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

Policy advice: Step parent for Parental Income Test purposes

A step-parent is the partner of the parent who has primary care and responsibility of the dependent Youth Allowance or ABSTUDY customer. For Youth Allowance customers, see Legislation for a link to the Social Security Act 1991 definition of parent and dependent child. For ABSTUDY customers, the term 'parent' is defined in the Glossary of the ABSTUDY Policy Manual.

The income of the step-parent are included in the Parental Income Test for the purposes of determining the rate of Youth Allowance or ABSTUDY Living Allowance for a customer where the step-parent lives with the parent and the customer normally lives with the parent and step-parent. The earliest that this may be applied is from the date that the parent and step-parent normally live together and this may include the event occurring while the customer is absent from the home but normally lives with the parent.

'Normally lives with' means that the customer's normal home is the same as the parent and step-parent. The customer may live away from home for the purposes of undertaking study, to search for work and/or undertake other activities but still not establish their own permanent and separate home, that is, they intend to return home.

Should the customer have established a separate home with no intention of returning other than for a visit then it may be accepted that they do not normally live at home, subject to verification. Whether or not the customer has ever normally lived with the step-parent, once they cease to normally live at home is irrelevant and for the purposes of the Parental Income Test the step-parent's income should not be included.

ABSTUDY

Links to the ABSTUDY Policy Manual and the Assistance for Isolated Children (AIC) Scheme guidelines go to pdf and docx documents. Select the document and go to the reference(s) below.

ABSTUDY Policy Manual

• 58, Parental Income Test and Limits
• 58.1, onwards, Parental Income Test sections
• 58.1, Exemptions from the Parental Income Test
• 58.2, Whose income is assessed under the Parental Income Test?
• 58.4, Income assessed under the Parental Income Test
• 71.7, Payee for Living Allowance

Note: There is no legislation for ABSTUDY.

Assistance for Isolated Children (AIC) Scheme

Assistance for Isolated Children Scheme Guidelines

• 6, The Parental Income Test
• 6.1, Overview
• 6.1.2, Tax year used for assessment
• 6.10, Waiver of the Parental Income Test

Note: There is no legislation for Assistance for Isolated Children.

Youth Allowance (YA)

Guide to Social Security Law, 1.1.I.50, Income components (YA)

Guide to Social Security Law, 1.1.P.10, Parent

Guide to Social Security Law, 1.1.P.40, Parental income test (YA)

Guide to Social Security Law, 1.1.P.30, Parental income free area (YA)

Guide to Social Security Law, 4.2.8.10, Dependent YA - Parental Income Test & Limits

Guide to Social Security Law, 4.2.8.20, Dependent YA - Maintenance Income Test

Guide to Social Security Law, 1.1.F.60, Family Member

Guide to Social Security Law, 8.4, Payment Methods

Guide to Social Security Law, 2.1.1.10, FTB Child

Links to the Federal Register of Legislation go to a 'Series' page. Select the ‘Latest’ version.

Youth Allowance (YA)

For a description of the method to calculate the Parental Income Test (PIT) and its effect on a dependent student's entitlement, see:

Social Security Act 1991

• section 1067G, Module F, Parental income test
• section 23, General definitions (14) & (15), Family Member
• section 7(6D), Family Member
• section 5, Family relationships definitions - children

Social Security (Administration) Act, 1999

• section 118, Date of effect of adverse determinations - general rules

Farm Household Support Act 2014

• section 93, Application of the Social Security Act

Farm Household Support Act 1992

This Act covers payments made before the introduction of Farm Household Allowance under the Farm Household Support Act 2014. These payments attracted a Parental Income Test exemption.

• Part 5 - Payment of certain support and payments
• Part 6 - Former RAS (Part C) beneficiary

For details on where payments of Youth Allowance are to be paid when a customer is under 18 years of age and is not independent, see Social Security (Administration) Act 1999 section 45, person under 18 and not independent.