1.1.A.323 Australian apprentice income bank (YA, Austudy)

Definition

For the purposes of YA and Austudy, the Australian apprentice income bank is a bank which operates by saving any unused part of the recipient's fortnightly income free area as a credit (up to a maximum of $1,000), which is then available to offset against income/earnings in future fortnights.

Note: Australian apprentice income bank was previously known as new apprentice income bank.

Any credit in the income bank can be used to reduce the Australian apprentice's assessable ordinary income (1.1.O.30) before applying the income test.

Ordinary income is income that is not maintenance income OR an exempt lump sum.

An amount received by a recipient is an exempt lump sum if the amount is:

• NOT a periodic amount within the meaning of subsection 10(1A), AND
• NOT a leave payment within the meaning of the points 1067G-H20, 1067L-D16 and 1068-G7AR, AND
• NOT income from remunerative work undertaken by the person, AND
• an amount, or class or amounts, determined by the Secretary to be an exempt lump sum.

Act reference: SSAct section 10 Maintenance income definitions, section 1067G-H20 Meaning of leave payment, section 1067L-D16 Meaning of leave payment, section 1068-G7AR In points 1068-G7AA to…, section 1067G-J1 to 1067G-J6 Student income bank, section 1067L-E1 to 1067-E7 Student income bank

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Last reviewed: 21 March 2011