At 1 April 2023 - 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.
From 1 April 2022, there are two separate abatement calculations, depending on the amount the parental income exceeds the parental income threshold. These abatement calculations now change every year as part of annual general adjustments.
Use either Calculation 1 or 2 (not both).
Calculation 1: Gross annual parental income exceeds the threshold by up to $12,317.24 (or $236.87 a week)
When the gross annual parental income exceeds the parental income threshold by any amount up to $12,317.24, 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 0.3030303 (i.e. 30.30303%) (at 1 April 2023) | = B (amount by which the gross rate of Student Allowance will be reduced) |
Student Allowance (gross) rate minus B | = C (Student Allowance (gross) payable after abatement, if any) |
Calculation 2: Gross annual parental income exceeds the threshold by more than $12,317.24 (or $236.87 a week)
When the gross annual parental income is over the parental income threshold by more than $12,317.24 (or $236.87 a week), reduce the gross Student Allowance payable by the total sum of step 1 and 2:
Step 1: Multiply $12,317.24 (or $236.87 a week) by 0.3030303 (i.e. 30.30303%) = $3,732.49. Reduce the annual gross Student Allowance rate payable by $3,732.49 and
Step 2: Multiply the remaining amount of parental income that exceeds the threshold (in excess of $12,317.24) by 0.2793296 (i.e. 27.93296%). Further reduce the annual gross Student Allowance rate payable by that amount (i.e. after applying the reduction in Step 1).
Example - Calculation 2: A student's parents have gross annual parental income of $104,000.00
Calculation 2 example: A student's parents have gross annual parental income of $104,000 | ||
Calculation using gross annual figures | Calculation using average gross weekly figures | |
Parental income threshold (from 1 April 2023) | $65,370.76 | $1,257.13 gross a week |
Calculate if parental income over the threshold | $104,000 - $65,370.76 = $38,629.24 | $2,000 - $1,257.13 = $742.87 |
Calculation 2 | Step 1: $12,317.24 x 0.3030303 = $3,732.49 | Step 1: $236.87 x 0.3030303 = $71.77 |
Step 2: $38,629.24 - $12,317.24 = $26,312.00 | Step 2: $742.87 - $236.87 = $506.00 | |
$26,312.00 x 0.2793296 = $7,349.72 | $506.00 x 0.2793296 = $141.34 | |
Student Allowance (gross) payable (from 1 April 2023) | $17,732.52 Less $3,732.49 (Step 1) Less $7,349.72 (Step 2) = $6,650.31 annual (gross) Student Allowance payable (after abatement) | $341.01 Less $71.77 (Step 1) Less $141.34 (Step 2) = $127.90 weekly (gross) Student Allowance payable (after abatement) |
Previous rates
For other previous rates see:
