External
Departmental Instruction

DATE OF ISSUE: 10 May 1993

1993 INCOME LIMITS FOR A STUDENT CHILD AND earnings limit for an employed child

Student children

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

.guardian's 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.

2.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 income within the 1993 calendar year does not generally exceed:

*$4100living at home;  or

*$6200living away from home.

3.The living at home limit has been increased by $50 from the 1992 figure of $4050.  The living away from home limit has been increased by $50 from the 1992 figure of $6150..

Employed children

4.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".

5.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 1993, from $111.35 a week ($222.70 a fortnight) to $112.70 a week ($225.40 a fortnight).

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS