Education Legislation Amendment (2019 Measures No. 1) Act 2019 (103 of 2019)

Schedule 2   HELP debt arrangements for very remote HELP debtors

Part 1   Amendments

Higher Education Support Act 2003

11   At the end of Part 4-1

Add:

Division 142 - Special measures for very remote HELP debtors

142-1 Meaning of very remote HELP debtor

(1) A person is a very remote HELP debtor on a day if:

(a) the person carries out work as a teacher on that day at a school located in an area that is classified as very remote Australia under the *ABS Remoteness Structure; and

(b) the person has completed a *course of study in education; and

(c) the person incurred a *HECS-HELP debt or a *FEE-HELP debt in relation to that course of study.

(2) For the purposes of paragraph (1)(a), a school is any of the following:

(a) an early childhood education and care service that includes a preschool education program;

(b) a preschool;

(c) a school providing primary or secondary education.

(3) For the purposes of this Division, the Very Remote HELP Debtor Guidelines may set out:

(a) circumstances in which a person is taken, or is taken not, to carry out work as a teacher on a day; or

(b) circumstances in which a person is taken, or is taken not, to carry out such work at a school located in an area that is classified as very remote Australia under the *ABS Remoteness Structure; or

(c) circumstances in which a person is taken, or is taken not, to be a *very remote HELP debtor for particular periods.

142-5 Meaning of course of study in education

(1) Subject to subsection (2), a course of study in education means a *course of study, completion of which would satisfy the minimum academic requirements for registration as a teacher by an authority of a State or Territory.

(2) The Very Remote HELP Debtor Guidelines may specify *courses of study that are, or are not, *courses of study in education.

142-10 Reducing indexation of accumulated HELP debts

(1) The *Secretary must, on the application of a person under subsection (4), determine that the indexation of the person's *accumulated HELP debt for a financial year is to be reduced if:

(a) on 1 June of the financial year in which the application is made, the person has an *accumulated HELP debt; and

(b) the Secretary is satisfied that the person:

(i) was a *very remote HELP debtor at any time during the calendar year (the applicable calendar year ) ending on 31 December in the financial year; and

(ii) has met such other requirements (if any) as are specified in the Very Remote HELP Debtor Guidelines for the purposes of this subparagraph.

(2) If the *Secretary determines that the indexation of the person's *accumulated HELP debt for a financial year is to be reduced, the Secretary must determine the number of days in the applicable calendar year in respect of which the person was a *very remote HELP debtor.

(3) The *Secretary must, within 28 days after the day the Secretary receives the application under subsection (4), give notice to the person of the Secretary's decision on that application. The notice must:

(a) be in writing; and

(b) if the Secretary determines that the indexation of the person's accumulated HELP debt for a financial year is to be reduced - state the number of days determined by the Secretary under subsection (2).

Note: The Secretary is taken to have made a decision to reject the application if the Secretary does not notify the person of the decision within 28 days: see section 206-5.

(4) A person may apply to the *Secretary for a determination under subsection (1) that the indexation of the person's *accumulated HELP debt for a financial year be reduced. The application must:

(a) be in writing; and

(b) be in the form (if any) approved by the Secretary and accompanied by the information (if any) required by the Secretary; and

(c) include the person's *tax file number; and

(d) meet any requirements specified by the Very Remote HELP Debtor Guidelines for the purposes of this paragraph.

142-15 Reducing accumulated HELP debts

(1) The *Secretary must, on the application of a person under subsection (5), determine that the person's *accumulated HELP debt is to be reduced in relation to a *course of study in education by a specified amount if:

(a) the Secretary is satisfied that the person:

(i) has been a *very remote HELP debtor for a period of 4 years, or for periods within a continuous 6 year period that total 4 years; and

(ii) has met such other requirements (if any) as are specified in those Guidelines for the purposes of this subparagraph; and

(b) the Secretary has not previously determined under this section that the person's accumulated HELP debt is to be reduced in relation to a course of study in education.

(2) If the *Secretary determines that a person's *accumulated HELP debt is to be reduced, the amount by which that debt is reduced is the amount equal to the lesser of the following:

(a) the sum of the amounts of *HECS-HELP debt and *FEE-HELP debt incurred by the person in respect of units of study:

(i) with a total *EFTSL value of not more than 5.0 *EFTSL; and

(ii) undertaken as part of the *course of study in education mentioned in subsection (1);

(b) the amount of the person's accumulated HELP debt at the start of the period of 4 years, or at the start of the first period of the periods totalling 4 years, referred to in subparagraph (1)(a)(i).

(3) To avoid doubt, subsection (2) may have the effect of reducing a person's *accumulated HELP debt for a financial year to less than zero.

(4) The *Secretary must, within 28 days after the day the Secretary receives an application under subsection (5), notify the person of the Secretary's decision on that application. The notice must:

(a) be in writing; and

(b) if the Secretary has determined that the person's *accumulated HELP debt is to be reduced - state the amount by which that debt is to be reduced.

Note: The Secretary is taken to have made a decision to reject the application if the Secretary does not notify the person of the decision within 28 days: see section 206-5.

(5) A person may apply to the *Secretary for a determination under subsection (1) that the person's *accumulated HELP debt be reduced. The application must:

(a) be in writing; and

(b) be in the form (if any) approved by the Secretary and accompanied by the information (if any) required by the Secretary; and

(c) include the person's *tax file number; and

(d) meet any requirements specified by the Very Remote HELP Debtor Guidelines for the purposes of this paragraph.

142-20 Refunding amounts

If:

(a) the *Secretary has determined, for the purposes of section 142-15, that a person's *accumulated HELP debt is to be reduced by an amount; and

(b) the amount exceeds the sum of:

(i) the amount required to discharge the total debt that the person owed to the Commonwealth under this Chapter; and

(ii) the total amount of the person's primary tax debts (within the meaning of Part IIB of the Taxation Administration Act 1953);

the Commonwealth must refund to the person an amount equal to that excess.