Assistance for Isolated Children (AIC) Scheme transfers to another payment 010-03020110

When a student turns 16, their family may choose to continue to receive Assistance for Isolated Children (AIC) Scheme payments for the student or claim ABSTUDY, Living Allowance Youth Allowance (YA) or Disability Support Pension (DSP). Family Tax Benefit (FTB) can continue to be paid for a student for whom AIC is payable. Where FTB is payable for a student, it will generally be more beneficial for the family to continue to receive AIC than for the student to claim Youth Allowance or ABSTUDY Living Allowance. Where the student is living away from home, the combination of AIC and FTB will usually be more beneficial than Youth Allowance or ABSTUDY Away from Home rate and Rent Assistance.

If the family decides it is more beneficial for the student to claim ABSTUDY, YA or DSP, the appropriate claim must be completed. AIC students may also transfer to a non-Services Australia educational assistance scheme such as the Veterans' Children Education Scheme (VCES).

AIC payments will be cancelled from the student's 16th birthday if they indicate they wish to claim another payment. A reminder letter is sent to the applicant 28 days before the date of any term-in-advance payment covering the term in which the student turns 16 to give them time to make an informed decision about claiming another payment. It also gives the applicant time to contact Services Australia to have their AIC payments continued, before AIC is cancelled due to the student not claiming or not being eligible for their own payment.

If a student is turning 16 and AIC payments have not been cancelled because the applicant has indicated on the AIC claim that the student will not be claiming another payment, or they are unsure, a reminder letter is also sent. This reminder letter is sent to the applicant 28 days before the date of any term-in-advance payment covering the term in which the student turns 16 to advise that it is more beneficial for the family that the student claims their own payment. If the student does claim their own payment when they turn 16, the reminder letter gives the applicant enough time to request cancellation of AIC from that date without incurring an AIC debt.

If an AIC student ceases studying and they wish to continue to receive assistance, they will need to claim Youth Allowance as a job seeker or claim YA or ABSTUDY as an Australian Apprentice.

If the AIC customer is no longer studying, but has a physical, intellectual or psychiatric impairment, they may be qualified to receive DSP.

There is no identity requirement for AIC. When transferring to ABSTUDY there are special identity requirements. One of the qualification criteria for ABSTUDY is that the student must be of Aboriginal or Torres Strait Island decent. The Confirmation of Identity - Verification for Aboriginals and Torres Strait Islander people (RA10) can be used for this purpose.

For customers transferring to YA the claimant will need to meet YA identity requirements, i.e. proof of birth/ Arrival (Commencement of Identity) and other approved documents (Primary/Secondary Use of Identity in the Community). For more information see Identity Confirmation information. If a customer has Identity Confirmation Indicator of 'Confirmed', they should not be asked to provide further Identity documents.