Independent and dependent customers living together 102-03030050

Sara and Tom have been living in a de facto relationship for 4 months and are paying private rent for a house.

Sara is applying for Youth Allowance (YA). Sara has worked full-time for the past 3 years since leaving school. Sara is already independent from parents and meets the workforce criteria. Therefore Sara is not subject to the parental means tests.

Tom is dependent, but needs to live away from home to look for work, therefore Tom receives the away from home rate of YA.

Sara and Tom are not considered to be a member of a YA couple as they have only been together for 4 months. This means that while Tom will receive the away from home rate of YA and Rent Assistance (RA), Sara will continue to receive the single rate until Tom is considered independent.

Sara's rate of YA and RA payments are subject to the personal income and assets tests as Sara is independent. Sara is not subject to the partner income test.

Tom's rates of YA and RA would have the personal income test or parental means test applied (whichever reduces the rate the most in the fortnight) as Tom is dependent and receiving the away from home rate of YA. Tom's rate is not affected by Sara's income and assets.

John's is an independent and partner Leona receives ABSTUDY as a dependent person who is approved to live away from home to study. Leona is not eligible for independence as the relationship duration is under 6 months.

The couple separate on 4 April and are both single for 3 months. John moves in with friends and Leona moves back to the parental home. They then decide to get back together and are married on the 16 July.

From the start of the calendar year, the income tests applied to John and Leona's income are as follows:

• From 1 January to 3 April, the personal income test (but not the partner income test) is applied to John's payment, and John receives the single rate of ABSTUDY and Rent Assistance (RA). The personal or parental means test (whichever reduces the rate the most in the fortnight) is applied to Leona's payment and Leona receives the away from home rate of ABSTUDY and RA
• From 4 April to 15 July, John remains a single independent person and the personal income test applies. John is paid the single rate of ABSTUDY and RA
• From 4 April to 15 July, Leona is regarded as dependent and the personal or parental means test (whichever reduces the rate the most in the fortnight) applies. Leona is paid the at home rate of ABSTUDY and no RA
• From 16 July to 31 December, the personal and partner income tests are applied to Leona's and John's income. They both receive the member of a couple rate of ABSTUDY as they now qualify for independence as they are legally married

Jenny and Ian are a Youth Allowance (YA) couple who live in Jenny's parent’s home and pay rent. They are able to apply for Rent Assistance (RA) because, although they live with Jenny's parents, they have met the criteria to be assessed as members of a couple and are therefore independent.