Personal Income Test and Income Bank for ABSTUDY, Austudy and Youth Allowance (YA) students and Australian Apprentices 010-08010010

The system applies the Personal Income Test (including the Student Income Bank and Australian Apprentice Income Bank provisions) automatically when income is recorded on the student or Australian Apprentice's record. The Income Bank applies to any fortnight in which the customer is a full-time or concessional study-load student or Australian Apprentice (even if only for one day in the fortnight).

Even though a customer's employment income may not affect the rate of payment of ABSTUDY, Austudy or Youth Allowance (YA), their income must be recorded on the Employment Income Summary (EANS) screen) in all instances. For information on coding, see Recording and correcting employment income details.

For changes that happened:

• before 7 December 2020, use the Event of Earnings Amounts (EAN) table
• on or after 7 December 2020, use the Employment Income Paid Details (EAPP) table

Significant financial assets that are subject to deeming must also be accurately reflected or reviewed regularly.

ABSTUDY customers under 16 years old are not subject to the Personal Income Test unless they are an independent Australian Apprentice.

Is the customer receiving ABSTUDY and under 16 years old, and either a student (independent or dependent), or a dependent Australian Apprentice?

• Yes, see Under 16 ABSTUDY customers and the Personal Income Test. Procedure ends here
• No, to manually calculate the Income Bank balance and/or effect of the Personal Income Test on the customer's rate of payment, go to Step 2

Income includes all types of income such as employment income, income from investments, etc. Include any continuing income.

Historical income details can be found on the Income Summary (NIS) screen for YA and Austudy customers and on the ABSTUDY Income Summary (EYIS) screen for ABSTUDY customers.

Note: the Other Income: field on EYIS screen includes any Parental Leave Pay (PPL) for children born or entrusted to care on or after 1 October 2016. Selecting the field to navigate to the Other Income Summary (OINS) screen will not display the PPL details as it does for other ordinary income. For details on how to view PPL details, see the Other Income: field help.

To find the Income Bank credit for:

• YA and Austudy students, use either:
• Process Direct - go to the Student Income Bank (NIB) screen
• Customer First - select Student income bank from Workspace then select the Student Balance history tab, or go to the NIB screen
• ABSTUDY students, use either:
• Process Direct - go to the ABSTUDY Income Bank (EYIB) screen
• Customer First - select ABSTUDY income bank from Workspace or go to the ABSTUDY Income Bank (EYIB) screen

For details of the current fortnightly income free area and the upper income threshold see, Rates and Thresholds.

If ordinary income is:

• Less than the fortnightly ordinary income free area, there is no effect on the customer's payments but the 'saved amount' of the income free area (IFA) will affect Income Bank credits. To determine this, go to Step 3
• Equal to the fortnightly ordinary income free area, there is no effect on payment, or on Income Bank credits. Procedure ends here
• Greater than the fortnightly ordinary income free area, but less than or equal to the Income Bank credit, go to Step 4
• Greater than the fortnightly ordinary income free area and the Income Bank credit combined, go to Step 5

The saved amount is the difference between the ordinary income free area and the customer's ordinary income.

• Saved amount = ordinary income free area - ordinary income (from Step 2)

The adjusted Income Bank credit is the total of the existing Income Bank credits and the saved amount.

• Adjusted Income Bank credit = existing Income Bank credits + saved amount

Where there are Income Bank credits, ordinary income will not affect payments.

Go to Step 8.

The reduction amount is the difference between the customer's ordinary income and the ordinary income free area.

• Reduction amount = ordinary income - the ordinary income free area

Adjustments to student/Australian Apprentice Income Bank credits can be calculated as follows:

• Adjusted student/Australian Apprentice Income Bank credit = existing customer income bank credits - reduction amount

Go to Step 8.

Before determining an amount of ordinary income that may affect a person's rate, it is necessary to reduce any income bank credits that exist.

• New Income Bank balance = existing Income Bank Credit - ordinary income (from Step 2)

If this results in a reduction of the Income Bank credits to a figure that is less than zero, a zero balance will be maintained. A negative amount cannot be recorded for the Income Bank.

Any negative or leftover amount will be considered the 'remaining ordinary income'.

The customer's fortnightly income is the amount of income left after student/Australian Apprentice Income Bank credits have been subtracted (that is, amount arrived at in Step 5).

If remaining ordinary income is:

• Less than or equal to the fortnightly ordinary income free area, there is no effect on the payment. Procedure ends here
• Between the fortnightly ordinary income free area and the upper income threshold, rate reduction = (remaining ordinary income from Step 5 -the fortnightly ordinary income free area amount x 0.5
• Greater than the upper income threshold , rate reduction = (remaining ordinary income from Step 5 – the upper income threshold amount x 0.6 + the calculated rate reduction for income between the fortnightly ordinary income free area amount and the upper income threshold amount

Amount Payable = Maximum fortnightly rate - rate reduction.

For information on how to calculate the maximum rate, see:

• Rates and Thresholds, or
• Rates of Youth Allowance (YA)

The customer's Income Bank credits can only be used to offset personal income, not partner income.

Is there a partner who has been paid ordinary income?

• Yes, see:
• Partner Income Test for ABSTUDY customers under 22 years old, Austudy and Youth Allowance students and Australian Apprentices, or
• Partner Income Test for ABSTUDY customers 22 years and over
• Procedure ends here
• No, record details of contact on a DOC