Prime Time Financial Counsellors Pty Ltd: Austudy Payment

Austudy Payment

Reproduced from Centrelink's "A Guide to Australian Government Payments 1 July - 19 September 2010"

Basic Conditions of Eligibility
Residential Requirements
Basic Rates
Student Start-up Scholarships
Fares Allowance
Rent Assistance
Personal Income Test
Income Bank
Assets Test

Basic Conditions of Eligibility

To qualify for Austudy Payment, a person must be undertaking qualifying study or a full-time Australian Apprenticeship and be aged 25 or over.

Residential Requirements

Must be an Australian resident.
Available to newly arrived migrants after 104 weeks as an Australian resident in Australia (some exemptions may apply).
May be paid for up to 13 weeks of a temporary absence or longer if the person has to travel to study or train as part of their full-time Australian course or Australian Apprenticeship.

Basic Rates

•	Single		$377.00 pf
•	Single, with children		$493.90 pf
•	Partnered, no children		$377.00 pf
•	Partnered, with children		$413.90 pf
•	Special rate for long-term income support recipients commencing full-time study or Australian Apprenticeship:
	-	Single	$457.90 pf
	-	Partnered, no children	$413.90 pf
•	Advance of Austudy Payment of up to $500 may be available.
•	Pharmaceutical Allowance may be paid.
•	Pension Supplement is paid if the recipient has reached age pension age.

Student Start-up Scholarships

Austudy recipients undertaking a higher education or preparatory course at a higher education institution will receive the Student Start-up Scholarship, paid in a maximum of two half-yearly instalments of $650 (a total of $1,300 in 2010).
Students already receiving a Commonwealth Education Costs Scholarship (CECS) or Indigenous CECS are not eligible to receive a Student Start-up Scholarship.

Fares Allowance

Only paid to tertiary students who have to live away from their permanent home for study.
Reimbursement of the cost of cheapest practicable form of public transport, regardless of transport actually used.
Not payable for daily travel.

Rent Assistance

Family Situation Maximum payment per fortnight No payment if your fortnightly rent is less than Maximum payment if your fortnightly rent is more than

Single, no children $113.40 $100.80 $252.00

Single, no children, sharer $75.60 $100.80 $201.60

Couple, no children $107.00 $164.40 $307.07

One of a couple who are separated due to illness, no children* $113.40 $100.80 $252.00

One of a couple who are temporarily separated, no children $107.00 $100.80 $243.47

* Includes respite care and partner in prison.

Rent Assistance for families with children is usually paid with Family Tax Benefit. See Family Tax Benefit Part A for current rates.
Rent Assistance is not paid:
- to people paying rent to a government housing authority, although in some situations sub-tenants may qualify for Rent Assistance.
- for residents of Australian Government funded nursing homes and hostels.
- to single Disability Support Pensioners under 21, without dependants, living with parents.
- to other single people aged under 25, living with parents.
Special rules apply to single sharers, people who pay board and lodging or live in a retirement village.
Rent Certificates are required to verify rent where the person does not have a formal tenancy agreement or is not named as a tenant on a formal tenancy agreement.
Rent Assistance is paid as part of another payment. It may be reduced due to the income test rules applying to that primary payment.
Rent Assistance is subject to portability provisions where relevant.

Rent assistance is shared when both members of a couple, without children, are receiving an allowance or benefit.

Personal Income Test

Gross income is assessed.
The first $6,762 of a merit and equity based scholarship is exempt from means testing.
The income-free area is $236 per fortnight.
Income above the income-free area reduces payment (unless credit in Income Bank).

Family Situation For full
Allowance (pf)* For part
Allowance (pf)

Single, aged under 18, at home:

Students & Australian Apprentices up to $236 less than $593.17

Job Seekers up to $62 less than $437.17

Single, aged 18 or over, at home

Students and Australian Apprentices up to $236 less than $662.84

Job Seekers up to $62 less than $506.84

Single or partnered, no dependants, away from home

Students and Australian Apprentices up to $236 less than $877.67#

Job Seekers up to $62 less than $721.67#

Partnered, with dependants

Students and Australian Apprentices up to $236 less than $939.17#

Job Seekers up to $62 less than $783.17#

Single, with dependants

Students and Australian Apprentices up to $236 less than $1,072.50#

Job Seekers up to $62 less than $916.50#

Single, long-term unemployed aged 21 or over, undertaking full-time study or Australian Apprenticeship, at home up to $236 less than $757.00

Single, long-term unemployed aged 21 or over, undertaking full-time study or Australian Apprenticeship, away from home up to $236 less than $1,012.50#

Partnered, long-term unemployed, no dependants, aged 21 or over undertaking full-time study or Australian Apprenticeship, no children up to $236 less than $939.17#

* For job seekers, fortnightly income between $62 and $250 reduces fortnightly allowance by 50 cents in the dollar. Income above $250 reduces payment by 60 cents in the dollar.

For students and New Apprentices, fortnightly income between $236 and $316 reduces the fortnightly allowance by 50 cents in the dollar. Income above $316 reduces payment by 60 cents in the dollar. For students and Australian Apprentices the income test is subject to Income Bank credit.

Partner income which exceeds the cut-off point reduces fortnightly allowance by 60 cents in the dollar.

# These figures may be higher if you are eligible for Rent Assistance or Pharmaceutical Allowance.

Income Bank

Allows Austudy Payment recipients to accumulate up to $6,000 of any unused portion of their fortnightly income-free area.
Allows Austudy Australian Apprentices to accumulate up to $1,000 of any unused portion of their fortnightly income-free area.
Income Bank credits can be used to offset any income earned that exceeds the fortnightly income-free area.

Assets Test

Classification Income Test Deductible Amount Assets Test

Complying
eg. Life or Life expectancy/fixed term pensions or annuities. Gross Income less Deductible amount Purchase Price Relevant Number (term) Exempt

Non-complying (>5 yrs) e.g. allocated pensions, allocated annuities or term certain annuities. Gross Income less Deductible amount Purchase Price Relevant Number (term) Account balance or if none: PP less [(PP - RCV) / RN x term elapsed]

Non-complying (5 yrs or less) e.g. term certain annuities. Deem Income Not Applicable Account balance or
if none:
PP less [(PP - RCV) / RN x term elapsed]

Payment may be deferred when liquid assets exceed $5,500 (single) or $11,000 (couple or single with dependants).
Hardship provisions may apply to the assets test.