Assessing independence when a customer is in State care 001-04060070

For the purposes of independent status, a young person is in State care if they are not living with a parent, and:

• they are in the guardianship, care or custody of a court, a minister, or a department of either the Australian, State or Territory Government
• there is a current direction from a court, minister or department placing the person in the guardianship, care or custody of someone (for example, a foster parent) who is not the person's parent, or
• the person stopped being in one of the situations described above only because of their age

A young person under a court, ministerial or departmental order or direction is considered to be in State care regardless of their legal guardianship status.

A young person in State care is considered to be independent regardless of whether they have a foster parent or legal guardian. For the purposes of determining independence, a parent is defined as a natural parent of the young person or a person who has legally adopted the young person.

There is no independent criterion for an ABSTUDY customer in State care. An ABSTUDY customer in this circumstance may be considered independent under Unreasonable to Live at Home (UTLAH).

This assessment of independence applies to DSP customers 16 or 17 years of age. This is not required for DSP customers between 18 and 20 years of age, as they are considered independent when living away from the parental home for any reason.

Independent YA customers are not subject to assessment under the Parental Means Tests. An independent YA customer may be paid YA from 15 years of age, unless:

• they are under the minimum school leaving age for the State or Territory in which they reside, or
• they do not have a formal exemption from attending school

YA customers under 15 years of age or under the school leaving age may need to be assessed for Special Benefit (SpB).

Support from the State or Territory does not affect a customer's independent status but does affect the rate of YA. Where the State or Territory is providing a foster allowance or other support for their upkeep (for example, free accommodation, food, clothing, utilities, etc.), the customer will be paid the 'State care or ward - supported rate' (that is, the at home rate for YA). See:

• References for a link to this Policy, and
• Resources for examples

Where the State or Territory is not providing any benefit for the customer or providing support for their upkeep, the customer will be eligible for the 'unsupported State care rate' (that is, the away from home rate for YA).

The organisation providing the care to the customer can still receive Government funding. The customer is in 'unsupported State care' when the funding is not being provided for their direct upkeep and support.

Note: this does not affect the rate of DSP. If a DSP customer is considered independent due to being in State care (supported or unsupported), they are eligible for the higher rate. For further information, see Assessing payment rates and independence for Disability Support Pension customers under 21 years.

Youth Disability Supplement (YDS) is available to:

• DSP customers who are 20 years of age and under, or
• YA and ABSTUDY customers who are 21 years of age and under, and
• have a partial capacity to work or study of less than 30 hours per week as assessed by an Employment Services Assessment (ESAt) or Job Capacity Assessment (JCA)

Some independent students who are disadvantaged by personal circumstances may also be qualified to receive Relocation Scholarship. Additional coding is required to pay Relocation Scholarship correctly for independent students who are disadvantaged by personal circumstances. See Relocation Scholarship (RS) eligibility.

When making an unfavourable decision, speak to the customer:

• explain the decision
• give them a chance to provide more information, and
• advise their review and appeal rights