Determining the appropriate mode of transport for ABSTUDY Fares Allowance (FAA) 010-02100090

The Travel Management Company (TMC) requires Services Australia’s approval in writing where chartered transport costs exceed $5,000 per approved traveller. The TMC will send an email to ABSTUDY travel requesting approval.

Has an email been received from the TMC seeking travel expenditure approval?

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

FAA will be approved for the mode of transport that is the most practical, reasonable and cost-effective for the journey. This is normally an economy class rail or bus journey by a public transport service.

To assist in this determination, check the journey planner and contact the Travel Management Company (TMC) who can provide this information.

Does a rail or bus service exist for the journey between the student's or non-student traveller's approved permanent home and the study location?

• Yes, go to Step 4
• No, go to Step 3

Where a rail or bus service can provide transport for a substantial part of the journey, an alternative mode of transport may be approved for the remainder. For instance, the remaining part of a journey involves transporting the student/approved traveller between the transport pick-up or drop-off point, and the permanent home or study location.

Does a rail or bus service have a departure and/or arrival point at a location accessible to the student or non-student traveller, provide a transport service for a substantial part of the journey between the permanent home and the study location?

• Yes, go to Step 4
• No, see Step 1 in Table 2

To assist in determining a reasonable travel time, check the journey planner for information about the length of the journey. If unavailable contact the TMC who can provide the required information.

Does the length of the economy class rail or bus service exceed what is a reasonable travelling time for the journey?

• Yes, see Step 1 in Table 2
• No, go to Step 5

If the traveller's medical condition prevents them from travelling by economy class rail or bus service, their medical certificate must clearly state this.

Is the student or non-student traveller unable to make the journey by economy class rail or bus due to an illness or incapacity?

• Yes, see Step 1 in Table 2
• No, go to Step 6

It is unreasonable to travel by economy class rail or bus, due to travel schedules if:

• an overnight journey by surface transport is unavoidable or
• the length of the journey is disproportionately long in relation to the purpose of the travel. For example, an 18 hour each way rail journey to attend a 4 hour testing and assessment activity, or
• a school student would have to leave the departure point or arrive at the destination unreasonably late at night or early in the morning, that is, between 9:00 pm and 7:00 am

To assist in this determination, check the journey planner for this information. If unavailable contact the TMC who can provide the required information.

Is it unreasonable for the student or non-student traveller to travel by economy class rail or bus due to schedules?

• Yes, see Step 1 in Table 2
• No, go to Step 7

It unreasonable or impractical to use an existing public transport service because of:

• infrequent services
• poor connections
• the service often being weather affected, or
• additional living and/or study items that are required to be transported to the study location at the start of the course in the year of study

To assist in this determination, check the journey planner for the information about service difficulties. If unavailable contact the TMC who can provide the required information.

Is it unreasonable or impractical for the student or non-student traveller to use an existing public transport service due to 1 of the reasons above?

• Yes, see Step 1 in Table 2
• No, go to Step 8

Economy class rail or bus travel is the most reasonable, practical and cost-effective mode of transport for all or a substantial part of the journey.

Is alternative transport necessary for part of the journey?

• Yes, go to Step 9
• No, see Step 13 in Table 2

Determine the alternative mode of transport that may be approved for the remainder of the journey. For instance, to transport the student or non-student traveller between the transport pick-up or drop-off point, and the permanent home or study location.

Is there a rail or bus service available for this portion of the journey?

• Yes, the rail or bus service is the most appropriate mode of transport for this portion. See Step 13 in Table 2
• No, compare the cost of motor vehicle allowance (MVA) or taxi for this portion. The most cost-effective mode of transport is also the most appropriate mode of transport for this portion. See Step 1 in Table 2

Determine the costs of the most reasonable and practical modes of transport available for comparison.

Alternative transport services can be approved for all or part of the journey based on what is the most practical, reasonable and cost-effective alternative mode of transport for the circumstances. This can include:

• the cost of a rail fare with a sleeping berth, an economy air fare, or chartered transport, go to Step 2
• the cost of travel by hire car, go to Step 3
• the cost of travel by taxi, go to Step 4
• the rate of motor vehicle allowance (MVA) where travel is undertaken by a private vehicle, go to Step 5, or
• the actual cost of transport for any part of the journey which:
• cannot be serviced by 1 of the alternative forms of public transport indicated above, or
• is of reasonable cost in view of the distance and/or terrain, go to Step 8

To determine the cost of airfare, a rail sleeper berth, or chartered transport for the journey, contact the Travel Management Company (TMC).

Request the cost of providing a travel service by the most practical mode of transport between the permanent home and the study location, or the arrival and departure points of the journey where alternative transport is only required for a part of journey to connect with the standard rail or bus service. The TMC will require details of the traveller's:

• age
• departure and arrival locations
• required date of travel

Go to Step 8.

Select the most suitable vehicle for the journey that is also reasonable, practical and cost-effective.

Fare Allowance (FAA) entitlement is equivalent to the rate of:

• the contracted hiring fee for the minimum period necessary for the travel
• any distance levy charge by the hire company for the shortest practicable route
• petrol cost

Note: travel by hire car will be approved only in exceptional circumstances, for example where the student or approved traveller is ill and needs to return home by the quickest mode of transport possible. Hire car contracts are to be entered into by the approved traveller and not by the Commonwealth.

Go to Step 8.

Where travel by taxi is approved. FAA entitlement is equivalent to the number of kilometres travelled multiplied by the appropriate rate per kilometre. The References page contains a link to the rate per kilometre in the Guide to Social Security Law, when determining taxi fare reimbursement for ABSTUDY customers.

Go to Step 8.

Calculate the distance in kilometres by the shortest practicable route between the locations for which MVA is approved and multiply that distance by the relevant MVA rate (cents per kilometre) for the engine capacity of the vehicle. Where engine capacity is not stated, see Resources for a link to determine engine capacity. See the References page for a link to the MVA rates that are applicable for ABSTUDY FAA purposes. If:

• a third party used a private vehicle to transport 1 or more ABSTUDY students, who are qualified for FAA, as passengers, go to Step 6
• an ABSTUDY student with FAA entitlement, used a private vehicle to transport as passengers, at least 1 other ABSTUDY student, who also have FAA entitlement, go to Step 7
• none of the above, the relevant rate of MVA only is payable, go to Step 8

Where a third party uses a private vehicle to transport 1 or more ABSTUDY students as passengers, and these ABSTUDY students are qualified for FAA for the journey, the rate of FAA payable to the third party is:

• the rate of an economy class rail or bus fare (including concessional rate, if applicable) for that journey where public transport is available, and
• an additional one third (0.333333) of this rate for each passenger transported, or
• the relevant rate of MVA is payable where public transport is not available, and
• an additional $0.0063 per kilometre. For example, 200km x $0.0063 = an additional $1.26

Go to Step 8.

Students who travel by private vehicle will not be entitled to MVA if there is a rail or bus service available. The rate of FAA for the student will be the rate of economy class rail or bus fare (including concessional rate, if applicable).

Where a student travels by private vehicle and is the driver, and transports as passengers other ABSTUDY students with FAA entitlements, the rate of FAA paid to the driver may be either:

• the rate of economy class rail or bus fare (including concessional rate, if applicable) plus an additional one-third of this rate for each ABSTUDY approved traveller transported, or
• the MVA entitlement of the student plus an additional 0.63 of 1 cent per kilometre, if at least 1 of the passengers, and the driver are qualified for MVA for that journey. For example, 200km x $0.0063 = an additional $1.26

Note: the additional 0.63 of 1 cent per kilometre for transport of other qualified passengers is paid only once for each trip, no matter how many passengers are transported.

For journeys without ABSTUDY qualified students (for example, a return journey after transporting ABSTUDY students) the relevant rate of MVA only is payable.

Go to Step 8.

Compare the costs of each alternative mode of transport approved in the circumstances, to determine which is the most cost-effective. If the most cost-effective method is:

• private motor vehicle, tell the student or non-student traveller that the appropriate mode of transport will be private motor vehicle. The student or approved traveller can seek MVA for reimbursement of travel costs after the journey has taken place by completing a claim for FAA. Procedure ends here
• air or surface transport organised by the TMC, go to Step 9
• another means of transport, go to Step 13

Air or surface transport arranged by the TMC is the most cost-effective mode of transport. This will be the mode of transport approved by the TMC unless it is impractical or unreasonable.

Air or surface transport may be considered unreasonable or impractical because:

• due to injury, illness, disability or other exceptional circumstances, the student cannot travel by any means of transport other than by motor vehicle, or
• due to infrequent services or poor connections, the student or non-student traveller cannot arrive or depart the destination within a reasonable time of the requested travel, or Services Australia will incur additional costs for the travel (such as overnight accommodation and meals), or
• due to lack of availability, the student will miss an unreasonable number of days of school

Is air or surface transport impractical and unreasonable under the circumstances?

• Yes. If the use of air or surface transport:
• will result in an unreasonable number of missed days of school, tell the student that the appropriate mode of transport will be chartered transport. Go to Step 11
• is impractical or unreasonable for another reason, tell the student or approved traveller that the appropriate mode of transport will be private motor vehicle. The student or approved traveller can seek MVA for reimbursement of travel costs after the journey has taken place by completing a claim for FAA. Procedure ends here
• No, go to Step 13

Upload all travel expenditure approval requests received from the TMC to the appropriate travel booking, for:

• Travel request from education or board providers for multiple travellers, upload all emails to the relevant group booking
• Travel booking for an individual, upload all emails to the approved traveller’s booking

If chartered transport has been deemed the most appropriate mode of transport, ensure that the expenditure is within the delegation level. See Resources page for delegations.

Does the Service Officer have the delegation level to approve the chartered transport?

• Yes, go to Step 13
• No, advise the education provider, student or non-student traveller the request will be escalated for approval:
• Travel and Away from Base Service Officers must seek approval for the chartered transport by escalating the enquiry to their site leadership via an email. See the Resources page for the chartered transport expenditure approval email template. For delegate, go to Step 12
• The Booking Status of the traveller/s is to remain as New until a response is received from the delegate
• Record details of the travel request and escalation on the traveller/s booking/s
• Once a response is received, go to Step 13

For ABSTUDY Fares Allowance, where there are charted transport costs, delegation levels apply.

• Travel or Away from Base Service Officers must escalate amounts above their delegation to their Team Leader for approval
• Team Leaders must escalate amounts above their delegation, to their site EL1 or EL2 for approval

The delegate must:

• review the request provided within the template and,
• determine whether the expenditure can be approved

Chartered air or land transport, may be approved for all or part of the journey where either of the following circumstances apply:

• there is no public transport or regular air service available; or
• the use of chartered transport for the student/s is reasonable in the circumstances, including minimising the number of days of school the student would miss due to travelling

The Resources page includes scenarios and delegations.

Where EL1 or higher delegation is required, they must respond to the email from the Service Officer and include ABSTUDY.AIC.PROGRAMS in their response. This ensures visibility to the ABSTUDY and AIC Programs team.

Upload all emails relating to costs requiring delegate approval to the appropriate travel booking, for:

• Travel request from education or board providers for multiple travellers, upload all emails to the relevant group booking
• Travel booking for an individual, upload all emails to the approved traveller’s booking

Was the delegate approval required for the TMC travel expenditure approval request?

• Yes, go to Step 14
• No, procedure ends here

Advise the education provider, student or non-student traveller of the appropriate mode/s of transport for the journey. Record details of the decision under the Notes tab against the relevant Booking ID# in the Travel Management Application (TMA).

Additional costs associated with travel may also be claimed.

Payment of FAA can be authorised in advance, or the student or approved traveller can complete a claim for FAA to seek reimbursement of travel costs after the journey.

Advise TMC of the outcome of the travel expenditure approval requests via reply email:

• remove any text added to the subject line when the email was categorised and any notes added to the body of the original email
• use the appropriate email template. See the Resources page in Coding pre-booked Fares Allowance (FAA) entitlements for ABSTUDY and ABSTUDY Pensioner Education Supplement (PES) for the ABSTUDY Travel Quickstep Guide
• upload a copy of the email to the appropriate travel booking