Assessing independence for full time or concessional study load students from regional and remote areas under the self-supporting through employment criterion 010-06050010

A customer undertaking full-time study, or an approved concessional study load may be considered independent if since leaving secondary school they have either:

• been employed and within a 14 month period, have total earnings of at least 75% of Wage Level A of the National Training Wage Schedule included in a modern award, or
• had part-time employment of at least 15 hours per week for at least 2 years

Use the Independence Calculator in Process Direct to assess the customer for the independent rate.

Note: see historical versions of this procedure for process on how to assess independence for customers from regional and remote areas prior to 1 January 2018.

Has the customer provided information indicating they may be considered independent?

• Yes, go to Step 2
• No, check if customer can, and wants be assessed under the Parental Income Test (PIT):
• Determine if the Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY) is required and assess the customer as a dependent customer. Procedure ends here

Is the customer undertaking full-time study, or an approved concessional study load in an approved course?

• Yes, go to Step 3
• No, see Step 3 in Table 4

Does the customer need to live away from home to study?

• Yes, go to Step 4
• No, see Step 3 in Table 4

Is the customer's parental home in an area classified as 'Inner regional', 'Outer regional', 'Remote' or 'Very Remote'?

The Resources page contains a link to the Student Regional Area Search tool.

• Yes, go to Step 5
• No, see Step 3 in Table 4

The parental income cut-off for self-supporting independence purposes is $160,000, plus $10,000 for each eligible additional children in their Family Unit Regional (FUR). The count of children in FUR does not include the customer.

This test is based on the same calculations as the Parental Income Test.

They can use parental income from 1 of 3 financial years where it is more beneficial for them. This may be the financial year:

• before they take a gap year (pre-gap tax year)
• of their gap year (base tax year), or
• following their gap year (post base year/current tax year)

Note: the 'pre-gap tax year' is the year before the qualifying 14-month period began. If the student worked for more than 14-months, and has multiple qualifying 14-month periods, there may be several 'pre-gap tax years'. In these cases, use the most beneficial year.

These changes occurred from January 2019. To view historical versions of this procedure from the Background page, select the Page history icon on the Page tools menu. Select the relevant date.

Verification of Combined Parental Income needs to be provided. See Documents accepted as evidence of parental income.

If parental income information is not available on the customer's record, parent(s)/guardian(s) are required to provide parental income details via:

• the Advise Parental Income online service. See Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY), or
• the Parent(s)/Guardian(s) additional details for dependent Youth Allowance or ABSTUDY customers (A2115) form. If posting the customer an A2115 form, send a letter using Requesting information (CLK), requesting the return of the form within 14 days

If this information is not received within 14 days, reject the claim as 'Fail to Supply Documents' (FSD). See Step 3 in Table 4.

If parental income information has been received, see Step 1 in Table 2.

If A2115 parental income details are submitted:

• via the Advise Parental Income online service. See Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY), go to Step 2
• as scanned documents, go to Step 3

PIT information provided via the API for a new claim are attached to the online claim. It can be viewed via the following methods:

For Youth Allowance claims in Process Direct:

• Select Inbox
• Claim ID: field, enter the claim ID
• Select Go
• Select the appropriate claim
• On the Transaction Summary (TS), select Tasks and locate A2115

For ABSTUDY claims in Process Direct:

• Select Inbox
• Claim ID: field, enter the claim ID
• Select Go
• Select the appropriate claim
• On the Claim Application page
• Select the Tasks icon
• Select the Transaction Ref No for the Online A2115
• The A2115 responses will open

A2115 details submitted are displayed under heading MOD JY Review and Submit Details.

Go to Step 4.

New claims in Process Direct:

• Select Inbox
• Claim ID: field, enter the claim ID
• Select Go
• Select the appropriate claim
• Select Documents tab and locate A2115

Current YA and ABSTUDY customers:

• Process Direct:
• Select Customer Summary
• Enter CRN
• Select Go
• Select the appropriate customer
• Select Documents tab and locate A2115
• Customer First
• CRN/BP: field, enter the customer's CRN
• Select Document Tools under Quick Links
• Form type select A2115

Go to Step 4.

If parental income details are provided via the Advise Parental Income online service (See Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY)):

For Youth Allowance claims:

• Select Inbox
• Claim ID: field, enter the claim ID
• Select Go
• Select the appropriate claim
• In the Super Key, enter 'FUR'
• Check Income field for both pre-gap and base tax years

For ABSTUDY claims:

• Select Inbox
• Claim ID: field, enter the claim ID
• Select Go
• Select the appropriate claim
• Select Process
• Go to the FUR icon and check Income field for both pre-gap and base tax years

If parental income details are provided via A2115 form:

• Go through Q7 to Q12 to calculate parental income for pre-gap tax year
• Go through Q13 to Q18 to calculate parental income for base tax year

If total combined parental income is less than $160,000 for pre-gap tax year or base tax year, customer is deemed to meet the parental income threshold for this independence assessment. See Step 1 in Table 3.

If total combined parental income is over $160,000 for both pre-gap tax year and base tax year, go to Step 5.

If parental income details are provided via the Advise Parental Income online service (See Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY)):

For Youth Allowance new claim in Process Direct:

• Select Inbox
• Claim ID: field, enter the claim ID
• Select Go
• Select the appropriate claim
• In Super Key field, enter 'FUR'

For ABSTUDY new claim:

• Select Inbox
• Claim ID: field, enter the claim ID
• Select Go
• Select the appropriate claim
• Select Process
• Select FUR icon

The FUR screen will display:

• Year Type: displays both pre-gap tax year and base tax year
• Assessment Year
• Census Date: 30 June of the relevant tax year for assessment
• Income: this is the total combined amount of parental income
• Number of FUR Children: this is the total number of eligible siblings in customer's Family Unit Regional (FUR), excluding the customer
• Parental Income Cut-off Threshold: this displays the current threshold of $160,000
• Calculated Threshold: this displays the adjusted threshold after FUR number is taken into consideration

If the total number of FUR siblings provided via the Advise Parental Income online service (See Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY)) is not correct and requires an update:

For Youth Allowance new claim:

• Continue claim assessment by selecting Process
• In the Super Key, enter 'FUR'
• Same fields are displayed; however number of FUR children field can now be updated
• Adjust the FUR number and select Save
• New Number of FUR children and Calculated Threshold will show

For ABSTUDY new claim:

• Continue claim assessment by selecting Process
• Select FUR tab
• Same fields are displayed, however number of FUR children field can now be updated
• Adjust the FUR number and select 'Simulate'
• New 'Number of FUR children' and 'Calculated Threshold' will be displayed

If parental income details are provided via A2115 form:

• Refer to Q20 on the A2115 form and locate the number of eligible Family Unit Regional (FUR) siblings for both pre-gap tax year and base tax year

Calculate the parental income threshold using this formula: $160,000 + ($10,000 x number of FUR siblings.) Is the total parental income amount less than the 'calculated threshold' for either pre-gap tax year or base tax year?

• Yes, customer meets the parental income threshold for this independence assessment. See Step 1 in Table 3
• No, go to Step 6

If parental income details are provided via:

• A2115 form, go to Step 7
• Advise Parental Income online service, go to Step 9

Has there been a substantial decrease in parental income in post-base tax year and it is likely to continue for at least 2 years?

• Yes, go through Q22 to Q26 on the A2115 form to calculate parental income for post-base tax year. Go to Step 10
• No, go to Step 8

Has there been an increase of the FUR sibling number after the census date of base tax year or the date of claim submission?

• Yes, go to Step 12 after obtaining the increase of FUR siblings from Q29 of the A2115 form
• No, customer does not qualify for this independence assessment as parental income is over the calculated threshold. See Step 3 in Table 4

Contact the parent(s) (minimum 2 genuine attempts to contact) to assess if 1 of the 2 criteria below is met:

• There has been a substantial decrease in parental income in post-base tax year and it is likely to continue for at least 2 years, or
• There has been an increase of the FUR sibling number after the census date of base tax year, or the date of claim submission

Note: a post-base tax year assessment will also be applied where parental income for the post-base tax year exceeds the base tax year income by more than 25 per cent.

Has a criteria been met?

• Yes, go to Step 10
• No, customer does not qualify for this independence assessment as parental income is over the calculated threshold. See Step 3 in Table 4

Is the combined parental income of post-base tax year less than $160,000?

• Yes, see Step 1 in Table 3
• No, go to Step 11

• Determine census date: it is the date of application for post-base tax year assessment
• Assess the number of FUR siblings on the census date and apply the formula below to calculate the adjusted threshold:
• $160,000 + (number of FUR siblings x $10,000) = new adjusted threshold
• Compare the combined parental income of post-base tax year with the new adjusted threshold

Is the combined parental income less than the new adjusted threshold?

• Yes, see Step 1 in Table 3
• No, is there an increase of FUR sibling number after the census date of base tax year or the date of claim submission?
• Yes, go to Step 12
• No, customer does not qualify for this independence criteria as parental income is over the calculated threshold. See Step 3 in Table 4

• Determine census date: this is the date customer advises of the increase of Family Unit Regional (FUR) sibling
• Apply the new FUR number on census date and apply the formula below to calculate the adjusted threshold:
• $160,000 + (number of FUR siblings x $10,000) = new adjusted threshold
• Compare the combined parental income of post-base tax year with the new adjusted threshold

Is the combined parental income less than the new adjusted threshold?

• Yes, see Step 1 in Table 3
• No, customer does not qualify for this independence assessment as parental income is over the calculated threshold. See Step 3 in Table 4

Customers may not need to provide evidence such as payslips or payroll reports to verify their employment history if they are independent under this criterion in a:

• YA student online claim, or
• Assisted Customer Claim

If the claim determines evidence is:

• not required, the student will be advised to retain evidence of their employment history for 2 years
• required, the customer will be advised at Next Steps

Note:  if the customer has not been asked for evidence of their employment income but has provided it, use this income evidence to verify the independence information in the online claim.

Was employment evidence a Required task in the YA student online claim or Assisted Customer Claim, or is a current customer asking to be considered independent?

• Yes, go to Step 2
• No, the claim has determined that customer meets independence criteria, see Step 1 in Table 4

Customers may meet the self-supporting independent criteria if they:

• had part-time employment of at least 15 hours per week for at least 2 years (which must be in one consecutive period) since the customer last left secondary school, or
• have been employed in a 14 month period since they last left secondary school with cumulative earnings totalling at least 75% of Wage Level A of the National Training Wage schedule included in a modern award. See the References page contains a link to the National Training Wage schedule

Reminder: for YA online claims or Assisted Customer Claims lodged prior to 24 February 2021 see Background page.

Customers applying for either of the self-supporting independence criteria, are required to supply appropriate evidence, such as:

• letter(s) from employers which outline periods of employment and hours worked
• payslips, payroll reports, letters or payment summaries (group certificates) from their employer showing the amount earned and periods of employment
• Employment Separation Certificate - a certificate may be accepted if it is supplied in conjunction with other forms of evidence as listed above

Do not use documents, such as a Tax Notices of Assessment, which show an amount of income for a financial year but not the source of the income. The income must be from paid employment.

Go to Step 3

If the customer has requested an assessment of independence, and evidence:

• indicates customer has undertaken part-time work - at least 15 hours per week for 2 consecutive years since last leaving secondary school, go to Step 4
• indicates customer earned 75% of Wage Level A of the National Training Wage Schedule rate in any time in a 14 month period since leaving secondary school, go to Step 5
• has not been provided, and:
• was a Required Task for a claim, go to Step 3 in Table 4
• YA is current, advise the customer that independence can be assessed when evidence is supplied. Record details on a Note/DOC. Procedure ends here

Check the period of employment and the number of hours worked per week during the 2 consecutive years since the customer last left secondary school. Only work undertaken after the customer left secondary school counts towards the 2 years.

The date the customer last left secondary school is the later of the following:

• the date after their last exam in a secondary course, if this completed all requirements of their course
• the date after they were required to submit their last school assignment for their secondary course, or
• the date after the last day they attended a secondary course

A secondary course is Year 7 to Year 13 conducted by a secondary school. A Registered Training Organisation (RTO) (such as a TAFE or private provider) is not considered a secondary school.

Customer works then returns to secondary school: If the customer has had more than one period at secondary school then the assessable period of paid work must be from the date the customer last left secondary school. However, once a customer gains independence under this criterion it cannot be revoked if the customer subsequently returns to secondary school as this independent criterion is not reviewable.

If the customer has been receiving income support and working part-time (i.e. at least 15 hours per week), these periods are counted.

Condition of 15 hours per week: The employment must be for at least 15 hours per week. If the customer works a roster of 20 hours in one week and 10 hours the following week, the hours cannot be averaged over the 2 weeks. In this case, only the weeks the customer worked the 20 hours would be counted towards the 2 years.

Has the customer worked for at least 15 hours per week (that is, part-time) for 2 consecutive years since last leaving secondary school?

• Yes, customer meets independence criteria. See Step 1 in Table 4
• No, see Step 3 in Table 4

The date the customer last left secondary school is the later of the following:

• the date after their last exam in a secondary course, if this completed all requirements of their course
• the date after they were required to submit their last school assignment for their secondary course, or
• the date after the last day they attended a secondary course

A secondary course is Year 7 to Year 13 conducted by a secondary school. A Registered Training Organisation (RTO) (such as a TAFE or private provider) is not considered a secondary school.

If a customer discontinued secondary school before the end of the school year, the last date will be their last date of attendance.

Note: if the customer has had more than one period at secondary school then the assessable period of paid work must be from the date the customer last left secondary school. However, once a customer gains independence under this criterion it cannot be revoked if the customer subsequently returns to secondary school as this independent criterion is not reviewable. If the customer has recommenced secondary school and is undertaking secondary study at the time of the claim it is still the date that they last left secondary school that is used.

Has the customer last left secondary school at least 14 months ago?

• Yes, go to Step 6
• No, go to Step 3 in Table 4

The appropriate National Training Wage schedule (Wage Level A) is the rate that applied at the start of the period of employment. The References page contains a link to the National Training Wage schedule.

To be independent on these grounds, the income must have been earned in a 14 month period since the customer last left secondary school. This does not mean that the customer needed to be employed for a continuous period of 14 months. For example, the customer may have earned 75% of Wage Level A of the National Training Wage Schedule rate in a 6 month period. As long as a period of 14 months has elapsed since they last left secondary school, the customer will be independent based on this criterion.

Use the Independence Calculator to determine if customer meets eligibility for independent rate.

Has the customer had a period or periods of employment in a 14 month period since last leaving secondary school in which they earned at least 75% of Wage Level A of the National Training Wage schedule included on a modern award?

• Yes, customer meets independence criteria. See Step 1 in Table 4
• No, see Step 3 in Table 4

If the customer meets an independence criterion, complete the appropriate independence coding:

• Go to Independence/Homeless/Away from Home Details (NIH) screen using the Super Key
• Act: field, key IND
• Start/Reject Reason: field, code one of the grant reasons as follows:
• PSP - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school
• PSG - earning at least 75% of Wage Level A of the National Training wage schedule included in a modern award within a period of 14 months since leaving secondary school
• PSE - earned 75% of the maximum Wage Level A of the National Training Wage schedule included in a modern award in an 18 month period since leaving school. Note: the code PSE can no longer be used with a start date on or after 28 March 2018
  If the COVID-19 concession period was required to determine independence, code one of the grant reasons as follows:
• PPC - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school including the COVID-19 concession period
• PGC - earning at least 75% of Wage Level A of the National Training wage in a period of 14 months since leaving school including the COVID-19 concession period
• Start Date field, code the later date of the
• YA or ABSTUDY start date, or
• date the customer became independent
• Parental Income Financial Year: field, key the relevant financial year
• Parental Income Estimate Ind: field, key 'Y' if the parental income is provided as an estimate, otherwise key 'N'
• Review Date: field, code the review date to verify parental information if an estimate has been recorded
• To update regional classification details: field, go to Step 2

• Next: field, Independent/Homeless/Away From Home Details (NIH) screen
• Action: field, key IND
• Start Date: field, code the commencement date for the independent status
• For new claims, code the later of the:
• YA or ABSTUDY start date, or
• date the customer became independent
• For customers in receipt of YA or Austudy, code the later of the:
• date the customer became independent
• date an independence assessment was requested - where supporting evidence was supplied within 14 days of the request
• date supporting evidence was supplied - where supporting evidence was not supplied within 14 days of the request
• Start/Reject Reason: field, code one of the grant reasons as follows:
• PSP - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school
• PSG - earning at least 75% of Wage Level A of the National Training wage schedule included in a modern award within a period of 14 months since leaving secondary school
• 
  If the COVID-19 concession period was required to determine independence, code one of the grant reasons as follows:
• PPC - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school including the COVID-19 concession period
• PGC - earning at least 75% of Wage Level A of the National Training wage in a period of 14 months since leaving school including the COVID-19 concession period
• Parental Income Financial year: field, key the relevant financial year
• Parental Income Estimate Ind: field, key 'Y' if the parental income is provided as an estimate, otherwise key 'N'
• Review Date: field, code the review date to verify parental information if an estimate has been recorded
• Source: field, as appropriate
• DOR: field, date must match the Start Date: field for payment to backdate correctly
• Action: field, key 'I' Insert
• Select [Enter] to update NIH details
• To update regional classification details: field, key 'Y'. Record the regional classification of the family home

To update regional classification details, go to Step 2

The Regional Location Details (RLD) is used to obtain the customer's regional classification. Complete the following fields on RLD:

• Go to the Regional Location Details (RLD) screen using the Super Key
• Select to add a new row. The Create Regional Location modal will display
• Event Date: field, code the date of grant on independence under the relevant self-supporting criterion
• Address Reason: field, key 'SSI' (self-supporting Independence)
• Year: Code the calendar year for which independence is being assessed
• Address Date: field, code the date of grant on independence under the relevant self-supporting criterion
• Address: code address of the customer's current family home address as per either the existing information on the record or the information provided in the new claim
• Select the Address Latitude search. RLD will conduct a check against the Australian Statistical Geography Standard (ASGS) to determine the regional classification of the address
• Campus Region Verification: use code Campus Verification Not Required (CNR)
• Select Save

• Next: go to the Regional Location Details (RLD) screen
• Event Date: field, code the date of grant on independence under the relevant self-supporting criterion
• Address Reason: field, key 'SSI' (self-supporting Independence)
• Year: code the calendar year for which independence is being assessed
• Address Date: field, code the date of grant on independence under the relevant self-supporting criterion
• Address: code address details including the start date of the customer's current family home address as per either the existing information on the record or the information provided in the new claim
• Action: field, key 'I' Insert
• The RLD will then conduct a check against the Australian Statistical Geography Standard (ASGS) to determine the regional classification of the address
• Complete the assessment on the Assessment Results (AR) screen and ensure the outcome is correct

Go to Step 4.

If rejecting, or if the customer has not selected either of the 2 self-supporting criteria, consider other grounds for independence or assess the customer as a dependent. See:

• Assessing independence for ABSTUDY customers
• Independence for Youth Allowance (YA) customers

If the customer does not meet the independence criterion, complete the appropriate independence coding:

• go to Independent/Homeless/Away From Home Details (NIH) screen using the Super Key
• Action: field, key IND
• Start Date: field, code the date that the customer was rejected for independence under self-supporting
• Start/rejection reason:
• RSG - earning at least 75% of Wage Level A of the National Training wage schedule included in a modern award within a period of 14 months since leaving secondary school - not supported
• RSP - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school - not supported
• RSE - for customers who have failed to meet the independence criteria earning 75% of Wage Level A of National Training Wage schedule included in a modern award rate in an 18 month period. Note: the code RSE cannot be used with a start date on or after 28 March 2018
  If the COVID-19 concession period was required to determine independence, code one of the rejection reasons as follows:
• RGC - earning at least 75% of Wage Level A of the National Training Wage in a period of 14 months since leaving school including the COVID-19 concession period - not supported
• RPC - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school including the COVID-19 concession period - not supported
• Check if customer can, and wants be assessed under the Parental Income Test (PIT)
• Determine if the Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY) is required and assess the customer as a dependent customer
• Do not pay Relocation Scholarship to customers who are granted at the away from home rate pending proof of independence. See Relocation Scholarship (RS) eligibility
• Go to Step 4

• Next: field, Independent/Homeless/Away From Home Details (NIH) screen
• Action: field, key IND
• Start Date: field, code the date the customer was rejected for independence under self-supporting
• Start/rejection reason:
• RSG - earning at least 75% of Wage Level A of the National Training wage schedule included in a modern award within a period of 14 months since leaving secondary school - not supported
• RSP - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school - not supported
• RSE - for customers who have failed to meet the independence criteria earning 75% of Wage Level A of National Training Wage schedule included in a modern award rate in an 18 month period. Note: the code RSE cannot be used with a start date on or after 28 March 2018
  If the COVID-19 concession period was required to determine independence, code one of the rejection reasons as follows:
• RGC - earning at least 75% of Wage Level A of the National Training Wage in a period of 14 months since leaving school including the COVID-19 concession period - not supported
• RPC - working part-time (at least 15 hours per week) for at least 2 years since leaving secondary school including the COVID-19 concession period - not supported
• Check if customer can, and wants to be assessed under the Parental Income Test (PIT)
• Determine if the Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY) is required and assess the customer as a dependent customer
• Do not pay Relocation Scholarship to customers who are granted at the away from home rate pending proof of independence. See Relocation Scholarship (RS) eligibility
• Source and DOR: field, code as appropriate
• Action: field, key 'I' Insert
• Select [Enter] to update NIH details

Go to Step 4.

If a determination is made in the new claim activity, a separate Note/DOC is not required. The assessment information must be included within the grant/reject Note/DOC

The information recorded in the Note/DOC should indicate the grounds on which the customers claim for independence has been granted/rejected as well as all relevant facts and evidence that led to the decision.

Finalise activity:

In Process Direct

• Select Assess and address any errors/warnings
• Select Assess again, then select Finish. Record details of the update on the Finalise screen
• Select Finalise to complete the transaction

In Customer First

• Complete the assessment on the Assessment Results (AR) screen
• Create an IND Granted/Rejected DOC:
• Use Fast Note - select Auto Text > Students, ABSTUDY & Apprentices > Update > IND Granted/Rejected
• Select Confirm
• Complete the DOC outlining the reasons for grant/rejection