Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY) 106-07100080

Use a MOD JY to collect parent(s)/guardian(s) details, such as:

• Base tax year income
• Current tax year income
• Maintenance income
• Family home address, for Relocation Scholarship purposes
• Bank account destination for under 18 year olds
• Siblings for a Family Pool assessment
• Parent(s)/Guardian(s) Tax File Number

These details are used to assess dependent Youth Allowance (YA) and ABSTUDY customer's entitlement under the Parental Means Test.

One parent or guardian can respond for both parent(s)/guardian(s) if they know the details required for all parties.

Parent(s)/guardian(s) can submit a MOD JY:

• Online using the Advise Parental Income (API) online service
• The parent(s)/guardian(s) are given a one-time use access code to use API
• Once they complete the API, the code is no longer usable. If they need to provide additional information, they will need to provide this verbally or complete a paper MOD JY form. See Advise Parental Income (API) online service
• In paper MOD JY form. This can be:
• Posted to the customer
• Posted to the parent(s)/guardian(s) overseas address (if known), or
• Downloaded from the Services Australia website
• Verbally
• for ABSTUDY customers only:
• Using the ABSTUDY Claiming Tool, or
• Claim for ABSTUDY (SY019) form

Note:

• DOC verbal responses using the Verbal Mod JY Fast Note
• Parent(s)/guardian(s) living permanently overseas who do not know their Customer Reference Number (CRN) must complete a paper MOD JY

The main income components collected in the MOD JY are:

• Taxable Income
• Foreign Income
• Maintenance Paid
• Maintenance Received
• Passive Business/Investment loss
• Reportable Superannuation
• Tax Free Pensions/Benefits
• Reportable fringe benefits

Note: consider obtaining income details from existing data on the parent(s)/guardian(s) record. See FAO Income Previous year (FIPY) and Parental Income Test (PIT) processing for Youth Allowance (YA), ABSTUDY and Assistance for Isolated Children (AIC).

For the purposes of the PIT, parent includes:

• natural or adoptive parents, or
• any other person who has taken parental responsibility, such as a foster parent or guardian

See Applying the PIT for ABSTUDY and Youth Allowance (YA) and Applying the PIT for Assistance for Isolated Children (AIC) Scheme.

Consider a parent's partner a step-parent for the Parental Means Test if they are:

• the married or de facto partner of the parent, and
• not the natural or adoptive parent of the dependent YA or ABSTUDY customer

Include the step-parent's circumstances in the Parental Means Test, when

• they live with the parent, and
• the customer normally lives with both the parent and step-parent

Apply this from the date the parent and step-parent normally live together. This includes events occurring while the customer is absent from the home, but normally lives with the parent.

Use a MOD JY to collect details from the parent/guardian of a YA or ABSTUDY customer if:

• Current PIT details are not already recorded on the customer’s record for the relevant tax year
• The parent/guardian has not supplied their details in the:
• YA or ABSTUDY online claim
• Claim for Youth Allowance form (SY001)
• ABSTUDY Claiming Tool, or
• Claim for ABSTUDY (SY019)
• The customer is under 18 years of age, to set up or confirm the correct payment destination declared by the parent
  Note: this does not apply for ABSTUDY tertiary students and Australian Apprentices under 18 years
• A current tax year assessment, rather than a base tax year assessment, is required
• The parent(s)/guardian(s) have had a change in circumstances. For example, a change in relationship status or the parent(s)/guardian(s) income support payment is cancelled. See Changes which may affect the Parental Income Test (PIT)

In some cases a MOD JY is not required. For example, when the customer is claiming Unreasonable to Live at Home (UTLAH).

There is no need to get Parent(s)/guardian(s), customer or sibling permission to re-use parental information previously provided or recorded. Review Parental Income Test (PIT) for more information.

Note: a MOD JY is required if the customer requests assessment of their new claim pending an UTLAH decision.

See the Process page for full details on when a MOD JY is not required.

Assess the PIT using the base tax year. Parent(s)/guardian(s) who have had a substantial change in their income may be eligible for a current tax year assessment.

The details required for the assessment depend on:

• the time of year, and/or
• the parent or guardian's circumstances

See Increase or decrease in parental income for Youth Allowance (YA), ABSTUDY and Assistance for Isolated Children (AIC) Scheme.

MOD JY for claim or reassessment between 1 January and 31 August

Parent(s)/guardian(s) completing a MOD JY between 1 January and 31 August must provide details for the base tax year.

If their income has decreased and the change will last 2 financial years, they should provide details for:

• the base tax year, and
• the current tax year

MOD JY for claim or reassessment between 1 September and 31 December

Parent(s)/guardian(s) completing a MOD JY between 1 September and 31 December must provide details for:

• the base tax year, and
• the current tax year

Parent(s)/guardian(s) may not have their current tax year income details. For example, income tax returns not lodged or Taxation Notice of Assessment (TNA) not yet received.

In this case the parent/guardian should provide:

• an estimate of their income, and
• an estimated date the TNA will be available

Note: this does not apply to MOD JY for YA claims for students who are FTB children.

FTB children can choose a 1 January start date for YA payment if they are:

• lodging a YA claim between 1 October and 31 December, and
• completing year 12 in November or December

Only request current tax year details for 1 January start dates.

Parent(s)/guardian(s) completing a MODJY for a student who has lodged an early claim, must provide income for the appropriate year.

Note: see Determining the appropriate tax year for the Parental Income Test (PIT) for Youth Allowance (YA), ABSTUDY and Assistance for Isolated Children (AIC) Scheme.

The Maintenance Income Test (MIT) includes voluntary maintenance income received by the parent (s)/guardian(s), for the customer. This must be recorded. See Maintenance Income Test (MIT) for ABSTUDY and Youth Allowance (YA).

The API online service allows parent(s)/guardian(s) to give the agency their details for an accurate PIT assessment.

Find this service:

• under the Income and Assets menu, in their Centrelink online account
• by searching for 'Advise Parental Income' on the agency's website

To use this service, parent(s)/guardian(s) must use the access code provided to the customer, in the:

• online claim, located in the MOD JY Task on the Next Steps page, parent(s)/guardian(s) get a Verification Code
• annual PIT review letter parent(s)/guardian(s) get a One Time Access Code (OTAC)
• PIT review letter, issued when the parent(s)/guardian(s) have had a change in circumstances, parent(s)/guardian(s) get an OTAC

The Verification Code and OATC can only be used once. Parent(s)/guardians(s) will need to provide additional or changed information either:

• verbally or
• complete a paper Mod JY

When making an adverse decision, speak to the customer:

• explain their decision
• give them a chance to provide more details or evidence, and
• advise their review rights and record a request for a formal review of the decision if the customer asks for one

Make genuine attempts to contact the customer before finalising the decision.