The proposal would increase the Basic Boarding Allowance (BBA) under the Assistance for Isolated Children (AIC) Scheme by $4,000 per year. The proposal has 2 options:

• Option 1: Annual indexation of the BBA would be in line with the Consumer Price Index (CPI) as per the current arrangements.
• Option 2: Annual indexation of the BBA would be in line with the CPI Education subgroup (CPI Education). The Additional Boarding Allowance (ABA) would also be indexed to the CPI Education.

The proposal would commence on 1 January 2027 and be ongoing.