Austudy participation failures


Under social security law, an Austudy participation failure occurs when the recipient fails to:

  • comply with a requirement notified to them by Services Australia, for example, for the person to attend a Services Australia 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 Services Australia, 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.

A student does not have an Austudy participation failure if the student provides evidence their participation failure was due to a reasonable excuse.

Act reference: SSAct section 576 Austudy participation failures, section 576A Allowance not payable because of austudy participation failure, section 576(2) Reasonable excuse

Policy reference: SS Guide Austudy & full-time tertiary students

Last reviewed: