VET Student Loans Act 2016

PART 3A - VETSL DEBTS  

Division 5 - Compulsory discharge of debt  

Subdivision A - Compulsory repayments  

SECTION 23EA   COMPULSORY REPAYMENTS  

23EA(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 VETSL 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 VETSL debt:

Applicable repayable amount − Relevant income-contingent loans liability

where:

applicable percentage of 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(Repealed by No 30 of 2025)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 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 VETSL debt for the income year.

relevant income-contingent loans liability
means the amount that is 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.

23EA(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.

23EA(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.