Student Assistance Legislation Amendment Act 2006 (47 of 2006)

Schedule 2   Amendments relating to the Student Assistance Act 1973

Part 3   Amendments concerning repayment of accumulated FS debt

Division 1   Main amendments

Student Assistance Act 1973

24   Subdivision C of Division 6 of Part 4A

Repeal the Subdivision, substitute:

Subdivision C - Requirement to discharge indebtedness

12ZK Compulsory payments in respect of accumulated FS debt

(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 income 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.

(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.

12ZL Repayment income

(1) A person's repayment income for an income year is an amount equal to the sum of:

(a) the person's taxable income for the income year; and

(b) if a person has a rental property loss for the income year - the amount of that rental property loss; and

(c) if the person:

(i) is an employee (within the meaning of the Fringe Benefits Tax Assessment Act 1986); and

(ii) has a reportable fringe benefits total (within the meaning of that Act) for the income year;

the reportable fringe benefits total for the income year; and

(d) if the person has exempt foreign income for the income year - the amount of that exempt foreign income.

(2) The person's rental property loss is the amount (if any) by which the amount of the person's allowable deductions under the Income Tax Assessment Act 1997 in respect of rental property in Australia exceeds the person's gross rental property income.

(3) For the purposes of subsection (2), disregard any rental property income that the person derives as a member of a partnership.

(4) The person's exempt foreign income is the total amount (if any) by which the person's income that is exempt from tax under section 23AF or 23AG of the Income Tax Assessment Act 1936 exceeds the total amount of losses and outgoings that the person incurs in deriving that exempt income.

(5) For the purposes of subsection (4), disregard any capital losses and outgoings.

12ZLA Minimum repayment income

The minimum repayment income for the 2006-07 income year or for a later income year is the amount worked out under paragraph 154-10(b) of the Higher Education Support Act 2003 in respect of that income year.

12ZLB Repayable debt for an income year

(1) A person's repayable debt for an income year is:

(a) the person's accumulated FS debt referred to in paragraph 12ZK(1)(b) in relation to that income year; or

(b) if one or more amounts:

(i) have been paid in reduction of that debt; or

(ii) 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 sum of the amounts, so paid or assessed to be payable.

(2) A reference in paragraph (1)(b) to an amount assessed to be payable is, if the amount has been increased or reduced by an amendment of the relevant assessment, a reference to the increased amount or the reduced amount.

12ZLC Amounts payable to the Commonwealth

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:

12ZLD Publishing indexed amounts

(1) The Minister must cause to be published in the Gazette, before the start of the 2007-08 income year or a later income year, a notice setting out:

(a) the minimum repayment income; and

(b) the amounts determined as referred to in the second column of items 1 and 2 of the table in section 12ZLC;

for that income year.

(2) A notice under subsection (1) is not a legislative instrument.