Cancellation or suspension of ABSTUDY payments 102-10020020

A student or an Australian Apprentice may have their ABSTUDY payments cancelled if:

• they have a change in their circumstances
• they fail to comply with the requirements for payment
• another type of payment is more beneficial, or
• they voluntarily cease payments

Payments may be suspended if a customer is temporarily not qualified for payment, or the payment is not payable. Reasons for suspension of payment include (but are not limited to):

• a direct credit payment was returned from the financial institution
• the customer failed to reply to correspondence
• the customer failed to attend an interview
• a customer has separated from their partner
• a customer or their partner is in prison or psychiatric confinement
• the customer's mail has been returned to Centrelink - 'whereabouts unknown'
• employment income or an increase in assets

Automatic cancellation or suspension can occur after reassessments where no continuing entitlement exists. For example, where an ABSTUDY student advises they have discontinued study or an Australian Apprentice advises they have discontinued or ceased their Australian Apprenticeship, the coding on the system of this change in circumstances will result in payments being automatically cancelled.

Manual cancellation or suspension occurs when a Service Officer makes the decision to cancel a student's payment based on ABSTUDY policy.

Before a payment is suspended:

• Information must be requested from the customer under ABSTUDY Policy 1.5 Requests for information, the decision maker must be satisfied that there is sufficient evidence that the customer is either temporarily not qualified for the payment or the payment is not payable
• An appropriate time for response has passed. Payment suspension may significantly impact customers and must follow Policy and the correct process to avoid causing financial hardship. Suspension does not mean loss of qualification, and full arrears are issued if payment is restored

For information on requesting information, see Requesting information (CLK).

Nominee arrangements

If the customer has a correspondence nominee, contact must be attempted with the nominee before the payment is suspended.