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Mutual obligation requirements for Youth Allowance job seekers under 22 years of age who have not completed Year 12 or an equivalent level of education (Certificate III or higher) qualification 001-09020040



This document explains the mutual obligation requirements for Youth Allowance (YA) job seekers under 22 years of age who have not completed Year 12 or an equivalent level of education (Certificate III or higher) qualification.

Definition of Early School Leaver (ESL)

Youth Allowance (YA) job seekers are identified as Early School Leavers (ESL) if they:

  • are under 22 years of age, and
  • have not completed Year 12 or an equivalent level of education (Certificate III or higher)

Identifying ESLs

All YA job seeker claims will require verification action and coding on the Newstart Education Status (NES) screen to specify if:

  • the job seeker has completed Year 12 or an equivalent level of education (Certificate III or higher) qualification, and
  • evidence of qualification is provided

The verification can only be actioned by a Services Australia Service Officer.

If a customer transfers from YA (full-time student) to YA (job seeker) and has not completed Year 12 or an equivalent level of education (Certificate III or higher) qualification, they will be subject to the ESL requirements from their date of transfer.

Job seekers who completed a Certificate II in 2015 or earlier

YA students will not be identified as an ESL if they:

  • completed a Certificate II in 2015 or earlier, and
  • are current and continue on payment when they transfer to YA job seeker

Job seekers will no longer be removed from the ESL cohort if:

  • there has been a break in payment for 13 weeks or more, and
  • they previously had a Certificate II keyed as Year 12 or an equivalent level of education (Certificate III or higher) qualification

Mutual obligation requirements for ESLs

ESLs must undertake approved requirements and/or job search or a combination of these, to meet their mutual obligation requirements until they turn 22 years of age, or attain Year 12 or an equivalent level of education (Certificate III or higher) qualification. For provider managed job seekers, this includes:

  • full-time education or training
  • a combination of part-time education or training and part-time work for a total of 25 hours per week (15 hours for Principal Carer Parents and those with a Partial Capacity to Work (PCW) of 15 to 29 hours per week)
  • other approved requirements for 25 hours per week (15 hours for Principal Carer Parents and those with a PCW of 15 to 29 hours per week)
  • in Community Development Program (CDP) regions requirements such as study and training are voluntary. For all CDP job seekers, including ESLs:
    • CDP providers consider each job seeker's assessed capacity and individual circumstances when negotiating Job Plans
    • minimum hourly requirements do not apply, and
    • there are no specific requirements for CDP job seekers based on their age group or participation category

The Employment Services Provider is responsible for:

  • discussing mutual obligation requirements with the job seeker, and
  • negotiating an appropriate Job Plan

Requirements that result in an ESL being managed by Centrelink

ESLs who have one of the following approved requirements will be managed by Centrelink (the agency):

Note: the Action Item 'Customer is Centrelink managed and has no current Job Plan. Negotiate Job Plan with customer', may appear for ESL job seekers who:

  • are participating full time in AMEP, and
  • are yet to be referred to an Employment Services Provider

These job seekers are not Centrelink managed and must be referred to a Provider. Once referred, they will display as Provider managed.

Referrals to Employment Service Providers

ESLs are eligible for referral to either:

Note: except for eligible job seekers in CDP regions, ESLs identified as eligible must be referred to Workforce Australia - Transition to Work (TtW) (where available).

Verification of Year 12 or an equivalent level of education (Certificate III or higher) qualification

Youth Allowance job seekers who advise that they have completed Year 12 or an equivalent level of education (Certificate III or higher) qualification:

  • are required to provide evidence of their qualification to Services Australia
  • who do not provide evidence of their qualification, will be considered an ESL

Note: ensure qualifications are recorded correctly. Check if:

  • the job seeker has provided verification of completing Year 12 or an equivalent level of education (Certificate III or higher) qualification, and
  • the details are confirmed via the Customer Study Details (EDC) screen in Process Direct or the Education Course History (EDC) screen in Customer First

If so, ensure the appropriate code has been used to update the Newstart Education Status (NES) screen, for example, OTH (other evidence as appropriate) on the:

  • Verification Document Code field in Process Direct, or
  • Y12/Equiv Verified field in Customer First

Updating education level on the Job Seeker Snapshot

When the ESLs education qualification level has been updated via the Job Seeker Snapshot to state that they have now completed Year 12 or an equivalent level of education (Certificate III or higher) qualification, the Employment Services Provider will notify the agency. A Manual Follow-up (MFU) activity will be generated on the job seeker's record to prompt a Service Officer to follow-up and obtain proof of the qualification from the ESL to record this on the NES screen.

Reminders to provide verification of Year 12 or an equivalent level of education (Certificate III or higher) qualification

A Short Message Service (SMS) and/or e-mail reminder will be sent to ESLs advising them to provide their educational qualifications to the agency for verification as soon as possible. A reminder will also be sent if the ESL uses the self-service facilities.

Proof of qualification provided to Employment Services Provider

ESLs can provide original documentation that proves Year 12 or an equivalent level of education (Certificate III or higher) qualification to their provider. The provider will sight the original documentation and fax a copy to the National Business Gateway (NBG). Upon receipt of the fax, NBG staff will take appropriate action including updating the NES screen.

The latest information relating to the Year 12 or an equivalent level of education (Certificate III or higher) qualification verification on the NES screen, will be automatically transmitted to the Employment Services System.

Verification of Year 12 or an equivalent level of education (Certificate III or higher) qualification for new claims

After submitting a claim:

  • job seekers have 28 days to provide verification that they have completed Year 12 or an equivalent level of education (Certificate III or higher) qualification
  • if the job seeker has not provided verification by the end of the 28 day period:
    • a Manual Follow-up (MFU) activity will be displayed on the job seeker's record on the Activity List (AL) screen, and
    • an Action Item will be displayed within the Participation Summary workflow in Process Direct

Both the MFU and Action Item are reminders to Service Officers to take follow-up actions regarding the verification of the job seeker's qualification. If verification is not provided at the next contact (generally when the job seeker lodges their next Reporting Statement), the Service Officer must:

  • tell the job seeker they will be identified as an ESL, and
  • update the Job Seeker Snapshot and NES screen

The Employment Services Provider will:

  • discuss mutual obligation requirements with the job seeker, and
  • negotiate a Job Plan with appropriate requirements

Referral to Employment Services Provider

Some YA job seekers may be exempt from RapidConnect at the initial claim stage due to potential eligibility for Skills for Education and Employment (SEE) or Adult Migrant English Program (AMEP). However, these job seekers are still required to be referred immediately to an Employment Services Provider with a note in the Online Diary that they would benefit from participating in the relevant programme.

ESLs who are under 18 years of age

A study exemption must be keyed on the NES screen (system requirement) to qualify for YA for all job seekers under 18 years of age:

  • who have not completed Year 12 or an equivalent level of education (Certificate III or higher)
  • even when they are undertaking approved requirements to satisfy mutual obligation requirements

YA will not be cancelled when the exemption expires. The exemption does not have to be recorded again while the job seeker remains on payment.

The Resources page contains a list of study exemptions that can be granted for YA job seekers under 18 years of age who have not completed Year 12 or an equivalent level of education (Certificate III or higher) qualification, as well as links to the Services Australia website.

Processing Youth Allowance (YA) (job seeker) claims

Part-time or full-time study as an approved mutual obligation requirement for JobSeeker Payment (JSP)

Registering a customer as a job seeker

Negotiating Centrelink Managed Job Plans

Applying mutual obligation requirements

Employment Services Providers

Youth Activities as an approved mutual obligation requirement to satisfy requirements

Participation Interview

Exempting a job seeker from mutual obligation requirements due to special circumstances

Workforce Australia - Transition to Work (TtW)

Youth Bonus Wage Subsidy (YBWS) 26 Week Suspension Period

Quarterly Participation Interviews for Partial Capacity to Work and Temporary Reduced Work Capacity (0-7 or 8-14 hours per week) job seekers