Fares Allowance (FAA) for Youth Allowance (YA), Austudy and Pensioner Education Supplement (PES) students 010-04060000

FAA is a non-taxable payment for eligible tertiary students receiving YA, Austudy or PES who have to live away from their permanent home to study.

FAA can only be paid for travel in Australia.

FAA covers the cost of the cheapest - practical mode of transport between the student's permanent home and their Education provider. If no public transport is available on the route, a per-kilometre rate may be paid for the use of a private vehicle or taxi. FAA can also cover the cost of private transport when it is more practical than public transport. This includes where it is not practical for the student to use public transport to move a significant amount of living necessities or personal belongings, like essential kitchenware and bedding, from their permanent home to study.

FAA is available for a limited number of journeys each year. The number of journeys covered depends on the type and length of the course of study. For more information, see Completing the Claim for Fares Allowance (tertiary students only) (SY005) for Youth Allowance, Austudy, Pensioner Education Supplement.

FAA is normally paid as a reimbursement after the journey. However, Services Australia can arrange pre-booked travel for students.

To claim for reimbursement, customers must lodge a claim before 1 April in the year after the year of study. To claim for pre-booked FAA, students should generally lodge their claim at least 7 days before travel to allow for booking of travel. However, subject to availability, Services Australia will try to fulfil travel requests lodged within 7 days of travel. For more information, see Completing the FSY005.

FAA for ABSTUDY is covered separately as it has different eligibility and assessment procedures.

FAA is payable to tertiary students receiving YA, Austudy or PES as a tertiary student who are:

• considered dependent and eligible for the away from home rate of YA
• considered independent and have a partner they live away from because they are studying
• required to live away from their dependent children because they are studying
• required to live away from home and have become independent, will remain payable for that study year
• studying an approved distance or online course at an Australian institution in Australia and they have to travel to the institution for a compulsory residential component of their course

Single independent students without dependent children are generally not eligible for FAA (except for the compulsory on site part of an external course). This is because their permanent home is wherever they are living at the time. Other than for short periods, they cannot be considered to be living away from the permanent home.

FAA is not payable if the customer is away from their institution for a practical part of the course. For example, field excursions, practical teaching sessions or hospital residency.

Special provisions for YA students who become independent during the year of study

If a YA student becomes independent during a year of study either because they:

• reach the independence age, or
• meet the self-supporting through paid employment independence criteria

the student stays eligible for FAA for the rest of that year as long as they were eligible for FAA before becoming independent.

When a person is not eligible for FAA

A student is not eligible for FAA in the following circumstances:

• The student is dependent and receiving the 'at home' rate of YA
• For travel to do external practical requirements of a course at a location somewhere other than the institution where the student is enrolled. For example, a student teacher doing their placement at a primary school interstate or nursing students who must travel to do a clinical placement at a hospital
• The student's permanent home is outside Australia
• The student is studying outside Australia (including in an approved course)
• For daily travel costs or fares to field trips, etc
• For flights paid in full with frequent flyer points or vouchers
• The person is doing an Australian Apprenticeship
• The student is on a medical exemption when the trip is made

When making an unfavourable decision, speak to the customer:

• explain the decision
• give them a chance to provide more information, and
• advise their review and appeal rights

The Process page explains what to do when unable to process a Fares Allowance appeal work item.

Service Officers must use all available resources to help customers. If a customer’s query cannot be finished at first point of contact, create an open Fast Note. This is actioned by specialist fares processing staff. For examples and instructions See Process page.