Student Assistance Act 1973

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:

52   ×

AWE   5

(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.

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History

S 12ZK amended by No 40 of 1998 and inserted by No 138 of 1992.

Definition of " relevant income-contingent loans liability " substituted by No 116 of 2018, s 3 and Sch 1 item 46, effective 1 July 2019. The definition formerly read:

relevant income-contingent loans liability
means the amount that is the sum of any amounts the person is liable to pay under section 154-1 or 154-16 of the Higher Education Support Act 2003 in respect of the income year.

S 12ZLC substituted by No 76 of 2018, s 3 and Sch 1 item 6, effective 1 July 2019 and applicable in relation to the 2019-20 income year and later income years. S 12ZLC formerly read:

SECTION 12ZLC AMOUNTS PAYABLE TO THE COMMONWEALTH  
12ZLC
The amount that a person is liable to pay under section 12ZK, in respect of an income year, is an amount equal to so much of the person ' s repayable debt for the income year as does not exceed the percentage of the person ' s repayment income that is applicable under the following table:

Applicable percentages
Item	If the person ' s repayment income for the 2006 07 income year or a later income year is:	The percentage applicable is:
1	More than the minimum repayment income, but less than the amount determined as set out in column 2 of item 2 of the table in section 154 20 of the Higher Education Support Act 2003, in respect of that income year.	2%
2	More than the amount under item 1, but less than the amount determined as set out in column 2 of item 7 of the table in section 154 20 of the Higher Education Support Act 2003, in respect of that income year.	3%
3	More than the amount under item 2.	4%

S 12ZLC inserted 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).