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This is a Bill, not an Act. For current law, see the Acts databases.
2022
The Parliament of the
Commonwealth of Australia
THE SENATE
Presented and read a first time
Education and Other Legislation
Amendment (Abolishing Indexation and
Raising the Minimum Repayment
Income for Education and Training
Loans) Bill 2022
No. , 2022
(Senator Faruqi)
A Bill for an Act to amend the law relating to
higher education, vocational education and
training, social security and student assistance, and
for related purposes
No. , 2022
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 2
3
Schedules ........................................................................................... 2
Schedule 1--Abolishing indexation
3
Part 1--HELP debts
3
Higher Education Support Act 2003
3
Part 2--Student start-up loans and student financial
supplement scheme
6
Social Security Act 1991
6
Part 3--ABSTUDY student start-up loans and financial
supplement for tertiary students
8
Student Assistance Act 1973
8
Part 4--Trade support loans
10
Trade Support Loans Act 2014
10
Part 5--VET student loans
12
VET Student Loans Act 2016
12
Schedule 2--Raising minimum repayment income and
repayment amount
14
Higher Education Support Act 2003
14
Social Security Act 1991
17
Student Assistance Act 1973
17
No. , 2022
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
1
A Bill for an Act to amend the law relating to
1
higher education, vocational education and
2
training, social security and student assistance, and
3
for related purposes
4
The Parliament of Australia enacts:
5
1 Short title
6
This Act is the
Education and Other Legislation Amendment
7
(Abolishing Indexation and Raising the Minimum Repayment
8
Income for Education and Training Loans) Act 2022.
9
2
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
No. , 2022
2 Commencement
1
(1) Each provision of this Act specified in column 1 of the table
2
commences, or is taken to have commenced, in accordance with
3
column 2 of the table. Any other statement in column 2 has effect
4
according to its terms.
5
6
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
7
enacted. It will not be amended to deal with any later amendments of
8
this Act.
9
(2) Any information in column 3 of the table is not part of this Act.
10
Information may be inserted in this column, or information in it
11
may be edited, in any published version of this Act.
12
3 Schedules
13
Legislation that is specified in a Schedule to this Act is amended or
14
repealed as set out in the applicable items in the Schedule
15
concerned, and any other item in a Schedule to this Act has effect
16
according to its terms.
17
Abolishing indexation
Schedule 1
HELP debts
Part 1
No. , 2022
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
3
Schedule 1--Abolishing indexation
1
Part 1--HELP debts
2
Higher Education Support Act 2003
3
1 Section 129-1
4
Omit:
5
A very remote HELP debtor's accumulated debt, or the indexation
6
of that debt, may be reduced (see Division 142).
7
substitute:
8
A very remote HELP debtor's accumulated debt may be reduced
9
(see Division 142).
10
2 Paragraph 140-1(2)(a)
11
Repeal the paragraph.
12
3 Subsection 140-5(1)
13
Omit all the words before the method statement, substitute:
14
(1) A person's
former accumulated HELP debt
, in relation to the
15
person's
*
accumulated HELP debt for a financial year, is the
16
amount worked out using the following method statement.
17
4 Subsection 140-5(1) (example)
18
Repeal the example, substitute:
19
Example: Lorraine is studying part-time for a Degree of Bachelor of
20
Communications. On 1 June 2021, Lorraine had an accumulated
21
HELP debt of $15,000. She incurred a HELP debt of $1,500 on
22
31 March 2021. She made a voluntary repayment of $525 on 1 May
23
2022. Lorraine lodged her 2020-21 income tax return and a
24
compulsory repayment amount of $3,000 was assessed and notified on
25
her income tax notice of assessment on 3 September 2021.
26
Schedule 1
Abolishing indexation
Part 1
HELP debts
4
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
No. , 2022
To work out Lorraine's former accumulated HELP debt on 1 June
1
2022:
2
Step 1:
Take the previous accumulated HELP debt of $15,000 on 1 June
3
2021.
4
Step 2:
Add the HELP debt of $1,500 incurred on 31 March 2021.
5
Step 3:
Subtract the $525 voluntary repayment made on 1 May 2022.
6
Step 4:
Subtract the $3,000 compulsory repayment assessed on 3 September
7
2021.
8
Step 5:
Does not apply because since 1 June 2021 Lorraine had no
9
amendments to any assessment.
10
Step 6:
Does not apply because since 1 June 2021 Lorraine had no
11
amendments to any assessment.
12
Lorraine's former accumulated HELP debt on 1 June 2022 is:
13
14
5 Sections 140-10, 140-20 and 142-10
15
Repeal the sections.
16
6 Section 198-1 (notes 1 and 2)
17
Repeal the notes, substitute:
18
Note:
Guidelines may provide for amounts to be indexed using the method
19
of indexation set out in this Part.
20
7 Section 206-1 (table item 2AA)
21
Repeal the item.
22
8 Subclause 1(1) of Schedule 1 (definition of HELP debt
23
indexation factor)
24
Repeal the definition.
25
9 Application of amendments
26
(1)
The amendments of the
Higher Education Support Act 2003
made by
27
this Part apply in relation to the financial year starting on 1 July 2022
28
and each later financial year.
29
$15,000
$1,500
$525
$3,000
$12,975
+
−
+
=
Abolishing indexation
Schedule 1
HELP debts
Part 1
No. , 2022
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
5
(2)
Despite the repeal of section 142-10 of the
Higher Education Support
1
Act 2003
and item 2AA of the table in section 206-1 of that Act by this
2
Part, those provisions continue to apply on and after the commencement
3
of this Part in relation to the indexation of a person's accumulated
4
HELP debt for a financial year starting on or before 1 July 2021, as if
5
the repeals had not happened.
6
Schedule 1
Abolishing indexation
Part 2
Student start-up loans and student financial supplement scheme
6
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
No. , 2022
Part 2--Student start-up loans and student financial
1
supplement scheme
2
Social Security Act 1991
3
10 Section 19AA (definition of HELP debt indexation factor)
4
Repeal the definition.
5
11 Section 1061ZVEA (paragraph (a) of the paragraph
6
beginning "In stage 1")
7
Omit the paragraph.
8
12 Subsection 1061ZVEB(1)
9
Omit all the words before the method statement, substitute:
10
(1) A person's
former accumulated SSL debt
, in relation to the
11
person's accumulated SSL debt for a financial year, is the amount
12
worked out using the following method statement.
13
13 Subsection 1061ZX(4)
14
Repeal the subsection.
15
14 Subsection 1061ZX(6)
16
Omit "indexed".
17
15 Section 1061ZZEP
18
Repeal the section, substitute:
19
1061ZZEP How to work out FS debt
20
The FS debt is the amount outstanding under the contract at the
21
termination date.
22
16 Subsection 1061ZZER(2) (formula)
23
Repeal the formula, substitute:
24
Abolishing indexation
Schedule 1
Student start-up loans and student financial supplement scheme
Part 2
No. , 2022
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
7
1
17 Subsection 1061ZZER(3) (definition of indexation factor)
2
Repeal the definition.
3
18 Section 1061ZZET
4
Repeal the section.
5
19 Subsection 1061ZZEU(3)
6
Omit "1061ZZET", substitute "1061ZZES".
7
20 Application of amendments
8
(1)
The amendments of Chapter 2AA of the
Social Security Act 1991
made
9
by this Part apply in relation to the financial year starting on 1 July
10
2022 and each later financial year.
11
(2)
The amendments of Chapter 2B of the
Social Security Act 1991
made
12
by this Part apply in relation to working out a person's FS debt or
13
accumulated FS debt at 1 June 2023 and each later 1 June.
14
Schedule 1
Abolishing indexation
Part 3
ABSTUDY student start-up loans and financial supplement for tertiary students
8
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
No. , 2022
Part 3--ABSTUDY student start-up loans and
1
financial supplement for tertiary students
2
Student Assistance Act 1973
3
21 Section 3 (definitions of HELP debt indexation factor and
4
indexation amount)
5
Repeal the definitions.
6
22 Section 9A (paragraph
(a) of the paragraph beginning "In
7
stage 1")
8
Omit the paragraph.
9
23 Subsection 9B(1)
10
Omit all the words before the method statement, substitute:
11
(1) A person's
former ABSTUDY accumulated SSL debt
, in relation
12
to the person's accumulated ABSTUDY SSL debt for a financial
13
year, is the amount worked out using the following method
14
statement.
15
24 Subsection 12A(4)
16
Repeal the subsection, substitute:
17
(4) The student is entitled, but not required, to make early repayments
18
above a certain amount in respect of the supplement during the
19
period of the contract. There is a discount, worked out under
20
subsection 12ZA(7) or (7A), for repayments made before the end
21
of that period.
22
25 Subsection 12A(5)
23
Omit "indexed".
24
26 Section 12W
25
Omit "(including the amount attributable to indexation, which is
26
identified by section 12Y)".
27
Abolishing indexation
Schedule 1
ABSTUDY student start-up loans and financial supplement for tertiary students
Part 3
No. , 2022
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
9
27 Subsection 12X(3) (definition of the amount outstanding)
1
(formula)
2
Repeal the formula, substitute:
3
4
28 Subsection 12ZF(1)
5
Repeal the subsection, substitute:
6
(1) If, at the end of the contract period in relation to a financial
7
supplement contract between a participating corporation and
8
another person, there was an amount outstanding under the
9
contract, the person incurs on 1 June immediately following the
10
end of that period a debt (
FS debt
) to the Commonwealth.
11
29 Subsection 12ZF(3) (formula)
12
Repeal the formula, substitute:
13
14
30 Subsection 12ZF(3) (definition of indexation factor)
15
Repeal the definition.
16
31 Subsection 12ZF(6), (7), (7A) and (7B)
17
Repeal the subsections.
18
32 Application of amendments
19
(1)
The amendments of Part 2 of the
Student Assistance Act 1973
made by
20
this Part apply in relation to the financial year starting on 1 July 2022
21
and each later financial year.
22
(2)
The amendments of Part 4A of the
Student Assistance Act 1973
made
23
by this Part apply in relation to working out a person's FS debt or
24
accumulated FS debt at 1 June 2023 and each later 1 June.
25
Schedule 1
Abolishing indexation
Part 4
Trade support loans
10
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
No. , 2022
Part 4--Trade support loans
1
Trade Support Loans Act 2014
2
33 Section 5 (definition of index number)
3
Omit "33", substitute "99A".
4
34 Section 5 (definition of TSL debt indexation factor)
5
Repeal the definition.
6
35 Section 30 (paragraph
(a) of the paragraph beginning "In
7
stage 1")
8
Omit the paragraph.
9
36 Subsection 31(1)
10
Omit all the words before the method statement, substitute:
11
(1) A person's
former accumulated TSL debt
, in relation to the
12
person's accumulated TSL debt for a financial year, is the amount
13
worked out using the following method statement.
14
37 Sections 32, 33 and 34
15
Repeal the sections.
16
38 Subsection 99(5) (note)
17
Repeal the note, substitute:
18
Note:
See section 99A for the definition of
index number
.
19
39 After section 99
20
Insert:
21
99A Index numbers
22
(1) The
index number
for a quarter is the All Groups Consumer Price
23
Index number, being the weighted average of the 8 capital cities,
24
published by the Australian Statistician in respect of that quarter.
25
Abolishing indexation
Schedule 1
Trade support loans
Part 4
No. , 2022
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
11
(2) Subject to subsection (3), if, at any time before or after the
1
commencement of this Act:
2
(a) the Australian Statistician has published or publishes an
3
index number in respect of a quarter; and
4
(b) that index number is in substitution for an index number
5
previously published by the Australian Statistician in respect
6
of that quarter;
7
disregard the publication of the later index number for the purposes
8
of this section.
9
(3) If, at any time before or after the commencement of this Act, the
10
Australian Statistician has changed or changes the index reference
11
period for the All Groups Consumer Price Index, then, in applying
12
this section after the change took place or takes place, have regard
13
only to index numbers published in terms of the new index
14
reference period.
15
40 Application of amendments
16
The amendments of the
Trade Support Loans Act 2014
made by this
17
Part apply in relation to the financial year starting on 1 July 2022 and
18
each later financial year.
19
Schedule 1
Abolishing indexation
Part 5
VET student loans
12
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
No. , 2022
Part 5--VET student loans
1
VET Student Loans Act 2016
2
41 Section 23CA (paragraph (a) of the paragraph beginning
3
"In stage 1")
4
Omit the paragraph.
5
42 Subsection 23CB(1)
6
Omit all the words before the method statement, substitute:
7
(1) A person's
former accumulated VETSL debt
, in relation to the
8
person's accumulated VETSL debt for a financial year, is the
9
amount worked out using the following method statement.
10
43 Subsection 23CB(1) (example)
11
Repeal the example, substitute:
12
Example: Lorraine is studying part-time for a Diploma of Early Childhood
13
Education and Care. On 1 June 2021, Lorraine had an accumulated
14
VETSL debt of $15,000. She incurred a VETSL debt of $1,500 on
15
31 March 2021. She made a voluntary repayment of $525 on 1 May
16
2022. Lorraine lodged her 2020-21 income tax return and a
17
compulsory VETSL repayment amount of $3,000 was assessed and
18
notified on her income tax notice of assessment on 3 September 2021.
19
To work out Lorraine's former accumulated VETSL debt on 1 June
20
2022:
21
Step 1:
Take the previous accumulated VETSL debt of $15,000 on 1 June
22
2021.
23
Step 2:
Add the VETSL debt of $1,500 incurred on 31 March 2021.
24
Step 3:
Subtract the $525 voluntary repayment made on 1 May 2022.
25
Step 4:
Subtract the $3,000 compulsory repayment assessed on 3 September
26
2021.
27
Step 5:
Does not apply because since 1 June 2021 Lorraine had no
28
amendments to any assessment.
29
Step 6:
Does not apply because since 1 June 2021 Lorraine had no
30
amendments to any assessment.
31
Abolishing indexation
Schedule 1
VET student loans
Part 5
No. , 2022
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
13
Lorraine's former accumulated VETSL debt on 1 June 2022 is:
1
2
44 Application of amendments
3
The amendments of the
VET Student Loans Act 2016
made by this Part
4
apply in relation to the financial year starting on 1 July 2022 and each
5
later financial year.
6
$15,000
$1,500
$525
$3,000
$12,975
+
−
+
=
Schedule 2
Raising minimum repayment income and repayment amount
14
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
No. , 2022
Schedule 2--Raising minimum repayment
1
income and repayment amount
2
3
Higher Education Support Act 2003
4
1 Section 154-10
5
Repeal the section, substitute:
6
154-10 Minimum repayment income
7
The
minimum repayment income
for an
*
income year is the
8
*
median wage.
9
Note:
Median wage is defined in section 154-11.
10
154-11 Meaning of median wage
11
(1) The
median wage
for an
*
income year is 52 times the amount set
12
out for the most recent month of August before the start of the
13
income year under the headings "Weekly earnings--Total" in a
14
document by the Australian Statistician entitled "Employee
15
earnings".
16
(2) If at any time (whether before or after the commencement of this
17
section), the Australian Statistician publishes the amount referred
18
to in subsection (1):
19
(a) under differently described headings (the
new headings
); or
20
(b) in a document entitled otherwise than as described above in
21
subsection (1) (the
new document
);
22
then the median wage
is to be calculated in accordance with
23
subsection (1) as if the references to:
24
(c) "Weekly earnings--Total"; or
25
(d) "Employee earnings";
26
were references to the new headings and/or the new document, as
27
the case requires.
28
(3) If:
29
Raising minimum repayment income and repayment amount
Schedule 2
No. , 2022
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
15
(a) the Australian Statistician published the amount (the
later
1
amount
) referred to in subsection (1) for a month of August;
2
and
3
(b) the later amount is published in substitution for such an
4
amount for that month that was previously published by the
5
Australian Statistician or that was applicable because of
6
subsection (7);
7
the publication of the later amount is to be disregarded for the
8
purposes of this Act.
9
Determination of amount by Minister
10
(4) If the Australian Statistician has not published the amount referred
11
to in subsection (1) for a month of August before the end of the
12
first 31 March after that month of August, the Minister may, by
13
legislative instrument, determine an amount for that month of
14
August.
15
(5) In determining an amount for a month of August under
16
subsection (4), the Minister must make a genuine attempt to
17
determine the amount accurately, taking into account all relevant
18
evidence available to the Minister.
19
(6) If the Minister determines an amount for a month of August under
20
subsection (4), the Minister must, as soon as practicable, cause to
21
be published, on the Department's website, a statement of reasons
22
explaining the basis on which the Minister determined the amount.
23
(7) If the Minister determines an amount for a month of August under
24
subsection (4), the amount referred to in subsection (1) for that
25
month is taken to be the amount determined in the instrument
26
under subsection (4) for that month.
27
Note:
The median wage for the first income year to start after that month of
28
August will be 52 times the amount that is taken to be the amount
29
referred to in subsection (1) for the month.
30
2 Section 154-20 (table)
31
Repeal the table, substitute:
32
33
Schedule 2
Raising minimum repayment income and repayment amount
16
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
No. , 2022
Applicable percentages
Item
If the person's repayment income is:
The
percentage
applicable is:
1
$3,000 or less above the
*
median wage
1%
2
More than $3,000, but less than or equal to $6,000, above
the
*
median wage.
2%
3
More than $6,000, but less than or equal to $9,000, above
the
*
median wage.
2.5%
4
More than $9,000, but less than or equal to $13,000,
above the
*
median wage.
3%
5
More than $13,000, but less than or equal to $17,000,
above the
*
median wage.
3.5%
6
More than $17,000, but less than or equal to $21,000,
above the
*
median wage.
4%
7
More than $21,000, but less than or equal to $26,000,
above the
*
median wage.
4.5%
8
More than $26,000, but less than or equal to $31,000,
above the
*
median wage.
5%
9
More than $31,000, but less than or equal to $36,000,
above the
*
median wage.
5.5%
10
More than $36,000, but less than or equal to $43,000,
above the
*
median wage.
6%
11
More than $43,000, but less than or equal to $49,000,
above the
*
median wage.
6.5%
12
More than $49,000, but less than or equal to $54,000,
above the
*
median wage.
7%
13
More than $54,000, but less than or equal to $62,000,
above the
*
median wage.
7.5%
14
More than $62,000, but less than or equal to $70,000,
above the
*
median wage.
8%
15
More than $70,000 above the
*
median wage.
10%
3 Section 154-25
1
Repeal the section.
2
Raising minimum repayment income and repayment amount
Schedule 2
No. , 2022
Education and Other Legislation Amendment (Abolishing Indexation
and Raising the Minimum Repayment Income for Education and
Training Loans) Bill 2022
17
4 Paragraph 154-30(b)
1
Repeal the paragraph, substitute:
2
(b) the amounts referred to in the second column of items 1 to 15
3
in the table in section 154-20;
4
5 Subclause 1(1) of Schedule 1
5
Insert:
6
median wage
has the meaning given by subsection 154-11(1).
7
Social Security Act 1991
8
6 Subsection 19AB(2) (definition of minimum repayment
9
income)
10
Repeal the definition, substitute:
11
minimum repayment income
has the same meaning as in the
12
Higher Education Support Act 2003
.
13
7 Section 1061ZZFB
14
Repeal the section.
15
Student Assistance Act 1973
16
8 Subsection 3(1) (definition of minimum repayment income)
17
Repeal the definition, substitute:
18
minimum repayment income
has the same meaning as in the
19
Higher Education Support Act 2003
.
20
9 Section 12ZLA
21
Repeal the section.
22
10 Application of amendments
23
The amendments made by this Schedule apply in relation to the
24
2023-24 income year and later income years.
25