Part 4A
-
Financial Supplement for Tertiary Students
Division 6
-
Indebtedness existing after termination date
Subdivision C
-
Requirement to discharge indebtedness
History
Subdiv C substituted by No 47 of 2006, s 3 and Sch 2 item 24, effective 22 May 2006. For saving provision, see note under definition of
"
compulsory repayment amount
"
in s 3(1). Subdiv C formerly read:
Subdivision C
-
Requirement to discharge indebtedness
SECTION 12ZK COMPULSORY PAYMENTS IN RESPECT OF ACCUMULATED FS DEBT
12ZK(1)
If:
(a)
the taxable income of a person in respect of a year of income is greater than the minimum prescribed amount in relation to that year of income; and
(b)
the person had an accumulated FS debt on 1 June immediately before the making of an assessment in respect of the person's income of that year of income;
the person is liable to pay in accordance with this Division to the Commonwealth in reduction of the relevant debt an amount equal to so much of the relevant debt as does not exceed:
(c)
if that taxable income is not greater than the intermediate prescribed amount in relation to that year of income
-
2% of that taxable income; or
(d)
if that taxable income is greater than the intermediate prescribed amount in relation to that year of income but is not greater than the maximum prescribed amount in relation to that year of income
-
3% of that taxable income; or
(e)
if that taxable income is greater than the maximum prescribed amount in relation to that year of income
-
4% of that taxable income.
12ZK(2)
In subsection (1):
relevant debt
means:
(a)
subject to paragraph (b) of this subsection, the person's accumulated FS debt referred to in paragraph (1)(b); or
(b)
if an amount or amounts have been paid in reduction of that debt or an amount or amounts have been assessed under section
12ZM
to be payable in respect of that debt
-
the amount (if any) remaining after deducting from that debt the amount or the sum of the amounts so paid or assessed to be payable.
12ZK(3)
A reference in paragraph (2)(b) to an amount assessed under section
12ZM
to be payable in respect of a person's accumulated FS debt is, if the amount has been increased or reduced by an amendment of the relevant assessment, taken to be a reference to the increased or reduced amount, as the case may be.
12ZK(4)
For the purposes of subsection (1):
(a)
the
minimum prescribed amount
is:
(i)
in the case of the year of income ending on 30 June 1998
-
$29,307; or
(ii)
in the case of a subsequent year of income
-
the number of whole dollars in the amount worked out using the formula:
(b)
the
intermediate prescribed amount
is:
(i)
in the case of the year of income ending on 30 June 1998
-
$33,305; or
(ii)
in the case of a subsequent year of income
-
the number of whole dollars in the amount worked out using the formula:
| 52
× |
AWE
5
|
× |
33,305
29,307 |
(c)
the
maximum prescribed amount
is:
(i)
in the case of the year of income ending on 30 June 1998
-
$46,629; or
(ii)
in the case of a subsequent year of income
-
the number of whole dollars in the amount worked out using the formula:
| 52
× |
AWE
5
|
× |
46,629
29,307 |
where:
AWE
is the sum of:
(d)
the average weekly earnings for all employees for the reference period in the December quarter immediately before that year of income, as published by the Australian Statistician; and
(e)
the average weekly earnings for all employees for the reference period in each of the 4 quarters immediately before that December quarter, as published by the Australian Statistician.
12ZK(5)
For the purposes of subsection (4), the
reference period
in a particular quarter in a year is the period described by the Australian Statistician as the pay period ending on or before the third Friday of the middle month of that quarter.
12ZK(6)
The Minister must cause to be published in the
Gazette
:
(a)
before the start of the year of income ending on 30 June 1999; and
(b)
before the start of each following year of income;
the minimum prescribed amount, intermediate prescribed amount and maximum prescribed amount in respect of that year of income.
History
S 12ZK amended by No 40 of 1998 and inserted by No 138 of 1992.
SECTION 12ZK
COMPULSORY PAYMENTS IN RESPECT OF ACCUMULATED FS DEBT
12ZK(1)
If:
(a)
a person's repayment income for the income year 2006-07 or a subsequent income year exceeds the minimum repayment income for that year; and
(b)
on 1 June immediately preceding the making of an assessment in respect of the person's income for that income year, the person had an accumulated FS debt;
the person is liable to pay to the Commonwealth, in accordance with this Division, the amount worked out under section 12ZLC in reduction of the person's repayable debt.
12ZK(2)
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.
History
S 12ZK substituted by No 47 of 2006, s 3 and Sch 2 item 24, effective 22 May 2006. For saving provision, see note under definition of
"
compulsory repayment amount
"
in s 3(1). For former wording of s 12ZK, see note under subdiv C heading.
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