The Tertiary Access Payment (TAP) in Australia is generally not considered taxable income and is not subject to income tax.
However, there is a parental income test for the TAP, which requires the student to demonstrate that their parental income is below a certain threshold to be eligible for the payment. The parental income test considers the combined parental income, including taxable income, adjusted employer-provided benefits, foreign income, net investment losses, tax-free pensions and benefits, reportable superannuation contributions, and maintenance amounts paid out.
There are certain circumstances where parental income is not assessed, such as extreme circumstances preventing the student from living at home, being an orphan, having parents who are unable to care for them, having or having had a child, being a refugee, being in state care, caring for someone else’s child, or having been in prison for six months or more. Additionally, parental income may not be assessed for students from Aboriginal or Torres Strait Islander backgrounds with adult status in their traditional community or due to other specific reasons.
To verify income for the parental income test, appropriate evidence such as Tax Notice of Assessment (NOA) issued by the Australian Taxation Office (ATO) is typically required. If NOAs are not available, other forms of evidence, such as payslips or letters from an employer or accountant, may be accepted.
It’s important to keep in mind that tax laws and regulations can change, so it’s always recommended to consult with a qualified tax professional or refer to the Australian Taxation Office (ATO) for the most up-to-date and accurate information regarding the tax treatment and eligibility criteria for the Tertiary Access Payment.