Youth Allowance (YA) student or Australian Apprentice becomes incapacitated or impacted by unforeseen or extreme circumstances 102-07020130

A YA apprentice will be eligible for YA if:

• they are unable to continue their Australian Apprenticeship full-time during a temporary period of incapacity
• their Apprenticeship Identification Number remains current, and
• they remain employed by their Australian Apprentice employer

If an Australian Apprentice ceases their apprenticeship during a temporary incapacity exemption period, they are no longer eligible for YA (apprentice).

The definition of temporary incapacity for a YA student is different to the definition for a job seeker.

A YA student will be eligible for YA if they :

• have a temporary incapacity which prevents them from studying full-time
• provide sufficient medical evidence, and
• remain enrolled in a qualifying course, or
• remain registered for the relevant award. This includes taking a leave of absence approved by their education provider for the period of incapacity

Some students will take an approved leave of absence and cease study during their incapacity period, others may undertake part-time study if their circumstances allow it.

A YA student who provides a valid medical certificate that satisfies the temporary incapacity exemption criteria may continue to be treated as a full-time student for the duration of the temporary incapacity.

The medical certificate must state all the following:

• the medical practitioner's diagnosis
• the medical practitioner's prognosis
• that the person is incapacitated for study, and
• the period for which the person is incapacitated for study

While the preferred medical evidence is a Centrelink Medical Certificate (SU415 or SU684), other medical evidence containing all the above information can also be accepted.

A YA student or apprentice may be entitled to Pharmaceutical Allowance (PhA) where medical evidence has been provided for their incapacity. While apprentices are not required to provide evidence to receive YA, it is important the customer is aware of their potential entitlement to PhA.

A YA student or apprentice cannot have a single exemption recorded for a period of more than 13 weeks, however, consecutive exemptions may be granted where the medical evidence indicates the incapacity will last for more than 13 weeks.

While multiple exemption periods can be recorded, consider if the incapacity is likely to persist for more than 2 years. If their incapacity is likely to persist for more than 2 years, the customer must test their eligibility for another payment.

When an exemption is recorded customers must be advised they need to notify Services Australia if:

• they decide not to return to study or their apprenticeship at any time during the exemption period
• for students, they are no longer enrolled in or registered for their course, or
• for apprentices, they are no longer employed by their apprentice employer

Students need to provide written confirmation from the education provider, stating they cannot recommence any extra subjects until the following study period if:

• their temporary incapacity ends during a current study period, and
• they cannot return to full-time studies until the following study period

The student will continue to qualify for YA as a full-time student provided they resume full-time study in the next study period.

A student who has been granted a temporary incapacity exemption from the Youth Allowance student full-time study requirements may be eligible for the RS if they are studying an approved scholarship course part-time for the period of their incapacity.

Students taking a leave of absence or deferring their studies for the period of their incapacity cannot qualify for new RS payments during this period. This is because they are not undertaking study in an approved scholarship course.

A student who, due to incapacity, takes a leave of absence/defers from their course or reduces their study load to part-time may have a scholarship debt if:

• they do not start, or resume full-time study, in an approved scholarship course within 35 days of qualifying for the scholarship in that period, and/or
• they are not studying full-time in an approved scholarship course on whichever is the later of:
• the 35th day after they qualified for the scholarship in that period, or
• the 35th day after the course start date in that period

However, a student in this situation will not have a scholarship debt if the reason for not undertaking full-time in an approved scholarship course is due to 'exceptional circumstances beyond the person's control'.

Each case must be considered on its merits, although a student who qualifies for an incapacity exemption will also meet the 'exceptional circumstances' requirement in relation to RS and is unlikely to have a scholarship debt if they reduce their study load or withdraw from study because of their incapacity.

If a scholarship debt does have to be raised, it must be done manually.

A student who has been granted a temporary incapacity exemption from the Youth Allowance student full-time study requirements and is undertaking an approved scholarship course, may be eligible for SSL.

If the student is:

• studying part-time for the period of their incapacity, they can still qualify for new SSLs for the duration of their incapacity
• taking a leave of absence or deferring their studies for the period of their incapacity, they cannot qualify for new SSLs during this period. This is because they are not undertaking study in an approved scholarship course

A student who, due to incapacity, takes a leave of absence or defers their course will have an SSL debt raised if their leave of absence/deferment commences:

• before or on their Qualification Test Date (QTD) in the loan period, or
• within 35 days of their Qualification Test Date (QTD) in the loan period

However, a student in one of the above situations:

• may have a special circumstances debt waiver applied to the SSL debt if their leave of absence/deferment before or on their QTD was due to special circumstances
• will not have an SSL debt if the reason for not undertaking study in an approved scholarship course 35 days after their QTD is exceptional circumstances beyond their control. See Student Start-up Loan (SSL) Study requirements

A student can still qualify for YA as a full-time student during a temporary incapacity if they continue to make satisfactory progress in their course.

If there is doubt as to whether the student is making satisfactory progress, evidence of prior study is required.

YA students and apprentices under 22 years old may also be eligible for YDS if they are assessed as having a partial capacity to work (PCW). Where the prognosis on the medical certificate indicates the medical condition will affect the person's capacity to work for more than 24 months, an Employment Services Assessment (ESAt) must be arranged (if there is not already a current and valid ESAt) to assess their work capacity.

In some cases, they may previously have been assessed as having a PCW while they were a job seeker, and YDS will continue to be paid to them as a student or apprentice.

It is possible for a person to have a temporary incapacity for study or work and a permanent partial capacity to work. They may have a temporary exacerbation of a permanent condition, or they may have a temporary incapacity because of a different medical condition.

When a student or apprentice has a temporary incapacity and their address changes because of the incapacity (for example, they move back home to live with their parents), the away from home rate of YA must be reviewed. See The away from home rate for Youth Allowance (YA) customers.

Customers who cease to be a full-time student or Australian Apprentice because they have a temporary incapacity may test their eligibility for another payment type. If the customer is:

• under 22 years old and temporarily incapacitated, they may be eligible for YA (job seeker/incapacitated)
• 22 years and over and does not intend to return to their full-time studies at the end of their temporary incapacity period, they may be eligible for JobSeeker Payment (JSP). See Customers claiming JobSeeker Payment (JSP)/Youth Allowance (YA) (Incapacitated)
• unable to work or be retrained for work for 2 years or more, they may be eligible for Disability Support Pension (DSP)

Customers who are unable to study or undertake their apprenticeship full-time due to a special, unforeseen or extreme circumstance, or who have a reasonable excuse, may continue to be paid YA as a student/apprentice, providing:

• the student remains enrolled in their course of study and intends to return to full-time study after their circumstances have resolved
• the apprentice remains employed by their Australian Apprenticeship employer, and their Apprenticeship Identification Number remains current

Customers impacted by special circumstances may be experiencing vulnerability and require additional support. Discuss the circumstances with the customer and offer appropriate referrals, if required, see Identifying customer vulnerability and risk issues.