188.8.131.52 Austudy Participation Failures
Under social security law, a participation failure occurs when an Austudy recipient fails to either:
- comply with a requirement notified to them by the DHS, for example, for the person to attend a DHS office or to provide specific information, or
- satisfy the activity test, i.e. undertake qualifying study (1.1.Q.40), or
- comply with a requirement to undertake another activity, as required by DHS, in place of the activity to which the participation relates.
However, in practice, if a student fails to satisfy the activity test, i.e. ceases undertaking qualifying study, they lose their qualification for Austudy. The payment may be cancelled, and/or the student may incur an overpayment, so the application of a participation failure would have no effect.
Act reference: SSAct section 576 Austudy participation failures, section 576A Allowance not payable because of austudy participation failure