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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017-2018
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Education and Other Legislation
Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
(Education and Training)
A Bill for an Act to separate VET student loan
debts from HELP debts, and for other purposes
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 4
Schedule 1--Separation of VET student loan debts from HELP
debts
5
Part 1--Main amendments
5
Higher Education Support Act 2003
5
VET Student Loans Act 2016
6
Part 2--Consequential and contingent amendments
25
A New Tax System (Family Assistance) (Administration) Act 1999
25
Bankruptcy Act 1966
25
Income Tax Assessment Act 1936
25
Income Tax Assessment Act 1997
25
Social Security Act 1991
26
Student Assistance Act 1973
29
Taxation Administration Act 1953
31
Taxation (Interest on Overpayments and Early Payments) Act 1983
33
Trade Support Loans Act 2014
34
VET Student Loans Act 2016
35
Schedule 2--Courses and loan caps determination
36
VET Student Loans Act 2016
36
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
1
A Bill for an Act to separate VET student loan
1
debts from HELP debts, and for other purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act is the Education and Other Legislation Amendment (VET
5
Student Loan Debt Separation) Act 2018.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1,
items 1 to 35
1 July 2019.
1 July 2019
3. Schedule 1,
items 36 to 38
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.
4. Schedule 1,
item 39
Immediately after the start of 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 does not
commence on that day.
5. Schedule 1,
item 40
1 July 2019.
However, the provisions do not commence
at all if Schedule 1 to the Higher Education
Support Legislation Amendment (Student
Loan Sustainability) Act 2018 does not
commence before that day.
6. Schedule 1,
items 41 to 43
1 July 2019.
1 July 2019
7. Schedule 1,
item 44
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.
8. Schedule 1,
item 45
Immediately after the start of 1 July 2019.
1 July 2019
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
3
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
9. Schedule 1,
item 46
1 July 2019.
However, the provisions do not commence
at all if Schedule 1 to the Higher Education
Support Legislation Amendment (Student
Loan Sustainability) Act 2018 does not
commence before that day.
10. Schedule 1,
items 47 to 51
1 July 2019.
1 July 2019
11. Schedule 1,
item 52
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 does not
commence on that day.
12. Schedule 1,
items 53 to 71
Immediately after the start of 1 July 2019.
1 July 2019
13. Schedule 1,
item 72
The later of:
(a) immediately after the start of 1 July
2019; and
(b) the time Schedule 3 to the Higher
Education Support Legislation
Amendment (Student Loan
Sustainability) Act 2018 commences.
However, the provisions do not commence
at all if the event mentioned in paragraph (b)
does not occur.
14. Schedule 2
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
4
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
3 Schedules
1
Legislation that is specified in a Schedule to this Act is amended or
2
repealed as set out in the applicable items in the Schedule
3
concerned, and any other item in a Schedule to this Act has effect
4
according to its terms.
5
Separation of VET student loan debts from HELP debts Schedule 1
Main amendments Part 1
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
5
Schedule 1--Separation of VET student loan
1
debts from HELP debts
2
Part 1--Main amendments
3
Higher Education Support Act 2003
4
1 Section 129-1
5
After "Schedule 1A or", insert "(before 1 July 2019) under".
6
2 At the end of section 129-1
7
Add:
8
Note:
Loans that the Commonwealth makes to students under the VET
9
Student Loans Act 2016 on or after 1 July 2019 are repayable under
10
that Act.
11
3 Section 134-1
12
Omit "also incurs a HELP debt if the Secretary uses", substitute "will
13
also have incurred a HELP debt if (before 1 July 2019) the Secretary
14
used".
15
4 At the end of section 134-1
16
Add:
17
Note:
If the Secretary uses an amount of a VET student loan approved under
18
the VET Student Loans Act 2016 to pay tuition fees for a person on or
19
after 1 July 2019, the person incurs a debt under that Act.
20
5 Paragraph 137-1(e)
21
Repeal the paragraph, substitute:
22
(e)
*
pre-1 July 2019 VSL debts.
23
6 Section 137-19 (heading)
24
Repeal the heading, substitute:
25
Schedule 1 Separation of VET student loan debts from HELP debts
Part 1 Main amendments
6
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
137-19 Pre-1 July 2019 VSL debts
1
7 Subsections 137-19(1), (2) and (3)
2
Repeal the subsections, substitute:
3
(1) A debt incurred under this section as in force at any time before
4
1 July 2019 is a pre-1 July 2019 VSL debt.
5
8 Subsection 137-19(4) (heading)
6
Repeal the heading.
7
9 Subsection 137-19(4)
8
Omit "
*
VET student loan debt in relation to a loan amount", substitute
9
"
*
pre-1 July 2019 VSL debt, in relation to a loan amount (within the
10
meaning of this section as in force at the time the debt was incurred),".
11
10 Paragraph 180-28(6)(c)
12
After "Chapter 4", insert ", or under the VET Student Loans Act 2016,".
13
11 Subclause 1(1) of Schedule 1
14
Insert:
15
pre-1 July 2019 VSL debt has the meaning given by
16
subsection 137-19(1).
17
12 Subclause 1(1) of Schedule 1 (definition of VET student
18
loan debt)
19
Repeal the definition.
20
VET Student Loans Act 2016
21
13 Section 5
22
Omit "HELP debt. HELP debts are managed under the Higher
23
Education Support Act 2003", substitute "VETSL debt. These debts are
24
generally repayable through the tax system once the person's income
25
exceeds the minimum repayment income under the Higher Education
26
Support Act 2003 and the person has finished repaying any debt under
27
that Act".
28
Separation of VET student loan debts from HELP debts Schedule 1
Main amendments Part 1
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
7
14 Section 5
1
Omit "and the approval of course providers", substitute ", approval of
2
course providers, and assessments involving repayment of VETSL
3
debts,".
4
15 Section 6
5
Insert:
6
accumulated VETSL debt: see subsection 23CC(1).
7
approved form has the meaning given by section 388-50 in
8
Schedule 1 to the Taxation Administration Act 1953.
9
assessed worldwide income has the same meaning as in the Higher
10
Education Support Act 2003.
11
compulsory VETSL repayment amount means an amount that:
12
(a) is required to be paid in respect of an accumulated VETSL
13
debt under section 23EA or 23EC; and
14
(b) is included in a notice of an assessment made under
15
section 23EE.
16
foreign resident has the same meaning as in the Income Tax
17
Assessment Act 1997.
18
former accumulated VETSL debt: see subsection 23CB(1).
19
income tax has the same meaning as in the Income Tax Assessment
20
Act 1997.
21
income year has the same meaning as in the Income Tax
22
Assessment Act 1997.
23
Medicare levy means Medicare levy imposed by the Medicare
24
Levy Act 1986.
25
minimum repayment income has the same meaning as in the
26
Higher Education Support Act 2003.
27
repayable VETSL debt: see subsection 23EB(1).
28
repayment income has the same meaning as in the Higher
29
Education Support Act 2003.
30
Schedule 1 Separation of VET student loan debts from HELP debts
Part 1 Main amendments
8
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
return means an income tax return within the meaning of
1
subsection 995-1(1) of the Income Tax Assessment Act 1997.
2
taxable income has the same meaning as in the Income Tax
3
Assessment Act 1997.
4
VETSL debt: see subsection 23BA(1).
5
16 Section 6 (definition of VET student loan debt)
6
Repeal the definition.
7
17 Section 6
8
Insert:
9
voluntary repayment means a payment made to the Commissioner
10
in discharge of an accumulated VETSL debt or a VETSL debt. It
11
does not include a payment made in discharge of a compulsory
12
VETSL repayment amount.
13
18 Subsection 19(4) (note)
14
Repeal the note, substitute:
15
Note 1:
If the Secretary uses a loan amount to pay tuition fees for a student,
16
the student incurs a VETSL debt under section 23BA.
17
Note 2:
If the Secretary used a loan amount to pay tuition fees for a student
18
before 1 July 2019, the student will have incurred a debt under
19
section 137-19 of the Higher Education Support Act 2003 as then in
20
force. Those debts are managed under that Act as HELP debts.
21
19 Subsection 22(1) (note 2)
22
Omit "VET student loan debt is taken to be remitted to the extent to
23
which the VET student loan debt relates to the loan amount concerned:
24
see section 137-19 of the Higher Education Support Act 2003",
25
substitute "VETSL debt is taken to be remitted to the extent to which
26
the debt relates to the loan amount concerned: see section 23BA. (For
27
remission of debts incurred before 1 July 2019, see section 137-19 of
28
the Higher Education Support Act 2003)".
29
20 After Part 3
30
Insert:
31
Separation of VET student loan debts from HELP debts Schedule 1
Main amendments Part 1
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
9
Part 3A--VETSL debts
1
Division 1--Simplified outline of this Part
2
23AA Simplified outline of this Part
3
Loans that the Secretary approves and uses to pay tuition fees for a
4
person are repayable under this Part.
5
A person incurs a debt (called a VETSL debt) each time a loan
6
amount is used to pay tuition fees for the person. Each of those
7
debts is then incorporated into a single debt called the person's
8
accumulated VETSL debt.
9
An accumulated VETSL debt can be repaid in 2 ways:
10
(a)
by making voluntary repayments; or
11
(b)
by making compulsory repayments (based on the
12
person's income) through the income tax system.
13
Division 2--VETSL debts
14
23BA VETSL debt
15
(1) A person incurs a debt to the Commonwealth if the Secretary:
16
(a) approves a VET student loan for the person; and
17
(b) uses a loan amount covered by the VET student loan to pay
18
tuition fees for the person for a course.
19
The debt is a VETSL debt.
20
(2) The amount of the VETSL debt is:
21
(a) 120% of the loan amount; or
22
(b) if the rules specify a lesser percentage of the loan amount for
23
the person--that lesser percentage of the loan amount.
24
Note:
For specification by class, see subsection 13(3) of the Legislation Act
25
2003.
26
(3) A VETSL debt is incurred on the day that the Secretary pays the
27
loan amount.
28
Schedule 1 Separation of VET student loan debts from HELP debts
Part 1 Main amendments
10
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
(4) A person's VETSL debt, in relation to a loan amount used to pay
1
tuition fees for the person for a course, is taken to be remitted if the
2
person's FEE-HELP balance is re-credited under Part 6 in relation
3
to the loan amount.
4
23BB VETSL debt discharged by death
5
Upon the death of a person who owes a VETSL debt to the
6
Commonwealth, the debt is taken to have been paid.
7
Note:
VETSL debts are not provable in bankruptcy: see subsection 82(3AB)
8
of the Bankruptcy Act 1966.
9
23BC Notice to Commissioner
10
(1) If a person incurs a VETSL debt, the Secretary must give the
11
Commissioner a notice specifying the amount of the debt incurred
12
by the person.
13
(2) The Secretary may include in the notice any other details the
14
Commissioner requests for the purpose of ensuring the
15
Commissioner has the information needed to exercise powers or
16
perform functions of the Commissioner under or in relation to this
17
Act.
18
Division 3--Accumulated VETSL debts
19
23CA Simplified outline of this Division
20
There are 2 stages to working out a person's accumulated VETSL
21
debt for a financial year.
22
In stage 1, the person's former accumulated VETSL debt is worked
23
out. This is done by adjusting the preceding financial year's
24
accumulated VETSL debt to take account of:
25
(a)
changes in the Consumer Price Index; and
26
(b)
the VETSL debts the person incurs during the last 6
27
months of the preceding financial year; and
28
(c)
voluntary repayments of the debt; and
29
Separation of VET student loan debts from HELP debts Schedule 1
Main amendments Part 1
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
11
(d)
compulsory VETSL repayment amounts in respect of
1
the debt.
2
In stage 2, the person's accumulated VETSL debt is worked out
3
from:
4
(a)
the person's former accumulated VETSL debt; and
5
(b)
the VETSL debts the person incurs during the first 6
6
months of the financial year; and
7
(c)
voluntary repayments of those debts.
8
Note:
Incurring that financial year's accumulated VETSL debt discharges
9
the previous accumulated VETSL debt and VETSL debts: see
10
section 23CE.
11
23CB Stage 1--working out a former accumulated VETSL debt
12
(1) A person's former accumulated VETSL debt, in relation to the
13
person's accumulated VETSL debt for a financial year, is worked
14
out by multiplying:
15
(a) the amount worked out using the following method
16
statement; by
17
(b) the HELP debt indexation factor (within the meaning of the
18
Higher Education Support Act 2003) for 1 June in that
19
financial year.
20
Method statement
21
Step 1. Take the person's accumulated VETSL debt for the
22
immediately preceding financial year. (This amount is
23
taken to be zero if the person has no accumulated VETSL
24
debt for that financial year.)
25
Step 2. Add the sum of all of the VETSL debts (if any) that the
26
person incurred during the last 6 months of the
27
immediately preceding financial year.
28
Step 3. Subtract the sum of the amounts by which the person's
29
debts referred to in steps 1 and 2 are reduced because of
30
any voluntary repayments that have been made during the
31
period:
32
Schedule 1 Separation of VET student loan debts from HELP debts
Part 1 Main amendments
12
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
(a)
starting on 1 June in the immediately preceding
1
financial year; and
2
(b)
ending immediately before the next 1 June.
3
Step 4. Subtract the sum of all of the person's compulsory
4
VETSL repayment amounts that:
5
(a)
were assessed during that period (excluding any
6
assessed as a result of a return given before that
7
period); or
8
(b)
were assessed after the end of that period as a
9
result of a return given before the end of that
10
period.
11
Step 5. Subtract the sum of the amounts by which any
12
compulsory VETSL repayment amount of the person is
13
increased (whether as a result of an increase in the
14
person's taxable income of an income year or otherwise)
15
by an amendment of an assessment made during that
16
period.
17
Step 6. Add the sum of the amounts by which any compulsory
18
VETSL repayment amount of the person is reduced
19
(whether as a result of a reduction in the person's taxable
20
income of an income year or otherwise) by an
21
amendment of an assessment made during that period.
22
Example: Lorraine is studying part-time for a Diploma of Early Childhood
23
Education and Care. On 1 June 2020, Lorraine had an accumulated
24
VETSL debt of $15,000. She incurred a VETSL debt of $1,500 on
25
31 March 2020. She made a voluntary repayment of $525 on 1 May
26
2021. Lorraine lodged her 2019-20 income tax return and a
27
compulsory VETSL repayment amount of $3,000 was assessed and
28
notified on her income tax notice of assessment on 3 September 2020.
29
To work out Lorraine's former accumulated VETSL debt before
30
indexation on 1 June 2021:
31
Step 1:
Take the previous accumulated VETSL debt of $15,000 on 1 June
32
2020.
33
Step 2:
Add the VETSL debt of $1,500 incurred on 31 March 2020.
34
Separation of VET student loan debts from HELP debts Schedule 1
Main amendments Part 1
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
13
Step 3:
Subtract the $525 voluntary repayment made on 1 May 2021.
1
Step 4:
Subtract the $3,000 compulsory repayment assessed on 3 September
2
2020.
3
Step 5:
Does not apply because since 1 June 2020 Lorraine had no
4
amendments to any assessment.
5
Step 6:
Does not apply because since 1 June 2020 Lorraine had no
6
amendments to any assessment.
7
Lorraine's former accumulated VETSL debt before indexation on
8
1 June 2021 is:
9
$15,000
$1,500
$525
$3,000
$12,975





ï€-










10
If, for example, the indexation factor for 1 June 2021 were 1.030, then
11
the former accumulated VETSL debt would be:
12
$12,975
1.030
$13,364.25
ï‚´

13
(2) For the purposes of this section, an assessment, or an amendment
14
of an assessment, is taken to have been made on the day specified
15
in the notice of assessment, or notice of amended assessment, as
16
the date of issue of that notice.
17
23CC Stage 2--working out an accumulated VETSL debt
18
(1) A person's accumulated VETSL debt, for a financial year, is
19
worked out as follows:
20
Former accumulated
VETSL
VETSL
VETSL debt
debts incurred
debt repayments

ï€-
21
where:
22
former accumulated VETSL debt means the person's former
23
accumulated VETSL debt in relation to that accumulated VETSL
24
debt.
25
VETSL debt repayments means the sum of all of the voluntary
26
repayments (if any) paid, on or after 1 July in the financial year and
27
before 1 June in that year, in reduction of the VETSL debts
28
incurred in that year.
29
Schedule 1 Separation of VET student loan debts from HELP debts
Part 1 Main amendments
14
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
VETSL debts incurred means the sum of the amounts of all of the
1
VETSL debts (if any) that the person incurred during the first 6
2
months of the financial year.
3
Example: Paula is studying part-time for a Diploma of Nursing. On 1 June 2021,
4
her former accumulated VETSL debt was worked out using
5
section 23CB to be $20,000. She incurred a VETSL debt of $1,500 on
6
31 August 2020. No repayments have been made in the 12 months
7
from 1 June 2020.
8
Paula's accumulated VETSL debt on 1 June 2021 is worked out by
9
taking her former accumulated VETSL debt of $20,000 and adding the
10
$1,500 VETSL debt incurred on 31 August 2020. That is:
11
$20,000
$1,500
$21,500


12
(2) The person incurs the accumulated VETSL debt on 1 June in the
13
financial year.
14
(3) The first financial year for which a person can have an
15
accumulated VETSL debt is the financial year starting on 1 July
16
2019.
17
23CD Rounding of amounts
18
(1) If, apart from this section, a person's accumulated VETSL debt
19
would be an amount consisting of a number of whole dollars and a
20
number of cents, disregard the number of cents.
21
(2) If, apart from this section, a person's accumulated VETSL debt
22
would be an amount of less than one dollar, the person's
23
accumulated VETSL debt is taken to be zero.
24
23CE Accumulated VETSL debt discharges earlier debts
25
(1) The accumulated VETSL debt that a person incurs on 1 June in a
26
financial year discharges, or discharges the unpaid part of:
27
(a) any VETSL debt that the person incurred during the calendar
28
year immediately preceding that day; and
29
(b) any accumulated VETSL debt that the person incurred on the
30
immediately preceding 1 June.
31
(2) Nothing in subsection (1) affects the application of Division 2 or
32
section 23CB or 23CC.
33
Separation of VET student loan debts from HELP debts Schedule 1
Main amendments Part 1
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
15
23CF Accumulated VETSL debt discharged by death
1
(1) Upon the death of a person who has an accumulated VETSL debt,
2
the accumulated VETSL debt is taken to be discharged.
3
(2) To avoid doubt, this section does not affect any compulsory
4
VETSL repayment amounts required to be paid in respect of the
5
accumulated VETSL debt, whether or not those amounts were
6
assessed before the person's death.
7
Note:
Accumulated VETSL debts are not provable in bankruptcy: see
8
subsection 82(3AB) of the Bankruptcy Act 1966.
9
Division 4--Voluntary discharge of debt
10
23DA Voluntary repayments
11
(1) A person may at any time make a payment in respect of a debt that
12
the person owes to the Commonwealth under this Part.
13
(2) The payment must be made to the Commissioner.
14
23DB Application of voluntary repayments
15
(1) Any money a person pays under this Division to meet the person's
16
debts to the Commonwealth under this Part is to be applied in
17
payment of those debts as the person directs at the time of the
18
payment.
19
(2) If the person has not given any directions, or the directions given
20
do not adequately deal with the matter, any money available is to
21
be applied as follows:
22
(a) first, in discharge or reduction of any accumulated VETSL
23
debt of the person;
24
(b) secondly, in discharge or reduction of:
25
(i) any VETSL debt of the person; or
26
(ii) if there is more than one such debt, those debts in the
27
order in which they were incurred.
28
23DC Refunding of payments
29
If:
30
Schedule 1 Separation of VET student loan debts from HELP debts
Part 1 Main amendments
16
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
(a) a person pays an amount to the Commonwealth under this
1
Division; and
2
(b) the amount exceeds the sum of:
3
(i) the amount required to discharge the total debt that the
4
person owed to the Commonwealth under this Part; and
5
(ii) the total amount of the person's primary tax debts
6
(within the meaning of Part IIB of the Taxation
7
Administration Act 1953);
8
the Commonwealth must refund to the person an amount equal to
9
that excess.
10
Division 5--Compulsory discharge of debt
11
Subdivision A--Compulsory repayments
12
23EA Compulsory repayments
13
(1) If:
14
(a) a person's repayment income for an income year exceeds the
15
minimum repayment income for the income year; and
16
(b) on 1 June immediately preceding the making of an
17
assessment in respect of the person's income of that income
18
year, the person had an accumulated VETSL debt;
19
the person is liable to pay to the Commonwealth, in accordance
20
with this Division, so much of the person's repayable VETSL debt
21
for the income year as does not exceed the amount worked out
22
using the formula:
23
Applicable percentage of
Relevant income-contingent
repayment income
loans liability
ï€-
24
where:
25
applicable percentage of repayment income means the amount
26
that is the percentage of the person's repayment income worked
27
out in respect of the income year using the table in section 154-20
28
of the Higher Education Support Act 2003.
29
relevant income-contingent loans liability means the amount that
30
is the sum of any amounts the person is liable to pay under
31
Separation of VET student loan debts from HELP debts Schedule 1
Main amendments Part 1
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
17
section 154-1 or 154-16 of the Higher Education Support Act 2003
1
in respect of the income year.
2
(2) A person is not liable under this section to pay an amount for an
3
income year if the amount worked out under subsection (1) is zero
4
or less.
5
(3) A person is not liable under this section to pay an amount for an
6
income year if, under section 8 of the Medicare Levy Act 1986:
7
(a) no Medicare levy is payable by the person on the person's
8
taxable income for the income year; or
9
(b) the amount of the Medicare levy payable by the person on the
10
person's taxable income for the income year is reduced.
11
23EB Repayable VETSL debt for an income year
12
(1) A person's repayable VETSL debt for an income year is:
13
(a) the person's accumulated VETSL debt referred to in
14
paragraph 23EA(1)(b) in relation to that income year; or
15
(b) if one or more amounts:
16
(i) have been paid in reduction of that debt; or
17
(ii) have been assessed under section 23EE to be payable in
18
respect of that debt;
19
the amount (if any) remaining after deducting from that debt
20
the amount, or sum of the amounts, so paid or assessed to be
21
payable.
22
(2) A reference in paragraph (1)(b) to an amount assessed to be
23
payable is, if the amount has been increased or reduced by an
24
amendment of the relevant assessment, a reference to the increased
25
amount or the reduced amount.
26
Subdivision B--Levy for overseas debtors
27
23EC Liability of overseas debtors to repay amounts
28
(1) If:
29
(a) a person is a foreign resident during an income year; and
30
Schedule 1 Separation of VET student loan debts from HELP debts
Part 1 Main amendments
18
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
(b) the person's assessed worldwide income for the income year
1
exceeds the minimum repayment income for the income
2
year; and
3
(c) on 1 June immediately preceding the making of an
4
assessment in respect of the person's income of that income
5
year, the person had an accumulated VETSL debt;
6
the person is liable to pay to the Commonwealth, in accordance
7
with this Division, a levy of the amount worked out under
8
subsection (2).
9
Note:
An amount a person is liable to pay under this section is imposed as a
10
levy under the Student Loans (Overseas Debtors Repayment Levy) Act
11
2015.
12
(2) The amount of levy that a person is liable to pay under this section,
13
in respect of an income year, is an amount equal to the difference
14
between:
15
(a) the amount that the person would have been liable to pay
16
under section 23EA if:
17
(i) the person had a repayment income for the income year
18
of an amount equal to the person's assessed worldwide
19
income for the income year; and
20
(ii) subsection 23EA(3) did not apply to the person; and
21
(b) the amount (if any) the person is liable to pay under
22
section 23EA, in respect of the income year.
23
23ED Notices to be given to the Commissioner
24
Notice relating to leaving Australia
25
(1) A person who:
26
(a) has an accumulated VETSL debt or otherwise has a VETSL
27
debt that has not yet been discharged; and
28
(b) leaves Australia (other than in circumstances specified in the
29
rules) with the intention of remaining outside Australia for at
30
least 183 days;
31
must, no later than 7 days after leaving Australia, give a notice to
32
the Commissioner in the approved form.
33
Separation of VET student loan debts from HELP debts Schedule 1
Main amendments Part 1
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
19
Notice relating to absence from Australia
1
(2) A person who:
2
(a) has an accumulated VETSL debt or otherwise has a VETSL
3
debt that has not yet been discharged; and
4
(b) has been outside Australia for at least 183 days (other than in
5
circumstances specified in the rules) in any 12 month period;
6
and
7
(c) was not required under subsection (1) to give a notice to the
8
Commissioner in connection with that absence from
9
Australia;
10
must, no later than 7 days after the end of those 183 days, give a
11
notice to the Commissioner in the approved form.
12
Notice relating to income (including foreign-sourced income)
13
(3) A person who:
14
(a) is a foreign resident; and
15
(b) on 1 June immediately preceding an income year, had an
16
accumulated VETSL debt;
17
must (other than in circumstances specified in the rules) give to the
18
Commissioner, in the approved form, a notice relating to the
19
person's income (including foreign-sourced income) for the
20
income year. The notice must be given within the period specified
21
in the form.
22
Note:
The Commissioner may defer the time for giving a notice: see
23
section 388-55 in Schedule 1 to the Taxation Administration Act 1953.
24
Content of notices under this section
25
(4) The rules may provide for the content of notices under this section.
26
Subdivision C--Assessments
27
23EE Commissioner may make assessments
28
The Commissioner may, from any information in the
29
Commissioner's possession, whether from a return or otherwise,
30
make an assessment of:
31
Schedule 1 Separation of VET student loan debts from HELP debts
Part 1 Main amendments
20
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
(a) a person's accumulated VETSL debt on 1 June immediately
1
before the making of the assessment; and
2
(b) the amount required to be paid in respect of that debt under
3
section 23EA or 23EC.
4
23EF Notification of notices of assessment of tax
5
If:
6
(a) the Commissioner is required to serve on a person a notice of
7
assessment in respect of the person's income of an income
8
year under section 174 of the Income Tax Assessment Act
9
1936; and
10
(b) the Commissioner has made, in respect of the person, an
11
assessment under section 23EE of this Act of the amounts
12
referred to in that section; and
13
(c) notice of the assessment under that section has not been
14
served on the person;
15
notice of the assessment under that section may be served by
16
specifying the amounts concerned in the notice referred to in
17
paragraph (a) of this section.
18
23EG Commissioner may defer making assessments
19
(1) A person may apply in the approved form to the Commissioner for
20
deferral of the making of an assessment in respect of the person
21
under section 23EE.
22
(2) The application must specify:
23
(a) the income year for which the deferral is being sought; and
24
(b) the reasons for seeking the deferral.
25
(3) The income year specified in the application must be:
26
(a) the income year in which the person makes the application;
27
or
28
(b) the immediately preceding income year; or
29
(c) the immediately succeeding income year.
30
(4) The Commissioner may, on application by a person under this
31
section, defer making an assessment in respect of the person under
32
section 23EE if the Commissioner is of the opinion that:
33
Separation of VET student loan debts from HELP debts Schedule 1
Main amendments Part 1
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
21
(a) if the assessment were made, payment of the assessed
1
amount would cause serious hardship to the person; or
2
(b) there are other special reasons that make it fair and
3
reasonable to defer making the assessment.
4
(5) The Commissioner may defer making the assessment for any
5
period the Commissioner thinks appropriate.
6
(6) The Commissioner must, as soon as practicable after an application
7
is made under this section:
8
(a) consider the matter to which the application relates; and
9
(b) notify the applicant of the Commissioner's decision on the
10
application.
11
Note:
Deferrals of making assessments, or refusals of applications, are
12
reviewable under Part 7.
13
23EH Commissioner may amend assessments
14
(1) A person may apply in the approved form to the Commissioner for
15
an amendment of an assessment made in respect of the person
16
under section 23EE so that:
17
(a) the amount payable under the assessment is reduced; or
18
(b) no amount is payable under the assessment.
19
(2) The application:
20
(a) must be made within 2 years after the day on which the
21
Commissioner gives notice of the assessment to the person;
22
or
23
(b) must specify the reasons justifying a later application.
24
(3) The Commissioner may, on application by a person under this
25
section, amend an assessment made in respect of the person under
26
section 23EE so that:
27
(a) the amount payable under the assessment is reduced; or
28
(b) no amount is payable under the assessment;
29
if the Commissioner is of the opinion that:
30
(c) payment of the assessed amount has caused or would cause
31
serious hardship to the person; or
32
(d) there are other special reasons that make it fair and
33
reasonable to make the amendment.
34
Schedule 1 Separation of VET student loan debts from HELP debts
Part 1 Main amendments
22
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
(4) The Commissioner must, as soon as practicable after an application
1
is made under this section:
2
(a) consider the matter to which the application relates; and
3
(b) notify the applicant of the Commissioner's decision on the
4
application.
5
Note:
Amendments of assessments, or refusals of applications, are
6
reviewable under Part 7.
7
Division 6--Application of tax legislation
8
23FA Returns, assessments, collection and recovery
9
Subject to Divisions 4 and 5 and this Division:
10
(a) Part IV of the Income Tax Assessment Act 1936; and
11
(b) Division 5 of the Income Tax Assessment Act 1997; and
12
(c) Part 4-15 in Schedule 1 to the Taxation Administration Act
13
1953;
14
apply, so far as they are capable of application, in relation to a
15
compulsory VETSL repayment amount of a person as if it were
16
income tax assessed to be payable by a taxpayer by an assessment
17
made under Part IV of the Income Tax Assessment Act 1936.
18
23FB Charges and civil penalties for failing to meet obligations
19
(1) Part 4-25 in Schedule 1 to the Taxation Administration Act 1953
20
has effect as if:
21
(a) any compulsory VETSL repayment amount of a person were
22
income tax payable by the person in respect of the income
23
year in respect of which the assessment of that debt was
24
made; and
25
(b) paragraphs 17(1)(a) and 20(a), this Part and sections 97 and
26
107 of this Act were income tax laws (within the meaning of
27
the Income Tax Assessment Act 1997).
28
(2) Subsection (1) does not have the effect of making a person liable to
29
a penalty for any act or omission that happened before the
30
commencement of this subsection.
31
Separation of VET student loan debts from HELP debts Schedule 1
Main amendments Part 1
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
23
23FC Pay as you go (PAYG) withholding
1
Part 2-5 (other than section 12-55 and Subdivisions 12-E, 12-F and
2
12-G) in Schedule 1 to the Taxation Administration Act 1953
3
applies, so far as it is capable of application, in relation to the
4
collection of amounts of a compulsory VETSL repayment amount
5
of a person as if the compulsory VETSL repayment amount were
6
income tax.
7
23FD Pay as you go (PAYG) instalments
8
Division 45 in Schedule 1 to the Taxation Administration Act 1953
9
applies, so far as it is capable of application, in relation to the
10
collection of a compulsory VETSL repayment amount of a person
11
as if the compulsory VETSL repayment amount were income tax.
12
23FE Failures to comply with section 23ED
13
Part III of the Taxation Administration Act 1953 applies in relation
14
to a failure to comply with section 23ED of this Act as if that
15
section were a taxation law (within the meaning of section 2 of that
16
Act).
17
23FF Extent of Commissioner's general administration of this Act
18
The Commissioner has the general administration of this Act to the
19
following extent:
20
(a) paragraphs 17(1)(a) and 20(a) (loan applications to include
21
tax file numbers);
22
(b) this Part;
23
(c) Part 7 so far as it relates to reviewable decisions for which
24
the Commissioner is the decision maker;
25
(d) section 97 (Commissioner may disclose VET information);
26
(e) section 107 (verifying tax file numbers).
27
Note:
One effect of this is that this Act is to that extent a taxation law for the
28
purposes of the Taxation Administration Act 1953.
29
Schedule 1 Separation of VET student loan debts from HELP debts
Part 1 Main amendments
24
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
21 Section 67 (note)
1
Omit "VET student loan debt is taken to be remitted to the extent to
2
which the VET student loan debt relates to the loan amount concerned:
3
see section 137-19 of the Higher Education Support Act 2003",
4
substitute "VETSL debt is taken to be remitted to the extent to which
5
the debt relates to the loan amount concerned: see section 23BA. (For
6
remission of debts incurred before 1 July 2019, see section 137-19 of
7
the Higher Education Support Act 2003)".
8
22 Section 74 (after table item 1)
9
Insert:
10
11
1A
A decision to defer or
refuse to defer the
making of an
assessment
Section 23EG
the Commissioner
1B
A decision to amend or
refuse to amend an
assessment
Section 23EH
the Commissioner
23 Subsections 78(1) and (2)
12
After "the Secretary", insert "or Commissioner".
13
Separation of VET student loan debts from HELP debts Schedule 1
Consequential and contingent amendments Part 2
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
25
Part 2--Consequential and contingent amendments
1
A New Tax System (Family Assistance) (Administration) Act
2
1999
3
24 Subsection 3(1) (at the end of paragraph (c) of the
4
definition of income tax refund)
5
Add:
6
(iv) section 23FA of the VET Student Loans Act 2016; or
7
Bankruptcy Act 1966
8
25 After paragraph 82(3AB)(a)
9
Insert:
10
(aaa) Part 3A of the VET Student Loans Act 2016 (VETSL debts);
11
Income Tax Assessment Act 1936
12
26 Subsection 82A(2) (after paragraph (bb) of the definition of
13
expenses of self-education)
14
Insert:
15
(bba) a payment made in respect of, or in respect of the reduction
16
or discharge of, any indebtedness to the Commonwealth
17
under Part 3A of the VET Student Loans Act 2016; or
18
Income Tax Assessment Act 1997
19
27 Section 12-5 (at the end of table item headed
"education
20
expenses
")
21
Add:
22
23
see also VET student loans
28 Section 12-5 (after table item headed
"uranium mining")
24
Insert:
25
Schedule 1 Separation of VET student loan debts from HELP debts
Part 2 Consequential and contingent amendments
26
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
1
VET student loans
limit on deduction ............................................................. 82A
payment made to reduce a debt to the Commonwealth
under Part 3A of the VET Student Loans Act 2016
(VETSL debts), no deduction unless provided as
fringe benefit ...............................................................
26-20
29 After paragraph 26-20(1)(cb)
2
Insert:
3
(cba) a payment made to reduce a debt to the Commonwealth
4
under Part 3A of the VET Student Loans Act 2016; or
5
30 After subparagraph 52-132(a)(xi)
6
Insert:
7
(xia) discharging a compulsory VETSL repayment amount
8
(within the meaning of the VET Student Loans Act
9
2016);
10
31 After subparagraph 52-140(3)(a)(xa)
11
Insert:
12
(xb) discharging a compulsory VETSL repayment amount
13
(within the meaning of the VET Student Loans Act
14
2016);
15
32 Subsection 995-1(1)
16
Insert:
17
accumulated VETSL debt has the same meaning as in the VET
18
Student Loans Act 2016.
19
Social Security Act 1991
20
33 Section 19AA (definition of accumulated HELP debt)
21
Repeal the definition.
22
34 Section 1061ZVAA
23
Omit:
24
Separation of VET student loan debts from HELP debts Schedule 1
Consequential and contingent amendments Part 2
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
27
When the person's income reaches the minimum repayment
1
income under the Higher Education Support Act 2003, and the
2
person has finished repaying any debt under that Act, the person
3
must start repaying student start-up loan debt.
4
substitute:
5
Once the person's income exceeds the minimum repayment
6
income under the Higher Education Support Act 2003 and the
7
person has finished repaying any debt under that Act and certain
8
other income-contingent loan schemes, the person must start
9
repaying debt in relation to student start-up loans.
10
35 Section 1061ZVFA
11
Omit:
12
The person is required to make repayments, of amounts based on
13
his or her income, if that income is above a particular amount and
14
if the person has repaid the person's accumulated HELP debts
15
arising under the Higher Education Support Act 2003. The
16
Commissioner makes assessments of repayment amounts, which
17
are collected in the same way as amounts of income tax and
18
accumulated HELP debts.
19
substitute:
20
The person is required to make repayments once the person's
21
income exceeds the minimum repayment income under the Higher
22
Education Support Act 2003 and the person has finished repaying
23
any debt under that Act and certain other income-contingent loan
24
schemes.
25
The amount of the repayments is based on the person's income.
26
The Commissioner makes assessments of repayment amounts,
27
which are collected in the same way as amounts of income tax.
28
Schedule 1 Separation of VET student loan debts from HELP debts
Part 2 Consequential and contingent amendments
28
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
36 Subsection 1061ZVHA(1) (formula)
1
Repeal the formula, substitute:
2
Applicable percentage of HELP
Relevant income-contingent
repayment income
loans liability
ï€-
3
Note:
This item does not commence if Schedule 2 to the Higher Education Support
4
Legislation Amendment (Student Loan Sustainability) Act 2018 commences on 1 July
5
2019.
6
37 Subsection 1061ZVHA(1) (definition of HELP liability)
7
Repeal the definition.
8
Note:
This item does not commence if Schedule 2 to the Higher Education Support
9
Legislation Amendment (Student Loan Sustainability) Act 2018 commences on 1 July
10
2019.
11
38 At the end of subsection 1061ZVHA(1)
12
Add:
13
relevant income-contingent loans liability means the amount that
14
is the sum of the following:
15
(a) the sum of any amounts the person is liable to pay under
16
section 154-1 or 154-16 of the Higher Education Support Act
17
2003 in respect of the income year;
18
(b) the sum of any amounts the person is liable to pay under
19
section 23EA or 23EC of the VET Student Loans Act 2016 in
20
respect of the income year.
21
Note:
This item does not commence if Schedule 2 to the Higher Education Support
22
Legislation Amendment (Student Loan Sustainability) Act 2018 commences on 1 July
23
2019.
24
39 Subsection 1061ZVHA(1) (after paragraph (a) of the
25
definition of relevant income-contingent loans liability)
26
Insert:
27
(aa) the sum of any amounts the person is liable to pay under
28
section 23EA or 23EC of the VET Student Loans Act 2016 in
29
respect of the income year;
30
Note:
This item does not commence if Schedule 2 to the Higher Education Support
31
Legislation Amendment (Student Loan Sustainability) Act 2018 does not commence on
32
1 July 2019.
33
Separation of VET student loan debts from HELP debts Schedule 1
Consequential and contingent amendments Part 2
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
29
40 Subsection 1061ZZFD(1) (definition of relevant
1
income-contingent loans liability)
2
Repeal the definition, substitute:
3
relevant income-contingent loans liability means the amount that
4
is the sum of the following:
5
(a) the sum of any amounts the person is liable to pay under
6
section 154-1 or 154-16 of the Higher Education Support Act
7
2003 in respect of the income year;
8
(b) the sum of any amounts the person is liable to pay under
9
section 23EA or 23EC of the VET Student Loans Act 2016 in
10
respect of the income year.
11
Note:
This item does not commence if Schedule 1 to the Higher Education Support
12
Legislation Amendment (Student Loan Sustainability) Act 2018 does not commence
13
before 1 July 2019.
14
Student Assistance Act 1973
15
41 Subsection 3(1) (definition of accumulated HELP debt)
16
Repeal the definition.
17
42 Section 6A
18
Omit:
19
When the person's income reaches the minimum repayment
20
income under the Higher Education Support Act 2003, and the
21
person has finished repaying any debt under that Act, or under the
22
Social Security Act 1991 in relation to a student start-up loan under
23
Chapter 2AA of that Act, the person must start repaying
24
ABSTUDY student start-up loan debt.
25
substitute:
26
Once the person's income exceeds the minimum repayment
27
income under the Higher Education Support Act 2003 and the
28
person has finished repaying any debt under that Act and certain
29
other income-contingent loan schemes, the person must start
30
repaying debt in relation to ABSTUDY student start-up loans.
31
Schedule 1 Separation of VET student loan debts from HELP debts
Part 2 Consequential and contingent amendments
30
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
43 Section 10A
1
Omit:
2
The person is required to make repayments, of amounts based on
3
his or her income, if that income is above a particular amount and
4
if the person has repaid the person's accumulated HELP debts
5
arising under the Higher Education Support Act 2003 and
6
accumulated SSL debts arising under Chapter 2AA of the Social
7
Security Act 1991. The Commissioner makes assessments of
8
repayment amounts, which are collected in the same way as
9
amounts of income tax and those other income-contingent loan
10
debts.
11
substitute:
12
The person is required to make repayments once the person's
13
income exceeds the minimum repayment income under the Higher
14
Education Support Act 2003 and the person has finished repaying
15
any debt under that Act and certain other income-contingent loan
16
schemes.
17
The amount of the repayments is based on the person's income.
18
The Commissioner makes assessments of repayment amounts,
19
which are collected in the same way as amounts of income tax.
20
44 Subsection 10F(1) (paragraph (a) of the definition of
21
relevant income-contingent loans liability)
22
After "154-1", insert "or 154-16".
23
Note:
This item does not commence if Schedule 2 to the Higher Education Support
24
Legislation Amendment (Student Loan Sustainability) Act 2018 commences on 1 July
25
2019.
26
45 Subsection 10F(1) (after paragraph (a) of the definition of
27
relevant income-contingent loans liability)
28
Insert:
29
Separation of VET student loan debts from HELP debts Schedule 1
Consequential and contingent amendments Part 2
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
31
(aa) the sum of any amounts the person is liable to pay under
1
section 23EA or 23EC of the VET Student Loans Act 2016 in
2
respect of the income year;
3
46 Subsection 12ZLC(1) (definition of relevant
4
income-contingent loans liability)
5
Repeal the definition, substitute:
6
relevant income-contingent loans liability means the amount that
7
is the sum of the following:
8
(a) the sum of any amounts the person is liable to pay under
9
section 154-1 or 154-16 of the Higher Education Support Act
10
2003 in respect of the income year;
11
(b) the sum of any amounts the person is liable to pay under
12
section 23EA or 23EC of the VET Student Loans Act 2016 in
13
respect of the income year.
14
Note:
This item does not commence if Schedule 1 to the Higher Education Support
15
Legislation Amendment (Student Loan Sustainability) Act 2018 does not commence
16
before 1 July 2019.
17
Taxation Administration Act 1953
18
47 Section 8AAZA
19
Insert:
20
compulsory VETSL repayment amount has the same meaning as
21
in the VET Student Loans Act 2016.
22
48 After paragraph 8AAZLD(aa)
23
Insert:
24
(aaa) then against any compulsory VETSL repayment amount of
25
the entity; and
26
49 After paragraph 11-1(ca) in Schedule 1
27
Insert:
28
(caa) amounts of liabilities to the Commonwealth under Part 3A of
29
the VET Student Loans Act 2016; and
30
Schedule 1 Separation of VET student loan debts from HELP debts
Part 2 Consequential and contingent amendments
32
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
50 Subsection 15-25(1) in Schedule 1
1
After "(ca),", insert "(caa),".
2
51 After paragraph 15-30(ca) in Schedule 1
3
Insert:
4
(caa) the percentage referred to in the definition of applicable
5
percentage of repayment income in subsection 23EA(1)
6
(about repayments of accumulated VETSL debts) of the VET
7
Student Loans Act 2016 for any financial year starting on or
8
after 1 July 2019;
9
52 Paragraph 15-30(cb) in Schedule 1
10
Omit "HELP".
11
Note:
This item does not commence if Schedule 2 to the Higher Education Support
12
Legislation Amendment (Student Loan Sustainability) Act 2018 does not commence on
13
1 July 2019.
14
53 Paragraph 15-50(1)(b) in Schedule 1
15
After "(ca),", insert "(caa),".
16
54 After paragraph 45-5(1)(ca) in Schedule 1
17
Insert:
18
(caa) amounts of liabilities to the Commonwealth under Part 3A of
19
the VET Student Loans Act 2016; and
20
55 Section 45-340 in Schedule 1 (method statement, after
21
step 3)
22
Insert:
23
Step 3AAA.
The amount (if any) that you would have been
24
liable to pay for the
*
base year in respect of an
25
*
accumulated VETSL debt if your taxable income for the
26
base year had been your
*
adjusted taxable income, or
27
your
*
adjusted withholding income, for that year is
28
worked out.
29
Separation of VET student loan debts from HELP debts Schedule 1
Consequential and contingent amendments Part 2
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
33
56 Section 45-340 in Schedule 1 (method statement, step 4)
1
After "3,", insert "3AAA,".
2
57 Section 45-375 in Schedule 1 (method statement, after
3
step 3)
4
Insert:
5
Step 3AAA.
The amount (if any) that you would have been
6
liable to pay for the variation year in respect of an
7
*
accumulated VETSL debt if your taxable income for that
8
year had been your
*
adjusted assessed taxable income for
9
that year is worked out.
10
58 Section 45-375 in Schedule 1 (method statement, step 4)
11
After "3,", insert "3AAA,".
12
59 Subsection 250-10(2) in Schedule 1 (after table item 36A)
13
Insert:
14
15
36AA compulsory VETSL
repayment amount
under the VET Student
Loans Act 2016
5-5
Income Tax Assessment Act 1997
60 Subsection 355-65(2) in Schedule 1 (at the end of the cell
16
at table item
5, column headed "The record is made for
17
or the disclosure is to ... ")
18
Add:
19
; or (c) the Secretary of the Department administered by the Minister administering the
20
VET Student Loans Act 2016
21
Taxation (Interest on Overpayments and Early Payments)
22
Act 1983
23
61 Subsection 3(1)
24
Insert:
25
Schedule 1 Separation of VET student loan debts from HELP debts
Part 2 Consequential and contingent amendments
34
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
compulsory VETSL repayment amount has the same meaning as
1
in the VET Student Loans Act 2016.
2
62 Section 3C (after table item 45)
3
Insert:
4
5
45A
Amounts that are treated under Division 6 of Part 3A of the VET Student
Loans Act 2016 as if they were income tax
63 After subparagraph 8A(1)(a)(iia)
6
Insert:
7
(iiaa) compulsory VETSL repayment amount; or
8
64 After paragraph 8A(2)(ba)
9
Insert:
10
(baa) compulsory VETSL repayment amount; or
11
65 After subparagraph 8E(1)(d)(iii)
12
Insert:
13
(iiiaa) a compulsory VETSL repayment amount that is notified
14
in the notice of assessment;
15
66 After subparagraph 8E(2)(d)(iii)
16
Insert:
17
(iiiaa) a compulsory VETSL repayment amount, worked out
18
by reference to the person's taxable income of the year
19
of income, payable by the person immediately before
20
the post-notice crediting;
21
67 After paragraph 12A(1A)(b)
22
Insert:
23
(baa) compulsory VETSL repayment amount;
24
Trade Support Loans Act 2014
25
68 Section 5 (definition of accumulated HELP debt)
26
Repeal the definition.
27
Separation of VET student loan debts from HELP debts Schedule 1
Consequential and contingent amendments Part 2
No. , 2018
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
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69 Section 39
1
Omit:
2
Trade support loan that is paid to a person must be repaid.
3
Compulsory repayments start once the person's income reaches the
4
minimum repayment income under the Higher Education Support
5
Act 2003 and the person has finished repaying any accumulated
6
HELP debt under that Act and any debts under certain other
7
income-contingent loan schemes.
8
substitute:
9
Trade support loan that is paid to a person must be repaid. Once the
10
person's income exceeds the minimum repayment income under
11
the Higher Education Support Act 2003 and the person has finished
12
repaying any debt under that Act and certain other
13
income-contingent loan schemes, the person must start repaying
14
debt in relation to trade support loan.
15
70 Section 39
16
Omit "and compulsory repayments of accumulated HELP debts".
17
71 Subsection 46(1) (after paragraph (a) of the definition of
18
relevant income-contingent loans liability)
19
Insert:
20
(aa) the sum of any amounts the person is liable to pay under
21
section 23EA or 23EC of the VET Student Loans Act 2016 in
22
respect of the income year;
23
VET Student Loans Act 2016
24
72 Subsection 23BA(4)
25
Omit "FEE-HELP", substitute "HELP".
26
Note:
This item does not commence if Schedule 3 to the Higher Education Support
27
Legislation Amendment (Student Loan Sustainability) Act 2018 does not commence.
28
Schedule 2 Courses and loan caps determination
36
Education and Other Legislation Amendment (VET Student Loan Debt
Separation) Bill 2018
No. , 2018
Schedule 2--Courses and loan caps
1
determination
2
3
VET Student Loans Act 2016
4
1 At the end of section 16
5
Add:
6
(4) Despite subsection 14(2) of the Legislation Act 2003, a
7
determination made under subsection (1) may make provision in
8
relation to a matter by applying, adopting or incorporating, with or
9
without modification, any matter contained in an instrument or
10
other writing as in force or existing from time to time.
11