B12/1994 1994 INCOME LIMITS FOR A STUDENT CHILD AND EARNINGS LIMIT FOR AN EMPLOYED CHILD

DATE OF ISSUE:  2 MARCH 1994

1994 INCOME LIMITS FOR A STUDENT CHILD AND earnings limit for an employed child

INTRODUCTION

This departmental instruction is to confirm the income limits for student children and employed children for 1994.  A minute sent to Branch Offices on 4 January 1994 stated what the limits applicable to student children would be, but at that time they had not been approved.  Now that the limits are approved, this DI is issued as usual.

Student children

2.A service pensioner may receive additional benefits in respect of a dependent child by way of:

*guardian allowance;

*a dependent child add-on (formerly known as APC);

*an additional income free area (formerly known as an income deduction) for pension assessment purposes;

*an additional amount of rent assistance;

*an additional free area for rent assistance assessment purposes;  and,

*an additional amount of remote area allowance.

3.For the purposes of determining eligibility for these benefits, a child may be regarded as wholly or substantially dependent on a person where the child's gross income within the 1994 calendar year does not generally exceed:

*$4200 — living at home;  or

*$6300 — living away from home.

4.The living at home limit has been increased by $100 from the 1993 figure of $4100.  The living away from home limit has been increased by $100 from the 1993 figure of $6200.

Employed children

5.Section 5F VEA defines 'dependent child'.  Subsection 5F(3) of the VEA says that a child under 16 cannot be a dependent child - and therefore cannot attract the benefits listed in paragraph 1 above - if the child is an "employed child".

6.An "employed child" is defined as someone who is:

*not receiving full-time education;

*receiving income from employment;  and

*receiving income that exceeds a specified amount.

That specified amount is indexed annually and has increased, with effect from 1 January 1994, from $112.70 gross per week ($225.40 per fortnight) to  $114.85 gross per week ($229.70 per fortnight).

ASSISTANT SECRETARY

INCOME SUPPORT