STUDENT ASSISTANCE ACT 1973

Part 4A - Financial Supplement for Tertiary Students  

Division 5 - Repayments of financial supplement during contract period  

SECTION 12X   CALCULATION OF AMOUNT OUTSTANDING UNDER FINANCIAL SUPPLEMENT CONTRACT  

12X(1)  
Subject to this section, the amount outstanding under the contract at any time after the contract was entered into and before 1 June in the year next following the year in respect of which the contract was entered into is the amount worked out in relation to the contract, as at that time, using the formula:


principal sum minus (actual repayments plus discounts).

12X(2)  
In subsection (1):

discounts
means the sum of the discounts under subsection 12ZA(7) to which the student became entitled in respect of the financial supplement before the time mentioned in subsection (1).

12X(3)  
Subject to the following provisions of this section, at any time during:


(a) the period of 12 months beginning on 1 June in the year next following the year in respect of which a financial supplement contract was entered into; or


(b) any of the following 3 periods of 12 months;

the amount outstanding
under the contract is taken to be the amount worked out in relation to the period concerned using the formula:


(previous amount outstanding × indexation factor) minus (actual repayments + discounts)

12X(4)  
For the purposes of the application of the formula in subsection (3) in relation to a time ( the relevant time ) within a period of 12 months beginning on 1 June ( the relevant 12 months );

previous amount outstanding
means the amount that was outstanding under the contract immediately before the beginning of the relevant 12 months.

actual repayments
means the sum of the amounts actually repaid in respect of the financial supplement during the relevant 12 months but before the relevant time.

discounts
means the sum of the discounts under subsection 12ZA(7) to which the student became entitled in respect of the financial supplement during the relevant 12 months but before the relevant time.

indexation factor
means the number worked out to 3 decimal places in relation to the relevant 12 months using the formula:


the sum of the index number for the March quarter in the later reference period and the index numbers for the 3 immediately preceding quarters
divided by the sum of the index number for the March quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters.

later reference period
means the period of 12 months immediately before the relevant 12 months.

earlier reference period
means the period of 12 months immediately before the later reference period.

12X(5)  
If an indexation factor worked out under subsection (4) would end with a number greater than 4 if it were worked out to 4 decimal places, the indexation factor is increased by 0.001.

12X(5A)  
The Minister must cause to be published in the Gazette before each 1 June the indexation factor worked out under subsection (4) (as affected by subsection (5)) in relation to the period of 12 months beginning on that day.

12X(5B)  
An indexation factor published under subsection 12ZZB(3) before the commencement of this subsection has effect as if it were an indexation factor published under subsection (5A).

12X(6)  
If, apart from this subsection, an amount worked out under subsection (3) would be an amount of dollars and cents, the amount of the cents is to be disregarded.

12X(7)  
This section has effect subject to paragraph 12U(2)(c) .




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