Assessing the Assistance for Isolated Children (AIC) Current Income Assessment (SY042) 010-03020070

Assistance for Isolated Children (AIC) Current Income Assessment (SY042) received.

Upon receipt, check AIC form for completion and transfer to the relevant Smart Centre. Look up Processing Service details for: Assistance for Isolated Children (AIC).

This assessment would only be applied if an applicant is claiming Additional Boarding Allowance (ABA), and:

• there has been a substantial reduction in income in the current financial year and the duration of the drop will be for at least 2 years from the later of the date the income dropped or 1 January in the year of study
• the reason for the fall should be one that could reasonably be expected to last for at least 2 years (for example, retirement, invalidity, retrenchment, long term unemployment, drought, bushfires or other circumstances causing hardship)

The decrease must occur before 1 July of the current year (the year following the base tax year). Where parental income decreases after 30 June in the current year, the reduced income cannot be taken into account until 1 January of the following year.

Check the SY042 for the:

• date of the drop in income and the reason for the reduction
• current tax year income details

Go to the Household Income and Assets (NHI) screen in the ISS system, and:

• check the system for the base tax year income
• compare the current tax year income with the base tax year income

Consider if there has been a substantial drop in income. The current tax year income should generally be at least 25% lower than the base tax year income. While a drop of this size is a general guide, assessors should exercise discretion when the drop is less than 25%. For instance, people on lower incomes, a lesser drop can have a substantial effect on their standard of living.

Smart Centre staff should also be satisfied that the estimate of the current tax year income or of any drop in income for the current tax year is reasonable based on information available, such as previous earnings and current employment

Has there been a substantial reduction in income which will last for at least 2 years from the later of the date of the drop in income or 1 January?

• Yes, go to Step 4
• No:
• apply the Base Tax year income, and
• record details on a DOC
• Procedure ends here

In the ISS system, go to the Household Income and Assets (NHI) screen:

• record the Event Date. This will be the later of 1 January or the date of the drop in income
• if the drop in income is due to a parent ceasing work and annual leave or long service leave was paid out, add the number of weeks of paid leave to the date work ceased. For example, if a parent ceased work on 1 March and they were paid 10 weeks annual and long service leave in their termination payment, the date of effect would be 10 May
• key the current financial year in the Fin Year Ending field
• if the current income is an estimate, key 'Y' in the estimate field and in the Review Date field, key the date actual income can be verified. For example, after the end of the financial year
• record the Source and DOR fields as appropriate, and
• key 'I'nsert in the Action field to create a new NHI page

Finalise the assessment on the Assessment Results (AR) screen.

The start date for payment of ABA or change in rate is the date of effect recorded on the NHI screen.

For information about the ABA rate payable, see:

• Eligibility for Assistance for Isolated Children (AIC) Scheme Boarding Allowance (BA/ABA)
• Applying the Parental Income Test (PIT) for Assistance for Isolated Children (AIC) Scheme

Record details on a DOC, including policy references for decision.