Reproduced from Centrelink's "A Guide to Australian Government Payments 20 March - 30 June 2012"

Basic Conditions of Eligibility

• Families of primary, secondary and certain tertiary students who do not have reasonable daily access to an appropriate state school can receive assistance:
  • for students who must board away from home, in a school, hostel or privately, or
  • to maintain a second home so that a student can access school daily, or
  • for students who are enrolled in full-time studies in an approved distance education course.
• An appropriate state school is normally one that offers tuition at the grade or year in which the student is qualified to enrol (e.g. Year 11). Where the student has a health-related condition (including a disability) or special educational needs, the nearest appropriate state school is the one which provides access to the facilities, programs, and/or environment required to meet those needs. Students must:
  • normally have reached minimum school entry age and be aged under 19 as at 1 January (certain pensioner students may be eligible for AIC up to their 21st birthday), and
  • be undertaking approved studies at an approved institution.
• Tertiary students must be either under the minimum age that the state or territory requires them to participate in education or training or under 16 years of age (whichever is the greater).

Residence Requirements

• Student and claimant must be living permanently in Australia and be:
  • an Australian citizen, or
  • an Australian permanent resident, or
  • a New Zealand citizen who arrived on a New Zealand passport (waiting periods may apply).

Allowances and Maximum Rates

•	Boarding Allowance		$8,813.00 pa
	Maximum rate of two components:
	-	Basic (not income tested)	$7,398.00 pa
	-	Additional(subject to parental income and actual board costs)	$1,415.00 pa
•	Second Home Allowance (limited to a max of 3 students in a family)		$215.52 pf per student
•	Distance Education Allowance		$3,699.00 pa
•	AIC Pensioner Education Supplement		$62.40 pf
•	For students aged under 21 who receive a Disability Support Pension or Parenting Payment (Single) and who are studying at primary level.

Rent Assistance

• Not payable.

Income Test

• No income test is applied to Basic Boarding Allowance, Distance Education Allowance, Second Home Allowance or the AIC Pensioner Education Supplement.
• Additional Boarding Allowance reduces by one dollar for each five dollars of parental income over $46,355. If parental income exceeds $53,390 once adjusted, only Basic Boarding Allowance is payable.
• Note: adjusted parental income includes the applicant and his/her partner’s combined taxable income as adjusted by deductions/add-backs for other dependent students and younger children in the family; maintenance payments made or received; negative gearing and certain fringe benefits. If the student’s actual boarding charges are $7,148 or less, only Basic Boarding Allowance is payable. If the applicant or his/her partner receives certain Australian Government income support payments, or holds a current Health Care Card, this test may be waived.
• Where the applicant is eligible for Additional Boarding Allowance, payment is payable up to:
  • the entitlement under the Parental Income Test, or
  • the student’s boarding costs.
• Note: Depending on parental income and other circumstances, a student may receive a higher level of Australian Government assistance if he/she is eligible for Youth Allowance, ABSTUDY or Pensioner Education Supplement.
  
  Families receiving an AIC allowance for a student may continue to receive Family Tax Benefit for the same student. Family Tax Benefit cannot be paid for students aged 16 or over receiving Youth Allowance or ABSTUDY.

Assets Test

• No assets test.

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