Student Assistance Act 1973

Part 2 - ABSTUDY student start-up loans  

Division 5 - Discharge of indebtedness  

Subdivision C - Compulsory discharge of indebtedness  

SECTION 10F   LIABILITY TO REPAY AMOUNTS  

10F(1)    

If:

(a)    a person ' s HELP repayment income for an income year exceeds the minimum HELP repayment income for the income year; and

(b)    on 1 June immediately preceding the making of an assessment in respect of the person ' s income of that income year, the person had an accumulated ABSTUDY SSL debt;

the person is liable to pay to the Commonwealth, in accordance with this Subdivision, the amount worked out using the following formula in reduction of the person ' s repayable ABSTUDY SSL debt:

Applicable repayable amount

−

Relevant income-contingent loans liability

where:

applicable percentage of HELP repayment income
(Repealed by No 30 of 2025)

applicable repayable amount
means the amount that is the least of the following:

(a) the amount worked out under subsection 154-20(2) of the Higher Education Support Act 2003 for the income year, as if:

(i) references in that subsection to the person ' s repayment income were references to the person ' s HELP repayment income; and

(ii) references in that subsection to the person ' s minimum repayment income were references to the person ' s minimum HELP repayment income;

(b) the amount equal to 10% of the person ' s HELP repayment income for the income year;

(c) the amount of the person ' s repayable ABSTUDY SSL debt for the income year.

relevant income-contingent loans liability
means the amount that is the sum of the following:

(a) the sum of any amounts the person is liable to pay under section 154-1 or 154-16 of the Higher Education Support Act 2003 in respect of the income year;

(aa) the sum of any amounts the person is liable to pay under section 23EA or 23EC of the VET Student Loans Act 2016 in respect of the income year;

(b) the sum of any amounts the person is liable to pay under section 1061ZZEZ of the Social Security Act 1991 , or section 12ZK of this Act, in respect of the income year;

(c) any amount the person is liable to pay under section 1061ZVHA of the Social Security Act 1991 in respect of the income year.

S 10F(1) amended by No 30 of 2025, s 3 and Sch 2 items 19 and 20, by substituting " the amount worked out using the following formula in reduction of the person ' s repayable ABSTUDY SSL debt " for " so much of the person ' s repayable ABSTUDY SSL debt for the income year as does not exceed the amount worked out by the formula " and the formula, effective 3 August 2025 and applicable in relation to the 2025-26 income year and later income years. The formula formerly read:

Applicable percentage of HELP repayment income

−

Relevant income-contingent loans liability

10F(2)    
A person is not liable under this section to pay an amount for an income year if the amount worked out under subsection (1) is zero or less.

10F(3)    
A person is not liable under this section to pay an amount for an income year if, under section 8 of the Medicare Levy Act 1986 :

(a) no Medicare levy is payable by the person on the person ' s taxable income for the income year; or

(b) the amount of the Medicare levy payable by the person on the person ' s taxable income for the income year is reduced.