Assistance for Isolated Children (AIC) Scheme student turns 16 102-06020020

AIC is payable in respect of students who undertake approved studies and are isolated from their nearest appropriate state school or meet special needs or deemed isolated criteria.

Students must satisfy the eligibility conditions for AIC and they and the applicant should assess the most beneficial alternative payments that may be available.

If the student undertakes study at:

• primary or ungraded level, AIC students are eligible to the end of year in which they turn 19 years of age
• secondary level, 16 year old AIC students can continue to qualify for AIC to the end of the year they turn 19 years of age, or they can transfer to ABSTUDY Living Allowance or Youth Allowance (YA) at any time if it is more advantageous for them

Students may be eligible for AIC where they are isolated from state secondary schooling but choose to undertake tertiary study instead. Only TAFE or vocational education and training level courses qualify as tertiary study for AIC students.

Previously, tertiary students were only eligible for AIC until their 16^th birthday. After state and territory government increased school leaving ages and introduced higher minimum education and training participation ages and requirements, the AIC policy for tertiary students was changed to align receipt of assistance to those higher ages or requirements.

If an eligible student undertakes tertiary study as an alternative to secondary school study, their entitlement end date will be the day they have met the minimum education and training participation age or requirement for the state or territory (generally around the student's 17^th birthday).

Tertiary students who are no longer eligible for AIC need to claim either ABSTUDY or YA.

To determine the most beneficial payment, consideration to the following is required:

• Most families receiving AIC and Family Tax Benefit (FTB) for a student will generally be better off remaining on these payments over YA, even where the student could receive the YA Away from Home rate and Rent Assistance (RA)
• FTB may be paid in addition to AIC where as other payments including YA, ABSTUDY Living Allowance and other income support payments are income tested for customers aged 16 years or over and will no longer qualify for FTB
• YA is available for dependent students who need to live away from home to study, and is subject to the Parental Income Test (PIT). Initial contact with students or Australian Apprentices claiming Youth Allowance (YA) outlines eligibility. FTB Part A is subject to parental income tests
• AIC Basic Boarding Allowance, Second Home Allowance and Distance Education Allowance are non-means tested. Only the AIC Additional Boarding Allowance (ABA) is means tested, that is, is subject to a Parental Income Test and the level of the student's boarding costs
• Students boarding or living in a second home away from parents may be entitled to YA or ABSTUDY Away from Home rate as well as Rent Assistance
• Most state and territory governments provide assistance for isolated students that in some cases, is tied to eligibility for AIC