Chapter 4
-
Repayment of loans
PART 4-1
-
INDEBTEDNESS
Division 140
-
How are accumulated HELP debts worked out?
Subdivision 140-C
-
Accumulated HELP debts
SECTION 140-25
Working out an accumulated HELP debt
140-25(1)
A person
'
s
accumulated HELP debt
, for a financial year, is worked out as follows:
| Former accumulated HELP debt |
+ |
HELP debts incurred |
− |
HELP debt repayments |
− |
Location-preferred HELP debtor reduction |
where:
former accumulated HELP debt
is the
'
s *former accumulated HELP debt in relation to that *accumulated HELP debt.
HELP debt repayments
is the sum of all of the *voluntary repayments (if any) paid, on or after 1 July in the financial year and before 1 June in that year, in reduction of the *HELP debts incurred in that year.
HELP debts incurred
means the amount worked out using the method statement in subsection
(1A)
.
location-preferred HELP debtor reduction
means the amount by which the person
'
s *accumulated HELP debt is to be reduced as a result of a determination made by the *Secretary in relation to the person under section
142-15
or
144-10
:
(a)
on or after 1 June in the preceding financial year; and
(b)
before 1 June in the financial year.
History
Definition of
"
location-preferred HELP debtor reduction
"
inserted by No 3 of 2023, s 3 and Sch 2 item 8, effective 21 February 2023. For application, saving and transitional provisions, see note under Div
144
heading.
very remote HELP debtor reduction
(Repealed by No 3 of 2023)
History
Definition of
"
very remote HELP debtor reduction
"
repealed by No 3 of 2023, s 3 and Sch 2 item 9, effective 21 February 2023. For application, saving and transitional provisions, see note under Div
144
heading. The definition formerly read:
very remote HELP debtor reduction
means the amount by which the person
'
s *accumulated HELP debt is to be reduced as a result of a determination made by the *Secretary in relation to the person under section 142-15:
(a)
on or after 1 June in the preceding financial year; and
(b)
before 1 June in the financial year.
Example:
Paula is studying part-time for a Degree of Bachelor of Science. On 1 June 2009, her former accumulated HELP debt was worked out using Subdivision
140-B
to be $20,000. She incurred a HELP debt of $1,500 on 31 August 2008. No repayments have been made in the 12 months from 1 June 2008.
Paula
'
s accumulated HELP debt on 1 June 2009 is worked out by taking her former accumulated HELP debt of $20,000 and adding the $1,500 HELP debt incurred on 31 August 2008. That is:
| $20,000
+
$1,500
=
$21,500 |
History
S 140-25(1) amended by No 3 of 2023, s 3 and Sch 2 item 7, by substituting the formula, effective 21 February 2023. For application, saving and transitional provisions, see note under Div
144
heading. The formula formerly read:
| Former accumulated HELP debt |
+ |
HELP debts incurred |
− |
HELP debt repayments |
− |
Very remote HELP debtor reduction |
S 140-25(1) amended by No 103 of 2019, s 3 and Sch 2 items 9 and 10, by substituting the formula and inserting the definition of
"
very remote HELP debtor reduction
"
, effective 1 January 2020. The formula formerly read:
Former accumulated
HELP debt
|
+ |
HELP debts
incurred |
− |
HELP debt
repayments |
S 140-25(1) amended by No 121 of 2006, s 3 and Sch 4 item 3, by substituting the definition of
"
HELP debts incurred
"
, applicable to the calculation of HELP debts incurred on or after 1 January 2005. The definition formerly read:
HELP debts incurred
is the sum of the amounts of all of the *HELP debts (if any) that the person incurred during the first 6 months of the financial year.
140-25(1A)
For the purposes of the definition of
HELP debts incurred
in subsection
(1)
, use the following method statement:
Method statement
Step 1.
Take the HELP debts (if any) that the person incurred during the first 6 months of the financial year. Group them according to whether the debts are in relation to:
(a) units undertaken with a higher education provider that formed part of one particular *course of study with that provider; or
(b) units undertaken with a higher education provider that formed part of one particular course of study with another higher education provider; or
(c) units that formed part of one particular *bridging course for overseas-trained professionals; or
(d) units access to which was provided by *Open Universities Australia; or
(e) *OS-HELP assistance, the entitlement to which relates to the person
'
s enrolment in a *course of study with one particular higher education provider (see paragraph
118-1(1)(c)
); or
(ea) *SA-HELP assistance for *student services and amenities fees imposed on the person by one particular higher education provider; or
(eb) *STARTUP-HELP assistance for an *accelerator program course provided by one particular higher education provider; or
(f) units undertaken with a *VET provider that formed part of one particular *VET course of study with that provider; or
(g) units undertaken with a VET provider that formed part of one particular VET course of study with another VET provider; or
(h) a *VET student loan in relation to one particular course of study.
Note:
There will be more than one group of debts under paragraph (a) if the person incurred debts in relation to more than one course of study with a provider. Similarly, there could be more than one group of debts under paragraph (b), (c), (e), (ea), (eb), (f), (g) or (h).
Step 2.
Work out the total for each group of debts. If the total for a particular group is an amount consisting of a number of whole dollars and a number of cents, the total for that group is taken to be the number of whole dollars. If the total for a group is an amount of less than one dollar, the total for the group is taken to be zero.
Step 3.
If there is more than one group of debts for the person, add together the totals for all of the groups.
History
S 140-25(1A) amended by No 36 of 2023, s 3 and Sch 1 items 31 and 32, by inserting para (eb) in step 1 of the method statement and
"
(eb),
"
in the note in step 1 of the method statement , effective 29 June 2023.
S 140-25(1A) amended by No 100 of 2016, s 3 and Sch 1 items 11
-
13, by substituting
"
provider; or
"
for
"
provider.
"
in para (g), inserting para (h) in step 1 of the method statement and substituting
"
(f), (g) or (h)
"
for
"
(f) or (g)
"
in the note in step 1 of the method statement, effective 1 January 2017. For transitional provision, see note under s
137-19
.
S 140-25(1A) amended by No 112 of 2013, s 3 and Sch 1 item 22, by substituting
"
a *course of study
"
for
"
an *undergraduate course of study
"
in para (e) of step 1, method statement, effective 30 June 2013. For application provisions see note under s
121-1
.
S 140-25(1A) amended by No 130 of 2011, s 3 and Sch 1 items 16 and 17, by inserting para (ea) in step 1 of the method statement and inserting
"
(ea),
"
after
"
(e),
"
in the note in step 1 of the method statement, effective 1 January 2012.
S 140-25(1A) amended by No 170 of 2007, s 3 and Sch 1 item 14, by substituting step 1 of the method statement, effective 1 January 2008. Step 1 of the method statement formerly read:
Step 1.
Take the HELP debts (if any) that the person incurred during the first 6 months of the financial year. Group them according to whether the debts are in relation to:
(a) units undertaken with a *higher education provider that formed part of one particular *course of study with that provider; or
(b) units undertaken with a higher education provider that formed part of one particular course of study with another provider; or
(c) units that formed part of one particular *bridging course for overseas-trained professionals; or
(d) units access to which was provided by *Open Universities Australia; or
(e) *OS-HELP assistance, the entitlement to which relates to the person
'
s enrolment in an *undergraduate course of study with one particular higher education provider (see paragraph
118-1(1)(c)
).
Note:
There will be more than one group of debts under paragraph (a) if the person incurred debts in relation to more than one course of study with a provider. Similarly, there could be more than one group of debts under paragraph (b), (c) or (e).
S 140-25(1A) inserted by No 121 of 2006, s 3 and Sch 4 item 4, applicable to the calculation of HELP debts incurred on or after 1 January 2005.
140-25(2)
The person incurs the *accumulated HELP debt on 1 June in the financial year.
140-25(3)
The first financial year for which a person can have an *accumulated HELP debt is the financial year starting on 1 July 2005.
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