Identifying the most beneficial payment for students or Australian Apprentices 010-01010000

Is the customer an Australian Apprentice?

• Yes, go to Step 2
• No, go to Step 3

Does the customer identify as being an Australian Aboriginal or Torres Strait Islander?

• Yes, see Claiming ABSTUDY
• No, see Item 5 in Table 2

Is the customer participating in or intending to participate in an approved course at an approved institution?

For ABSTUDY, the course can be either an approved mainstream course, or an Indigenous special course.

• Yes, go to Step 4
• No, the customer will have to test their eligibility as a job seeker and see whether their study is an acceptable inclusion in their Job Plan, or test their eligibility for another payment type. Procedure ends here

Does the customer have any dependent children?

• Yes, depending on the age of the customer's children, consider whether the customer would qualify for:
• Parenting Payment Partnered (PPP), or
• Parenting Payment Single (PPS) rather than one of the education payments
• JobSeeker Payment (JSP) as a single principal carer depending on the age of their youngest child
• Go to Step 5
• No, go to Step 6

The rates between the education payments and parenting payments/JSP are very similar, however the customer must be aware that:

• ABSTUDY, Austudy and YA have a more
• generous income test than PPP and JSP if the customer is intending to work while studying. The income test for PPS is more generous if the student is earning over approximately $450 per fortnight
• stringent study requirement test. If the student decides to reduce their study load it could affect their eligibility for payment for ABSTUDY, Austudy or YA, but may not affect the partial participation obligation for principal carers and YA customers who have a partial capacity to work
• if they are a sole parent they could receive Parenting Payment Single (PPS) or JSP plus the Pensioner Education Supplement (PES) or ABSTUDY PES for a higher combined fortnightly payment. The customers will receive Family Tax Benefit (FTB) Part A and/or Part B in addition to any payment type

• If the customer gets an income support payment and is a student or intending to study, go to Step 7
• If not getting an income support payment, go to Step 8
• If they are a part-time student, or intending to study part-time, go to Step 9
• If they are a full-time student, or intending to study full-time, see Table 2

Is the customer receiving one of the qualifying payments for Pensioner Education Supplement (PES) or ABSTUDY PES?

• Yes, then in most cases PES or ABSTUDY PES would be the most advantageous payment for the student. PES or ABSTUDY PES is available to full-time and concessional study load students and is paid in addition to their income support payment, which means the customer would be receiving more money each fortnight than with Austudy, ABSTUDY, or YA. See Initial contact with students claiming PES and ABSTUDY PES
• Providers can approve full-time study, including where it is 12 months or more in duration, if the job seeker is a JSP single principal carer who has been granted PES for the course
• If a JSP single principal carer contacts Services Australia regarding undertaking study, tell them they must first apply and be approved for PES. If PES is approved, the PES approval letter/documentation needs to be taken to the Employment Services Provider. See Part-time or full-time study as an approved activity for JobSeeker Payment (JSP)
• No, consider the following:
• If the customer receives JSP and is undertaking a short course of less than 12 months duration, they may be able to remain on JSP. See Part-time or full-time study as an approved activity for JobSeeker Payment (JSP)
• If the customer receives JSP and is undertaking full-time study in a course with a minimum duration of 12 months or more, they will no longer qualify for JSP, see Table 2
• Partner Allowance (PA), Farm Household Allowance (FHA), customers may remain on their current payment or choose to transfer to YA/Austudy, whichever is more beneficial. PA customers who choose to transfer to YA/Austudy will not be able to reclaim PA in the future
• Bereavement Allowance (BVA), customers can choose to transfer to YA/Austudy at the end of the bereavement period

• Part-time, go to Step 9
• Full-time, see Table 2

A concessional study load student is eligible for the same entitlements as a full-time student.

For more information about ABSTUDY concessional study load see:

• Assessing the two-thirds study load concession for ABSTUDY
• Assessing the disability study load concession for ABSTUDY and ABSTUDY Pensioner Education Supplement (PES)
• Assessing the pensioner study load concession for ABSTUDY Pensioner Education Supplement (PES)

For more information about Austudy concessional study load, see:

• Assessing eligibility for the 66% concessional study load for Austudy, or
• Assessing eligibility for 25% concessional study load for Austudy

For more information about YA concessional study load, see Assessing concessional study loads for Youth Allowance (YA).

Aggregation of study load is where study loads for multiple study periods are added together. It is not available to students of all institutions, refer to the institution listing on the National Course Approvals sub-site.

Is the part-time student eligible for a concessional study load?

• Yes, see Table 2
• No, go to Step 10

Is the student eligible for the ABSTUDY Part-time Award?

• Yes, see Claiming ABSTUDY. Procedure ends here
• No, the student will have to test their eligibility as a job seeker or other payment type depending on their other qualifications. Procedure ends here

Depending on the parental means test, and whether the customer is Aboriginal or Torres Strait Islander, a dependent student could be eligible for either:

• ABSTUDY
• YA, or
• have their parent(s)/guardian(s) claim FTB

Consider the following:

If the customer is an Australian Aboriginal or Torres Strait Islander person and 16-19 years of age (inclusive), they should consider testing their eligibility for ABSTUDY. There is a choice of ABSTUDY or FTB. If the customer is currently in receipt of ABSTUDY, and parent(s)/guardian(s) wish to apply for FTB as it is more beneficial for them see Cancellation of ABSTUDY payments.

• Check the payment options via the Payment and Service Finder to determine which payment would be advantageous
• The student must be aware that:
• if the student is working while studying, a personal income test may apply to YA and ABSTUDY (if it will affect the customer's payment more than the parental means test)
• an FTB payment can only be made to the parent whereas YA and ABSTUDY can be paid to the student (if 18 or older for YA)
• FTB is a tax-free payment for the parent. YA and ABSTUDY are considered taxable income for the student

Families may be eligible for extra assistance to help with the cost of education for primary, secondary and under minimum school leaving age tertiary students under the Assistance for Isolated Children (AIC) Scheme. See Initial contact by customers claiming under the AIC Scheme.

Depending on which is the more appropriate payment, see:

• Initial contact with students or Australian Apprentices Claiming Youth Allowance, or
• Initial contact by customers claiming Family Tax Benefit (FTB)
• Claiming ABSTUDY

If it appears likely the customer is not entitled to a student or Australian Apprentice payment, or their parent cannot claim Family Tax Benefit, see Table 3.

If the student is not considered dependent on their parents, for the most appropriate payment, see:

• Claiming ABSTUDY
• Initial contact with students or Australian Apprentices claiming Youth Allowance (YA)
• Initial contact and identification of services for job seekers

A student who is an Australian Aboriginal or Torres Strait Islander person should test their eligibility for ABSTUDY. They may also have the option of applying for FTB.

If the student is:

• under 16 years of age and living at home, their parents/guardian may qualify for ABSTUDY Schooling A Award and also be eligible for FTB. If the student is unable to live with his/her parent, the customer can apply for ABSTUDY. See ABSTUDY unreasonable to live at home (UTLAH) for more information
• 16-19 years of age (inclusive). ABSTUDY or FTB is available. If the student is either a current Schooling A customer turning 16, or 16 or over, discuss with the applicant and parent(s)/guardian(s) the option of claiming or remaining on FTB.
  Parent(s)/guardian(s) can compare payment options via the Payment and Service Finder. See Online estimator options
• 20-25 years of age (inclusive) they may receive ABSTUDY depending on personal and/or partner income, and the parental means test if dependent

Students under 16 whose parent(s)/guardian(s) receive FTB on their behalf can remain on FTB and also receive benefits and allowances paid under the ABSTUDY Schooling A Award concurrently.

The applicant may be eligible to receive AIC if the student meets the eligibility for Assistance for Isolated Children and is:

• over 3.5 years (if the student has a disability or health related condition) and under 21 years, or
• has reached the minimum primary school entry age for their state/territory on 1 January of the year of study, and are either:
• primary, secondary or ungraded level students under 19 years of age on 1 January of the year of study (or under 20 years of age on 1 January of the year of study if their progress through school has been delayed), or
• tertiary (vocational education and training level) students and under the minimum age at which the state or territory requires them to participate in education or training

They may also be eligible to receive FTB at the same time for the student.

The lower age limit of 3 years and 6 months only applies if the child needs to board away from home to receive education. The upper age limit (student turning 21) only applies if the student is receiving DSP or PPS and is undertaking primary or equivalent ungraded study.

If the student is:

• under 16 years of age, their parent/guardian may be eligible for FTB. If the student is unable to live with his/her parents, Youth Allowance eligibility can be considered. See Unreasonable to live at home (UTLAH) initial contact for Youth Allowance (YA), Disability Support Pension (DSP), Special Benefit (SpB) or Tertiary Access Payment (TAP) for more information
• 16 -17 years of age (inclusive) in full-time secondary study and living at home, FTB is generally the only payment option. However, if they meet the qualification requirements this age group may also have the following options available:
• YA as a full-time student living Away from Home Rate (AFH)
• YA as a student in post-secondary studies, or as an apprentice
• YA if they satisfy the independence criteria
• 18 - 19 years of age (inclusive), they may receive YA or FTB depending on the parental means test and if the student is dependent or not. Customers can compare their potential YA or FTB rate using the online estimator options
• 20-25 years of age (inclusive) they may receive YA depending on personal and/or partner income, and the parental means test if dependent

A YA (student) claim will be rejected LTM - Course of Study Less than Twelve Months if the student is:

• aged 22 to 24
• receiving JSP and
• participating in a full-time course of less than 12 months duration

See Table 7 Step 6 in Assessing and coding a transfer to Austudy or Youth Allowance (YA) student claim from another payment. These customers can test their eligibility for/remain on JSP and contact their employment services provider to discuss a short course approval.

• YA has a more generous income test if they are intending to work part-time while studying
• JSP has a higher rate of payment, unless the student has dependent children

YDS is paid to full-time students and Australian Apprentices in receipt of Youth Allowance and ABSTUDY if the customer is under 22 years of age and has been assessed by an Employment Services Assessment (ESAt) as having a partial capacity to work of less than 30 hours per week.

If the student is 22 years or under when they commence their course, and they are studying an approved course of a certificate IV or above, they may be eligible for the Tertiary Access Payment. See Tertiary Access Payment (TAP).

Students 25 and over may be eligible for either ABSTUDY, Austudy, or JobSeeker Payment (JSP) (if the course is less than 12 months). In some circumstances, students over 25 may be eligible for YA. Consider the following information when assisting the student to decide which payment is most appropriate:

• If the student is an Australian Aboriginal or Torres Strait Islander person, their best option would usually be ABSTUDY. Note: tertiary students with a substantial disability and undertaking a concessional study load may be eligible for Austudy for a longer duration than ABSTUDY. However the rate of ABSTUDY Living Allowance is higher than Austudy, and other ABSTUDY assistance is available
• If the student is participating in a course of less than 12 months duration, they could either receive JSP or Austudy as they may have to look for work for six months prior to having a short course approved on JSP. Consider that:
• Austudy has a more generous income test if they are intending to work part time while studying
• Rent Assistance (RA) is payable with Austudy
• JSP has a higher rate of payment, unless the student has dependent children
• The student must apply for ABSTUDY or Austudy if participating in a course:
• 12 months or more in duration, or
• less than 12 months that is an Austudy approved course, and is not receiving 1 of the qualifying payments for Pensioner Education Supplement (PES) or ABSTUDY PES
• The student must apply for YA if they:
• have continued to study full time or on a concessional study load since turning 25, and
• are returning to a course they commenced before they turned 25, and
• were receiving YA as a student immediately before turning 25

Full-time Australian Apprentices can claim Austudy or Youth Allowance. If the customer is 25 years of age or over, see:

• Initial contact with students or Australian Apprentices Claiming Austudy

If the customer is under 25 years of age see:

• Initial contact with students or Australian Apprentices claiming Youth Allowance (YA)

Part-time Australian Apprentices must test their eligibility as a job seeker or other payment type depending on the qualifications for these payments.

Note: Youth Disability Supplement (YDS) is available to full-time students and Australian Apprentices in receipt of YA if:

• the customer is under 22 years of age, and
• has been assessed through an Employment Services Assessment (ESAt) as having a partial capacity to work of less than 30 hours per week

If the customer is:

• not entitled to any income support, or
• only entitled to FTB, or
• entitled to ABSTUDY but not in receipt of Living Allowance

check the qualification criteria for:

• Commonwealth Seniors Health Card (CSHC)
• Low Income Health Care Card (LIC)
• Ex-Carer Allowance (child) Health Care Card (EHC) if they qualified their carer for Carer Allowance (child) on the day before they turned 16

Youth Allowance, Austudy and ABSTUDY Living Allowance students and Australian Apprentices will automatically be issued with a Health Care Card (HCC) from 1 January 2019.

Record any advice given and claims issued on a DOC.

Check if the customer needs further assistance, such as a referral to Services Australia or external specialist officer, or emergency relief and accommodation. See:

• Specialist officers and other internal supports for customers
• Referral to external support services