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 12ZL
REPAYMENT INCOME
12ZL(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, disregarding the person
'
s assessable FHSS released amount (within the meaning of the
Income Tax Assessment Act 1997
) for the income year; and
(b)
the person
'
s total net investment loss (within the meaning of the
Income Tax Assessment Act 1997
) for the income year; 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)
the person
'
s exempt foreign income for the income year; and
(e)
the person
'
s reportable superannuation contributions (within the meaning of the
Income Tax Assessment Act 1997
) for the income year.
History
S 12ZL(1) amended by No 132 of 2017, s 3 and Sch 1 item 35, by inserting
"
, disregarding the person
'
s assessable FHSS released amount (within the meaning of the
Income Tax Assessment Act 1997
) for the income year
"
in para (a), effective 1 July 2018.
S 12ZL(1) amended by No 27 of 2009, s 3 and Sch 3 items 85 and 86, by substituting para (b), and substituting paras (d) and (e) for para (d), applicable in relation to income years starting on or after 1 July 2009. Paras (b) and (d) formerly read:
(b)
if a person has a rental property loss for the income year
-
the amount of that rental property loss; and
(d)
if the person has exempt foreign income for the income year
-
the amount of that exempt foreign income.
12ZL(2)
(Repealed by No 27 of 2009)
History
S 12ZL(2) repealed by No 27 of 2009, s 3 and Sch 3 item 87, applicable in relation to income years starting on or after 1 July 2009. S 12ZL(2) formerly read:
12ZL(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.
12ZL(3)
(Repealed by No 27 of 2009)
History
S 12ZL(3) repealed by No 27 of 2009, s 3 and Sch 3 item 87, applicable in relation to income years starting on or after 1 July 2009. S 12ZL(3) formerly read:
12ZL(3)
For the purposes of subsection (2), disregard any rental property income that the person derives as a member of a partnership.
12ZL(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.
12ZL(5)
For the purposes of subsection (4), disregard any capital losses and outgoings.
History
S 12ZL 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).