House of Representatives

Revised Explanatory Memorandum

(Circulated by the authority of the Minister for Social Services, the Hon Kevin Andrews MP)

Schedule 6 - Student start-up loans

Summary

This Schedule establishes, from 1 January 2014, the student start-up loan. These loans will be income-contingent, and there will be a limit of two loans a year of $1,025 each (indexed from 2017). The loans will be repayable under similar arrangements to Higher Education Loan Program debts. Students will only be required to begin repaying their start-up loan after their Higher Education Loan Program debt has been repaid.

The Schedule also provides grandfathering arrangements so that recipients who received a student start-up scholarship or Commonwealth Education Costs Scholarship prior to 1 January 2014, and have remained continuously on student payments, will continue to be eligible to receive the student start-up scholarship, as a grant, until coming off student payments.

The student start-up loan and student start-up scholarship aim to assist students with the costs of study, including the purchase of text books, computers and internet access.

Background

This Schedule amends both the Social Security Act and the Student Assistance Act to provide for the student start-up loan and ABSTUDY student start-up loan from 1 January 2014. Each version of the loan will be an income-contingent loan, and will be repayable under similar arrangements to Higher Education Loan Program (HELP) debts, as provided for under the Higher Education Support Act 2003.

The qualification provisions for the student start-up loan and ABSTUDY student start-up loan are similar to the existing qualification provisions for the student start-up scholarship contained in Division 1 of Part 2.11B of the Social Security Act.

To the extent that it is possible, the provisions in Schedule 6 that amend the Social Security Act mirror the amendments made to the Student Assistance Act for the purpose of ensuring consistency between the administration of the student start-up loan and ABSTUDY student start-up loan. To ensure consistency with HELP, to the extent possible, the provisions in Schedule 6 relating to the recovery of the student start-up loans and ABSTUDY student start-up loans reflect the relevant provisions in the Higher Education Support Act 2003.

Schedule 6 also contains consequential amendments to the Social Security Administration Act, the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997, the Taxation Administration Act, and the Taxation (Interest on Overpayment and Early Payments) Act 1983, for the purpose of ensuring consistent administration between the student start-up loans and HELP.

Explanation of the changes

Amendments to the Income Tax Assessment Act 1936

Item 1 amends subsection 82A(2) to ensure that a payment made in respect of, or in the reduction or discharge of any indebtedness under Chapter 2AA of the Social Security Act or under Part 2 of the Student Assistance Act are not included within the definition of expenses of self-education.

Items 2 and 3 amend section 202, which establishes the system of tax file numbers, and outlines the object of the system, to allow for the administration of Chapter 2AA of the Social Security Act and Part 2 of the Student Assistance Act with regard to the provision of student start-up loans and ABSTUDY student start-up loans and the recovery of these debts.

Item 4 amends subsection 202F(1)(fb) to provide that a decision of the Commissioner to give a notice under subsections 1061ZVHD(1) and 1061ZVHE(1) of the Social Security Act (as inserted by item 25 of this Schedule) and sections 10D(1) and 10E(1) of the Student Assistance Act (as inserted by item 67 of this Schedule) can be reviewed by the Administrative Appeals Tribunal.

Amendments to the Income Tax Assessment Act 1997

Items 5 and 6 amend section 12-5 to include student start-up loans in the list of provisions about deductions.

Item 7 amends section 26-20 to ensure that a payment made in respect of, or in the reduction or discharge of any indebtedness under Chapter 2AA of the Social Security Act or Part 2 of the Student Assistance Act is not a payment that can be deducted under the Act. This amendment will ensure that there is a consistent treatment between HELP and the student start-up loan under section 26-20.

Items 8 and 9 amend paragraphs 52-132(a) and 52-140(3)(a) respectively to ensure that payments received to assist in the discharge of a compulsory SSL or ABSTUDY SSL repayment amount are deemed to be exempt income under the Act.

Items 10 and 11 insert definitions of accumulated ABSTUDY SSL debt and accumulated SSL debt into the Act.

Amendments to the Social Security Act

Item 12 inserts section 19AAA, which provides a series of definitions for the purpose of Chapter 2AA. The definitions in section 19AAA relate solely to the provisions in the Act that deal with the student start-up loan.

Items 13 to 19 insert definitions under section 23, including accumulated SSL debt, approved scholarship course, enrolment test day, scholarship-entitled person and student start-up loan.

Item 17 will ensure that a student start-up loan will be a social security payment for the purposes of the Act.

Items 20 and 21 insert paragraph 592F(1)(a) and 592F(2)(a) to amend the qualification provisions of the student start-up scholarship to allow a person who currently receives a student start-up scholarship to continue to receive this payment.

In order to continue to qualify for and receive a student start-up scholarship on the basis of youth allowance, a person must have received either a student start-up scholarship payment, an ABSTUDY student start-up scholarship payment or a Commonwealth Education Costs Scholarship with respect to a period before 1 January 2014.

A person must also be receiving youth allowance or Living Allowance under the ABSTUDY Scheme for a continuous period since the time in which they received at least one of the above mentioned scholarships.

The qualification to receive a student start-up scholarship on the basis of austudy is the same as the qualification for a student start-up scholarship on the basis of youth allowance, except that a person can still be qualified if the person continuously received a youth allowance, a Living Allowance under the ABSTUDY Scheme or austudy.

A person will be treated as continuously receiving either youth allowance, a Living Allowance or austudy even though the person did not actually receive such payments if they comply with section 38B of the Act. In addition, a person will be continuously regarded as receiving such payments even if these payments are temporarily reduced to nil.

Items 22 and 23 make minor amendments to ensure that the definition of an approved scholarship course will apply to all references in the Act, rather than just within Part 2.11B.

Item 24 provides that a legislative instrument that determines the approved scholarship courses (made prior to the commencement of the Bill) will continue to be in force after the amendment in item23, and will have the effect for the whole of the Act and not just for the purposes of Part 2.11B. This will ensure that an approved course for the purposes of the student start-up scholarship is an approved course for the purposes of the student start-up loan.

Item 25 inserts new Chapter 2AA - Student start-up loans.

Section 1061ZVAA - Simplified outline of this Part

Section 1061ZVAA outlines broadly the qualification criteria and operation of the student start-up loan. Full-time students who are receiving youth allowance or austudy may qualify for a student start-up loan if they meet the qualification criteria in subsections 1061ZVAB(1) and 1061ZVAB (2). A student can qualify for up to two loans per calendar year.

Section 1061ZVAB - Qualification for student start-up loan

Section 1061ZVAB provides the qualification requirement for a student start-up loan. These qualification requirements are similar to the qualification requirements for the student start-up scholarship contained in section 592F of the Social Security Act.

To qualify for a student start-up loan, each of the following must occur at the same time:

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the person is qualified for youth allowance or austudy payment;

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youth allowance or austudy payment is payable to the person;

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the person is receiving youth allowance or austudy payment;

•

the person is receiving part of the basic rate component of youth allowance or austudy payment, or youth disability supplement (that is, the person is not receiving only that component of youth allowance or austudy payment that consists of pharmaceutical allowance and rent assistance);

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the person is receiving youth allowance or austudy payment because the person is enrolled in an approved scholarship course;

•

the Secretary is satisfied that the person is not likely to receive the amount or value of a Commonwealth Education Costs Scholarship in the period of six months starting immediately after the time: and

•

at the time of qualification, the person has notified their tax file number to the Secretary and the Secretary has verified the person's tax file number or obtained the correct tax file number.

Under paragraphs 1061ZVAB(1)(a) to (b) and 1061ZVAB(2)(a) to (b), while a person must be receiving youth allowance or austudy payment to qualify for a scholarship payment, the person must also be qualified for youth allowance or austudy payment, and youth allowance or austudy payment must be payable to the person.

This provision is designed to ensure that if a person is later found not to be qualified for the youth allowance or austudy payment that the person was receiving (or the allowance was not payable), a debt may also be raised for any student start-up loan payment that paid for that time.

A person must also be in receipt of youth allowance or austudy payments even if the payments did not include an amount for rent assistance or pharmaceutical allowance. Under section 1210, a reduction for income is applied first against the maximum basic rate component of a rate plus youth disability supplement, then against rent assistance and pharmaceutical allowance. If a person's rate of payment has been reduced so that only rent assistance or pharmaceutical allowance is paid, the person will not be qualified for a student start-up loan payment.

Under paragraphs 1061ZVAB(1)(c) and 1061ZVAB(2)(c), approved scholarship courses will be approved by the Minister under section 592N.

Paragraphs 1061ZVAB(1)(d) and 1061ZVAB(2)(d) mean that a Commonwealth Education Costs Scholarship (CECS) takes precedence over a student start-up loan. If a person is likely to receive a CECS payment within six months of receiving a student start-up loan, the person will not be entitled to a student start-up loan.

Paragraphs 1061ZVAB(1)(e) and 1061ZVAB(2)(e) require a person to notify his or her tax file number to the Secretary. The Secretary will be obliged to verify the person's tax file number with the Commissioner or obtain the correct tax file number. As the student start-up loan is an income-contingent loan to be collected through the taxation system, similar to the operation of the Higher Education Loan Program (HELP) under the Higher Education Support Act 2003 (Higher Education Support Act), the correct tax file number is necessary for the Australian Taxation Office to be able to administer the recovery of the loans effectively.

Subsection 1061ZVAB (3) operates such that a person does not qualify for a loan until the Secretary so determines, unless the determination occurs after the course or the qualification period has finished, in which case the person qualifies from the earlier of those dates. This is to ensure that loans are only paid to people who are continuing their qualifying study or have studied for the duration of their course or qualification period.

Section 1061ZVAC - Circumstances in which person is not qualified for student start-up loan

Section 1061ZVAC(1) provides the circumstances in which a person is not qualified for a student start-up loan.

A person is not qualified for a student start-up loan for a qualification period at a time in that period if:

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it has already been determined that the person is qualified for a student start-up loan or ABSTUDY student start-up loan for that qualification period; or

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the person is a scholarship entitled person; or

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in the period of six months ending immediately before what would otherwise be the person's qualification time one of the following circumstances apply:

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the person has received a payment known as a student start-up scholarship payment under the Veterans' Children Education Scheme; or

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the person has received a payment known as a student start-up scholarship payment under the Military Rehabilitation and Compensation Act Education and Training Scheme; or

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the person has received the amount or value of a Commonwealth Education Costs Scholarship; or

•

the person was entitled to the amount or value of a Commonwealth Education Costs Scholarship but has not received the full entitlement only because the scholarship was suspended.

Subsection 1061ZVAC(2) defines a scholarship-entitled person as someone who has received a student start-up scholarship payment by virtue of receiving youth allowance, austudy or ABSTUDY or received the amount or value of a Commonwealth Education Costs Scholarship in respect of a time before 1 January 2014 and the student has been receiving these payments for a continuous period. This prevents students who have been grandfathered to continue receiving the student start-up scholarship from also qualifying for a student start-up loan while they remain on student payments.

Section 1061ZVAD - Amount of student start-up loan

Section 1061ZVAD provides that the amount of the student start-up loan payment is $1,025. The amount of the student start- up loan payment will be indexed on 1 January 2017 and each later 1 January in line with CPI increases.

Section 1061ZVBA - Simplified outline of this Part

Section 1061ZVBA outlines broadly how student start-up loan debts are incurred in Part 2AA.2.

Section 1061ZVCA - SSL debts

Section 1061ZVCA establishes the student start-up loan as an income-contingent loan that is recovered and administered in a similar way to HELP. As explained below, the student start-up loan is only treated as an income-contingent loan if the person remains in their course for 35 days after being qualified for the loan or after the commencement of their course. If this does not occur, section 1223ABF (as inserted by Item 30 of Schedule 6) will provide that the student start-up loan is a debt due to the Commonwealth and, under current section 1229, is due and payable 28 days after the person receives a debt notice.

Subsection 1061ZVCA(1) provides a person incurs a debt to the Commonwealth if the person has received a student start-up loan for a qualification period and the amount of the loan is not a debt in respect of student start-up loan under section 1223ABF, or as a result of the person obtaining benefit where they were not entitled for any reason to obtain that benefit.

Subsection 1061ZVCA (2) provides that the SSL debt is incurred by the person either on the day the person received the loan or the day after the person's enrolment test day for the qualification period. Enrolment test day is defined by subsection 1223ABF(2).

Subsection 1061ZVCA(3) clarifies that the amount of the SSL debt is the amount of loan reduced by any amount repaid before the day on which the debt is incurred. This will mean that if a student initially enrols in a course or part of a course, receives a payment and withdraws from the course, then they will be able to reduce their debt if they make a repayment.

Subsection 1061ZVCA (4) provides that an SSL debt is not incurred if the loan has been fully repaid before the day on which the loan would have otherwise been incurred or if the Secretary has formed an opinion under subsection 1223ABF(3) in relation to the loan that the person ceased studying due to exceptional circumstances beyond the person's control. In this case, if a person ceases to be enrolled in an approved scholarship course or is no longer enrolled full-time before the enrolment test day, neither a social security debt nor an SSL debt will be incurred. This provision will ensure that there is flexibility and equity respect to incurring a student start-up loan.

Section 1061ZVCB - SSL debt discharged by death

Section 1061ZVCB provides that, upon the death of a person who owes a SSL debt to the Commonwealth, the debt is taken to have been paid.

Division 2 - Working out accumulated SSL debts

This Division provides for the calculation of a SSL debt and largely mirrors the calculation of a HELP debt under Division 140 of the Higher Education Support Act.

Section 1061ZVDA - Simplified outline of this Division

Section 1061ZVDA is an information provision, which provides an outline as to how accumulated SSL debts are worked out for any given financial year. There are two stages to working out a person's accumulated SSL debt. Stage 1 of the process is to work out a person's former accumulated SSL debt for the preceding financial year by taking account of a range of specified matters. Stage 2 of the process of working out a person's accumulated SSL debt is to take into account a range of specified matters. .

Section 1061ZVDB - Working out a former accumulated SSL debt.

Subsection 1061ZVDB(1) provides that a person's former accumulated SSL debt, in relation to the person's accumulated SSL debt for a financial year is worked out by multiplying the amount worked out using a six step method statement (set out in the table in the subsection) by the HELP debt indexation factor for 1 June in that financial year.

The HELP debt indexation factor is defined in section 19AAA (as inserted by item 12 of Schedule 6) and has the same meaning as in section 140-10 of the Higher Education Support Act. As the calculation of the index numbers and the method of publication of HELP debt indexation factors are factors in calculating the HELP debt indexation factor, then by reference, the definition of HELP debt indexation draws on section 140-10 to 140-20 of the Higher Education Support Act. For this reason, equivalent provisions in the Social Security Act are not required.

Subsection 1061ZVDB(2) provides that, for the purposes of section 1061ZVDB, 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.

Section 1061ZVDC - Working out an accumulated SSL debt

Subsection 1061ZVDC(1) provides that a person's accumulated SSL debt, for a financial year is equal to the persons former accumulated SSL debt plus the SSL debts incurred minus the person's SSL repayments, where:

•

a former accumulated SSL debt is the person's former accumulated SSL debt in relation to that accumulated SSL debt;

•

SSL debt repayments are the sum of all voluntary SSL repayments paid on or after 1 July in the financial year and before 1 June in that year, in reduction of the SSL debts incurred in that year; and

•

SSL debts incurred are the sum of all SSL debts (if any) that the person has incurred during the first 6 months of the financial year.

Subsection 1061ZVDC(2) provides that the person incurs the accumulated SSL debt on 1 June in the financial year.

Subsection 1061ZVDC(3) provides that the first financial year for which a person can have an accumulated SSL debt is the financial year starting on 1 July 2014. This is because the SSL provisions contained within the Bill commence on 1 January 2014 and, due to subsection 1061ZVDC(2), an SSL debt can only be incurred on 1 June in a financial year.

Section 1061ZVDD - Rounding of amounts

Subsection 1061ZVDD(1) provides that, if (apart from this section) a person's accumulated SSL debt is $1 or above, then that debt will be rounded down to the nearest whole dollar.

Subsection 1061ZVDD(2) provides that, if (apart from this section) a person's accumulated SSL debt is below $1, then that debt is rounded down to zero.

Section 1061ZVDE - Accumulated SSL debt discharges earlier debt

Subsection 1061ZVDE(1) provides that the accumulated SSL debt a person incurs on 1 June in a financial year discharges (or discharges the unpaid part of) any SSL debt that the person incurred during the calendar year immediately preceding that day and any accumulated SSL debt that the person incurred on the preceding 1 June. This is because accumulated SSL debt incurred on 1 June in a financial year is calculated to include any new SSL debt incurred the calendar year as well as any outstanding accumulated SSL debt that was incurred immediately preceding 1 June.

Subsection 1061ZVDE(2) clarifies that subsection 1061ZVDE(1) does not affect the calculation of accumulated SSL debts.

Section 1061ZVDF - Accumulated SSL debt discharged by death

Subsection 1061ZVDF(1) provides that, when a person who has an accumulated SSL debt dies, the accumulated SSL debt is taken to have been discharged.

Subsection 1061ZVDF(2) provides that subsection 1061ZVDF(1) does not affect any compulsory SSL repayment amounts required to be paid in respect of the accumulated SSL debt, whether or not those amounts were assessed before the person's death.

Part 2AA.3 - Discharge of indebtedness

Division 1 of Part 2AA.3 provides for the voluntary and compulsory discharge of SSL repayments. These provisions mirror the discharge of indebtedness provisions of Divisions 148 to 154 of the Higher Education Support Act 2003.

Section 1061ZVEA - Simplified outline of this Part

Subsection 1061ZVEA provides an outline of Part 2AA.3-Discharge of indebtedness.

Section 1061ZVEB - Debts under this Chapter

Section 1061ZVEB(1) provides that debts under this Chapter are SSL debts and accumulated SSL debts. Debts that arise under sections 1223 (Debts arising from a lack of qualification, overpayment etc.) and 1223ABF (Debts in respect of student start-up loans) are not debts under Chapter 2AA of the Act

Section 1061ZVFA - Voluntary SSL repayments in respect of debts

Section 1061ZVFA allows a person to may make a voluntary payment, at any time, in respect of a debt that the person owes to the Commonwealth under Chapter 2AA. This payment must be made to the Commissioner for Taxation as a debt under this Chapter a debt that is administered by the Australian Taxation Office.

Section 1061ZVFB - Application of voluntary SSL repayments

Subsection 1061ZVFB(1) provides that a person who makes voluntary payments to the Commonwealth in respect to debts under Chapter 2AA may give a direction as to which debt they are paying off.

Subsection 1061ZVFB(2) provides that if the person has not given an adequate direction, then the money will firstly be paid to the discharge or reduction of any accumulated SSL debt of the person and secondly to the discharge or reduction of any SSL debts of the person.

Section 1061ZVFC - Refunding of payments

Section 1061ZVFC ensures that a person cannot pay more money than they owe to the Commonwealth by providing that if a person pays an amount to the Commonwealth under Division 2 of Part 2AA.3 and the amount is greater than the amount required to discharge all debt under Chapter 2AA and the total amount of the person's primary tax debts (within the meaning of Part IIB of the Taxation Administration Act), then the Commonwealth must refund to the person an amount equal to that excess.

Section 1061ZVGA - Liability to repay amounts

Subsection 1061ZVGA(1) provides that, if:

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a person's repayment income for an income year is greater than their minimum repayment income for that income year; and

•

the person had an accumulated SSL debt on the 1 June immediately preceding an assessment of the person's income of that year; and either:

•

the person does not have an outstanding accumulated HELP debt; or

•

the amount required to be paid would fully discharge the HELP debt;

then the person is liable to pay to the Commonwealth the amount worked out in section 1061ZVGE in reduction of the person's repayable debt. The effect of this subsection is that the repayment of any existing HELP debt is paid back before a SSL debt. It also ensures that in a year where an amount payable is more than what is remaining of the accumulated HELP debt, the remainder of what is payable to the Commonwealth is paid to reduce a person's SSL debt.

Subsection 1061ZVGA(2) provides that a person is not liable to pay an amount under this section for an income year if no Medicare levy is payable by the person on their taxable income for that year or if the amount of the Medicare levy payable by the person on their taxable for the income year is reduced.

Section 1061ZVGB - Repayment income

Section 1061ZVGB provides repayment income has the same meaning as under section 154-5 of the Higher Education Support Act.

Section 1061ZVGC - Minimum repayment income

Section 1061ZVGC provides that the minimum repayment income has the same meaning as section 154-10 of the Higher Education Support Act. As the calculation of the indexation of an income year and the method of publication of indexed amounts are factors in calculating the minimum repayment income, then by reference, the definition of minimum repayment income draws on sections 154-25 and 154-30 of the Higher Education Support Act. For this reason, equivalent provisions in the Social Security Act are not required.

Section 1061ZVGD - Repayable SSL debt for an income year

Subsection 1061ZVGD(1) provides that a person's repayable SSL debt for an income year is their accumulated SSL debt immediately preceding 1 June in that income year or the amount (if any) remaining after deducting the total amount paid or assessed to be payable.

Subsection 1061ZVGD(2) clarifies that, in the calculation of a person's repayable debt, if the amount assessed to be payable has been increased, or reduced by an amendment, then the amendment amount is the amount payable.

Section 1061ZVGE - Amounts payable to the Commonwealth

Section 1061ZVGE provides that the amount that person is liable to pay under section 1061ZVGA in respect of an income year.

If the person does not have an accumulated HELP debt on 1 June immediately preceding an assessment of the SSL debt, then the person is liable to pay an amount that is applicable under the table in section 154-20 of the Higher Education Support Act.

If a person is required to pay an amount that would fully discharge their accumulated HELP debt, then the amount the person is liable to pay in respect of the SSL debt is an amount that is applicable under the table in section 154-20 of the Higher Education Support Act minus the amount that they have been required to pay in respect of their accumulated HELP debt for that income year.

This section will mean that a person will only repay an amount of SSL debt if they meet the same income thresholds as under HELP (as contained in section 154-20 of the Higher Education Support Act). It will also mean that the amounts payable with respect to a SSL debt are consistent with amounts payable with respect to an accumulated HELP debt.

This section will also mean that a SSL debt will only be payable if an accumulated HELP debt has been fully discharged. In the event that a person is able to discharge their accumulated HELP debt in an income year, then if the person would otherwise be liable to pay an amount under the table in section 154-20 of the Higher Education Support Act, then this amount will be compulsorily payable with respect to their SSL debt.

It is also important to note that a person will repay their SSL debt if there is no accumulated HELP debt . This may mean that if, for whatever reason, a person has no accumulated HELP debt at the point of an assessment, and they otherwise incur a HELP debt that has not become an accumulated HELP debt under that assessment, then this section will operate so that a person will repay an amount of their SSL debt. In these circumstances, the person will then repay that HELP debt only when it is an accumulated HELP debt at the point of an assessment.

Section 1061ZVGF - Commissioner may make assessments

Section 1061ZVGF allows the Commissioner to make an assessment of the person's accumulated SSL debt on the 1 June immediately before making the assessment. The Commissioner may also make an assessment of the amount that is required to be paid in respect of that debt. In making this assessment, the Commissioner may use any information in his or her possession.

Section 1061ZVGG - Notification of notices of assessment of tax

Section 1061ZVGG allows the Commissioner to provide an additional notice of an assessment of a SSL debt if the Commissioner did not provide this with an assessment that he has severed with respect to a person's income under section 174 of the Income Tax Assessment Act 1936. This additional notice of assessment must also contain the amounts that have been provided in the notice under section 174 of that Act.

Section 1061ZVGH - Commissioner may defer making assessments

Subsection 1061ZVGH(1) provides that a person may apply in an approved form to the Commissioner for deferral of the making of an assessment in respect of the person under section 1061ZVGF.

Subsection 1061ZVGH(2) provides that the application must specify the income year for which the deferral is being sought and the reasons for seeking the deferral.

Subsection 1061ZVGH(3) provides that the income year specified in the application must be the income year in which the person makes the application, the immediately preceding income year or the immediately succeeding income year.

Subsection 1061ZVGH(4) provides that, on application by a person under section 1061ZVGH(1), the Commissioner may defer making an assessment in respect of the person under section 1061ZVGF if the Commissioner is of the opinion that if the assessment were made, payment of the assessed amount would either cause serious hardship to the person, or there are other special reasons that make it fair and reasonable to defer making the assessment.

Subsection 1061ZVGH(5) provides that the Commissioner may defer making the assessment for any period that he or she thinks appropriate.

Subsection 1061ZVGH(6) provides that as soon as practicable after an application is made under section 1061ZVGH(1), the Commissioner must consider the matter to which the application relates and notify the applicant of the Commissioner's decision on the application.

Section 1061ZVGJ - Commissioner may amend assessments

Subsection 1061ZVGJ(1) provides that a person may apply in an approved form to the Commissioner for an amendment of an assessment made in respect of the person under section 1061ZVGF so that the amount payable under the assessment is reduced or no amount is payable under the assessment.

Subsection 1061ZVGJ(2) provides that the application must be made no later than two years after the day the Commissioner to which the assessment relates or must specify the reasons justifying a later application.

Subsection 1061ZVGJ(3) provides that, on application by a person under section 1061ZVGJ(1), the Commissioner may amend an assessment made in respect of the person under section 1061ZVGF so that the amount payable under the assessment is reduced or no amount is payable under the assessment if the Commissioner is of the opinion that payment of the assessed amount has caused (or would cause) serious hardship to the person or there are other special reasons that make it fair and reasonable to make the amendment.

Subsection 1061ZVGJ(4) provides that, as soon as practicable after an application is made under section 1061ZVGJ(1), the Commissioner must consider the matter to which the application relates and notify the applicant of the Commissioner's decision on the application.

Part 2AA.4 - Tax administration matters

Section 1061ZVFHA Simplified outline of this Part

Section 1061ZVFHA outlines the purpose of Part 2AA.4 - Tax administration matters.

Section 1061ZVHB - Verification of tax file numbers

Section 1061ZVHB(1) allows the Secretary, when determining a claim for a student start-up loan for a person receiving youth allowance or austudy, to verify the person's tax file number with the Commissioner.

Section 1061ZVFHB(2) allows the Commissioner, if they are satisfied with the person's tax file number, to notify the Secretary, via a written notice, accordingly.

Section 1061ZVHC - When person with tax file number incorrectly notifies number

Subsection 1061ZVHC provides that, if the Commissioner is satisfied that the tax file number that was given to the Secretary in order to become qualified for a student start-up loan has been at any time cancelled or withdrawn, or is otherwise wrong, and the person does have a tax file number, then the Commissioner may give a notice of this to the Secretary. The Commissioner may also provide the Secretary with the person's tax file number. For the purposes of qualification, the new tax file number is the one that is taken to have been given to the Secretary.

This provision ensures that a person will not be disqualified from the student start-up loan because of providing an incorrect tax file number.

Section 1061ZVHD - When person without tax file number incorrectly notifies number

Subsection 1061ZVHD(1) provides that, if the Commissioner is satisfied that the tax file number that was given to the Secretary in order to become qualified for a student start-up loan has been cancelled or for any other reason is not the persons' tax file number and the Commissioner is not satisfied that the person has such a number, then the Commissioner may give to the Secretary a written notice informing the Secretary accordingly.

The Commissioner must also give a copy of any notice to the person concerned containing a statement of reasons for the decision to give the notice.

In addition, section 75 of the Social Security Administration Act allows the Secretary to request a tax file number from a person who is receiving a social security payment.

Section 1061ZVHE - When tax file numbers are cancelled

Section 1061ZVHE provides that if the Commissioner cancels a tax file number that a person has given to the Secretary in order to become qualified for a student start-up loan, then the Commissioner may give to the Secretary a written notice of the cancelation.

The Commissioner must also give a copy of any notice to the person concerned containing a statement of reasons for the decision to give the notice.

In addition, section 75 of the Social Security Administration Act allows the Secretary to request a tax file number from a person who is receiving a social security payment.

Section 1061ZVHF - Return assessments, collection and recovery

Section 1061ZVHF provides that, subject to Parts 2AA.3 and 2AA.4 of the Act (as inserted by Schedule 6 of the Bill), Part VI of the Income Tax Assessment Act 1936, Division 5 of the Income Tax Assessment Act 1997 and Part 4-15 in Schedule 1 to the Taxation Administration Act apply (so far as they are capable of application) in relation to a compulsory SSL repayment amount of a person as if it were income tax assessed to be payable by a taxpayer by an assessment made under Part IV of the Income Tax Assessment Act 1936.

Section 1061ZVHG - Charges and civil penalties for failing to meet obligations

Section 1061ZVHG provides that Part 4-25 in Schedule 1 to the Taxation Administration Act has effect as if any compulsory SSL repayment amount of a person were income tax payable by the person in respect of the income year in respect of which the assessment of that debt was made, and Part 2AA.1 so far as it relates to tax file numbers, and Part 2AA.2, 2AA.3 and this Part were an income tax law.

This does not have the effect of making a person liable to a penalty for any act or omission that happened before the commencement of this section.

Section 1061ZVHH - Pay as you go (PAYG) withholding

Section 1061ZVHH provides that Part 2-5 (other than section 12-55 and Subdivisions 12-E, 12-F and 12-G) in Schedule 1 to the Taxation Administration Act applies (so far as it is capable of application) in relation to the collection of amounts of a person's compulsory SSL repayment amount of a person as if the compulsory SSL repayment amount were income tax.

Section 1061ZVHJ - Pay as you go (PAYG) instalments

Section 1061ZVHJ provides that Division 45 in Schedule 1 to the Taxation Administration Act applies (so far as it is capable of application) in relation to the collection of a person's compulsory SSL repayment amount as if the compulsory repayment amount were income tax.

Section 1061ZVHK - Administration of this Chapter

Section 1061ZVHK provides that the Commissioner of Taxation has general administration of Part 2AA.1 in so far as it relates to tax file numbers, Parts 2AA.2 and Part 2AA.3 of the Act (as inserted by this Schedule) and Division 2A of Part 4 of the Administration Act.

The purpose of this provision is to allow the Commissioner of Taxation to administer the recovery of SSL debts.

It is important to note that, while the Commissioner of Taxation has general administration of Part 2AA.1, it is the Secretary who, under subparagraph 1061ZVCA(4)(b)(ii), is responsible for forming an opinion as to whether a person ceased to be enrolled in an approved scholarship course because of exceptional circumstances beyond the person's control.

Items 26 and 27 insert items 69A and 41A into the tables contained in section 1190 and subsection 1191(1) respectively to provide for the indexation of the student start-up loan amount. This is not to be confused with the indexation of the accumulated SSL debt.

Item 28 inserts subsection 1192(8B) to provide that the student start-up loan payment is not indexed on 1 January 2014, 1 January 2015 and 1 January 2016. This will ensure that the amount of the student start-up scholarship payment and the student start-up loan will remain equal in value.

Item 29 is a technical amendment for the purpose of section 1223ABG (as inserted by item 30).

Item 30 inserts sections 1223ABF and 1223ABG.

Section 1223ABF - Debts in respect of student start-up loans

Subsection 1223ABF(1) provides that if a person:

•

has received a student start-up loan for which the person qualified at the time in a qualification period; and

•

at any time on or before the person's enrolment test day, the person is not enrolled in an approved scholarship course;

then the amount of the loan is a debt due to the Commonwealth and the debt is taken to have arisen when the person received the loan.

Subsection 1223ABF(2) defines a person's enrolment test day for a qualification period, which is the earliest of the following days:

•

the last day of the approved scholarship course, if the approved scholarship course ends during that qualification period;

•

the last day of the relevant qualification period;

•

the 35th day of the period starting on either the first day of the approved scholarship course (if the person's qualification time was before the first day of the relevant approved scholarship course, for example where a person is beginning their course) or the day on which the person qualifies for the loan.

The purpose of these rules is to ensure that the loans are targeted to people who have a genuine commitment to continuing their study.

Subsection 1223ABF(3) states that a debt will not arise under this section if the Secretary determines that a person is no longer enrolled full-time in an approved scholarship course because of exceptional circumstances beyond the person's control.

Section 1223ABG - Student start-up loan previously treated as part of accumulated SSL debt

Section 1223ABG is a mechanism by which the Commissioner can amend a student start-up loan if it is found to be a debt under section 1223 or 1223ABF and is therefore not an income-contingent loan. This is to ensure that where a person was discovered to have not been qualified for a student start-up loan, then the indexation can be applied to the amount of the loan by way of the Commissioner amending the amount of debt.

Subsection 1223ABG(1) clarifies that this section applies to debts that arise under section 1223 or 1223ABF in relation to a student start-up loan and the Commissioner has been treating them as if they were part of an accumulated SSL debt, but at a time since (to be known as the cessation time) has ceased to do so.

Subsection 1223ABG states that the amount of the debt arising under section 1223 or 1223ABF is the amount of the accumulated SSL debt as is immediately before the cessation time.

Item 31 inserts subparagraph 1229D(1)(b)(iiia) to provide that a student start-up loan, as contemplated under section 1223ABF, is a debt to which an interest charge may be applied to under section 1229E or 1229F of the Social Security Act (as inserted by Schedule 1 of the Bill).

Amendments to the Social Security Administration Act

Item 32 amends subsection 10(1) to exclude Divison 2A from the jurisdiction of the Social Security Appeals Tribunal. This is because decisions under Division 2A are made by the Commissioner and, consistent with other decisions by the Commissioner, are reviewable by the Administrative Appeals Tribunal.

Item 33 inserts section 26C, which provides a time limit for claiming the student start-up loan.

Subsection 26C(1) provides that a person's claim for a student start-up loan for a qualification period must be made before the end of the qualification period.

Section 26C(2) provides that a person's claim for a student start-up loan for a qualification period must be made at least 35 days before the course end date if the student is expected to complete the approved scholarship during that qualification period.

Item 34 inserts subsection 36(4) and (5) which provide obligations of the Secretary in determining claims and intend to give the Secretary flexibility in when to determine claims.

Subsection 36(4) states that, if a person claims a student start-up loan for a qualification period, the Secretary may determine the person's claim at a time the Secretary considers appropriate. The Secretary should have regard to the principle that the time should be close to the start of the period of study concerned for the relevant approved scholarship course.

Subsection 36(5) provides that nothing in subsection 36(4) affects the operation of section 39 which provides that if the Secretary does not make a determination regarding a claim within the period of 13 weeks after the day on which the claim was made, the Secretary is taken to have made a determination rejecting the claim.

Item 35 is a minor amendment for the purposes of item 36.

Item 36 inserts subsection 39(9) to provide an exception to the requirement in subsection 39(1). Subsection 39(1) deems that a claim that has not been decided upon by the Secretary within a 13 week period of making the claim is refused.

Subsection 39(9) provides that, if, at any time, a person has lodged more than one claim for a student start-up loan for a qualification period that has not yet been determined and a person has not yet actually qualified for a claim, then the 13-week period will start on the day when the person does become qualified. This will ensure that a person can validly put in a claim in advance of being qualified.

Item 37 provides that the student start-up loan is within the definition of a lump sum benefit for the purposes of section 47 of the Act.

Item 38 makes technical amendments to subsection 47(4) to allow for sections 47DA and 47DB.

Item 39 inserts section 47DB, which provides that, where a person qualifies for a student start-up loan because the person is receiving youth allowance and all or part of that person's youth allowance is being paid to the person's parent or another person, the whole amount of the SSL, or the proportion of youth allowance that is being paid to the person's parent or other person, may be paid by the Secretary to the person's parent or other person.

Item 40 amends the heading of section 58 to 'Payment of social security payment after death'.

Item 41 amends section 58 to include reference to the student start-up loan.

Item 42 inserts subsection 127(4) to provide that the Secretary must not review a decision that is a reviewable decision under section 138A. As discussed with respect to section 138A, the purpose of this amendment is to ensure that reviewable decisions under the student start-up loan provisions are reviewed in the same way that the equivalent decisions in the Higher Education Support Act that relate to HELP are reviewed. Under the recovery of HELP the decision maker for reviewable decisions is the Commissioner. This amendment appropriately ensures that the Commissioner, who administers the recovery of HELP is the relevant decision maker.

For the same reason, item 42 will ensure the Secretary will not be able to review a decision relating to the student start-up loan that is reviewable by the Commissioner.

Item 43 inserts paragraph 129(4)(da) to provide that a person may not apply to the Secretary for a decision that is reviewable under section 138A. As discussed in relation to item 42, it is intended that the Commissioner reviews decisions under section 138A, rather than the Secretary, and therefore a person cannot apply to the Secretary for such a review.

Item 44 inserts Division 2A - Internal review of Commissioner decisions relating to student start-up loans - which contains sections 138A to 138G. These provisions are intended to ensure that the system of review for the student start-up loan is consistent with the system of review for HELP under the Higher Education Support Act.

Section 138A - Decisions reviewable under this Division

Section 138A provides that the decisions by the Commissioner to defer making an assessment or to amend an assessment are reviewable decisions.

Section 138B - Commissioner must give reasons for reviewable decisions

Section 138B provides that, if the Commissioner is required to notify a person of the making of a reviewable decision, then the notice must include the reasons for the decision. This will mean that if the Commissioner makes a reviewable decision under 138A, then he or she will have to include the reasons for the decision. This section will not affect any other legal obligation to give reasons for a decision.

Section 138C - Reviewer of decisions

Subsection 138C(1) provides that Commissioner is the reviewer of reviewable decisions under Division 2A unless subsection 138C(2) applies.

Subsection 138C(2) provides that, where a delegate of the Commissioner makes a reviewable decision, any delegate of the Commissioner who reconsiders the decision must not have been involved in the making of the decision and must be more senior to the decision maker.

Section 138D - Reviewer may reconsider reviewable decisions

Section 138D provides a mechanism by which a reviewer can reconsider a reviewable decision. Unlike section 138E, a reviewer can review a decision under this section whether or not a person requests such reconsideration.

Subsections 138D(1) and (2) provide that the reviewer of a reviewable decision may reconsider the decision if they are satisfied that there is a sufficient reason to do so. The reviewer will be able to do so even if the application for reconsideration was made on request or the decision had been confirmed, varied or set aside and an application had otherwise been made to the Administrative Appeals Tribunal.

Subsection 138D(3) provides that, after reconsidering the decision, the reviewer must either confirm, vary or set aside the decision. If the decision is set aside a new decision must be substituted.

Subsection 138D(4) provides that decision of the reviewer to confirm vary or set aside the original decision takes effect either on the day that is specified in the decision of the review or if it is not specified, the day on which the new decision was made.

Subsection 138D(5) provides that the reviewer must give written notice of the decision on review to the person to whom the decision relates.

Subsection 138D(6) provides that the notice must be given within a reasonable period of time after the decision has been made and must contain a statement of the reason for the reviewer's decision on review. In addition to this requirement, section 27A of the Administrative Appeals Tribunal Act 1975 will also require the person to be notified of the person's review rights.

Section 138E - Reconsideration of reviewable decisions on request

Section 138E provides a mechanism by which a person can require a reviewer to confirm, vary or set aside a decision that is to be reconsidered.

Subsection 138E(1) provides a right of a person whose interests are affected by a reviewable decision to request the reviewer to reconsider the decision.

Subsection 138E(2) provides that such a request must be in a written notice given to the reviewer within 28 days (or longer, if the reviewer allows it) from when the person first received the notice of decision.

Subsection 138E(3) provides that the notice must set out the reasons for making the request.

Subsections 138E(4) to 138E(7) operate in the same way as subsections 138D(3) to 138D(6) but with respect to a decision reconsidered on request.

Subsection 138E(8) provides that, if a reviewer does not give a notice of a decision to the person within 45 days after receiving the person's request, then the original decision is taken to be confirmed. In addition to this requirement, section 27A of the Administrative Appeals Tribunal Act 1975 will also require the person to be notified of the person's review rights.

Section 138F - AAT review of the reviewable decisions

Section 138F provides that, if a reviewable decision has been confirmed, varied or set aside by a reviewer has reconsidered the decision, then a person may apply to the AAT for review of the decision.

Item 45 amends section 144 to provide that the reviewable decision under 138A or decisions under section 138E or 138F cannot be reviewed by the Social Security Appeals Tribunal (SSAT). This is because the reviewable decisions under section 138A are reviewable decisions made by the Commissioner relating to the deferral and amendments of assessment of SSL debts. To ensure that the student start-up loan is administered in a way that is consistent with the administration of HELP under the Higher Education Support Act, such reviewable decisions will not be reviewed by the SSAT. This will not prohibit any other decision contained in Chapter 2AA of the Social Security Act (as inserted by item 25) from being reviewed by the SSAT subject to the existing provisions in the Social Security Administration Act.

Amendments to the Student Assistance Act

Items 46 to 66 amend subsection 3(1) to include definitions of terms relating to the ABSTUDY student start-up loan.

Item 67 inserts Part 2 - ABSTUDY student start-up loans.

Section 6A - Simplified outline of this Division

Section 6A briefly outlines the qualification for and amount of ABSTUDY student start-up loan.

Section 6B - ABSTUDY Scheme

Section 6B provides clarity that ABSTUDY student start-up loans are made under the ABSTUDY scheme.

Section 6C - Qualification for ABSTUDY student start-up loan

Section 6C operates in a similar way to section 1061ZVAB of the Social Security Act (as inserted by item 25) but with respect to the ABSTUDY student start-up loan.

The difference between these provisions is that, in order to be qualified for a student start-up loan under section 6C, rather than being qualified on the basis of youth allowance or austudy, a person at the qualification time has to be qualified for a payment known as Living Allowance under the ABSTUDY Scheme and Living Allowance must be payable to the person.

Section 6D - Circumstances in which person is not qualified for ABSTUDY student start-up loan

Section 6D mirrors the operation of section 1061ZVAC of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 6E - Amount of ABSTUDY student start-up loan

Subsection 6E(1) provides that the amount of the ABSTUDY student start-up loan is $1,025.

Subsection 6E(2) provides that the ABSTUDY student start-up loan is indexed under Division 2 of Part 3.16 of the Social Security Act on 1 January 2017 and each subsequent 1 January, as if it were a student start-up loan amount referred to in the table in subsection 1191(1) of that Act.

Section 7A - Simplified outline of this Division

Section 7A briefly outlines the process for incurring ABSTUDY SSL debts.

Section 7B - ABSTUDY SSL debts

Section 7B mirrors the operation of section 1061ZVCA of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 7C - ABSTUDY SSL debt discharged by death

Section 7C mirrors the operation of section 1061ZVCB of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 8A - Simplified outline of this Division

Section 8A mirrors the operation of section 1061ZVDA of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 8B - Working out a former accumulated ABSTUDY SSL debt

Section 8B mirrors the operation of section 1061ZVDB of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 8C - Working out an accumulated ABSTUDY SSL debt

Section 8C mirrors the operation of section 1061ZVDC of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 8D - Rounding of amounts

Section 8D mirrors the operation of section 1061ZVDD of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 8E - Accumulated ABSTUDY SSL debt discharges earlier debts

Section 8E mirrors the operation of section 1061ZVDE of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 8F - Accumulated ABSTUDY SSL debt discharged by death

Section 8F mirrors the operation of section 1061ZVDF of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9A - Simplified outline of this Division

Section 9A mirrors the operation of section 1061ZVEA of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9B - Debts under this Part

Section 9B provides that a debt within the meaning of section 39 of the Act is not a debt that arises under Part 2. This is because these debts relate to the ABSTUDY student start-up loans which are income-contingent loans and are therefore administered differently to other debts arising under the Student Assistance Act.

Section 9C - Voluntary ABSTUDY SSL repayments in respect of debts

Section 9C mirrors the operation of section 1061ZVFA of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9D - Application of voluntary ABSTUDY SSL repayments

Section 9D mirrors the operation of section 1061ZVFB of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9E - Refunding of payments

Section 9E mirrors the operation of section 1061ZVFC of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9F - Liability to repay amounts

Section 9F mirrors the operation of section 1061ZVGA of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9G - HELP repayment income

Section 9G provides that for the purposes of Part 2 of the Act, the term HELP repayment income has the same meaning as repayment income in the Higher Education Support Act.

Section 9H - Minimum repayment income

Section 9H provides that for the purpose of Part 2, the term minimum HELP repayment income has the same meaning as minimum repayment income in the Higher Education Support Act.

Section 9J - Repayable ABSTUDY SSL debt for an income year

Section 9J mirrors the operation of section 1061ZVGD of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9K - Amounts payable to the Commonwealth

Section 9K mirrors the operation of section 1061ZVGE of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9L - Commissioner may make assessments

Section 9L mirrors the operation of section 1061ZVGF of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9M - Notification of notices of assessment of tax

Section 9M mirrors the operation of section 1061ZVGG of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9N - Commissioner may defer making assessments

Section 9N mirrors the operation of section 1061ZVGH of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 9P - Commissioner may amend assessments

Section 9P mirrors the operation of section 1061ZVGJ of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 10A - Simplified outline of this Division

Section 10A briefly outlines tax administration matters with regards to the ABSTUDY student start-up loan.

Section 10B - Verification of tax file numbers

Section 10B mirrors the operation of section 1061ZVHB of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 10C - When person with tax file number incorrectly notifies number

Section 10C mirrors the operation of section 1061ZVHC of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 10D - When person without tax file number incorrectly notifies number

Section 10D mirrors the operation of section 1061ZVHD of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 10E - When tax file numbers are cancelled

Section 10E mirrors the operation of section 1061ZVHE of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 10F - Returns, assessments, collection and recovery

Section 10F mirrors the operation of section 1061ZVHF of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 10G - Charges and civil penalties for failing to meet obligations

Section 10G mirrors the operation of section 1061ZVHG of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 10H - Pay as you go (PAYG) withholding

Section 10H mirrors the operation of section 1061ZVHH of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 10J - Pay as you go (PAYG) instalments

Section 10J mirrors the operation of section 1061ZVHJ of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Section 10K - Administration of this Part

Section 10K mirrors the operation of section 1061ZVHK of the Social Security Act (as inserted by item 25) but with respect to an ABSTUDY student start-up loan.

Item 68 amends the definition of ABSTUDY debt to include an ABSTUDY student start-up loan overpayment. This amendment is necessary given item 71 of this Schedule inserts section 38A, which provides for the meaning of ABSTUDY student start-up loan overpayment.

Item 69 amends the definition of debt to include an ABSTUDY student start-up loan overpayment.

Item 70 makes technical amendments for the purposes of the amendment contained in item 71.

Item 71 inserts section 38A - ABSTUDY student start-up loans overpayments.

Section 38A operates in a similar way to section 1223ABF of the Social Security Act (as inserted by item 30) as it sets out circumstances in which the ABSTUDY start-up loan will not be treated as an income-contingent loan but as a debt owed by the person to the Commonwealth under section 39 of the Act.

Items 72 and 73 make minor amendments for the purposes of item 74.

Item 74 amends section 39 to provide that, where an ABSTUDY student start-up loan payment becomes a debt recoverable by the Commonwealth, the ABSTUDY student start-up loan overpayment is taken to have arisen when the person received the loan to which the overpayment relates.

Item 75 inserts section 39AAA (ABSTUDY student start-up loan), previously treated as part of accumulated ABSTUDY SSL debt. This section mirrors section 1223ABG of the Social Security Act (as inserted by item 30), but with respect to an ABSTUDY student start-up loan overpayment.

Item 76 makes a minor amendment for the purposes of item 77.

Item 77 amends subsection 44A(7) to provide that subsection 44A(5) does not apply in relation to recovery of an amount relating to an ABSTUDY student start-up loan. This will mean that a student will have to provide their actual tax file number, rather than lodging an application for a tax file number with the Department, in order to meet the qualification requirements for the ABSTUDY student start-up loan.

Item 78 amends subsection 55A to clarify that payments made in relation to ABSTUDY student start-up loans are be to made out of the Consolidated Revenue Fund, which is appropriated accordingly.

Item 79 makes a minor amendment for the purposes of item 80.

Item 80 amends section 302 to provide that Division 1 of Part 9 does not apply to a decision that is reviewable under section 308A.

Item 81 inserts new Division 1A - Internal review of Commissioner decisions relating to ABSTUDY student start-up loans.

Section 308A - Decisions reviewable under this Division

Section 308A mirrors the operation of section 138A of the Social Security Administration Act (as inserted by item 44) but with respect to reviewable decisions in relation to ABSTUDY student start-up loan.

Section 308B - Commissioner must give reasons for reviewable decisions

Section 308B mirrors the operation of section 138B of the Social Security Administration Act (as inserted by item 44) but with respect to reviewable decisions in relation to ABSTUDY student start-up loan.

Section 308C - Reviewer of decisions

Section 308C mirrors the operation of section 138C of the Social Security Administration Act (as inserted by item 44) but with respect to reviewable decisions in relation to ABSTUDY student start-up loan.

Section 308D - Reviewer may reconsider reviewable decisions

Section 308D mirrors the operation of section 138D of the Social Security Administration Act (as inserted by item 44) but with respect to reviewable decisions in relation to ABSTUDY student start-up loan.

Section 308E - Reconsideration of reviewable decisions on request

Section 308E mirrors the operation of section 138E of the Social Security Administration Act (as inserted by item 44) but with respect to reviewable decisions in relation to ABSTUDY student start-up loan.

Section 308F - AAT review of reviewable decisions

Section 308F mirrors the operation of section 138F of the Social Security Administration Act (as inserted by item 44) but with respect to reviewable decisions in relation to ABSTUDY student start-up loans.

Item 82 mirrors the operation of subsection 144(t) of the Social Security Administration Act (as inserted by item 45) but with respect to ABSTUDY student start-up loans.

Amendments to the Taxation Administration Act

Item 83 inserts a definition of compulsory ABSTUDY SSL repayment amount into the Act.

Item 84 inserts a definition of compulsory SSL repayment amount into the Act.

Item 85 amends section 8AAZLD to provide that any compulsory SSL repayment amount of the entity and then any compulsory ABSTUDY SSL repayment amount will be prioritised in that order after any compulsory repayment amount but before any FS assessment debt when the Commissioner applies a credit that arises under the Pay As You Go system.

Item 86 amends section 6-1 in Schedule 1 to allow for the Pay As You Go system to collect amounts that go towards meeting liability to repay debts in relation to student start-up loans and ABSTUDY student start-up loans.

Item 87 amends the objects in section 11-1 of Schedule 1 to ensure that the object Part 2-11 is to ensure the efficient collection of amounts of liabilities to the Commonwealth under Chapter 2AA of the Social Security Act or under Part 2 of the Student Assistance Act.

Item 88 amends section 15-30 of Schedule 1 to ensure that the Commissioner must have regard to the applicable percentages in section 1061ZVGE of the Social Security Act and the equivalent provision in the ABSTUDY scheme when making a withholding schedule.

Item 89 amends the object in section 45-5 of Schedule 1 so that the object Part 2-10 is to ensure the efficient collection of amounts of liabilities to the Commonwealth under Chapter 2AA of the Social Security Act or under Part 2 of the Student Assistance Act.

Item 90 amends section 45-340 in Schedule 1 to insert steps 3AA and 3AB to the method statement on adjusted taxable income or on adjusted withholding income.

Item 91 makes technical amendments to step 4 of the method statement in section 45-340 in Schedule 1 to take account of new steps 3AA and 3AB as inserted by item 90.

Item 92 amends the method statement in section 45-375 in Schedule 1 to insert steps 3AA and 3AB for adjusted assessed tax on adjusted assessed taxable income.

Item 93 makes a technical amendment to step 4 of the method statement in section 45-375 in Schedule 1 to take account of new steps 3AA and 3AB as inserted by item 92.

Item 94 amends the table in subsection 250-10(2) to include any compulsory SSL and ABSTUDY SSL repayment amount in the adjusted taxable income calculation.

Item 95 amends subsection 355-65(2) to include that records or disclosures relating to social welfare, health or safety can be made for or disclosure can be made to an Agency Head (within the meaning of the Public Service Act 1999) of an agency (within the meaning of that Act) dealing with matters relating to the social security law, including the Student Assistance Act so far as it relates to ABSTUDY student start-up loans (within the meaning of that Act) and debts relating to such loans, along with the Social Security Act.

Amendments to the Taxation (Interest on Overpayment and Early Payments) Act 1983

Items 96 and 97 insert a definition of compulsory ABSTUDY SSL repayment amount and compulsory SSL repayment amount into the Act.

Item 98 amends the table in subsection 3C(1) so that compulsory SSL repayment amounts and ABSTUDY SSL repayment amounts are identified as relevant tax law for the purposes of the Act.

Items 99 and 100 amend subsections 8A(1) and 8A(2) to ensure compulsory SSL repayment amounts and ABSTUDY SSL repayment amounts are payments for which interest is payable by the Commissioner to the person on the payment, calculated in respect of the period applicable under section 8B at the rate specified in section 8C.

Items 101 and 102 amend paragraphs 8E(1)(d) and 8E(2)(d) to ensure that interest can be paid when crediting amounts in excess of any compulsory SSL repayment amounts and compulsory ABSTUDY SSL repayment amounts.

Items 103 and 104 amend subparagraph 12A(1) to ensure that interest entitlement arises in respect of refunds of payments made on account of compulsory SSL repayment amounts and compulsory ABSTUDY SSL repayment amounts These items otherwise amend subparagraph 12A(1) to ensure this provision is written in a way that reflects current drafting techniques. This is a minor, technical amendment.

Item 105 is a minor amendment for the purposes of item 103.