From the ‘Not so Fair’ file………………

You may recall our blog earlier in the year where we spoke about applications for  student allowance and Study Link asking us to provide details of parent's "drawings" for the year, particularly from closely held companies.  In Study Link's income formula, drawings that are used for payment of personal/household expenses are also income.

We think there is an element of "double dipping" and sought some clarification from Study Link using the following example:                    

                           Year 1               Year 2            Total

                             $                      $                   $   

Salary                    70,000             70,000           140,000

Drawings                50,000              90,000           140,000

Total                    120,000            160,000           280,000

Our view is that the student allowance eligibility should be based on the salary of $70,000 per year - a total of $140,000.

The response we have had says that it is likely that parental income will be based on $70,000 in year 1 and $90,000 in year 2 although more information would need to be analysed and considered before a determination is made.  Not a lot of certainty here I'm afraid.

The take away message is that parents  use their own resources to support children who are attending university.  If it works out that there is an entitlement to a student allowance, this can be claimed and then that is a bonus.

Do you find yourself in this situation? Give us a call if you'd like to talk to someone (03 578 3386).