Existing customer starts an Australian Apprenticeship 102-07030200
This document outlines the process to follow when an existing customer starts an Australian Apprenticeship.
Current Youth Allowance (YA), Austudy or ABSTUDY customer
If the customer is currently receiving YA, Austudy or ABSTUDY and will continue to be eligible to receive the same payment as an Australian Apprentice, no claim is needed if they notify Services Australia within 14 days of the apprenticeship start date.
The following customers will continue to qualify for payment if they change their activity from job search, student or other activities to full-time Australian Apprentice:
- YA job seekers under 22
- YA students under 25
- Austudy students
- ABSTUDY students
Claim requirements
There is no requirement for current YA, Austudy or ABSTUDY customers to lodge a claim to make sure the continuation of their income support payment. When a customer indicates they will be undertaking a full-time Australian Apprenticeship, Services Australia will obtain the Australian Apprenticeship details from the Department of Employment and Workplace Relations (DEWR).
If there is a gap between stopping study and starting the Australian Apprenticeship, and the YA, Austudy or ABSTUDY customer needs to access income support, they must change activity or claim another payment depending on their circumstances, for example, YA (job seeker), JobSeeker Payment (JSP) or Parenting Payment (PP).
However, existing ABSTUDY customers do not need to apply for income support if the gap is 28 days or less, as they remain entitled during this period.
If a customer is receiving another income support payment, they will be required to lodge a claim for Youth Allowance, Austudy or ABSTUDY as an Australian Apprentice.
Indigenous customers
It may be more beneficial for Indigenous Australian Apprentices to claim ABSTUDY rather than remain on YA or JobSeeker Payment (JSP), as ABSTUDY Australian Apprentices may be eligible for other supplementary ABSTUDY payments in addition to their Living Allowance such as Incidentals Allowance.
Effect on payment
When a customer advises they will start (or have started) an Australian Apprenticeship, payments are normally suspended from the date full-time employment starts. The change of activity type or benefit transfer cannot be finalised until the details of the Australian Apprenticeship are confirmed by the Department of Employment and Workplace Relations (DEWR).
Part-time Australian Apprentices
Australian Apprentices must be undertaking their Australian Apprenticeship full-time to qualify for payments as an apprentice.
A customer undertaking a part-time apprenticeship may still be eligible for help as a student if they are studying an approved course and undertaking an approved study load for the relevant payment.
Australian Apprentice Income Bank
ABSTUDY, Austudy and YA full-time Australian Apprentices have access to the Australian Apprentice Income Bank, which enables them to build up credits when their income does not exceed the income free area.
The Australian Apprentice Income Bank only allows a customer to accrue up to a maximum of 1000 Working Credits, whereas a YA job seeker can accrue up to 3500 Working Credits.
If the customer has unused Working Credits, these credits can be transferred to their Income Bank where there is a gap in entitlement of up to 12 months.
Unused Student Income Bank
If the customer has unused Student Income Bank credits, those unused credits can only be transferred to their Australian Apprentice Income Bank where there is no gap in entitlement. A customer has access to the Income Bank for any fortnight where the customer is an Australian Apprentice (even if for only 1 day in the fortnight).
Activity test requirements
There is no activity test for Australian Apprentices, as they continue to be eligible as long as they have a current Commonwealth Registration Number.
Effect on other Income Support payments
When a customer starts a full time Australian Apprenticeship, some income support payments may no longer be payable. See Commencing or returning to work.
The Resources page has links to the students and trainees information on the Services Australia website and example text for the Q134 suspension/cancellation letter.
Related links
Identifying the most beneficial payment for trainees or Australian Apprentices