Higher Education Support Amendment Act (No. 2) 2011 (178 of 2011)

Schedule 3   Voluntary repayment bonus

Higher Education Support Act 2003

1   Subsection 140-5(1) (example)

Repeal the example, substitute:

Example: Lorraine is studying part-time for a Degree of Bachelor of Communications. On 1 June 2011, Lorraine had an accumulated HELP debt of $15,000. She incurred a HELP debt of $1,500 on 31 March 2011. She made a voluntary repayment of $525 (which includes a voluntary repayment bonus of $25) on 1 May 2012. Lorraine lodged her 2010-11 income tax return and a compulsory repayment amount of $3,000 was assessed and notified on her income tax notice of assessment on 3 September 2011.

To work out Lorraine's former accumulated HELP debt before indexation on 1 June 2012:

Step 1: Take the previous accumulated HELP debt of $15,000 on 1 June 2011.

Step 2: Add the HELP debt of $1,500 incurred on 31 March 2011.

Step 3: Subtract the $525 voluntary repayment made on 1 May 2012.

Step 4: Subtract the $3,000 compulsory repayment assessed on 3 September 2011.

Step 4A: Does not apply because Lorraine does not satisfy the eligibility requirements for the HECS-HELP benefit.

Steps 5 and 6: Do not apply because since 1 June 2011 Lorraine had no amendments to any assessment.

Lorraine's former accumulated HELP debt before indexation on 1 June 2012 is:

($15,000 + $1,500) - ($525 + $3,000) = $12,975

If, for example, the indexation factor for 1 June 2012 were 1.030, then the former accumulated HELP debt would be:

$12,975 x 1.030 = $13,364.25