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 140-10   HELP debt indexation factor  

140-10(1)    


The HELP debt indexation factor for a person for 1 June in a financial year is the number (rounded to 3 decimal places):

(a)    

if the * Secretary has determined, under section 142-10 or 144-5 , that the indexation of the person ' s * accumulated HELP debt for the financial year is to be reduced - worked out using the formula in subsection (1A) ; and

(b)    

in any other case - that is the lower of the * CPI indexation factor for 1 June in the financial year (see subsection (1B) ) and the * WPI indexation factor for 1 June in the financial year (see subsection (1C) ).

140-10(1A)    


For the purposes of paragraph (1)(a) , the formula to work out the * HELP debt indexation factor for the person is:

where:

A
means the * HELP debt indexation factor for 1 June in the financial year within the meaning of paragraph (1)(b) .

B
means the number of days in the applicable calendar year determined for the person by the * Secretary under subsection 142-10(2) or 144-5(2) .


140-10(1B)    


The CPI indexation factor for 1 June in a financial year is worked out using the following method statement: Method statement

Step 1.

Add:

  • (a) the * CPI index number for the * quarter ending on 31 December in that financial year; and
  • (b) the CPI index numbers for the 3 quarters that immediately preceded that quarter.

  • Step 2.

    Add:

  • (a) the * CPI index number for the * quarter ending on 31 December in the immediately preceding financial year; and
  • (b) the CPI index numbers for the 3 quarters that immediately preceded that quarter.

  • Step 3.

    The CPI indexation factor for 1 June in the financial year is the amount under step 1 divided by the amount under step 2, rounded to 3 decimal places.


    140-10(1C)    


    The WPI indexation factor for 1 June in a financial year is worked out using the following method statement: Method statement

    Step 1.

    Add:

  • (a) the * WPI index number for the * quarter ending on 31 December in that financial year; and
  • (b) the WPI index numbers for the 3 quarters that immediately preceded that quarter.

  • Step 2.

    Add:

  • (a) the * WPI index number for the * quarter ending on 31 December in the immediately preceding financial year; and
  • (b) the WPI index numbers for the 3 quarters that immediately preceded that quarter.

  • Step 3.

    The WPI indexation factor for 1 June in the financial year is the amount under step 1 divided by the amount under step 2, rounded to 3 decimal places.


    140-10(2)    
    For the purposes of rounding a * HELP debt indexation factor, the third decimal place is rounded up if, apart from the rounding:

    (a)    the factor would have 4 or more decimal places; and

    (b)    the fourth decimal place would be a number greater than 4.


     

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