Under social security law, a participation failure occurs when an Austudy recipient fails to satisfy the activity test, i.e. undertake qualifying study (1.1.Q.40), without reasonable excuse for the failure.
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
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Last reviewed: 4 May 2009