The phrase 'ordinarily in employment' covers situations where the young person is in salaried employment – it does not include self-employment, work as an independent contractor or hobby activities.

In its context, 'ordinarily' has the meaning 'usually' or 'on a regular basis'. Accordingly, it is necessary to examine the factual situation in each case to determine whether the young person is 'ordinarily in employment'. Common situations are discussed below.

Recent entry into the workforce

If the young person has only recently started work, it would be inappropriate to determine that they are 'ordinarily' in employment. A work history of more than three months is an appropriate period for this assessment.

Recent cessation of employment

On the other hand, if the young person has a long work history and, just before the relevant event they temporarily ceased working, it may be appropriate to determine that they are still 'ordinarily' in employment.

The reasons for the cessation of employment may be relevant, for example:

  • a decision to cease work and return to full-time study
  • incapacity for work which is likely to be of considerable duration

would suggest that the young person had ceased to be ordinarily in employment when a student aged between 16 and 24 (inclusive) who undertakes:

  • full-time employment during school, college or university vacations, or
  • part-time employment throughout the year

will continue to be regarded as a full-time student and not 'ordinarily in employment' provided their annual income is less than 200% of the 'income bank' amount for Austudy Payment under S1067L-E2 of the Social Security Act.

In 1999/00, 2000/01, 2001/02 and 2002/03, this amount is $12,000 (200% x $6,000).