Reassessment of parental income (RPI)
Reassessing parental income
Entitlement to Student Allowances for students who are under 24 years old with no supported children is assessed on their parents' income.
If, after the approval of a Student Allowance, but during the student's course of study, there is a reduction of at least 25% in the parents combined income, the parental income amount can be reassessed.
Note when parental income has increased a reassessment is not required.
Calculation
The parents' income must reduce by a minimum of 25% to qualify for a reassessment.
The reduction is the difference between the most recently approved parental income assessment (either the original assessment, or, if applicable, the most recently approved reassessment) and the new reduced income assessment.
A Reassessment of Parental Income application must be due to a reduction that has already occurred and cannot be based on a future date.
If the parents income reduces further, then another Reassessment of Parental Income can occur if the income decreases by at least 25%.
For more information see:
Date of new rate of Student Allowance
The new rate of Student Allowance will apply from the date the reduction in parental income occurs.
Timeframe for receiving an application
Applications for the Reassessment of Parental income must be received by the end of the period of study for which the Student Allowance has been applied for, unless special circumstances exist.
Note the use of discretion is required when determining whether special circumstances exist.
Siblings also getting a Student Allowance
When the student has one or more siblings also getting a Student Allowance with the same nominated parents, a parental income reassessment also needs to be completed for the siblings.
For more information see:
Legislation
- parental income (definition) regulation 2(1) Student Allowances Regulations 1998
- family scheme income (definition) regulation 2(1) Student Allowances Regulations 1998
- Assessment of parental income regulation 4(2)(b) Student Allowance Regulations 1998
- Reassessment of parental income regulation 5 Student Allowances Regulations 1998
- Applications regulation 40 Student Allowances Regulations 1998
- Some definitions for family scheme section MA 8 Income Tax Act 2007
