Payments for students under 18 years paid to student, parent or a third party 010-09010000

Service Officers must complete a recipient identity check when requested to change payment destinations.

Follow normal Identity Confirmation procedures and ask the recipient to state:

• their current payment destination details and
• the amount of their last payment to that account

If there are any concerns about the identity of the recipient, ask:

• additional identity questions, or
• them to provide documents at a service centre

Note: a parent who received their under 18 Youth Allowance (YA) child's payments may have authority to provide new bank account details in their child's own name when the child turns 18.

Report to a Team Leader all calls from recipients affected by payment destination changes unauthorised by them or to accounts which they do not control.

For AIC payments, see Payments to third parties and institutions for Assistance for Isolated Children. Procedure ends here.

For ABSTUDY and YA, check the Payments Destination Summary (PAS) screen.

Do the parent(s)/guardian(s) currently get the payments?

• Yes, and the payment is:
• ABSTUDY, go to Step 3
• YA, go to Step 4
• No, see Table 2, Step 1

Go to the Education Course Details (EDC) screen.

Is the student studying a secondary non-school, tertiary or Masters and Doctorate level course or an Australian Apprentice?

• Yes, see Table 3, Step 1
• No, go to Step 4

Check the student's independent status on the Independent/Homeless/Away from Home (NIH) screen.

Is the student independent?

• Yes, see Table 3, Step 1
• No, see Table 2, Step 1
• No, but the customer is in the process of being assessed for Unreasonable to live at home (UTLAH), go to Step 5

The assessment or recommendation of whether the YA or ABSTUDY should be directed to the young person is often made by the social worker but it can be made by the Service Officer.

If in any doubt, a Service Officer should consult with a social worker. However the YA or ABSTUDY should not continue to be paid to the parent if the Service Officer is satisfied that the payment is not being used for the customer's benefit. The Service Officer does not have to wait for the determination of UTLAH to make this decision.

Do not suspend or cancel a payment while making a decision about UTLAH or payment determination. A payment should only be suspended/cancelled if the Service Officer is satisfied that the person is not qualified for YA or ABSTUDY or the payment is not payable.

See Unreasonable to live at home (UTLAH) initial contact for Youth Allowance (YA), Disability Support Pension (DSP), Special Benefit (SpB) or Tertiary Access Payment (TAP). If a young person is claiming UTLAH this may indicate that the payment is not being used for the customer's benefit, especially where the young person is considered to be at risk.

Make a decision about where the payment will be directed and advise customer of outcome.

Do any necessary updates via the Change Payment Destination workflow in either Process Direct or Customer First.

Procedure ends here.

Check the student's away from home status on the Independent/Homeless/Away from Home (NIH) screen.

Is the student approved for Away from Home rate of payments?

• Yes, for:
• ABSTUDY, go to Step 2
• Youth Allowance (YA), go to Step 3
• No, for:
• ABSTUDY, go to Step 2
• Youth Allowance (YA), go to Step 6

ABSTUDY can be paid directly to the dependent 16 or 17 year old student, if the:

• student is not benefiting from the allowances because the payee is using it for other purposes
• payee leaves Australia temporarily and the young person cannot gain access to ABSTUDY payments, or
• parent(s)/guardian(s) choose to have ABSTUDY paid directly to the young person. They can authorise the change in payee either verbally or in writing and do not have to explain their decision

Have any of the above been met?

• Yes, go to Step 4
• No, go to Step 6

YA can be paid directly to the dependent 16 or 17 year old if the:

• young person is not benefiting from the allowance because the parent(s) are using it for other purposes
• parents choose to have payments paid to the young person, and authorises the change in writing
• young person is an Aboriginal or Torres Strait Islander who has been ceremonially admitted as an adult member of their community, or
• parents leave Australia temporarily and the young person cannot access YA payments

Have any of the above been met?

• Yes, go to Step 4
• No, go to Step 6

Students must substantiate their claim for a payment exemption in writing for the following exemption reasons:

• the student is not benefiting from the allowances because the payee is using it for other purposes, or
• the payee leaves Australia temporarily and the young person cannot gain access to payments

Tell the student they need to provide:

• a written statement to substantiate their claim for a payment exemption
• a supporting statement from an independent person. This is not necessary but will help Services Australia to make a decision

Students can lodge the written statement(s):

• online via the Upload documents service
• by mail
• in person at a service centre

Use the student's written statement, and any supporting statements, to determine if the student can receive the payment.

Can the payment be directed to the student?

• Yes, see Table 3, Step 1
• No, go to Step 6

• Tell the student they do not meet the requirements and their payments will continue to be directed to their parent/guardian or payee until such time they:
• meet one of the exemption requirements
• turn 18 years old, or
• become independent
• Record details on a Note/DOC

Procedure ends here.

Run the Change Payment Destination workflow. See Changing payment destination.