Education and Other Legislation Amendment (VET Student Loan Debt Separation) Act 2018 (116 of 2018)

Schedule 1   Separation of VET student loan debts from HELP debts

Part 2   Consequential and contingent amendments

VET Student Loans Act 2016

76   At the end of Part 6

Add:

Division 4 - Re-crediting by Secretary on discharge of debt

73A When Secretary must re-credit HELP balance - discharge of debt

(1) If, during:

(a) the financial year starting on 1 July 2019; or

(b) a later financial year;

a payment was made in discharge of the whole or a part of a debt that a person owes to the Commonwealth under Part 3A, the Commissioner must:

(c) notify the payment to the Secretary; and

(d) do so as soon as practicable after the end of that financial year.

Note 1: The payment may be a voluntary repayment.

Note 2: The payment may be in the form of the application of an amount against the debt.

(2) If the Secretary is so notified, the Secretary must re-credit the person's HELP balance with an amount equal to the amount of the payment.

Note: Re-crediting under this Division does not have the same effect as re-crediting under Division 2 or 3 (re-crediting under those Divisions results in remission of the debt concerned: see section 23BA). For debts incurred before 1 July 2019, see section 137-19 of the Higher Education Support Act 2003 (which applies unless an amount is re-credited under section 128-25 of that Act).