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)
).
History
S 140-10(1) amended by No 108 of 2024, s 3 and Sch 1 items 2 and 3, by substituting
"
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)).
"
for
"
worked out as follows:
"
in para (b) and repealing the method statement, effective 5 December 2024. For application and transitional provisions, see note under
140-10(1B)
. The method statement formerly read:
Method statement
Step 1.
Add:
(a) the *index number for the *quarter ending on 31 March in that financial year; and
(b) the index numbers for the 3 quarters that immediately preceded that quarter.
Step 2.
Add:
(a) the *index number for the *quarter ending on 31 March in the immediately preceding financial year; and
(b) the index numbers for the 3 quarters that immediately preceded that quarter.
Step 3.
The
HELP debt indexation factor
for 1 June in the financial year is the amount under step 1 divided by the amount under step 2.
S 140-10(1) amended by No 3 of 2023, s 3 and Sch 2 item 5, by inserting
"
or 144-5
"
in para (a), effective 21 February 2023. For application, saving and transitional provisions, see note under Div
144
heading.
S 140-10(1) amended by No 103 of 2019, s 3 and Sch 2 item 6, by substituting all the words before the method statement, effective 1 January 2020 and applicable in relation to the 2019-2020 financial year and each later financial year. Formerly read:
140-10(1)
The HELP debt indexation factor for 1 June in a financial year is the number (rounded to 3 decimal places) worked out as follows:
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)
.
History
S 140-10(1A) amended by No 108 of 2024, s 3 and Sch 1 item 4, by substituting
"
within the meaning of paragraph (1)(b)
"
for
"
worked out using the method statement in subsection (1)
"
in the definition of B, effective 5 December 2024. For application and transitional provisions, see note under
140-10(1B)
.
S 140-10(1A) amended by No 3 of 2023, s 3 and Sch 2 item 6, by inserting
"
or 144-5(2)
"
at the end of the definition of B, effective 21 February 2023. For application, saving and transitional provisions, see note under Div
144
heading.
S 140-10(1A) inserted by No 103 of 2019, s 3 and Sch 2 item 7, effective 1 January 2020 and applicable in relation to the 2019-2020 financial year and each later financial year.
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 March 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 March 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.
History
S 140-10(1B) inserted by No 108 of 2024, s 3 and Sch 1 item 5, effective 5 December 2024. No 108 of 2024, s 3 and Sch 1 items 56
-
58 and Sch 6 item 1 contain the following application and transitional provisions:
Part 5
-
Application of amendments made by Parts 1 and 3 of this Schedule
Division 1
-
Amendment of the Higher Education Support Act 2003
56 Application of amendments of the Higher Education Support Act 2003
(1)
The amendments of the
Higher Education Support Act 2003
made by Part 1 of this Schedule apply for the purposes of working out a person
'
s *accumulated HELP debt and a person
'
s *former accumulated HELP debt for the financial year ending on 30 June 2023 and each subsequent financial year.
(2)
For the purposes of applying subitem (1) to the financial years ending on 30 June 2023 and 30 June 2024, a person
'
s *accumulated HELP debt and a person
'
s *former accumulated HELP debt are to be recalculated.
(3)
The transitional rules under Schedule 6 may specify how a recalculation under subitem (2) is to occur.
57 When refunds are required
57
If:
(a)
the
Higher Education Support Act 2003
as amended by this Schedule applies for the purposes of working out the following for a person:
(i)
an *accumulated HELP debt;
(ii)
a *former accumulated HELP debt; and
(b)
because of the operation of item 56 of this Schedule, the amount previously paid by the person to the Commonwealth under Division
151
or
154
of Chapter
4
of the
Higher Education Support Act 2003
as in force immediately before the commencement of Part 1 of this Schedule exceeds the sum of:
(i)
the amount required immediately before that commencement to discharge the total debt that the person owes to the Commonwealth under Chapter
4
of the
Higher Education Support Act 2003
as amended by this Schedule; and
(ii)
the total amount of the person
'
s primary tax debts immediately before that commencement (within the meaning of the
Taxation Administration Act 1953
);
the Commonwealth must refund to the person an amount equal to that excess.
Note:
Interest may be payable if the Commonwealth is late in paying refunds: see Part
IIIA
of the
Taxation (Interest on Overpayments and Early Payments) Act 1983
.
58 Meaning of expressions
58
Expressions used in this Division have the same meanings as they have in the
Higher Education Support Act 2003
.
…
Schedule 6
-
Transitional rules
1 Transitional rules
(1)
The Minister may, by legislative instrument, make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by this Act.
(2)
Without limiting subitem (1), rules made under this item before the day on which Schedule 5 commences (whether or not the rules relate to Schedule 5) may provide that provisions of this Act, or any other Act or instrument, have effect with any modifications prescribed by the rules. Those provisions then have effect as if they were so modified.
(3)
Without limiting subitem (1), rules made under this item may make provision for and in relation to the recalculation of debts or amounts owing as mentioned in Part 5 of Schedule 1 to this Act including, but not limited to, specifying how a recalculation takes account of debts waived (whether in whole or part) before the recalculation.
(4)
Without limiting subitem (1), rules made under this item may specify a course of study or an accelerator program course (within the meaning of the
Higher Education Support Act 2003
) at a merging university (within the meaning of Part 2 of Schedule 5 to this Act) to be a corresponding course at Adelaide University for the purposes of that Part.
(5)
To avoid doubt, the rules may not do the following:
(a)
create an offence or civil penalty;
(b)
provide powers of:
(i)
arrest or detention; or
(ii)
entry, search or seizure;
(c)
impose a tax;
(d)
set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;
(e)
directly amend the text of an Act.
(6)
Despite subsection
14(2)
of the
Legislation Act 2003
, rules made under this item may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in a document as in force or existing from time to time.
(7)
This Act (other than subitem (5)) does not limit the rules that may be made under this item.
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 March 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 March 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.
History
S 140-10(1C) inserted by No 108 of 2024, s 3 and Sch 1 item 5, effective 5 December 2024. For application and transitional provisions, see note under
140-10(1B)
.
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.
[
CCH Note:
S 140-10 will be amended by No 108 of 2024, s 3 and Sch 1 item 18, by substituting
"
31 December
"
for
"
31 March
"
(wherever occurring), applicable on and from 1 June 2025. For transitional provisions, see note under
140-10(1B)
.]