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13.5.2 Fares Allowance


13.5.2 Fares Allowance

See paragraph 5.1 of the Instruments

Where the Commission has approved payment to a student of a ‘living away from home’ rate of education allowance under paragraph 3.5.1 of the Instruments, it may accept financial liability for a fare (or part thereof) paid, or to be paid, by the student for a journey between the student’s home and place of study in Australia. Fares allowance is not payable when a student studies overseas.

In making a decision under paragraph 5.1.1 in respect of whether to accept liability for a fare, the Commission is to take into account Part 2.26 of the Social Security Act 1991. Part 2.26 sets out the circumstances under which fares allowance is payable and the level of fares allowance payable in certain circumstances. This Part also provides direction on fares allowance for students studying an external or correspondence course.

Students are entitled to the reimbursement of up to 2 single and 1 return trip per academic year (or equivalent). The intention is to reimburse the cost of travel from the student’s permanent or family home to the study institution in Australia at the beginning of the year, return travel at the completion of study for the year and one return trip during the academic year. Fares allowance is only payable for travel within Australia and the student’s permanent home must also be in Australia.

Reimbursement is at the cheapest rate of public transport that is reasonable and using a reasonable route and it is payable upon receipt of expenditure (copy of receipt, bus/ train ticket, etc). Where it is not practicable for the person to use public transport, private transport may be used and reimbursement is based on size of car/ number of kilometres travelled, calculated by formula under Part 2.26 (Fares Allowance) of the Social Security Act 1991.

DVA policy provides that air travel may be paid where the travel time (including waiting time between connections) exceeds 36 hours by train or 18 hours by coach. A higher rate may also be paid if the student is unable by illness or incapacity to travel by the cheaper means.