Explanatory Memorandum(Circulated by authority of the Minister for Education, Training and Youth Affairs the Hon Dr David Kemp MP)
Schedule 2 - Post-graduate education loan scheme
Amends the definition of year to which this Chapter applies in section 3 to reflect the introduction of the post-graduate education loan scheme from the year 2002 by item 5.
Amends paragraph 60(1)(a) to reflect the introduction of the post-graduate education loan scheme by requiring that money paid to the Commonwealth under proposed Chapter 4A be transferred from the Consolidated Revenue Fund to the Higher Education (HECS) Reserve.
Amend paragraph 61(1)(a) to permit money in the Higher Education (HECS) Reserve to be applied for the purposes of proposed Chapter 4A.
Inserts a new Chapter 4A providing for a new post-graduate education loan scheme.
(NOTE: proposed section is abbreviated as ps)
This proposed section inserts a definitions clause which gives particular meanings to words and expressions used in proposed Chapter 4A (unless there is a contrary intention apparent). Expressions used in proposed Chapter 4A that are defined in Chapter 4 have the same meaning in proposed Chapter 4A (unless a contrary intention is apparent). Section 37 and subsection 39(2) apply in relation to the expressions semester and standard student load in Chapter 4 as if the references in section 37 and subsection 39(2) to institution were references to institution within the meaning of Chapter 4A.
Expressions used in the Income Tax Assessment Act 1936 have the same meaning in proposed Chapter 4A as they have in that Act (unless the contrary intention appears).
Student fees paid to an institution by a person other than the student are deemed to be payment to the institution by the student.
This proposed section specifies the citizenship or residency requirements to qualify as an eligible student for the purposes of proposed Chapter 4A. The proposed section has the effect of providing that a student who is a permanent resident of Australia or a New Zealand citizen who is the holder of a permanent visa, but not also an Australian citizen or a person who has been granted Australian citizenship, is not an eligible student for the purposes of the post-graduate education loan scheme if they are resident outside Australia for the duration of their course in a semester for a reason other than a requirement of the course.
This proposed section provides that financial assistance is granted to an institution on the condition that the institution complies with the requirements of proposed Chapter 4A in addition to the conditions specified in any other part of the Act.
This proposed section provides that a person enrolled in or proposing to enrol in an eligible post-graduate course of study for a semester at an institution may make an application for a post-graduate education loan scheme loan in the form and manner specified in proposed section 98D. An applicant makes only one application for each course of study.
This proposed section provides that sections 41A, 41B and 42-53 apply in relation to the tax file number of a student in the manner specified in proposed section 98E.
This proposed section has the effect of providing that an institution must give each student enrolled in an eligible post-graduate course at the institution who has made an application for a loan under proposed section 98D, a written notice under proposed subsection 98F(1). Proposed subsections 98F(1)-(6) set out the timing, content and purpose of such a written notice. Proposed subsection 98F(7) provides that section 55 applies to a subsection 98F(1) notice as if references in that section to student were references to student within the meaning of Chapter 4A, references in subsections 55(1) and (4) to section 54 were references to section 98F and the reference in subsection 55(3) to the liability of the student to pay the contribution were a reference to the liability of the student to pay fees charged by the institution.
This proposed section provides that if an eligible student has made an application under proposed section 98D before the census date for a semester for an eligible post graduate course of study for that semester, is enrolled in that course at the institution and has not paid the full amount of the fees charged by the institution for the course of study being undertaken, the Commonwealth must lend the student the amount of the fees outstanding immediately after the census date and apply the amount so lent in making a payment to the institution in discharge of the students liability for the fees outstanding. Proposed subsection 98G(3) provides that the Commonwealth may advance an institution an amount that is expected to become payable to the institution under proposed section 98G.
This proposed section provides that if an institution receives a notice from the Commissioner of Taxation under subsection 42(3) or (5) (as applied by proposed section 98E) to the effect that a person who has applied for a loan under proposed section 98D does not have, or no longer has, a tax file number and after 28 days the institution has not been notified of a number the institution is satisfied is the persons tax file number, the Commonwealth is not liable, and is taken never to have been liable, to lend an amount to the person under proposed paragraph 98G(2)(a) or to making a payment to the institution under proposed paragraph 98G(2)(b).
Proposed subsection 98H(3) provides that regulations may set out procedures for the institution to notify persons who may be affected by proposed subsection 98H(2).
This proposed section provides that an institution must give to the Minister on request such statistical and other information relating to students in relation to eligible post-graduate courses of study as the Minister reasonably requires for the purposes of proposed Part 4A.3, other than information as to the name and address of a student.
The proposed section extends the application of the secrecy provisions of section 78 to proposed Chapter 4A.
The proposed section imposes an obligation on the chief executive officer of an institution to provide an annual statement of compliance with proposed Chapter 4A requirements on or before 31 December in each year and setting out the particulars of any instances of non-compliance.
Proposed subsection 98M(1) inserts an explanatory table and provides that proposed sections 56C, 56D and 56E apply for the purposes of Chapter 4A as if a reference in those sections to a person, thing or provision mentioned in the second column of an item in the table were a reference to a person, thing or provision mentioned in the third column of the table for that item. Proposed subsection 98M(2) clarifies that proposed section 98M is not intended to otherwise affect the application of proposed sections 56C, 56D and 56E.
Amends the heading to Chapter 5A to reflect the introduction of the post-graduate education loan scheme by item 5.
Inserts a definition of PELS semester debt in subsection 106H(1).
Amends paragraph (b) of the definition of semester debt in subsection 106H(1) to include a PELS semester debt.
Amends subsection 106H(2) to reflect the introduction of the post-graduate education loan scheme by item 5.
Amends section 106I by inserting a new paragraph (aa) so that the objects of Part 5A.1 reflect the introduction of the post-graduate education loan scheme by item 5.
Inserts a proposed new section 106JA specifying the nature of a PELS semester debt .
Amend section 106N to include debts incurred under the post-graduate education loan scheme when calculating an accumulated HEC debt.
Amends paragraph 106O(1)(b) to provide that debts incurred under the post-graduate education loan scheme are discharged by a persons subsequent accumulated HEC debt.
Inserts a new subsection 106R(4) to require an institution to give such data in its possession relating to students in relation to eligible post-graduate courses of study at the institution as the Commissioner of Taxation reasonably requires for the purposes of Chapter 5A.
Amends subparagraph 106Y(2)(e)(i) to include debts incurred under the post-graduate education loan scheme when applying payments made by a person who has not given any directions.
Amends subsections 118(1) and (2) to exclude proposed Chapter 4A (which provides for the establishment of the post-graduate education loan scheme) from appropriations under the Act, but without excluding by implication the application of any existing appropriation in relation to Chapter 4A.
A transitional provision which provides that guidelines made under paragraph 42A(1)(b) operate on and after commencement of this Schedule in relation to proposed paragraph 98H(1)(b) as if they had been made under that paragraph and paragraph 42A(1)(b). This item is not intended to prevent the amendment or repeal of the guidelines.