Background: AIC Basic Boarding Allowance 
When introduced in 1973, the Assistance for Isolated Children (AIC) scheme covered  55% of the average boarding fee to assist children in attending boarding schools to access education. However, over time and with costs increasing, the percentage covered by the AIC basic boarding allowance has been eroded over time.  
 
Many children living in remote regions of Australia do not have adequate daily access to a physical secondary school and therefore must board away from home to attend school. Accessing compulsory schooling through boarding institutions comes at a considerable cost to geographically isolated families. Recent survey data, collected from a cross-section of ICPA members nationwide, showed that more than 75% of respondents bear out-of-pocket expenses of over $5000.00 per term just for boarding fees and essential travel. This gap is their out-of-pocket expenses after they receive the AIC Basic Boarding Allowance. That is an out-of-pocket gap of over $20,000 per year per student. These calculations do not include the additional costs of school or tuition fees. This expense is becoming increasingly unsustainable.  

From City Lights to Outback Struggles - Danyelle Haigh's Fight for Rural Education Equity
Danyelle Haigh's journey reflects the profound challenges faced by countless outback families striving to provide their children with a quality education. Raised in the city, she now grapples with the starkly different world of rural living, where she and her husband run a series of businesses near Anmatjere in the Northern Territory, nearly 1000km south of Darwin. Juggling a fodder station, caravan park, water drilling venture, and an outback fashion stylist project, they confront a formidable financial burden, spanning expenses for governesses, schooling materials, and even building an on-site classroom. The increasing cost of outback living has disrupted their family budget, particularly as they face unexpected boarding school expenses for their eldest son. Danyelle's story spotlights the sacrifices and financial struggles endured by outback families for the sake of their children's education, shining a light on the often hidden reality of their circumstances.

No Choice but to leave the land: One Families heartbreaking decision looms
Katy Hayes and her family in remote South Australia are grappling with the high costs of educating their children, pushing them to consider leaving their station. Living far from a suitable school, they rely on limited government support that doesnt even cover the costs and is blowing out their already tight budget, leaving them increasingly financially strained. With no option other than boarding school for this outback family, expenses are soaring and insufficient assistance is taking its toll on them. To provide assistance, ICPA is advocating for a $4,000 increase in the basic boarding allowance to alleviate the financial burden on families just like Katy's and secure the future of rural education in Australia.
 
The disparity between the AIC Boarding Allowance and the actual cost of boarding fees across Australia continues to grow, impacting on the allowance’s intent and effectiveness. Rural and remote families are required to contribute increasingly more towards the cost of their children’s compulsory education year after year with only incremental annual increases to the allowance.   
 
Recommendation: $4,000 increase in boarding allowance  
An urgent increase to the AIC Boarding Allowance of at least $4000 to cover at least 55% of the average boarding fee followed by indexation to the CPI Sub Index: Education to truly reflect the costs of education. 
 
Financial Implications:  
Approx. 4000 geographically isolated (GI) students receiving Basic Boarding Allowance @ $9396 per annum (2023) (or cost of boarding, whichever is lower). 
$4000 per annum = $16 million 
Total funding allocation over forward estimates (4 years) = $64 million 

For more information, financial rationale, please see linked discussion brief. ICPA Ministerial Discussion Points