Reimbursing fares and additional costs after travel has been undertaken for ABSTUDY 010-02100050

Item

Scenario

1

Customer travels on appropriate mode of transport

Mikaela lodges a claim for Fares Allowance for a journey from La Trobe University in Melbourne, VIC to Mikaela's permanent home in Townsville, QLD for the Christmas break. Mikaela booked and paid for a cheap, non-refundable flight costing $230.

Mikaela qualifies for ABSTUDY Fares Allowance.

The journey via public transport is:

• 44 hours via train
• 56 hours via bus
• 4 hours via plane

As the train and bus service exceed the reasonable travelling time, the appropriate mode of transport is via an economy airfare.

Mikaela is eligible for reimbursement of $230, the cost of the air ticket. Because Mikaela travelled on the appropriate mode of transport, the actual cost of the ticket is reimbursed. This is irrespective of whether a quote from the Travel Management Company (TMC) identifies an air ticket as costing more or less than the $230 amount paid by Mikaela. The actual cost of the ticket is reimbursed and therefore obtaining a quote from TMC is not necessary.

2

Customer travels on inappropriate mode of transport and customer's ticket cost is higher than the appropriate mode of transport cost

Jayden lodges a claim for Fares Allowance for the journey undertaken to start a University degree, flying from home in Canberra to the study location in Sydney. The claim is $420 for the cost of the airfare.

Jayden qualifies for ABSTUDY Fares Allowance.

The journey via public transport is:

• 4 hours via bus
• 4 hours via train
• 45 minutes via plane

As the rail service and bus take less than 18 hours, the appropriate mode of transport is via rail or bus. Jayden is not eligible for a sleeping berth via rail, airfare nor Motor Vehicle Allowance (MVA) for the journey. A bus quote obtained from TMC is $90 and a quote for rail is $110.

Jayden is eligible for Fares Allowance reimbursement of $90, which is the quote obtained for the cost of a bus ticket. This is the most cost effective appropriate mode of transport for the journey.

3

Customer travels on inappropriate mode of transport and customer's ticket cost is lower than the appropriate mode of transport cost

Nellie lodges a claim for Fares Allowance for the journey undertaken to start a University degree. Nellie's home is in Broome and the study is at a Perth university. Nellie travelled by bus from Broome to Perth and the bus ticket cost $145.

Nellie qualifies for ABSTUDY Fares Allowance.

The journey via public transport is:

• 24 hours via bus
• No rail service exists
• 2 hours 45 minutes via plane

As there is no rail service and the bus takes more than 18 hours, the appropriate mode of transport is via an economy airfare. An economy airfare quote is obtained from TMC for $470.

Nellie is eligible for reimbursement of Fares Allowance for the cost of the bus ticket paid - $145. Even though an airfare is the appropriate mode of transport, for journeys taken on an inappropriate mode of transport, the cheaper of the quoted cost or the actual cost paid by the customer is reimbursed.

4

Calculation of Motor Vehicle Allowance (MVA) where third party transports one or more students

Tanya lodges a claim for Fares Allowance for a journey undertaken with son James. Tanya and James travelled from James' permanent home in Chillagoe QLD to All Souls St Gabriel's School in Charters Towers QLD, to commence Term 1.

They travelled from Chillagoe to Charters Towers in Tanya's Toyota Prado 3.4L. After dropping James at boarding school, Tanya drove back to Chillagoe. Tanya has provided fuel receipts totalling $600.

James qualifies for ABSTUDY Fares Allowance.

Tanya qualifies for MVA as travel by private motor vehicle is the most practical mode of transport, since public transport is not available for part of the journey.

As Tanya used a private vehicle to transport a passenger qualified for ABSTUDY Fares Allowance for the journey, Tanya is eligible for:

• the relevant rate of MVA, and
• an additional $0.0063 per kilometre for the distance James was transported

The rate of MVA is calculated by:

• determining the distance in kilometres by the shortest practicable route between the locations for which MVA is approved, and
• multiplying that distance by the relevant MVA rate (cents per kilometre) for the engine capacity of the vehicle

For example: 1038.2 km x $0.61 = $633.30, plus 519.1 km x $0.0063 = an additional $3.27.

Tanya is eligible for reimbursement of ABSTUDY Fares Allowance for $636.57.

Note: the above rates are current as at 1 July 2019.

5

Customer travels on inappropriate mode of transport and cost is higher than the appropriate mode of transport cost

Johanna lodges a claim for Fares Allowance for the journey undertaken to start a University degree. Johanna's home is in Tamworth, NSW and the study is in Cook, ACT. Johanna travelled by private vehicle from Tamworth to Cook and provides petrol receipts totalling $400.

Johanna qualifies for ABSTUDY Fares Allowance.

The journey via public transport is:

• 13 hours 34 minutes via bus
• 12 hours 24 minutes via rail service
• 4 hours 18 minutes via plane

As the rail service and the bus take less than 18 hours, the appropriate mode of transport is via rail or bus. Johanna is not eligible for a sleeping berth via rail, airfare nor MVA for the journey. A bus quote obtained from TMC is $50 and a quote for rail is $67.

Johanna is eligible for Fares Allowance reimbursement of $50, which is the quote obtained for the cost of a bus ticket. This is the most cost effective appropriate mode of transport for the journey.