Higher Education Support Act 2003

Chapter 4 - Repayment of loans

PART 4-1 - INDEBTEDNESS

Division 140 - How are accumulated HELP debts worked out?

Subdivision 140-B - Former accumulated HELP debts

SECTION 140-5 Working out a former accumulated HELP debt

140-5(1)

A person ' s former accumulated HELP debt , in relation to the person ' s *accumulated HELP debt for a financial year, is worked out by multiplying:

(a) the amount worked out using the following method statement; by

(b)

View history reference

the *HELP debt indexation factor for the person for 1 June in that financial year. Method statement

Step 1.

Take the person ' s *accumulated HELP debt for the immediately preceding financial year. (This amount is taken to be zero if the person has no accumulated HELP debt for that financial year.)

Step 2.

Take the HELP debts (if any) that the person incurred during the last 6 months of the immediately preceding financial year. Group them according to whether the debts are in relation to:

(a) units undertaken with a higher education provider that formed part of one particular *course of study with that provider; or

(b) units undertaken with a higher education provider that formed part of one particular course of study with another higher education provider; or

(d) units access to which was provided by *Open Universities Australia; or

(e) *OS-HELP assistance, the entitlement to which relates to the person ' s enrolment in a *course of study with one particular higher education provider (see paragraph 118-1(1)(c) ); or

(ea) *SA-HELP assistance for *student services and amenities fees imposed on the person by one particular higher education provider; or

(eb) *STARTUP-HELP assistance for an *accelerator program course provided by one particular higher education provider; or

(f) units undertaken with a *VET provider that formed part of one particular *VET course of study with that provider; or

(g) units undertaken with a VET provider that formed part of one particular VET course of study with another VET provider; or

(h) a *VET student loan in relation to one particular course of study.

Note:

There will be more than one group of debts under paragraph (a) if the person incurred debts in relation to more than one course of study with a provider. Similarly, there could be more than one group of debts under paragraph (b), (c), (e), (ea), (eb), (f), (g) or (h).

Step 2A.

Work out the total for each group of debts. If the total for a particular group is an amount consisting of a number of whole dollars and a number of cents, the total for that group is taken to be the number of whole dollars. If the total for a group is an amount of less than one dollar, the total for the group is taken to be zero.

Step 2B.

If there is more than one group of debts for the person, add together the totals for all of the groups.

Step 3.

Subtract the sum of the amounts by which the person ' s debts referred to above are reduced because of any *voluntary repayments that have been made during the period:

(a) starting on 1 June in the immediately preceding financial year; and

(b) ending immediately before the next 1 June.

Step 4.

Subtract the sum of all of the person ' s *compulsory repayment amounts that:

(a) were assessed during that period (excluding any assessed as a result of a *return given before that period); or

(b) were assessed after the end of that period as a result of a return given before the end of that period.

Step 4A.

(Repealed by No 55 of 2016)

Step 5.

Subtract the sum of the amounts by which any *compulsory repayment amount of the person is increased (whether as a result of an increase in the person ' s *taxable income of an *income year or otherwise) by an amendment of an assessment made during that period.

Step 6.

Add the sum of the amounts by which any *compulsory repayment amount of the person is reduced (whether as a result of a reduction in the person ' s *taxable income of an *income year or otherwise) by an amendment of an assessment made during that period.

Example:

Lorraine is studying part time for a Degree of Bachelor of Communications. On 1 June 2013, Lorraine had an accumulated HELP debt of $15,000. She incurred a HELP debt of $1,500 on 31 March 2013. She made a voluntary repayment of $525 on 1 May 2014. Lorraine lodged her 2012-13 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 2013.

To work out Lorraine ' s former accumulated HELP debt before indexation on 1 June 2014:

Step 1: Take the previous accumulated HELP debt of $15,000 on 1 June 2013.

Step 2: Add the HELP debt of $1,500 incurred on 31 March 2013.

Step 3: Subtract the $525 voluntary repayment made on 1 May 2014.

Step 4: Subtract the $3,000 compulsory repayment assessed on 3 September 2013.

Step 4A: (Repealed by No 55 of 2016)

Step 5 and 6: Do not apply because since 1 June 2013 Lorraine had no amendments to any assessment.

Lorraine ' s former accumulated HELP debt before indexation on 1 June 2014 is:

($15,000 + $1,500) − ($525 + $3000) = $12,975

If, for example, the indexation factor for 1 June 2014 were 1.030, then the former accumulated HELP debt would be:

$12,975 × 1.030 = $13,364.25

View history note

History

S 140-5(1) amended by No 36 of 2023, s 3 and Sch 1 items 29 and 30, by inserting para (eb) in step 2 of the method statement and " (eb), " in the note in step 2 of the method statement, effective 29 June 2023.

S 140-5(1) amended by No 103 of 2019, s 3 and Sch 2 item 5, by inserting " for the person " in para (b), effective 1 January 2020 and applicable in relation to the 2019-2020 financial year and each later financial year.

S 140-5(1) amended by No 55 of 2016, s 3 and Sch 3 items 2 and 3, by repealing step 4A of the method statement and omitting " Step 4A: Does not apply because Lorraine does not satisfy the eligibility requirements for the HECS-HELP benefit. " in the example, effective 1 July 2017. For application and saving provision, see note under Div 157 heading. Step 4A of the method statement formerly read:

Step 4A.
In respect of that period, subtract the amount of *HECS-HELP benefit (if any) determined, in respect of the person, by the *Commissioner under section 157-20 for an *income year, if the person did not have any *compulsory repayment amounts for that year.

S 140-5(1) amended by No 100 of 2016, s 3 and Sch 1 items 8 - 10, by substituting " provider; or " for " provider. " in para (g), inserting para (h) in step 2 of the method statement and substituting " (f), (g) or (h) " for " (f) or (g) " in the note in step 2 of the method statement, effective 1 January 2017. For transitional provision, see note under s 137-19 .

S 140-5(1) amended by No 169 of 2015, s 3 and Sch 4 items 2 - 5, by substituting " 2013 " for " 2011 " (wherever occurring), omitting " (which includes a voluntary repayment bonus of $25) " after " repayment of $525 " , substituting " 2014 " for " 2012 " (wherever occurring) and " 2012-13 " for " 2010-11 " in the example, applicable in relation to a voluntary repayment made on or after 1 January 2017, regardless of when the debt to which the repayment relates was incurred.

S 140-5(1) amended by No 112 of 2013, s 3 and Sch 1 item 21, by substituting " a *course of study " for " an *undergraduate course of study " in para (e) of step 2, method statement, effective 30 June 2013. For application provisions see note under s 121-1 .

S 140-5(1) amended by No 178 of 2011, s 3 and Sch 3 item 1, by substituting the example, applicable in relation to payments made under Division 151 of the Higher Education Support Act 2003 on or after 1 January 2012 to meet a person ' s debts to the Commonwealth under Chapter 4 of that Act. The example formerly read:

Example:

Lorraine is studying part-time for a Degree of Bachelor of Communications. On 1 June 2007 Lorraine had an accumulated HELP debt of $15,000. She incurred a HELP debt of $1,500 on 31 March 2007. She made a voluntary repayment of $550 (which includes a voluntary repayment bonus of $50) on 1 May 2008. Lorraine lodged her 2006-07 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 2007.

To work out Lorraine ' s former accumulated HELP debt before indexation on 1 June 2008:

Step 1: Take the previous accumulated HELP debt of $15,000 on 1 June 2007.

Step 2: Add the HELP debt of $1,500 incurred on 31 March 2007.

Step 3: Subtract the $550 voluntary repayment made on 1 May 2008.

Step 4: Subtract the $3,000 compulsory repayment assessed on 3 September 2007.

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

Step 5 and 6: Do not apply because since 1 June 2007 Lorraine had no amendments to any assessment.

Lorraine ' s former accumulated HELP debt before indexation on 1 June 2008 is:

($15,000 + $1,500) − ($550 + $3000) = $12,950

If, for example, the indexation factor for 1 June 2008 were 1.050, then the former accumulated HELP debt would be:

$12,950 × 1.050 = $13,597.50

S 140-5(1) amended by No 130 of 2011, s 3 and Sch 1 items 14 and 15, by inserting para (ea) in step 2 of the method statement and inserting " (ea), " after " (e), " in the note in step 2 of the method statement, effective 1 January 2012.

S 140-5(1) amended by No 43 of 2008, s 3 and Sch 1 items 2 and 3, by inserting step 4A of the method statement and inserting step 4A of the example, applicable in respect of the 2008-2009 and later income years.

S 140-5(1) amended by No 170 of 2007, s 3 and Sch 1 item 13, by substituting step 2 of the method statement, effective 1 January 2008. Step 2 of the method statement formerly read:

Step 2.
Take the HELP debts (if any) that the person incurred during the last 6 months of the immediately preceding financial year. Group them according to whether the debts are in relation to:

(a) units undertaken with a *higher education provider that formed part of one particular *course of study with that provider; or

(b) units undertaken with a higher education provider that formed part of one particular course of study with another provider; or

(c) units that formed part of one particular *bridging course for overseas-trained professionals; or

(d) units access to which was provided by *Open Universities Australia; or

(e) *OS-HELP assistance, the entitlement to which relates to the person ' s enrolment in an *undergraduate course of study with one particular higher education provider (see paragraph 118-1(1)(c) ).

Note:

There will be more than one group of debts under paragraph (a) if the person incurred debts in relation to more than one course of study with a provider. Similarly, there could be more than one group of debts under paragraph (b), (c) or (e).

S 140-5(1) amended by No 121 of 2006, s 3 and Sch 4 items 1 and 2, by substituting steps 2, 2A and 2B for step 2 and substituting " above " for " in steps 1 and 2 " in step 3 of the method statement, applicable to the calculation of HELP debts incurred on or after 1 January 2005. Step 2 formerly read:

Step 2 ... Add the sum of all of the *HELP debts (if any) that the person incurred during the last 6 months of the immediately preceding financial year.

140-5(2)
For the purposes of this section, an assessment, or an amendment of an assessment, is taken to have been made on the day specified in the notice of assessment, or notice of amended assessment, as the date of issue of that notice.

140-5(3)
(Repealed by No 55 of 2016)

View history note

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Step 1:	Take the previous accumulated HELP debt of $15,000 on 1 June 2013.
Step 2:	Add the HELP debt of $1,500 incurred on 31 March 2013.
Step 3:	Subtract the $525 voluntary repayment made on 1 May 2014.
Step 4:	Subtract the $3,000 compulsory repayment assessed on 3 September 2013.
Step 4A:	(Repealed by No 55 of 2016)
Step 5 and 6:	Do not apply because since 1 June 2013 Lorraine had no amendments to any assessment.
	Lorraine ' s former accumulated HELP debt before indexation on 1 June 2014 is:
	($15,000 + $1,500) − ($525 + $3000) = $12,975
	If, for example, the indexation factor for 1 June 2014 were 1.030, then the former accumulated HELP debt would be:
	$12,975 × 1.030 = $13,364.25