Suspension of ABSTUDY payments 102-10030020

Payments may be suspended if a customer is temporarily not qualified for payment or the payment is not payable as a result of:

• changes in their circumstances
• failure to comply with the requirements for payment, or
• information is required to ensure that payments are directed correctly (such as a valid address or bank account details)

Before a payment is suspended, an appropriate request for information must be issued and the appropriate time for response has passed.

A decision to suspend a payment potentially has a great impact on a customer and must be made in accordance with Policy and the relevant process. Suspensions placed on customers' records that do not follow the correct process, may cause financial hardship and distress to customers.

Suspension does not necessarily indicate a loss of qualification, and full arrears are issued if payment is subsequently restored.

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

Before a payment is suspended, information must be requested from the customer under ABSTUDY Policy 1.5, 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.

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.

Notification of suspension

Customers must be advised of the decision to suspend their payment. Send a manual letter if an automatic letter is not issued by the system. See the Process page for more information.

Unfavourable decisions

When making an unfavourable decision, speak to the customer:

• explain the decision
• give them a chance to provide more information, and
• advise their review and appeal rights

Customer contacts after suspension

Explain the reason for suspension. Advise the customer what documents are required or what is required so that the payment can be restored.