Assessing verified parental income for current income assessments for ABSTUDY and Assistance for Isolated Children (AIC) Scheme 108-02020050

An applicant for a dependent ABSTUDY customer or Assistance for Isolated Children (AIC) student has supplied verified parental income details for the financial year ending in the year of study (that is, the current tax year).

Is the customer's or student's entitlement already based on a Current Income assessment?

• Yes, go to Step 3
• No, go to Step 2

If a form has not been lodged for:

• ABSTUDY - send a Module JY Parent(s)/Guardian details, for ABSTUDY
• Assistance for Isolated Children (AIC) - for a decrease or increase in income, send an Assistance for Isolated Children (AIC) Current Tax Year Assessment (SY042)

See the Resources page for a link to view the form online.

Advise the ABSTUDY applicant to use the Advise parental income online service or the ABSTUDY or AIC applicant can complete and lodge the appropriate form as soon as possible. See Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY) for more information.

Once the form has been lodged, see the appropriate procedure:

• Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY)
• Assess the AIC Current Tax Year Assessment form where decrease in income
• Assess the AIC Current Tax Year Assessment form where increase in income

Procedure ends here

Check the income figures on the Household Income and Assets (NHI) screen for the current tax year.

Do the verified income figures differ from those used to assess the customer's or student's entitlement?

• Yes, go to Step 5
• No, go to Step 4

If original documents were sent as verification (for example, Taxation Assessment Notice), photocopy and return the original documents.

Procedure ends here.

If the customer's or student's entitlement is based on a Current Income assessment due to:

• decrease in income, see Step 1 in the Income assessment due to a decrease/increase table
• increase in income, see Step 5 in the Income assessment due to a decrease/increase table

If the verified income is:

• lower than that used previously, go to Step 2
• higher than that used previously, go to Step 3

Reassess the entitlement using the verified income figures and the same Event Date as on the previous Current Income assessment. See Step 2 in the Process verified parental income assessment table

Is the verified combined income for the current tax year now higher than the combined income for the base tax year?

• Yes, (higher than base year) use the income for the base tax year to assess entitlement for the year. Go to Step 4
• No, (lower than base year) use the verified combined income for the current tax year and the same Event Date as on the previous Current Income assessment. See Step 2 in the Process verified parental income assessment table

The increase in the current tax year figures may be such that a Current Income assessment should apply from 1 October in the year of study. Decide if there has been an increase of more than 25% over the base tax year.

• Calculate the combined parental income based on the verified income figures
• Calculate the percentage increase in income by comparing the verified parental income for the current tax year with the parental income for the base tax year

Is the increase more than 25% over the parental income for the base tax year?

• Yes, a Current Income assessment may apply from 1 October. Go to Step 8
• No, see Step 1 in the Process verified parental income assessment table

If the verified income is:

• lower than that used previously, go to Step 7
• higher than that used previously, go to Step 6

Reassess the entitlement using the verified income figures and the same Event Date (for example, 1 October) as on the previous Current Income assessment. See Step 2 in the Process verified parental income assessment table

Decide if the Current Income assessment should apply with the verified income details.

• Calculate the combined parental income based on the verified income figures
• Calculate the percentage increase in income by comparing the verified parental income for the current tax year with the parental income for the base tax year

Is the increase more than 25% over the parental income for the base tax year?

• Yes, go to Step 8
• No, see Step 1 in the Process verified parental income assessment table

Was the parental income for the base tax year less than the Parental Income Free Area (PIFA) (due to an increase for additional dependent students and/or children)?

• Yes, compare the verified parental income with the PIFA. Go to Step 9
• No, is there an increase of more than 25% over the parental income free area?
• Yes, a Current Income assessment will apply. Use 1 October as the Event Date. See Step 2 in the Process verified parental income assessment table
• No, the base tax year income is to be used, see step 1 in the Process verified parental income assessment table

For information on family pool calculations, see:

• Determining a dependent child for inclusion in the family pool for the purposes of the Parental Income Test (PIT)
• Applying the Parental Income Test (PIT) for ABSTUDY and Youth Allowance (YA)
• Applying the Parental Income Test (PIT) for Assistance for Isolated Children (AIC) Scheme

Calculate the percentage increase over the PIFA (due to an increase for additional dependent students and/or children).

Is there an increase of more than 25% over the PIFA?

• Yes, a Current Income assessment will apply. Use 1 October as the Event Date. See Step 2 in the Process verified parental income assessment table
• No, see Step 1 in the Process verified parental income assessment table

Income figures for the base tax year are to be used to determine the customer's entitlement for the full calendar year. Correct the details on the NHI screen ensuring the base tax year figures are used for each Event Date for the year of study.

On the NHI screen:

• complete all fields with a change in income
• enter Source: and DOR: fields
• code C in the Action: field
• press [Enter]
• navigate to the Assessment Result (AR) screen

Is an overpayment indicated on the AR screen?

• Yes, record details of the verified income figures and assessment (including percentages, where applicable) on a DOC and refer to Actioning an undetermined debt on the Debt Management and Information System (DMIS). Procedure ends here
• No, go to Step 4

The system will adjust payments accordingly.

Record details on a DOC. Including the income figures and assessment result and record calculations of percentages where applicable.