspension of ABSTUDY payments
    • ensure the effect date on the BA screen is the same date as when the student care arrangements changed
    • record details on a DOC
  • ABSTUDY Schooling B and are under 16 years of age, a new claim is required:
    • go to the BA screen
    • cancel the ABY reason 'OTH' (other) from the date of the change. For more details, see Cancellation or suspension of ABSTUDY payments
    • ensure the effect date on the BA screen is the same date as when the student care arrangements changed
    • record details on a DOC
  • ABSTUDY and are over 16 years of age, a new claim is not required:
    • request a Parent(s)/Guardian(s) details for the base tax year and current tax year for dependent Youth Allowance or ABSTUDY customers (MOD JY)
    • record details on a DOC
    • when the MOD JY is returned, go to Step 7

5

Parent/guardian has a new partner or reconciles with a previous partner

If the customer's parent(s)/guardian(s) were:

  • receiving a Services Australia income support payment at the time of relationship status change, a Parental Income Assessment (SY012A) will automatically be sent to the customer to determine the relevant parent/guardian for the purposes of Parental Means Test. A review will automatically be set up for return of the form
  • not receiving a Services Australia income support payment at the time of relationship status change, a Parental Income Assessment (SY012A) or Tertiary Access Payment parent(s)/guardian(s) details form (SY105) will not automatically be sent to the customer

Determine if the new partner is regarded as a 'parent' for PIT purposes. See Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA).

If the new partner, is not regarded as a parent:

  • no updates are required on the customer’s record
  • record details on a DOC
  • procedure ends here

If the new partner is regarded as a parent, and:

  • an SY012A, SY105 or Parent(s)/Guardian(s) details for the base tax year and current tax year for dependent Youth Allowance or ABSTUDY customers (MOD JY) has not been automatically sent to the customer, request a MOD JY or SY105 for TAP (only if the new parent is linked before the first assessment date.
    Note: if the parent is reconciling with a previous partner, another MOD JY/SY105 is not required if those details have already been provided in the current academic year
  • an SY012A, SY105 or MOD JY has been returned, (or is not required) for:

6

Parent(s)/Guardians(s) have gone overseas

For Youth Allowance (YA) customers:

  • If the parent(s)/guardian(s) have gone overseas (either temporarily or permanently), check if the customer may qualify for the away from home rate
  • If the customer is under 18 years old, check the Payment Destination (PAS) screen to see where payments are directed. If the customer is unable to access their payments while their parent(s)/guardian(s) are overseas, arrange for the payments to be made to the customer or a payment nominee, see Nominees

For ABSTUDY customers:

Check whether the customer qualifies for the away from home rate of ABSTUDY. See Away from home rate for ABSTUDY.

To determine where the payments are to be directed, for students:

Procedure ends here.

7

Return of SY012A, MOD JY or a verbal MOD JY

If a paper form is received at a service centre, scan all documents onto the customer's record.

Review the change in circumstances details. The date of the change will be the date of effect for the reassessment.

The parent(s)/guardian(s) record must be updated with the change in marital status before it is possible to update the Youth Allowance (YA), Tertiary Access Payment (TAP) or ABSTUDY dependent customer record. If updates to the parent(s)/guardian(s) record cannot be made immediately because more information is required, hold the claim or activity until the required updates can be made using the hold reason ‘Third Party to Provide Information’.

If the parent(s)/guardian(s) marital status has:

If none of the above apply, and the customer has changed which parent(s)/guardian(s) they live with, go to Step 12.

8

Parent(s)/guardian(s) relationship status changed from single to partnered

Parent’s/guardian’s records must be linked before completing updates to the customer’s record.

If:

9

Update parent/guardian record - single to partnered

Before completing relationship status updates, check:

Marital Status (MS) screen updates

On the MS screen, update:

  • Event Date: with the date the parent/guardian became partnered
  • Marital Status: with the appropriate status
  • PPE Cust and PPE Ptnr: ‘N’ unless each member of the couple has given written or verbal permission to enquire on each other's behalf
  • Qualifier Code:
    • if the partner has never lived in Australia, use OVP O/seas (Never in AUST)
    • otherwise leave blank
  • Source: as appropriate
  • Date of receipt: date the information was received. See Date of receipt
  • Select Continue to go to the Link Person (LP) screen

Link the parent/guardian and partner records on the LP screen

  • Locate the partner’s record via the LP screen by searching by surname, first name or initial, and date of birth
  • Select the partner’s record from the search results. If no record found, add a new record on the Add Person (AP) screen
  • Confirm the selection
  • The Customer Details Task (CDTS) screen will display:
    • select any relevant screens for updating customer details based on the information provided
    • see the relevant Operational Blueprint for details on updating any other customer details (for example, updating address or payment destination)
  • check Accommodation Details (AC) screen:
    • Accommodation Details field: Customer and Partner (B)
    • the code of Link of two customers - LNK will display in the Rent Verification field. This must be updated
  • Select Continue
  • Check that the results on the Assessment Results (AR) screen are correct
  • Finalise the activity

Go to Step 12.

10

Parent(s)/guardian(s) relationship status changed from partnered to single

Parent’s/guardian’s records must be unlinked before completing updates to the Youth Allowance (YA), Tertiary Access Payment (TAP) or ABSTUDY dependent customer record.

If:

11

Update parent/guardian record - partnered to single

There is a known issue where records cannot be unlinked while STA/SUB/COM parallel (both) activities exist. See E120CU - Can't Unlink while STA/SUB/COM parallel (bth) activities exist if this occurs.

Marital Status (MS) screen updates

Complete the updates in Customer First

If a temporary qualifier:

  • was previously added to enable a change of address/accommodation:
    • correct the previous MS entry
  • was not added, create a new entry on the MS screen

On the MS screen, update:

  • Event Date: with the date of separation
  • Marital Status: select separated marital status
  • PPE Cust and PPE Ptnr: leave blank, Partner Permitted to Enquire (PPE) will automatically cease once the separation has been processed on the customer record
  • Qualifier Code: leave blank
  • Source: as appropriate
  • Receipt Date: date the information was received. See Date of receipt
  • Select Continue to go to the Customer Details Task (CDTS) screen
  • B (both) must be changed to S (customer only) in the following fields to make sure updates do not flow to the ex-partner's record:
    • address
    • accommodation
    • telephone

Other changes

To update any other changes, including Office Code (OC) screen:

  • Select the appropriate screens from the CDTS screen
  • If other screen names on the CDTS screen default to B for updates for both parent/guardian and partner, change to S to make sure only the parent’s/guardian’s record is updated

If the parent:

  • has had a change in address (including postal address)/accommodation details:
    • on the Address Details (AD) screen, update the address
    • record No in the Make partner's address the same as the customer's field to make sure the address update is not applied to the partner record
    • on the Accommodation Details (AC) screen, select the provisional entry with the Event Date entered on the MS screen
    • Accommodation Details for field is Customer
    • the code of Unlink of two customers - ULK will display in the Rent Verification field. This must be updated using the most relevant code for the customer's current circumstances
  • has not had a change in address/accommodation details:
    • on the Accommodation Details (AC) screen, select the provisional entry with the Event Date entered on the MS screen
    • Accommodation Details for field is Customer
    • update the Rent Verification field from Unlink of two customers - ULK to either the same code that existed before ULK (for example, VEF/VEC/VED) or the most relevant code for the customer’s current circumstances
    • is separated but living under the same roof as their ex-partner, ask if they wish to provide a different mailing (postal) address
  • has changed their email address, see Adding, changing or removing an email address
  • believes their ex-partner knows their self service Personal Identification Number (PIN) or password, tell them to access the self service channel to change these details as soon as possible
  • received a Crisis Payment (CrP) in the period the updates were applied, a manual reassessment of CrP may be required. See Reviewing and reassessing Crisis Payment (CrP)

After making all updates:

  • go to the Assessment Results (AR) screen
  • check that results are correct
  • finalise the activity
  • record details on a DOC

12

Update PIT linked parent(s)/guardian(s)

For Youth Allowance (YA) and ABSTUDY, determine who the parents are for the Parental Means Test, and:

Note: consider whether the customer qualifies for the away from home rate of ABSTUDY. See Away from home rate for ABSTUDY.

Procedure ends here.

13

Update Tertiary Access Payment (TAP) details

Review the details about the change in circumstances, including the date of the change as this will be the date of effect of the reassessment.

Note: if the form is received at a service centre, scan all documents onto the customer's record. Only code a change to PIT on the TAP Circumstance Details (TPCD) screen if the new parent is linked before the course commencement date.

SY105 returned:

  • determine who the parents are for the purposes of the TAP as at the course start date (if the student has relocated and established a separate and permanent home away from the family home, the step parent income is not assessable for TAP)
  • determine the appropriate tax year for assessment
  • update the details in Process Direct, including the TPCD screen:
    • TAP Parental Income table with appropriate parent(s)/guardian(s) and income components
    • Parental income exemption where relevant
  • record details on a DOC

Note: TAP eligibility is assessed based on the parental income circumstances relevant as at the course start date. Changes to the PIT after the course start date will not affect entitlement to TAP. Therefore, for the purposes of TAP, the TPCD screen can be coded to remove the parent if the separation occurred prior to the course start date. Staff should document the record accordingly.

Procedure ends here.


Reassessing a customer when their last known linked parent has died

Table 3

Expand table

Step

Action

1

Allocated reassessment activity with PITINDP keyword or ABSTUDY High Priority Action required fast note

Where the customer's last known linked parent has died, and the death action has been processed on the parent(s)/guardian(s) record, a reassessment (REA) activity with a keyword PITINDP will be created and allocated to O18 UTLAH team.

Note: if the customer receives ABSTUDY and is under 16 years of age, the updates are actioned by ABSTUDY skilled staff

If an ABSTUDY High Priority Action required Fast Note has been allocated via Workload Management (WLM), and:

If the REA PITINDP activity has been allocated via Workload Management (WLM), and:

2

PITINDP REA activity allocated via Workload Management (WLM)

Where the REA activity has been allocated via WLM, check the Death and executor information (DEA) screen in Process Direct or Death/Executor (DEA) screen in Customer First on the deceased parent’s record for the date of death.

If error E245ZC: Promoted CHI record, please update address presents, update the home address recorded on the parent's record and update the customer's Address Details (AD) screen inside the ripple activity.

Have 10 days passed since the date of death?

  • Yes, go to Step 3
  • No:
    • Hold the PITINDP reassessment activity until the tenth day after the date of death of the parent
    • Record a Display on access (DOA) Fast Note - select Auto Text, use Social Worker > Update >Urgent F/U PIT Bereavement
    • Check the DOA box before selecting Confirm
    • The DOA reason will auto populate as BRV - Bereavement
    • Set the Expiry date as 3 months from 'date of death'
    • Select Confirm
    • Procedure ends here until the activity becomes due

3

Ten days after date of death of parent(s)/guardian(s)

Select from the below options.

Youth Allowance (YA) customers

If available information suggests contacting the customer today is not appropriate, for example, it is the date of the funeral, hold the PITINDP reassessment activity for one more day before attempts to contact are made.

Make a genuine attempt to contact the customer. Was contact successful?

  • Yes, go to Step 4
  • No:
    • Create a Q888 letter with the Youth Allowance text in Deceased Parent Letter. See Resources page for the text. Send the letter to the customer
    • Record a Display on access (DOA) Fast Note - Select Auto Text, use Social Worker > Update > Urgent F/U PIT Bereavement
    • Check the DOA box before selecting Confirm
    • The DOA reason will auto populate as BRV - Bereavement
    • Set the Expiry date as 3 months from date of death
    • Select Confirm
    • Place the REA activity on hold for 7 days after the date the Q888 letter was sent. Add keyword DEAPAR7 to the held activity
    • Procedure ends here until activity becomes due
ABSTUDY customers aged under 16 years
  • O18 processing Service Officers must refer the case to ABSTUDY:
    • Create an open Fast Note in Customer First:
    • Ensure the Service Reason field is updated to ABSTUDY
    • Select Auto text, use Students, ABSTUDY & Apprentices > Update > Template: ABSTUDY High Priority Action required. Select Confirm
    • Edit the template text to reflect the details known about the parent’s death and action required
    • Include advice to processing staff member to return to OB 108-02020000 to action request
    • If a PITINDP activity exists, place it on hold for 7 days
    • Procedure ends here
ABSTUDY customers aged 16 years and over

Make a genuine attempt to contact the customer.

Was contact successful?

  • Yes, go to Step 9
  • No:
    • Create a Q888 letter with the ABSTUDY text in Deceased Parent Letter. See Resources page for the text. Send the letter to the customer
    • Record a Display on access (DOA) Fast Note - Select Auto Text, use Social Worker > Update > Urgent F/U PIT Bereavement
    • Check the DOA box before selecting Confirm
    • The DOA reason will auto populate as BRV - Bereavement
    • Set the Expiry date as 3 months from date of death
    • Select Confirm
    • Place the REA activity on hold for 7 days after the date the Q888 letter was sent. Add keyword DEAPAR7 to the held activity
    • Procedure ends here until activity becomes due

4

Youth Allowance (YA) customers - contact successful

Contact with customer was successful and the customer:

  • can take the call, go to Step 9
  • cannot discuss their circumstances at this time, staff must:
    • determine an appropriate time to call back
    • hold the activity until contact can be made
    • if a DOA doesn't exist, record a Display on access (DOA) Fast Note - Select Auto Text, use Social Worker > Update > Urgent F/U PIT Bereavement
    • Check the DOA box before selecting Confirm
    • The DOA reason will auto populate as BRV - Bereavement
    • Set the Expiry date as 3 months from date of death
    • Select Confirm

Procedure ends here until the activity becomes due.

5

ABSTUDY customers - 10 days after the death of parent(s)/guardian(s)

Select the appropriate action below.

Schooling A student

The student is not the applicant and is too young for verbal contact. The ABT record will need to be CAN-ANQ as the parent was receiving payment on behalf of this customer.

Go to the Benefit Action (BA) screen:

  • cancel the ABT reason 'ANQ' (applicant not qualified) from the date of the change. For more details, see Cancellation or suspension of ABSTUDY payments
    • Note: Inhibit letter on Assessment Results (AR) screen.
  • ensure the effect date on the BA screen is the same date as when the student care arrangements changed
  • record details on a DOC

Procedure ends here.

Customer is living away from home and there is no Permission to Enquire (PPE) authority or nominee

Create a Q888 letter with the ABSTUDY text in Deceased Parent Letter. See the Resources page for the text. Send the letter to the customer.

  • Record a Display on access (DOA) Fast Note - Select Auto Text, use Social Worker > Update >Urgent F/U PIT Bereavement
  • Check the DOA box before selecting Confirm
  • The DOA reason will auto populate as BRV - Bereavement
  • Set the expiry date as 3 months from 'date of death'
  • Place the REA activity and/or the ABSTUDY High Priority Action required Fast Note on hold for 7 days after the date the Q888 letter was sent. Add keyword DEAPAR7 to each held activity

Procedure ends here until activity becomes due.

Customer is living away from home and there is a PPE Authority or nominee status

Attempt to contact the boarding school or private board provider.

  • If contact by phone made, go to Step 9
  • If contact by phone not made, and the customer is under 16 years old and is boarding privately or at a boarding school:
    • Place the reassessment activity and/or the ABSTUDY High Priority Action required Fast Note on hold for 7 days after the date the attempted contact was unsuccessful
    • Add the keyword DEAPAR7 to the held activity
    • Procedure ends here until the activity becomes due
If contact by phone was not successful and customer is 16 years or older:
  • Create a Q888 letter with the ABSTUDY text in Deceased Parent Letter. See Resources page for the text. Send the letter to the customer
  • Record a Display on access (DOA) Fast Note - Select Auto Text, use Social Worker > Update >Urgent F/U PIT Bereavement
  • Check the DOA box before selecting Confirm
  • The DOA reason will auto populate as BRV - Bereavement
  • Set the expiry date as 3 months from 'date of death'
  • Place the REA activity on hold for 7 days after the date the Q888 letter was sent. Add the keyword DEAPAR7 to the held activity
  • Procedure ends here until activity becomes due

6

Reassessment activity becomes due – 7 days after letter sent or phone contact attempted

Make a genuine attempt to contact the customer. Was contact successful?

  • Yes, go to Step 9
  • No:
    • place REA activity and/or the ABSTUDY High Priority Action required Fast Note on hold for another 15 days
    • remove keyword DEAPAR7
    • add keyword DEAPAR22

7

Reassessment activity becomes due – 22 days after letter sent, or initial phone contact attempt

Check the scanned images and DOCs for a reply to the letter.

If no response, make a genuine attempt to contact the customer.

Was contact successful?

8

Unable to contact customer and no reply to letter

Check the Death and executor information (DEA) screen in Process Direct or Death/Executor (DEA) screen in Customer First on the deceased parent’s record for the Date of death.

Select the REA activity and:

For Youth Allowance and ABSTUDY Non-Boarders

  • Select the REA activity and go to the Benefit Action (BA) screen, update:
    • Action field, CAN - Cancel
    • Reason field, FRC - Failure to Reply to Correspondence
    • Event Date field, is the date paid to + 1 day
    • Finalise the activity via the Assessment Results (AR) screen
    • Close off all appropriate scanned documents and Fast Notes

For ABSTUDY Boarding students

  • Select the REA activity and go to the BA screen, update:
    • Action field, CAN - Cancel
    • Reason field, FRC - Failure to Reply to Correspondence
    • Event Date field, if the date of death of the parent is on or before the third Friday of the current term, the date of effect will be the end of the previous term entitlement period. If the date of death of the parent is after the third Friday, the date of effect is the last date of the current term entitlement period
    • Finalise the activity via the Assessment Results (AR) screen
    • Close off all appropriate scanned documents and Fast Notes

If a debt shell activity is created as a result of the cancellation:

  • do not manually adjust the amount
  • Refer any debt activity to Debt Raising National. See Resources page for a link to Office Locator

Note: For ABSTUDY, if the activity creates a debt shell, ABSTUDY debt trained staff should complete the debt raising process end to end. See Raising ABSTUDY debts.

Record details on a DOC, including that the customer will need to test their eligibility for independence or establish a new PIT link to the person acting as a long term guardian before their YA or ABSTUDY (ABY) can be restored.

Procedure ends here.

9

Customer or board provider contact successful

When speaking with the customer, always check if it is an appropriate time to have the discussion. If it is not an appropriate time to have the discussion:

  • put the PITNDP reassessment activity on hold for 1-2 days
  • tell the customer we will call them back

Offer the customer a referral to a Services Australia social worker for support, if appropriate, and make any other referrals to external support services, as needed. For more information, see Social work services.

If both parent(s)/guardian(s) died, go to Step 10.

If one parent/guardian has died and it is reasonable for the customer to be dependent on the other parent/guardian, go to Step 11.

If only one parent/guardian has died, and it is reasonable for the customer to be dependent on the other parent/guardian, for:

If there is an urgent F/U PIT Bereavement DOA DOC on the record, expire this DOC.

If the customer has any siblings also receiving an income support payment, ensure any updates are made to their records where appropriate.

Procedure ends here.

10

Both parents/guardians have died

If both parents/guardians are deceased and evidence supports this (Centrelink records, other scanned documents or death certificate) review the circumstances and update the following:

  • Independence as a double orphan:
  • If the customer was subject to the Parental Means Test, tell them:
    • this test no longer applies, and
    • if they will receive a new rate of payment
  • any changes to the customer's address
  • any changes to the customer’s accommodation circumstances, particularly where the Sharer Status is currently coded as Lives with parents - LWP as this code is no longer appropriate
  • Payment Destination (PAS) screen, particularly for customers under the age of 18 or where the parent(s)/guardian(s) is recorded as a payment nominee
    • scan any documents to the customer’s record and record the details on a DOC.

If there is an Urgent F/U PIT Bereavement DOA DOC on the record, expire this DOC.

If the customer has any siblings also receiving an income support payment, ensure any updates are made to their records where appropriate.

Procedure ends here.

11

Other parent/guardian to be assessed for PIT

Where another person can be assessed as a parent/guardian for the purposes of the Parental Means Test:

If there is an Urgent F/U PIT Bereavement DOA DOC on the record, staff must expire this DOC.

If the customer has any siblings also receiving an income support payment, ensure any updates are made to their records where appropriate.

Procedure ends here.

12

ABSTUDY/UTLAH assessment required

If the customer is:

Procedure ends here.


Change in customer or sibling circumstances

Table 4: this table describes the process to follow when a customer or sibling has a change of circumstance that will affect the family pool.

Expand table

Step

Action

1

Change in circumstances affecting family pool

A change in circumstance of one or more dependent siblings, can affect the family pool, including one or more of the following:

  • A sibling receiving Youth Allowance (YA), ABSTUDY or attracting Assistance for Isolated Children (AIC) Additional Boarding Allowance (ABA):
    • changes to parent(s)/guardian(s) they are dependent on
    • becomes independent
    • has a review of independence and is now dependent
    • has an increase/decrease in their maximum rate of payment (that is, is granted the away from home rate)
    • payment is suspended or cancelled
    • AIC sibling stops or starts being eligible for ABA
  • A sibling defined as a Family Tax Benefit (FTB) or regular care child:
    • leaves or enters the care of parent(s)/guardian(s)
    • changes care percentage
    • parent(s)/guardian(s) cease or commence paying rent
    • aged 16-19 years ceases or returns to secondary study
    • is granted YA, ABSTUDY or their parent/guardian is granted AIC ABA
    • is absent from Australia for more than 6 weeks
    • lodges a YA claim, resulting in FTB cancelling
    • has a parent/guardian who is granted AIC ABA, or
    • is granted ABSTUDY, resulting in FTB cancelling
  • a customer receiving ABSTUDY Living Allowance (16yrs and over) or YA and they or their sibling starts or stops attracting maintenance income. See the Maintenance information screens table, Items 1, 2 and 3 in Where to find child support information on Centrelink systems

If the customer is:

  • dependent and their payment is assessed under the Parental Means Test, go to Step 2
  • independent, or dependent and their payment is assessed under the personal income/assets test, see Allowance income and Assets tests. Procedure ends here

2

Change in circumstance

If the customer has contacted to:

  • advise a change in circumstance for a dependent sibling, go to Step 3
  • enquire about a change in rate or payability, go to Step 4

3

Change in circumstance of a sibling

Changes in circumstances not already recorded, for:

Once the sibling’s record has been updated, go to Step 4.

4

Check sibling details

Consistent information should be recorded on all sibling records on the system to minimise incorrect payments between siblings.

Where a customer or parent advises there is a change in circumstance for a sibling, care must be taken not to disclose another person’s personal details.

Check the customer and sibling records to determine the cause of change in rate and/or payability:

  • NSS Rate Explanation (NREX) screen to determine the date the change in payment occurred
  • Family Pool Summary guided procedure and Family Pool Summary (NSFP) screen to determine:
    • the customer’s maximum rate and family pool contribution percentage
    • the total family pool maximum rate
    • all siblings details including, name, Customer Reference Number (CRN), family pool contribution, linked parent(s)/guardian(s), benefit status maximum rate and for FTB and regular care siblings their care percentage
    • Note: FTB will be reassessed for any gap period where the sibling has dropped out of the family pool but maintains eligibility as an FTB child. Follow-up adjustments will be made when the FTB is reassessed by staff trained in FTB processing.
  • the Dependent Youth Rate Summary (!DYRSUMM) screen displays the date of event and the aligned details as follows:
    • Customer information
    • Rate calculation information
    • Parent Information
    • Sibling information

5

Recording details and customer contact

Where there has been a change in circumstance of a sibling which has changed their contribution to the family pool or a sibling is no longer included in the family pool, this may affect the customer’s rate of payment.

A change in maintenance income for the customer or if a sibling starts or stops receiving maintenance income can also affect the customer’s rate of payment.

Tell the customer or applicant their rate of payment has changed due to a change in circumstance of a family member. See Youth Allowance at pending status (YAL/PSA) and dependent siblings

Record details on a DOC. Repeat the procedure above for any other siblings who are receiving or eligible for YA, AIC or ABSTUDY and who may also be affected by this sibling's change.


Parental Income Test (PIT) exemption

Table 5: this table describes steps when a dependent customer's parents no longer qualify for a PIT exemption, and updates are required on the Household Income and Assets (NHI) screen.

Expand table

Step

Action

1

Advice received

When the parent(s)/guardian(s) are no longer PIT exempt, in most cases, the system will automatically end the exemption on the Household Income and Asset (NHI) screen, except where parent(s)/guardian(s) were receiving payments from the Department of Veterans' Affairs (DVA). DVA payments are not administered by Services Australia and rely on customer notification or a manual end date being coded.

For information about rules for exemptions from the PIT, see:

Note: for ABSTUDY and Assistance for Isolated Children (AIC) Additional Boarding Allowance (ABA), a parent/applicant receiving Farm Household Allowance (FHA) is PIT exempt from the commencement of the period of receiving FHA until 31 December of that calendar year.

2

Household Income and Assets (NHI) screen

Check the NHI screen to determine if a PIT exemption has ceased or requires manual end date where the parent(s)/guardian(s) are no longer receiving DVA payments.

If the PIT Exempt Rsn field still shows an incorrect exemption reason for a DVA payment, see Payments from the Department of Veterans' Affairs (DVA) and referrals to the DVA Clearance Team.

When a PIT exempt customer or AIC student ceases to be exempt from the PIT, it is necessary to determine the appropriate tax year to apply the PIT. If the change in the parent(s)/guardian(s) circumstances may cause a substantial increase or decrease in parental income, see Increase or decrease in parental income for Youth Allowance (YA), ABSTUDY and Assistance for Isolated Children (AIC) .

If the parental income for the relevant tax year is

  • recorded, a PIT review letter won’t be issued, and the customer will be paid based on the parental income details on NHI. Procedure ends here.
  • not recorded for ABSTUDY and Youth Allowance (YA):
    • a Parental Income review letter will be automatically issued, including a One Time Access Code (OTAC) to enable to parent(s)/guardian(s) to provide the information online, go to Step 4
      Note: a verbal Parent(s)/Guardian(s) details for the base tax year and current tax year for dependent Youth Allowance or ABSTUDY customers (MOD JY) can be accepted for YA and ABSTUDY, where the parent is able to provide sufficient information at the time of contact
    • AIC, go to Step 3

3

AIC PIT exemption ceased, parental income not recorded

Check the FAO Income Previous Year (FIPY) screen on the applicant record (and applicant's partner if applicable) to see if actual base tax year income has been recorded

Has the actual amount been recorded for the relevant tax year?

  • Yes, code this income on the student NHI screen (and that of any other AIC sibling receiving ABA). Procedure ends here
  • No, go to Step 4

4

PIT exemption ceased

Select the appropriate option below

ABSTUDY

A Parental Income review (PIR) or Employment Income review (EIR) period will apply when there is no base year parental income data present. The system automatically issues a PIT review letter to request parental income information, with a due date for return in 14 days.

The 14 day review period commences from the date the parent's payment circumstance ripples to the customer file. If the parent's cancellation is backdated the income review period could be, in effect, longer than 14 days.

Payment to the ABSTUDY customer will continue at the rate previously paid, pending return of the information.

If parental income information is:

YA

A Parental Income review (PIR) or Employment Income review (EIR) period will apply when there is no base year parental income data present. The system automatically issues a PIT review letter to request parental income for this information, with a due date for return in 14 days.

The 14 day review period commences from the date the parent's payment circumstance ripples to the customer file. If the parent's cancellation is backdated the income review period could be, in effect, longer than 14 days.

Payment to the YA customer will continue at the rate previously paid, pending return of the information.

If parental income information is:

AIC

If the AIC student ceases to be exempt from the PIT, AIC Service Officers must attempt to contact the AIC applicant.

If the contact is successful, advise the applicant to supply suitable proof of income. Once provided ABA entitlement can be restored. Record details on a DOC of decision or discussion, procedure ends here

If the contact attempt is unsuccessful:

  • send a Q888 letter on the APPLICANT’s record requesting taxable income details.
  • issue an AIC Additional Boarding Allowance - Request for information Q888 letter, available on the Students and trainees sub-site. For details, see Creating a Q999 or Q888 letter.
  • Tell the applicant ABA will not be reassessed until the required documents are provided
  • Record details on a DOC of decision or discussion
  • Procedure ends here

When the parental income details are provided:

procedure ends here