CHAPTER 3
-
Loan repayments
PART 3.2
-
DISCHARGING DEBTS
Division 4
-
Compulsory discharge
Subdivision A
-
Liability to repay amounts
SECTION 46
LIABILITY TO REPAY AMOUNTS
46(1)
If:
(a)
a person
'
s repayment income for an income year exceeds the minimum 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 AASL debt;
the person is liable to pay to the Commonwealth, in accordance with this Division, the amount worked out using the following formula in reduction of the person
'
s repayable AASL debt:
| Applicable repayable amount |
− |
Relevant income-contingent loans liability |
where:
applicable percentage of repayment income
(Repealed by No 30 of 2025)
History
Definition of
"
applicable percentage of repayment income
"
repealed by No 30 of 2025, s 3 and Sch 2 item 3, effective 3 August 2025 and applicable in relation to the 2025-26 income year and later income years. The definition formerly read:
applicable percentage of repayment income
means the amount that is the percentage of the person
'
s repayment income applicable under the table in section 154-20 of the
Higher Education Support Act 2003
.
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 repayment income within the meaning of this Act; and
(ii)
references in that subsection to the person
'
s minimum repayment income were references to the person
'
s minimum repayment income within the meaning of this Act;
(b)
the amount equal to 10% of the person
'
s repayment income for the income year;
(c)
the amount of the person
'
s repayable AASL debt for the income year.
History
Definition of
"
applicable repayable amount
"
inserted by No 30 of 2025, s 3 and Sch 2 item 4, effective 3 August 2025 and applicable in relation to the 2025-26 income year and later income years.
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 the
Student Assistance Act 1973
, 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;
(d)
any amount the person is liable to pay under section
10F
of the
Student Assistance Act 1973
in respect of the income year.
History
Definition of
"
relevant income-contingent loans liability
"
amended by No 116 of 2018, s 3 and Sch 1 item 71, by inserting para (aa), effective 1 July 2019.
Definition of
"
relevant income-contingent loans liability
"
substituted by No 76 of 2018, s 3 and Sch 2 item 3, effective 1 July 2019 and applicable in relation to the 2019-20 income year and later income years. The definition formerly read:
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
for the income year in respect of an accumulated HELP debt;
(b)
any amount the person is liable to pay under section 1061ZVHA of the
Social Security Act 1991
for the income year in respect of an accumulated SSL debt;
(c)
any amount the person is liable to pay under section 10F of the
Student Assistance Act 1973
in respect of an accumulated ABSTUDY SSL debt.
Definition of
"
relevant income-contingent loans liability
"
amended by No 154 of 2015, s 3 and Sch 2 item 5, by substituting
"
the sum of any amounts the person is liable to pay under section 154 1 or 154 16
"
for
"
any amount the person is liable to pay under section 154 1
"
in para (a), effective 1 January 2016 and applicable in relation to the 2016-17 income year and later income years.
History
S 46(1) amended by No 30 of 2025, s 3 and Sch 2 items 1 and 2, by substituting
"
the amount worked out using the following formula in reduction of the person
'
s repayable AASL debt
"
for
"
so much of the person
'
s repayable AASL 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 repayment income |
− |
Relevant income-contingent loans liability |
S 46(1) amended by No 61 of 2023, s 3 and Sch 1 item 101, by substituting
"
AASL
"
for
"
TSL
"
(wherever occurring), effective 1 January 2024. For transitional provisions, see note under s
105(1)
.
S 46(1) amended by No 169 of 2015, s 3 and Sch 1 item 110, by substituting all the words after
"
the formula:
"
, effective 1 January 2016. The words after
"
the formula:
"
formerly read:
| Applicable percentage of repayment income |
− |
HELP liability |
where:
applicable percentage of repayment income
means the amount that is the percentage of the person
'
s repayment income applicable under the table in section 15-20 of the
Higher Education Support Act 2003
.
HELP liability
means 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
for the income year in respect of an accumulated HELP debt.
History
Definition of
"
HELP liability
"
amended by No 154 of 2015, s 3 and Sch 2 item 4, by substituting
"
the sum of any amounts the person is liable to pay under section 154-1 or 154-16
"
for
"
any amount the person is liable to pay under section 154-1
"
, effective 1 January 2016 and applicable in relation to the 2016-17 income year and later income years.
46(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.
46(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.
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