Payment of away from home rate for ABSTUDY 010-02060020

A customer who is approved for away from home rate may be entitled to a range of allowances intended to assist with the costs associated with undertaking study or an Australian Apprenticeship (apprentice or trainee) away from their permanent home.

The payee and payment frequency of these Away from Home allowances is dependent on the customer’s circumstances, including:

• study level - tertiary, secondary non-schooling, secondary or Australian Apprentice
• type of allowance
• living arrangements while studying or working as an Australian Apprentice
• level of entitlement
• age

ABSTUDY policy provisions determine who the correct payee is and the payment delivery frequency. Correct coding of away from home allowances on the customer’s record ensures the payment is delivered to the appropriate payee.

The payee for these Away from Home allowances can be either the:

• student or Australian Apprentice
• parent
• school
• hostel providing board
• a private board provider
• or a combination of payees

A customer with multiple allowances may have different payees for each allowance.

For tertiary and non-secondary students and Australian Apprentices who are approved to live Away from Home, the payee for Living Allowance will normally be the customer. The Living Allowance is paid fortnight-in-arrears. Note: a student can choose payment via the Residential Costs Option and direct payment to the residential college, with the student receiving a reduced fortnight-in-arrears payment.

For secondary school students who are approved to live Away from Home, the payee for Living Allowance and School Fees Allowance (SFA) (Group 2) (where applicable) can be either the:

• person who paid the school fee amount in full
• boarding school or hostel
• private boarder provider
• parent/guardian, or
• secondary school student

A secondary school student who is:

• boarding privately, at a school, or a hostel may qualify for total entitlements which exceed the board charge of the board provider. Any residual Away from Home rate of Living Allowance in excess of the board charge is paid fortnight-in-arrears to the appropriate payee as determined by this procedure
• residing in a hostel that is not a signatory to the Standard Hostel Agreement or Bilateral Management Agreement are not eligible for Living Allowance

In general, students or Australian Apprentices who qualify for ABSTUDY under this provision receive their allowances direct, or where a student attends a boarding school, some or all of the payments are made to the institution. The carer does not receive payments on the student's or Australian Apprentice's behalf.

However, the authority may request that payment be made direct to the care giver or a person nominated by the student or Australian Apprentice, if:

• the relevant government authority or an organisation approved by that authority believes that payment of allowances direct to younger students or Australian Apprentices could jeopardise the student-carer or Australian Apprentice-carer relationship, or
• it is determined that the student or Australian Apprentice is unable to manage his/her own finances, for example a student in a special school