Commencing or returning to full-time work for parents/guardians of Assistance for Isolated Children (AIC) Scheme students 102-07030150

The Parental Income Test (PIT) is normally applied to determine eligibility for ABA. All other AIC allowances are free of means testing.

When the PIT applies, assessment is normally based on the parental income for the financial year ending on 30 June of the year preceding the study year for which benefits are sought (i.e. the base tax year). However, in some circumstances it can be based on the parental income for the financial year ending on 30 June in the study year for which benefits are sought (i.e. current tax year).

Where the student's parent(s) or guardian(s) have commenced or returned to work, this could result in parental income for the current tax year increasing. If parental income for the current tax year is more than 25% higher than the parental income for the base tax year and also more than 25% higher than the Parental Income Free Area, the assessment of ABA eligibility and entitlement from 1 October is based on the parental income for the current tax year.

The PIT may be waived if special assessment applies because one or both of the student's parents (i.e. the applicant or the applicant's partner) is getting an Australian Government income support or equivalent payment, or is in receipt of a Health Care Card (HCC). Where one or both parent(s)/guardian(s) have commenced or returned to work, this could result in a change to their eligibility for an Australian Government income support or equivalent payment or HCC. If no parent/guardian continues to receive one of these payments or hold a HCC, special assessment would no longer apply and the student's eligibility for ABA would need to be assessed under the PIT.