Eligibility for Assistance for Isolated Children (AIC) Boarding Allowance (BBA/ABA) 010-03040010

Living arrangement

Example

At a hostel

Sylia is living away from home to study Year 12 and will be residing in a Student Housing Hostel. A tenancy agreement is required to be signed and services such as the supplying of linen, meals and laundry are Sylvia's responsibility. Therefore, this is not a boarding arrangement but Second Home Allowance (SHA) may be payable.

At a school

Mason is studying Year 11 at a Senior College in Tasmania and will be living away from home in the accommodation provided by the College at their Boarding Association. As the Association is providing the room and the full range of services (that is, meals and laundry), this can be assessed for Boarding Allowance (BA).

Mason's sibling, Kora is also studying at the Senior College in Tasmania and living away from home. However, Kora will be living at the College in a self-contained unit that is rented by their parents. Boarding Allowance (BA) is not appropriate, but Second Home Allowance (SHA) may be payable.

With a sibling

Example 1

An AIC claim is lodged for Jerome for boarding away from home for secondary study. The claim states Jerome will be living with an elder sibling, Thomas. A check of Thomas' record shows that Thomas is 21 years of age and is receiving the dependent rate of Youth Allowance (YA) (that is, based on the parent's income). As Jerome is living with an older dependent sibling, Boarding Allowance (BA) is not payable. However, Second Home Allowance (SHA) may be payable because the cost of maintaining the term residence is being met by Jerome's family.

Example 2

Valmai is boarding away from home for secondary studies and will be living with an older sibling. The sibling is 21 years of age and is receiving the independent rate of Youth Allowance (YA) because they are married with a child. As the sibling is independent of the parent's income and is providing the full boarding services, Boarding Allowance (BA) may be payable in this private boarding arrangement.

With a grandparent/other person

Example 1

Kim's parents lodge an AIC claim for Boarding Allowance (BA) stating Kim will be living with a grandparent in a home the family have set up in town. The grandparent has signed the lease and will be providing the cooking and laundry. As a person who is not part of the student's immediate family maintains the residence, it is a private boarding arrangement, and Boarding Allowance (BA) may be payable.

Example 2

Napoleon's parents have claimed AIC Boarding Allowance (BA) stating that Napoleon will be living with an uncle in a home the family have set up in town. The parents have signed the lease, and the uncle will be providing the cooking and laundry. In this case, even though the uncle is providing the services, the parents are maintaining the residence by paying for all the rent, utilities and food. In this situation, Second Home Allowance (SHA) is the more appropriate payment.

Shared home

Two families, the ZZZ family and the YYY family, have set up a shared home in town for their children to live away from home and go to the local secondary school. They are eligible for AIC as their principal family homes are geographically isolated. The ZZZ family have signed the lease, and one parent resides in the 'in-town' home with the children during the school week, while the other parent lives at the principal family home. The YYY family share the costs of running the home but are not on the lease. The ZZZ parent does all the cooking and cleaning, etc. In this case, the ZZZ family may be paid the Second Home Allowance (SHA). The YYY family may claim the Boarding Allowance (BA). If both families were on the lease and/or sharing the duties, then both could only claim the Second Home Allowance (SHA).

Boarding fees paid/to be paid with BAHA or other state or territory boarding subsidies

Example 1

Suzanne will be boarding at an approved boarding institution for 2025. The applicant has advised within the new claim that the boarding fees will be $14,924 for the full year.

The applicant contacts to advise they will be claiming their State's Boarding Away from Home Allowance (BAHA) payment.

This will now reduce the actual boarding charges payable for this student.

The Living Arrangement Details (EILA) screen is updated, with the actual boarding charge payable:

$14,924 less BAHA payment of $1,424* = $13,500.

This reassessment of the Additional Boarding Allowance (ABA) may reduce the amount of ABA payable and could create an overpayment. Note: some reassessments may create arrears.

Example 2

Johnny was boarding at an approved boarding institution for 2024. The EILA screen shows that for 2024, the applicant received the full amount of ABA, $9,960. The applicant contacts to request a copy of the grant letter for 2024 to claim the WA BAHA payment for that year. A re-assessment for ABA for 2024 is required.

$9,960 less BAHA payment of $1,424* = actual boarding charges $8,536 for 2024.

As the actual boarding charges are less than the maximum annual Basic Boarding Allowance (BBA) rate (less a further $250 for incidentals), the applicant's entitlement to ABA is nil. The reassessment will be an overpayment for ABA for the year of 2024:

$8,536 is less than $9,960 (the minimum boarding threshold for 2024), so ABA is not payable

* Figure may not be accurate at time of publication. See the State specific website for up to date subsidies.