Change of circumstances for Assistance for Isolated Children (AIC) Scheme applicants 010-03060000

Assistance for Isolated Children (AIC) Scheme applicants (usually the parents or guardians who apply for assistance on behalf of the student) are obliged to advise Services Australia, usually within 14 days, of any event or change in circumstances that could affect their payment. This is required by section 48(1) of the Student Assistance Act 1973 (the Act). The events or circumstances are called 'prescribed events' and are listed in Part 3 of the Student Assistance Regulations 2003 that are made under the Act.

Note: as most AIC payments are made in advance, even if an applicant notifies within 14 days, there may be a debt. Care needs to be taken to ensure that the date of event (the date from which the change occurred) is the date from which the debt should be raised. That is the case regardless of when the change was notified.

Once an applicant has signed their claim form (confirming, among other things, that they have read and understood what changes they must advise) they are bound by the notification provisions.

Applicants are advised of the types of things they must notify in their grant notification letter and on the back of each reassessment letter sent to them.

Following is a list of the types of changes an applicant must advise. As circumstances vary for each applicant and student, this list is not exhaustive.

Changes of circumstance that may require review or update to a customer's record include:

• any changes to the student's study, such as not enrolling at the school or distance education course or ceasing full-time study
• where the student does not begin school or distance education course within the first two weeks after the first day of the course in the study year
• where the student has left the care of the applicant
• death of the applicant or student
• if the customer is in receipt of Assistance for Isolated Children (AIC) for the child leaving their care, or percentage of care has reduced below 50%, create a Fast Note - select Auto text, use Students, ABSTUDY and Apprentices > AIC > AIC update action required. A child receiving AIC will be displayed as an EIC Link type on the parents Link Summary (LS) screen
• where the student moves from one parent's residence to the other parent's residence as a result of the parent's separation or divorce
• where the student ceases to board away from home, live in a second family home or undertake distance education while living at home
• any changes to the student's boarding costs
• where the geographical isolation reason for which AIC was granted ceases to apply
• where the student begins a full-time apprenticeship or traineeship
• any increase in parental income, including commencing employment and Additional Boarding Allowance is being paid
• if a parent or guardian begins to receive Rent Assistance for the second home and Second Home Allowance is being paid
• any change to residency status for the student or parents or guardians

Assistance for Isolated Children (AIC) Scheme applicants may incur an overpayment if they fail to notify a change of circumstance which results in a loss of entitlement.

Every applicant's address (including postal address) and telephone details (including mobile phone numbers) must be checked at every contact, and updated if required. Note: if the applicant has authenticated themselves via IVR, address details do not need to be confirmed.

Although there may be more than one approved applicant for a student, only one claim may be accepted for a student for a particular period. If the person who is the approved applicant for a student has changed, a new claim must be lodged, for example, death of the original applicant.

Where the student lives with more than one possible applicant (for example, with both parents) and the one who applied for benefits dies, the other is entitled to receive remaining entitlements for the year. However, they will need to lodge a new claim.

If the student lives with only one applicant (for example, a sole parent) and the applicant dies, the continuing eligibility of the student and the payment of benefits for the rest of the year will depend on who now has responsibility for the student and what now constitutes the principal family home. The continuity of schooling concession may apply in such cases. Once this is determined, a new claim will need to be lodged by the new applicant.

To determine who can assume responsibility for the student, see Determining who can be the applicant for the Assistance for Isolated Children (AIC) Scheme.