Senate

Education and Other Legislation Amendment (VET Student Loan Debt Separation) Bill 2018

Revised Explanatory Memorandum

(Circulated by authority of the Minister for Small and Family Business, Skills and Vocational Education, Senator the Honourable Michaelia Cash)
This memorandum takes account of amendments made by the House of Representatives to the bill as introduced.

Notes on Clauses

Clause 1 - Short title

Clause 1 provides for the Act to be the Education and Other Legislation Amendment (VET Student Loan Debt Separation) Act 2018.

Clause 2 - Commencement

Subclause 2(1) contains a three column table setting out commencement information for various provisions in the Bill. Each provision of the Bill specified in column 1 of the table commences (or is taken to have commenced) in accordance with column 2 of the table, and any other statement in column 2 has effect according to its terms.

The table in subclause 2(1) provides for the following commencement times:

1.
Sections 1 to 3 and anything in the Act not otherwise covered by the table, commence on the day the Act receives the Royal Assent.
2.
Items 1 to 25 of Schedule 1 commence on 1 July 2019.
2A.
Item 25A of Schedule 1 commences on 1 January 2020, immediately after Schedule 3 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commences.
2B.
Items 26 to 35 of Schedule 1 commence on 1 July 2019.
3.
Items 36 to 38 of Schedule 1 commence on 1 July 2019. However, the provisions do not commence at all if Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commences on that day. This is because items 36 to 38 of Schedule 1 amend a provision in the Social Security Act 1991 as currently in force, but that provision is also amended by Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018. Therefore, items 36 to 38 of Schedule 1 will not commence if the amendments in Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commence. In that case, item 39 will commence.
4.
Item 39 of Schedule 1 commences immediately after the start of 1 July 2019. However, the provision does not commence at all if Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 does not commence on that day. This is because item 39 is an alternative to items 36 to 38, and amends a provision in the Social Security Act 1991 as amended by Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018. Therefore, the amendment in item 39 commences immediately after the commencement of Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018.
5.
Item 40 of Schedule 1 commences on 1 July 2019, immediately after Schedule 3 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commences.
6.
Items 41 to 43 of Schedule 1 commence on 1 July 2019.
7.
Item 44 of Schedule 1 commences on 1 July 2019. However, the provision does not commence at all if Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commences on that day. This is because item 44 amends a provision in the Student Assistance Act 1973 that is also amended by Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 and the amendment in item 44 is only necessary if the amendment in Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 does not commence.
8.
Item 45 of Schedule 1 commences immediately after the start of 1 July 2019. This is because the amendment in item 45 is required irrespective of whether Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commences or not.
Item 45 of Schedule 1, and Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018, amend the same provision in the Student Assistance Act 1973. Therefore, if Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commences, item 45 of Schedule 1 will amend subsection 10F(1) of the Student Assistance Act 1973 as amended by Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018. However, if Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 does not commence, item 45 of Schedule 1 will amend subsection 10F(1) of the Student Assistance Act 1973 as currently in force.
9.
Item 46 of Schedule 1 commences on 1 July 2019, immediately after Schedule 3 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commences.
10.
Items 47 to 51 of Schedule 1 commence on 1 July 2019.
11.
Item 52 of Schedule 1 commences on 1 July 2019. However, the provision does not commence at all if Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 does not commence on that day. This is because the amendment in item 52 of Schedule 1 updates a cross-reference to a definition in subsection 1061ZVHA(1) of the Social Security Act 1991 as a result of amendments in Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018.
12.
Items 53 to 71 of Schedule 1 commence immediately after the start of 1 July 2019. This is because the amendment in item 71 of Schedule 1 is required irrespective of whether Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commences or not.
Item 71 of Schedule 1, and Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018, amend the same provision in the Trade Support Loans Act 2014. Therefore, if Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commences, item 71 of Schedule 1 will amend subsection 46(1) of the Trade Support Loans Act 2014 as amended by Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018. However, if Schedule 2 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 does not commence, item 71 of Schedule 1 will amend subsection 46(1) of the Trade Support Loans Act 2014 as currently in force.
13.
Items 71A to 76 commence on 1 January 2020, immediately after Schedule 3 to the Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018 commences.
14.
Schedule 2 commences the day after the Act receives the Royal Assent.

The Note at the end of subclause 2(1) clarifies that the table relates only to the provisions of this Act as originally enacted and it will not be amended to deal with any later amendments of the Act.

Subclause 2(2) provides that any information in column 3 of the table is not part of the Act, and information may be inserted in column 3, or information in it may be edited, in any published version of the Act.

Clause 3 - Schedules

Clause 3 provides that any legislation that is specified in a Schedule is amended or repealed as set out in the applicable items in the Schedule concerned and that any other item in a Schedule has effect according to its terms.

LIST OF ABBREVIATIONS

HELP Higher Education Loan Program

HESA Higher Education Support Act 2003

SLS Act Higher Education Support Legislation Amendment (Student Loan Sustainability) Act 2018

SLS Bill Higher Education Support Legislation Amendment (Student Loan Sustainability) Bill 2018

pre-1 July 2019 VSL debt a debt incurred under section 137-19 of HESA as in force at any time before 1 July 2019

VSL Act VET Student Loans Act 2016

VETSL debt a debt incurred under section 23BA of the VSL Act on or after 1 July 2019


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).