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

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

If a YA student or apprentice becomes incapacitated, they may claim or remain on YA as a student or apprentice for the period of their incapacity if they meet all the following criteria:

• have a temporary incapacity which prevents them from studying full-time, or continuing their apprenticeship full-time, and
• provide sufficient medical evidence, and
• for students:
• 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, or
• for Australian Apprentices, maintain a current Commonwealth Registration Number and remain employed with their apprentice employer

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.

The student or apprentice may also be entitled to Pharmaceutical Allowance (PhA) if medical evidence is provided.

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

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), alternative medical evidence containing all of the above information can also be accepted.

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 Service Officers should 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 that they need to notify Services Australia if:

• they decide not to return to study or their apprenticeship at any time during the exemption period, or
• 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 if:

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

It must state that they cannot recommence any extra subjects 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 having to undertake at least 75 per cent of a full-time study load, may be eligible for the RS if they are studying an approved scholarship course part-time (less than 75% of a full time study load) 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, but in most cases, 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 having to undertake at least 75 per cent of a full-time study load, and is undertaking an approved scholarship course, may be eligible for SSL.

If the student is:

• studying part-time (less than 75% of a full-time study load) for the period of their incapacity, they can still qualify for new SSL’s 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 SSL’s 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 QTD in the loan period, or
• within 35 days of their 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 for more details

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

If there is any doubt as to whether the student is still enrolled or is making satisfactory progress, the student must be asked to provide proof of their enrolment and/or a letter from their education institution. In some cases, evidence of prior study will be required to undertake a satisfactory progress assessment.

Note: a student can remain enrolled and be making satisfactory progress while temporarily incapacitated. Students who study on a part-time basis while temporarily incapacitated will have their satisfactory progress and allowable time reassessed on a pro rata basis.

YA students and apprentices who are 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.

A temporarily incapacitated YA Australian Apprentice will be eligible to get YA if:

• they are unable to continue their Australian Apprenticeship during a temporary period of incapacity, and
• their Commonwealth Registration Number remains current, and
• they are still actively employed by their Australian Apprentice employer
• If an Australian Apprentice ceases their apprenticeship during a temporary incapacity exemption period, they are no longer entitled to YA (apprentice).

When a student or apprentice has a temporary incapacity and their address details change 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 for more information.

Customers who cease to be a full-time student or Australian Apprentice because they have a temporary incapacity affecting their ability to work or study 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 are unable to be retrained for work for 2 years or more, they may be eligible for Disability Support Pension (DSP)