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HIGHER EDUCATION FUNDING AMENDMENT ACT (No. 2) 1995 No. 163 of 1995 - SCHEDULE 1
SCHEDULE 1 Section 3
AMENDMENTS OF THE HIGHER EDUCATION FUNDING ACT 1988
PART 1 - ADJUSTMENTS OF FUNDING LEVELS 1. Section 3 (paragraph (b) of the
definition of year to which this Chapter applies): Omit "or the year 1996",
substitute ", the year 1996, the year 1997 or the year 1998". 2. Paragraphs
17(f), (g) and (h): Omit the paragraphs, substitute:
"(f) in the case of the year 1994 - $3,520,163,000; and
(g) in the case of the year 1995 - $3,652,019,000; and
(h) in the case of the year 1996 - $3,781,575,000; and
(i) in the case of the year 1997 - $3,834,297,000; and
(j) in the case of the year 1998 - $3,844,309,000". 3. Subsection 20(3):
Add at the end:
"; and (i) in the case of the year 1997 - $73,009,000; and
(j) in the case of the year 1998 - $73,009,000". 4. Subsection 22A(5): Add
at the end:
"; and (e) for the year 1997 - $211,000; and
(f) for the year 1998 - $211,000". 5. Paragraphs 23C(2)(a), (b) and (c):
Omit the paragraphs, substitute:
"(a) for the year 1994 - $431,919,000; and
(b) for the year 1995 - $441,397,000; and
(c) for the year 1996 - $492,195,000; and
(d) for the year 1997 - $476,196,000; and
(e) for the year 1998 - $453,482,000". 6. Subsection 24(3): Add at the
end:
"; and (i) in the case of the year 1997 - $4,734,000; and
(j) in the case of the year 1998 - $4,734,000". 7. Paragraph 27A(6)(c):
Omit the paragraph, substitute:
"(c) for the year 1996 - $36,893,000; and
(d) for the year 1997 - $36,893,000; and
(e) for the year 1998 - $36,893,000".
PART 2 - DISCOUNT ON VOLUNTARY PAYMENTS IN RESPECT OF DEBTS 8. Subsection
106N(1): Omit all the words from and including "less", substitute "less any
amounts by which that debt or those debts are to be reduced because of any
payments made before the relevant date.". 9. Subsection 106N(3) (definition of
C): Omit the definition, substitute:
"C is any amount, or the sum of any amounts, by which the person's accumulated
HEC debt at the earlier date is to be reduced because of any payment or
payments made (otherwise than in discharge of an HEC assessment debt) on or
after the earlier date and before the relevant date.". 10. Subsection 106P(1):
Omit "If", substitute "Subject to this Division, if". 11. After section 106P:
Insert in Division 1 of Part 5A.3:
"106PA.(1) This section applies in relation to the repayment of any debt under
this Chapter other than an HEC assessment debt.
"(2) If the amount of a debt is less than $500 but not less than $436, the
debtor is taken to pay off the total debt if he or she pays $435 in respect of
the debt.
"(3) If the amount of the debt is $500 or more, the debtor is taken to pay off
the total debt if he or she pays in respect of the debt an amount worked out
by using the formula:
Amount of debt outstanding
1.15.
"(4) Subject to subsection (5), if a person pays an amount of $500 or more in
part settlement of a debt, the outstanding amount of the debt is to be reduced
by the amount worked out by using the formula: Amount of payment X 1.15.
Example: If a person owes a semester debt of $1,700, and the person makes a
payment of $600, the debt is to be reduced by an amount of $690 (i.e. $600 X
1.15), leaving a balance of $1,010 ($1,700 - $690) to be paid.
"(5) Subsections (2), (3) and (4) do not apply in respect of a payment in
respect of a debt if, in addition to that debt, the debtor owes an HEC
assessment debt to the Commonwealth.
"(6) If an amount worked out by using the formula in subsection (3) or (4) is
an amount made up of a number of dollars and cents, then:
(a) if the amount of cents in the amount is 50 - the amount is to be
rounded up to the nearest dollar; and
(b) in any other case - the amount is to be rounded up or down to the
nearest dollar.".
PART 3 - HEC REPAYMENT INCOME 12. Subsection 100(3): Omit "taxable income",
substitute "HEC repayment income (within the meaning of that Chapter)". 13.
Subsection 106H(1): Insert the following definition:
"HEC repayment income of a person means:
(a) in relation to the year of income ending on 30 June 1996 or any
preceding year of income - an amount equal to the taxable income of
the person in respect of that year; or
(b) in relation to the year of income ending on 30 June 1997 or any
subsequent year of income - the sum of:
(i) the taxable income of the person in respect of that year; and
(ii) if, in respect of that year of income, a deduction has been allowed
from the assessable income of the person under section 51 of the
Income Tax Assessment Act 1936 for interest on money borrowed by the
person to finance rental property investments and that deduction or,
if another deduction has been allowed (otherwise than for interest on
money borrowed) from the assessable income of the person under that
Act in respect of the rental property investments, the total of those
deductions exceeds the rental income of the person - the amount of the
excess.". 14. Subsection 106Q(1): Omit "taxable income" (wherever
occurring), substitute "HEC repayment income".
PART 4 - VOLUNTARY REPAYMENTS OF ACCUMULATED HEC DEBT 15. After Division 1 of
Part 5A.3: Insert:
"Division 1A - Voluntary repayments of accumulated HEC debt Notice to
Commissioner
"106PB.(1) If a person owes a debt to the Commonwealth under this Chapter, the
person may, at any time, by writing in an approved form, notify the
Commissioner that the person elects to make payments in reduction of his or
her accumulated HEC debt when his or her HEC repayment income in respect of a
year of income exceeds the prescribed amount for that year of income for the
purposes of section 106PC.
"(2) A person who has made an election under subsection (1) may, at any time
before the person becomes liable to pay an amount under section 106PC, revoke
the election by notice in writing in an approved form to the Commissioner.
Voluntary payments in respect of accumulated HEC debt
"106PC.(1) If:
(a) a person has made an election under subsection 106PB(1) and the
election has not been revoked under subsection 106PB(2); and
(b) the HEC repayment income of the person in respect of a year of income:
(i) exceeds the prescribed amount for the year of income for the
purposes of this section (see subsection (3)); but
(ii) does not exceed the minimum prescribed amount for the year of
income for the purposes of subsection 106Q(1); and
(c) on 1 June immediately preceding the making of an assessment in respect
of the person's income of that year of income, the person had an
accumulated HEC debt; the person is liable to pay in accordance with
this Chapter to the Commonwealth in reduction of his or her relevant
debt (see subsection (3)) an amount equal to so much of that relevant
debt as does not exceed 2% of the person's HEC repayment income.
"(2) On the person first becoming liable to pay an amount to the Commonwealth
under subsection (1), an additional amount equal to 10% of the person's
relevant debt is taken to have been paid in reduction of that debt.
"(3) In subsections (1) and (2): relevant debt in relation to a person means:
(a) subject to paragraph (b) of this subsection - the person's accumulated
HEC debt referred to in paragraph (1)(c); or
(b) if an amount or amounts have been paid in reduction of that debt, or
an amount is taken (under subsection (2)) to have been paid in
reduction of that debt, or an amount or amounts have been assessed
under section 106T to be payable in respect of that debt - the amount
(if any) remaining after deducting from that debt the amount so paid
or taken to have been paid or the sum of the amounts so paid or
assessed to be payable.
"(4) A reference in paragraph (3)(b) to an amount assessed under section 106T
to be payable in respect of a person's accumulated HEC debt is, if the amount
has been increased or reduced by an amendment of the relevant assessment, a
reference to the increased or the reduced amount (as the case may be).
"(5) For the purposes of this section, the prescribed amount is:
(a) in the case of the year of income ending 30 June 1996 - $20,000; or
(b) in the case of a subsequent year of income - the number of whole
dollars of the amount worked out by using the formula:
AWE 20,000
52 X X
5 27,674
where: AWE is the sum of:
(i) the average weekly earnings for all employees for the reference period
in the December quarter immediately preceding that year of income, as
published by the Australian Statistician; and
(ii) the average weekly earnings for all employees for the reference period
in each of the 4 quarters immediately before that December quarter, as
published by the Australian Statistician.
"(6) For the purposes of subsection (4), the reference period in a particular
quarter in a year is the period described by the Australian Statistician as
the pay period ending on or before a specified day that is the third Friday of
the middle month of that quarter.
"(7) The Minister must cause to be published in the Gazette:
(a) as soon as possible after the commencement of this section, the
prescribed amount in respect of the year of income ending on 30 June
1996; and
(b) before the start of each following year of income, the prescribed
amount in respect of that year of income.". 16. Paragraph 106T(b):
After "section" insert "106PC or".
PART 5 - ACCUMULATED HEC DEBT - NEW REPAYMENT THRESHOLDS 17. Paragraph
106Q(1)(a): After "amount" insert "for the year of income". 18. Subsection
106Q(1): Omit all the words from and including "does not exceed" (first
occurring), substitute "does not exceed the percentage of the person's HEC
repayment income that is applicable in accordance with the following table:
TABLE
Item No. Person's HEC repayment income in respect Percentage
of year of income applicable
1. Not exceeding the first intermediate
prescribed amount for the year of income
(see subsection (4)) 3%
2. Exceeding the first intermediate prescribed
amount for the year of income but not
exceeding the second intermediate prescribed
amount for the year of income
(see subsection (4)) 3.5%
3. Exceeding the second intermediate prescribed
amount for the year of income but not
exceeding the third intermediate prescribed
amount for the year of income
(see subsection (4)) 4%
4. Exceeding the third intermediate prescribed
amount for the year of income but not exceeding
the fourth intermediate prescribed amount
for the year of income (see subsection (4)) 4.5%
5. Exceeding the fourth intermediate prescribed
amount for the year of income but not exceeding
the fifth intermediate prescribed amount for
the year of income (see subsection (4)) 5%
6. Exceeding the fifth intermediate prescribed
amount for the year of income but not
exceeding the maximum prescribed amount
(see subsection (4)) 5.5%
7. Exceeding the maximum prescribed amount for
the year of income 6%.".
19. Paragraphs 106Q(4)(a), (b) and (c): Omit the paragraphs, substitute:
"(a) the minimum prescribed amount for a year of income is the number of whole
dollars in the amount worked out by using the formula:
AWE
52 X ; and
5
(b) the first intermediate prescribed amount for a year of income is the
number of whole dollars in the amount worked out by using the formula:
AWE 29,184
52 X ; and
5 27,6474
(c) the second intermediate prescribed amount for a year of income is the
number of whole dollars in the amount worked out by using the formula:
AWE 31,449
52 X ; and
5 27,674
(ca) the third intermediate prescribed amount for a year of income is the
number of whole dollars in the amount worked out by using the formula:
AWE 36,481
52 X ; and
5 27,674
(cb) the fourth intermediate prescribed amount for a year of income is the
number of whole dollars in the amount worked out by using the formula:
AWE 44,029
52 X ; and
5 27,674
(cc) the fifth intermediate prescribed amount for a year of income is the
number of whole dollars in the amount worked out by using the formula:
AWE 46,344
52 X ; and
5 27,674
(cd) the maximum prescribed amount for a year of income is the number of
whole dollars in the amount worked out by using the formula:
AWE 49,815
52 X ; and
5 27,674
20. Subsection 106Q(6): Omit the subsection, substitute:
"(6) The Minister must cause to be published in the Gazette:
(a) as soon as possible after the commencement of this section, the
minimum prescribed amount, the intermediate prescribed amounts and the
maximum prescribed amount, in respect of the year of income ending on
30 June 1997; and
(b) before the start of each following year of income, the minimum
prescribed amount, the intermediate prescribed amounts and the maximum
prescribed amount in respect of that year of income.".
PART 6 - STUDENTS WHO ARE REQUIRED TO PAY FULL AMOUNT OF CONTRIBUTION 21.
Subsection 41(1): After "student" (first occurring) insert "who is not an
excepted student". 22. Paragraph 41(1)(b): Omit "if the student is not an
excepted student in relation to that course for that semester,". 23. After
subsection 41(1): Insert:
"(2) An institution must not permit a contributing student who is an excepted
student to enrol for, or undertake, a designated course of study in a semester
unless the student has paid to the institution the total amount of the
contribution that the institution assesses will be payable by the student in
respect of the course of study in respect of that semester if the student is
undertaking the course of study as a contributing student on the census date
in respect of the course of study in respect of that semester.". 24.
Subsection 41(3): Omit "subsection (1)", substitute "subsections (1) and (2)".
PART 7 - GRANTS UNDER THE HIGHER EDUCATION INNOVATION PROGRAM 25. Section 18A:
Repeal the section. 26. Paragraph 21(1)(b): Omit all the words from and
including "expenditure", substitute:
"expenditure:
(i) upon a project relating to a matter of national priority in
higher education; or
(ii) that will be used to maintain or enhance innovation in, or the
quality of, higher education provided by an institution.". Note
1: The heading to section 21 is replaced by the heading
"Proposals and grants for projects of national priority etc.".
Note 2: The heading to section 21A is replaced by the heading
"Conditions on certain grants under section 21". 27. After
section 21A: Insert: Grants in relation to innovation in, or
quality of, higher education
"21B.(1) Subject to section 23C, the Minister may determine an amount of
financial assistance for an institution to which this section applies in
respect of a year to which this Chapter applies if the Minister is satisfied
that the assistance will be used to maintain or enhance innovation in, or the
quality of, higher education provided by the institution.
"(2) The Minister may make a determination under subsection (1) subject to
conditions.
"(3) If the Minister determines an amount of financial assistance for an
institution in respect of a year under subsection (1), the amount payable
under section 15 or 16, as the case requires, in relation to the institution
in respect of the year is to be increased from 1 January in that year by the
amount of the determination.". 28. Paragraphs 23C(1)(a) and (b): Omit the
paragraphs, substitute:
"(a) the amount determined by the Minister under section 21 (Proposals and
grants for projects of national priority etc.); and
(b) the amounts determined by the Minister under section 21B (Grants in
relation to innovation in or the quality of higher education); and".
29. Section 119: Omit "18A,". 30. Section 119: After "21," insert
"21B,".
PART 8 - CERTAIN HOLDERS OF SCHOLARSHIPS NOT TO BE EXEMPT STUDENTS 31.
Subsection 35(7): Omit the subsection.
PART 9 - CERTAIN PERSONS NOT ENTITLED TO DEFERRED CONTRIBUTIONS 32. Section 3:
Insert the following definitions:
"permanent resident has the same meaning as in the Australian Citizenship Act
1948. permanent visa has the same meaning as in the Australian Citizenship Act
1948.". 33. Paragraphs 41(3)(a) and (b): Omit the paragraphs, substitute:
"(a) a student who, on the day (enrolment day) on which he or she completes
enrolment for the course in respect of that semester, is a New Zealand
citizen, other than a New Zealand citizen who:
(i) is also an Australian citizen; or
(ii) is the holder of a permanent visa and:
(A) does not, on enrolment day, satisfy the prescribed
residency requirements; or
(B) if, on enrolment day, he or she satisfies the prescribed
residency requirements - first satisfied those
requirements on a day within the period of 12 months
immediately preceding enrolment day; or
(b) a student (other than a New Zealand citizen) who:
(i) is a permanent resident; and
(ii) on enrolment day satisfies the prescribed residency
requirements; and
(iii) first satisfied the prescribed residency requirements on a day
more than one year before enrolment day; or
(c) a student (other than a New Zealand citizen) who:
(i) is a permanent resident; and
(ii) will be resident outside Australia for the duration of a course
in that semester for a reason other than a requirement of the
course; but does not include a student who has been granted a
certificate of Australian citizenship under section 13 of the
Australian Citizenship Act 1948 and who has yet to make the
pledge referred to in section 15 of that Act.". 34. Subsection
41(4): Omit the subsection, substitute:
"(4) For the purposes of subsection (3), the prescribed residency requirements
for a person on a particular day are that the person:
(a) should have been present in Australia as a permanent resident for a
period of, or for periods amounting in the aggregate to, not less than
one year during the period of 2 years immediately preceding that day;
and
(b) should have been present in Australia as a permanent resident for a
period of, or for periods amounting in the aggregate to, not less than
2 years during the period of 5 years immediately preceding that day.".
35. Subsection 41(5): Omit "(3)(b)(ii)", substitute "(3)(c)(ii)". 36.
Paragraph 101(d): Omit the paragraph, substitute:
"(d) on the day (enrolment day) on which the client completes his or her
enrolment, the client is:
(i) an Australian citizen; or
(ii) a person who has been granted a certificate of Australian
citizenship under section 13 of the Australian Citizenship Act
1948 and who has yet to make the pledge referred to in section
15 of that Act; or
(iii) a New Zealand citizen who is the holder of a permanent visa, is
present in Australia and:
(A) does not satisfy the prescribed residency requirements;
or
(B) if, on enrolment day, he or she satisfies the prescribed
residency requirements - first satisfied those
requirements on a day within the period of 12 months
immediately preceding enrolment day; or
(iv) a person (other than a New Zealand citizen) who is a permanent
resident, is present in Australia and:
(A) does not satisfy the prescribed residency requirements;
or
(B) if, on enrolment day, he or she satisfies the prescribed
residency requirements - first satisfied those
requirements on a day within the period of 12 months
immediately preceding enrolment day.". 37. Section 101:
Add at the end:
"(2) For the purposes of subsection (1), the prescribed residency requirements
for a person on a particular day are that the person:
(a) should have been present in Australia as a permanent resident for a
period of, or for periods amounting in the aggregate to, not less than
one year during the period of 2 years immediately preceding that day;
and
(b) should have been present in Australia as a permanent resident for a
period of, or for periods amounting in the aggregate to, not less than
2 years during the period of 5 years immediately preceding that day.".
38. Application:
(1) The amendments made by an item of this Part apply only in relation to a
person who commences a course of study to which those amendments relate on or
after 1 January 1996.
(2) In so far as the amendments made by an item of this Part relate to a
person who is a permanent resident, the amendments apply only in relation to a
person who becomes a permanent resident on or after 1 January 1996.
(3) In so far as the amendments made by an item of this Part relate to a
person who is a New Zealand citizen, the amendments apply only in relation to
a New Zealand citizen who commences a course of study after 1 January 1996.
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