Payment of away from home rate for ABSTUDY 010-02060020

Is the customer a dependant and approved for away from home rate of allowances?

• Yes, and the student is undertaking:
• a tertiary or secondary non-schooling level course or Australian Apprenticeship go to Step 2
• any other study, go to Step 3
• No, this procedure does not apply. Procedure ends here

Tertiary and secondary non-schooling students and Australian Apprentices may be entitled to Away from Home allowances intended to assist with the costs of living away from the permanent home.

This can include Living Allowance, Rent Assistance and Remote Area Allowance.

Payment is made directly to the customer and is payable fortnight-in-arrears. See Coding away from home rate for ABSTUDY.

Note: a student boarding in a residential college can choose the Residential Costs Option for payment of board costs directly to the residential college, with a small fortnightly amount payable to the student.

Procedure ends here.

For assessment on the payees for the following Away from Home allowances:

• SFA (Group 2), go to Step 4
• Living Allowance (including Rent Assistance and Remote Area Allowance), see Table 2

SFA (Group 2) is payable to either:

• the school
• the person who has paid the school fee amount - upon provision of a receipt to prove full payment

Is the student/applicant requesting payment of SFA (Group 2) to be reimbursed to the person who has paid the school fee amount?

• Yes, go to Step 5
• No, go to Step 6

SFA (Group 2) is reimbursed as a one-off lump sum payment to the person who has paid the school fees in full. See ABSTUDY School Fees Allowance (SFA) (Group 2).

Continue the process to determine the payee for living allowances. See Step 1 in the Determining the payee for AFH living allowances.

The frequency of payment is determined by whether the student is boarding:

• privately - paid as a one-off lump sum payment
• at a hostel, boarding school, or an approved ABSTUDY Homestay arrangement:paid as an ABSTUDY boarding instalment

Continue the process to determine the payee for living allowances. See Step 1 in the Determining the payee for AFH living allowances table.

Away from Home Rate of entitlements includes allowances to assist with the living costs associated with boarding away from the permanent home. This can include Living Allowance, Rent Assistance and Remote Area Allowance.

The payee and frequency of payment is determined by the student’s living arrangements and age.

Is the student boarding at a school, at an approved ABSTUDY Homestay arrangement, or at a hostel that is a signatory to an ABSTUDY Hostel Agreement?

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

The payee for students boarding at a school, in an approved ABSTUDY Homestay arrangement, or at a hostel that is a signatory to the ABSTUDY Hostel Agreement, must be the board provider.

Boarding entitlements up to the level of the board charge are paid directly to the school or hostel as an ABSTUDY boarding instalment.

Payments to boarding institutions are delivered via the Payment on Advice process.

If the student’s total entitlements exceed the school or hostel’s board charge, a residual amount of boarding entitlement occurs.

Does the student have a residual amount of boarding entitlements after the school or hostel board charge has been paid?

• Yes, go to Step 6
• No, procedure ends here

Is the student boarding in a hostel that is not a signatory to the ABSTUDY Hostel Agreement?

• Yes, students who reside in a hostel that is not a signatory to an ABSTUDY Hostels Agreement are not eligible for ABSTUDY living allowance. Procedure ends here
• No, go to Step 4

Has the student/applicant requested board entitlements to be payable to a private board provider?

A student may be boarding in a private board arrangement with a friend or family member. The student or applicant can elect to direct payments to the private board provider. Issue the ABSTUDY request for private board provider (person providing board) details (SY115) form to the person responsible for making the payment decisions if:

• the student is boarding privately, and
• the applicant wants the payments directed to the board provider

Note: for ABSTUDY purposes, a private boarding provider that accommodates 5 or more students (excluding the providers own children) is deemed a hostel and is required to enter into an ABSTUDY Hostels Agreement. See ABSTUDY Hostels Agreement for details how provider can apply.

Has the student/applicant requested ABSTUDY entitlements to be payable to a private board provider?

• Yes, go to Step 5
• No, the payee for Away from Home board entitlements is determined by the student’s age, go to Step 6

Away from Home entitlements are payable to a private board provider fortnight-in-arrears.

If the student’s total entitlements exceed the board provider’s board charge, a residual amount of boarding entitlement occurs that is payable to the student or applicant.

If the applicant is requesting payments be directed to themselves during school holidays, see Payments to third parties and institutions for ABSTUDY.

Does the student have a residual amount of boarding entitlements after the private board provider’s board charge has been paid?

• Yes, go to Step 6
• No, procedure ends here

The payee of residual amounts of Away from Home board entitlements, after the board charge has been directed to the board provider, boarding school or hostel is determined by the student’s age.

• If aged 18 years or older, these entitlements are payable to the student as a fortnight-in-arrears payment
• If aged 16-18 years of age, these entitlements are payable fortnight-in-arrears to the payee, as determined by the student’s parent or guardian. The parent or guardian can determine to receive the payment themselves, or approve the student to receive the entitlements
• If aged less than 16 years, these entitlements are paid fortnight-in-arrears to the parent or guardian

State care

A student in state care can receive payments direct regardless of age. However, the state care authority may request that payment be made direct to the care giver or a person nominated by the student, 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