At 1 April 2022 - Parental income abatement calculation - living away from home rate
The gross rate of Student Allowance payable for students under 24, single, childless and living away from home is abated (reduced) if the gross parental income is over the parental income threshold.
There are two separate abatement calculations, depending on the amount by which the parental income exceeds the parental income threshold. Use either Calculation 1 or 2 (not both).
Calculation 1: Gross annual parental income exceeds the threshold by up to $8,113.04 (or $156.02 a week)
When the gross annual parental income exceeds the parental income threshold by any amount up to $8,113.04, reduce the gross Student Allowance payable as follows:
Gross parental income minus parental income threshold | = A (parental income that exceeds the parental income threshold) |
Multiply A by 0.30303% (at 1 April 2022) | = B (amount by which the gross rate of Student Allowance will be reduced) |
Gross Student Allowance rate minus B | = C (Gross Student Allowance payable after abatement, if any) |
Or
Calculation 2: Gross annual parental income exceeds the threshold by more than $8,113.04 (or $156.02 a week)
When the gross annual parental income is over the parental income threshold by more than $8,113.04, reduce the gross Student Allowance payable by the total sum of step 1 and 2:
Step 1: Multiply $8,113.04 by 0.30303% = $2,458.49. Reduce the annual gross Student Allowance rate payable by $2,458.49 and
Step 2: Multiply the remaining amount of parental income that exceeds the threshold (in excess of $8,113.04) by 0.2793296%. Further reduce the annual gross Student Allowance rate payable by that amount (i.e. after applying the reduction in Step 1).
Calculation 2 example: A student's parents have gross annual parental income of $104,000 | ||
Calculation using gross annual figures using | Calculation using average gross weekly figures | |
Parental income threshold (from 1 April 2022) | $60,968.96 | $1,172.48 gross a week |
Calculate if parental income over the threshold | $104,000 - $60,968.96 = $43,031.04 | $2,000 - $1,172.48 = $827.52 |
Calculation 2 | Step 1: 0.30303 x $8,113.04 = $2,458.49 (rounded) Step 2: $43,031.04 - $8,113.04 = $34,918.00 0.2793296 x $34,918.00 = $9,753.63 (rounded) | Step 1: 0.30303 x $156.02 = $47.28 (rounded) Step 2: $827.52 - $156.02 = $671.50 0.2793296 x $671.50 = $187.57 (rounded) |
Gross Student Allowance payable (from 1 April 2022) | $16,458.52 Less $2,458.50 (Step 1) Less $9,753.63 (Step 2) = $4,246.39 Gross annual Student Allowance payable (after abatement) | $316.51 Less $47.28 (Step 1) Less $187.57 (Step 2) = $81.66 Gross weekly Student Allowance payable (after abatement) |
Previous rates
For other previous rates see:
