Determining whether a participation failure is applicable for Youth Allowance or Austudy students 010-07020010

Customers receiving Austudy or Youth Allowance (YA) may be subject to a participation failure if they do not have a reasonable excuse for not attending an appointment with Services Australia about their undertaking full time study requirements.

A participation failure may also apply to students receiving Youth Allowance who have signed a Youth Allowance Activity Agreement and have not met the requirements set out in the activity agreement. See Activity Agreements for Youth Allowance (YA) students.

The participation failure procedures do not apply to:

• ABSTUDY customers assessed under the specific breach framework
• Australian Apprentices receiving YA or Austudy. These customers are exempt from full-time study requirements at all times
• Trainees in a course that does not qualify them for payment as a full-time student or an Australian Apprentice. These customers are regarded as job seekers and are required to comply with activities negotiated in a Job/Participation Plan

Students may incur a participation failure if they:

• fail to comply with the terms of a previously negotiated Youth Allowance Activity Agreement in relation to secondary school attendance
• fail to attend a participation related service profiling appointment
• fail to attend an appointment booked to enable a Youth Allowance Activity Agreement to be negotiated
• do not have a reasonable excuse for not attending an appointment about their full-time study requirements

The student will not incur a participation failure if they:

• are not enrolled in and/or undertaking full-time (or qualifying) study
• are not enrolling in and/or undertaking the course of study following an intention to do so
• are not commencing the course of study by the Friday of the second week of classes
• are a continuing student, not enrolling in the course when the enrolments are next accepted
• are a YA student and have not signed a Youth Allowance Activity Agreement
• fail to attend a non-participation related appointment. In this scenario suspension of the payment is the appropriate option
• leave employment voluntarily or through misconduct and claim a payment as a student

Students will fail to satisfy the full-time study requirements for YA or Austudy if they are no longer in full-time study. This may result in a loss of qualification for their payment.

An exception may apply to YA and Austudy students if their study load reduces due to a temporary incapacity. See:

Austudy student or Australian Apprentice becomes incapacitated or impacted by unforeseen or extreme circumstances

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

A penalty may apply if a student:

• refuses to declare earnings from employment
• fails to correctly declare earnings from employment
• recklessly or knowingly gives false or misleading information about earnings

A debt will be raised for any overpayment and a 10% recovery fee may be applied. A participation failure or loss of qualification for payment is not applicable in these circumstances

When making an unfavourable decision the Decision Maker(DM), including Service Officers within Smart Centre Call, must:

• provide the customer with an explanation of the decision
• give the customer an opportunity to provide further information or evidence relevant to the decision
• advise the customer of their review and appeal rights
• if the customer is not available at the time of the decision, make 2 genuine contact attempts before finalising the decision

For more details, see Initial contact about a decision and the review of decision process.