Commonwealth Numbered Acts Commonwealth Numbered Acts
Higher Education Support Act 2003
1 At the end of Subdivision 36-D
Add:
36-50 Provider must not accept up-front payments of more than 90% of student contribution amounts
A higher education provider must not accept, from a person who:
(a) is enrolled in a unit of study with the provider; and
(b) is entitled to * HECS -HELP assistance for the unit;
* up-front payments in relation to the unit totalling more than 90% of the person's * student contribution amount for the unit.
Note: For entitlement to HECS-HELP assistance: see Division 90.
2 Paragraph 90-1(f)
Repeal the paragraph, substitute:
(f) the student either:
(i) * meets the tax file number requirements (see section 187-1); or
(ii) pays, as one or more * up-front payments in relation to the unit, 90% of the student's * student contribution amount for the unit; and
3 Subsection 93-15(1)
Omit "all or".
4 At the end of section 93-15
Add:
(3) A payment made in relation to a unit of study for which a person is liable to pay the person's * student contribution amount is not an up-front payment in relation to the unit to the extent that:
(a) the payment; or
(b) if other such payments have already been made in relation to the unit--the sum of the payment and all of those other payments;
exceeds 90% of the person's * student contribution amount for the unit.
Note 1: For when the Commonwealth pays one-ninth of the up-front payments made in relation to a unit of study, see sections 96-2 and 96-3.
Note 2: It is a condition of grants under Part 2-2 that a higher education provider not accept, from a student who is entitled to HECS-HELP assistance for a unit of study, up-front payments in relation to the unit totalling more than 90% of a student's student contribution amount for the unit: see section 36-50.
5 Section 96-1 (at the end of the heading)
Add " --no upfront payment of student contribution amount ".
6 Section 96-1
After "education provider", insert "and no * up-front payments are made in relation to the unit".
7 After section 96-1
Insert:
96-2 Payments to higher education providers--partial up-front payment of student contribution amount
Up-front payments made for one unit of study only
(1) If:
(a) a student is entitled to an amount of * HECS-HELP assistance for a unit of study (the relevant unit ) in which the student is enrolled with a higher education provider; and
(b) one or more * up-front payments have been made in relation to the relevant unit; and
(c) both of the following apply:
(i) the amount of that up-front payment, or the sum of those up-front payments, is less than 90% of the student's * student contribution amount for the relevant unit;
(ii) the amount of that up-front payment, or the sum of those up-front payments, is $500 or more; and
(d) either:
(i) the student is not enrolled with a provider as a * Commonwealth supported student in relation to any other units of study that have the same * census date as the relevant unit; or
(ii) if the student is so enrolled in relation to one or more such other units of study, no up-front payments have been made for any of those units;
the Commonwealth must pay the amount of HECS-HELP assistance for the relevant unit in accordance with subsections (3) and (4).
Up-front payments made for more than one unit of study
(2) If:
(a) a student is entitled to an amount of * HECS-HELP assistance for a unit of study (the relevant unit ) in which the student is enrolled with a higher education provider; and
(b) one or more * up-front payments have been made in relation to the relevant unit; and
(c) the student is enrolled with the provider as a * Commonwealth supported student in relation to one or more other units of study that have the same * census date as the relevant unit; and
(d) one or more up-front payments have been made in relation to one or more of those other units; and
(e) both of the following apply:
(i) the sum of the up-front payments made in relation to the relevant unit and those other units is less than 90% of the sum of the student's * student contribution amounts for the relevant unit and those other units;
(ii) the sum of the up-front payments made in relation to the relevant unit and those other units is $500 or more;
the Commonwealth must pay the amount of HECS-HELP assistance for the relevant unit in accordance with subsections (3) and (4).
Payment of loan amount
(3) The Commonwealth must:
(a) as a benefit to the student, lend to the student an amount equal to the difference between the amount of * HECS-HELP assistance for the relevant unit and the * HECS-HELP discount for the relevant unit; and
(b) pay to the provider the amount lent in discharge of that amount of the student's liability to pay the student's * student contribution amount for the relevant unit.
Payment of discount amount
(4) The Commonwealth must, as a benefit to the student, pay to the provider an amount equal to the * HECS-HELP discount for the relevant unit in discharge of that amount of the student's liability to pay the student's * student contribution amount for the relevant unit.
HECS-HELP discount
(5) The HECS-HELP discount for a unit of study is an amount equal to one-ninth of the * up-front payment, or the sum of all of the up-front payments made, in relation to the unit.
Example: Robert is required to pay a student contribution amount for a unit of study of $2,745 by 31 January 2021, and makes an up-front payment in relation to the unit of $900 on 20 January 2021.
Robert is entitled to HECS-HELP assistance for the unit of $1,845 ($2,745 minus $900), which the Commonwealth must pay to the higher education provider.
The up-front payment in relation to the unit exceeded $500 so there is a HECS-HELP discount of $100 (one-ninth of $900). The Commonwealth lends to Robert the remainder of the HECS-HELP assistance in relation to the unit, an amount of $1,745 ($1,845 minus $100).
96-3 Payments to higher education providers--full up-front payment of student contribution amount
If:
(a) a student is entitled to an amount of * HECS-HELP assistance for a unit of study in which the student is enrolled with a higher education provider; and
(b) one or more * up-front payments have been made in relation the unit; and
(c) the amount of that up-front payment, or the sum of those up-front payments, is equal to 90% of the student's * student contribution amount for the unit;
the Commonwealth must, as a benefit to the student, pay to the provider the amount of HECS-HELP assistance for the unit in discharge of that amount of the student's liability to pay the student's student contribution amount for the unit.
Note: The student does not incur a HECS-HELP debt in relation to the amount of HECS-HELP assistance paid by the Commonwealth to the provider under this section.
8 Subsection 137-5(1)
After "section 96-1", insert "or 96-2".
9 Paragraph 193-1(5)(b)
Omit "for the unit have been made totalling 100%", substitute "in relation to the unit have been made totalling 90%".
10 Paragraph 193-5(1)(d)
After "to the unit,", insert "90% of".
11 Subclause 1(1) of Schedule 1
Insert:
"HECS-HELP discount " has the meaning given by subsection 96-2(5).
12 Application of amendments
The amendments made by this Schedule apply in relation to an up-front payment made in relation to a unit of study that has a census date on or after 1 January 2021.