Higher Education Support Act 2003

Chapter 4 - Repayment of loans  

PART 4-1 - INDEBTEDNESS  

Division 140 - How are accumulated HELP debts worked out?  

Subdivision 140-B - Former accumulated HELP debts  

SECTION 140-5   Working out a former accumulated HELP debt  

140-5(1)  


A person ' s former accumulated HELP debt , in relation to the person ' s *accumulated HELP debt for a financial year, is worked out by multiplying:


(a) the amount worked out using the following method statement; by


(b) the *HELP debt indexation factor for 1 June in that financial year. Method statement


Step 1.

Take the person ' s *accumulated HELP debt for the immediately preceding financial year. (This amount is taken to be zero if the person has no accumulated HELP debt for that financial year.)


Step 2.

Take the HELP debts (if any) that the person incurred during the last 6 months of the immediately preceding 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
  • (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), (f), (g) or (h).


    Step 2A.

    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 2B.

    If there is more than one group of debts for the person, add together the totals for all of the groups.


    Step 3.

    Subtract the sum of the amounts by which the person ' s debts referred to above are reduced because of any *voluntary repayments that have been made during the period:

  • (a) starting on 1 June in the immediately preceding financial year; and
  • (b) ending immediately before the next 1 June.

  • Step 4.

    Subtract the sum of all of the person ' s *compulsory repayment amounts that:

  • (a) were assessed during that period (excluding any assessed as a result of a *return given before that period); or
  • (b) were assessed after the end of that period as a result of a return given before the end of that period.

  • Step 4A.

    (Repealed by No 55 of 2016)


    Step 5.

    Subtract the sum of the amounts by which any *compulsory repayment amount of the person is increased (whether as a result of an increase in the person ' s *taxable income of an *income year or otherwise) by an amendment of an assessment made during that period.


    Step 6.

    Add the sum of the amounts by which any *compulsory repayment amount of the person is reduced (whether as a result of a reduction in the person ' s *taxable income of an *income year or otherwise) by an amendment of an assessment made during that period.

    Example:

    Lorraine is studying part time for a Degree of Bachelor of Communications. On 1 June 2013, Lorraine had an accumulated HELP debt of $15,000. She incurred a HELP debt of $1,500 on 31 March 2013. She made a voluntary repayment of $525 on 1 May 2014. Lorraine lodged her 2012-13 income tax return and a compulsory repayment amount of $3,000 was assessed and notified on her income tax notice of assessment on 3 September 2013.

    To work out Lorraine ' s former accumulated HELP debt before indexation on 1 June 2014:


    Step 1: Take the previous accumulated HELP debt of $15,000 on 1 June 2013.
    Step 2: Add the HELP debt of $1,500 incurred on 31 March 2013.
    Step 3: Subtract the $525 voluntary repayment made on 1 May 2014.
    Step 4: Subtract the $3,000 compulsory repayment assessed on 3 September 2013.
    Step 4A: (Repealed by No 55 of 2016)
    Step 5 and 6: Do not apply because since 1 June 2013 Lorraine had no amendments to any assessment.

    Lorraine ' s former accumulated HELP debt before indexation on 1 June 2014 is:

    ($15,000   +   $1,500)   -   ($525   +   $3000)   =   $12,975

    If, for example, the indexation factor for 1 June 2014 were 1.030, then the former accumulated HELP debt would be:

    $12,975   ×   1.030   =   $13,364.25

    140-5(2)  
    For the purposes of this section, an assessment, or an amendment of an assessment, is taken to have been made on the day specified in the notice of assessment, or notice of amended assessment, as the date of issue of that notice.

    140-5(3)  
    (Repealed by No 55 of 2016)




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