SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (STUDENT MEASURES) BILL 2014

2013-2014

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Social Services and Other Legislation

Amendment (Student Measures) Bill

2014

No. , 2014

(Social Services)

A Bill for an Act to amend the law relating to social

security and student assistance, and for related

purposes

No. , 2014

Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

Contents

Short title ........................................................................................... 1

Commencement ................................................................................. 1

Schedule(s) ........................................................................................ 3

Schedule 1--Interest charge

Part 1--Amendments

Social Security Act 1991

Student Assistance Act 1973

Part 2--Application and transitional provisions

Schedule 2--Student start-up loans

Part 1--Amendments

Bankruptcy Act 1966

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

Social Security Act 1991

Social Security (Administration) Act 1999

Student Assistance Act 1973

Taxation Administration Act 1953

Taxation (Interest on Overpayments and Early Payments) Act 1983

Trade Support Loans Act 2014

Part 2--Application and saving provisions

No. , 2014

Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

A Bill for an Act to amend the law relating to social

security and student assistance, and for related

purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Social Services and Other Legislation

Amendment (Student Measures) Act 2014.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

No. , 2014

Commencement information

Column 1

Column 2

Column 3

Provision(s)

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

1 January 2015.

1 January 2015

3. Schedule 2,

items 1 to 114

Immediately after the commencement of the

provision(s) covered by table item 2.

1 January 2015

4. Schedule 2,

item 115

Immediately after the commencement of the

provision(s) covered by table item 2.

However, the provision(s) do not commence

at all if item 115 of Schedule 1 to the

Minerals Resource Rent Tax Repeal and

Other Measures Act 2014 commences at or

before that time.

5. Schedule 2,

item 116

Immediately after the commencement of the

provision(s) covered by table item 2.

However, the provision(s) do not commence

at all if item 115 of Schedule 1 to the

Minerals Resource Rent Tax Repeal and

Other Measures Act 2014 does not

commence at or before the time the

provision(s) covered by table item 3

commence.

6. Schedule 2,

items 117 to 126

Immediately after the commencement of the

provision(s) covered by table item 2.

1 January 2015

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

Schedule 1 Interest charge

Part 1 Amendments

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Bill 2014

No. , 2014

Schedule 1

--Interest charge

Part 1

--Amendments

Social Security Act 1991

1 Subsection 1222(2) (after table item 17)

Insert:

17A

1229G

(interest charge)

deductions

legal proceedings

garnishee notice

repayment by instalments

1231, 1234A

1232

1233

1234

2 After subsection 1228B(2)

Insert:

(2A) To avoid doubt, the amount added by way of penalty is part of the

debt.

3 Subsection 1228B(5)

Omit "or 1229AB", substitute ", 1229AB or 1229G".

4 After paragraph 1229(1)(e)

Insert:

(ea) if, because of section 1229D, sections 1229E and 1229F

apply in relation to the person and the debt--the effect of

sections 1229E and 1229F; and

5 At the end of section 1229

Add:

(5) Subsections (3) and (4) do not apply in relation to a person and a

debt if, because of section 1229D, sections 1229E and 1229F apply

in relation to the person and the debt.

6 After section 1229C

Insert:

Interest charge Schedule 1

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Bill 2014

1229D Interest charge payable under section 1229E or 1229F on

certain social security debts

(1) Sections 1229E and 1229F apply in relation to a person and a debt

if:

(a) the debt is a debt owed by the person to the Commonwealth

under the social security law and the debt has not been

wholly paid; and

(b) the debt relates to a payment of any of the following social

security payments:

(i) youth allowance;

(ii) austudy payment;

(iii) fares allowance;

(iv) a social security payment prescribed in an instrument

under subsection (2); and

(i) qualification for the youth allowance was under

section 540 in circumstances where paragraph 541(1)(a)

(about full-time study) applied; or

(ii) qualification for the youth allowance was under

section 540AA (about new apprentices); or

(iii) qualification for the youth allowance was in

circumstances prescribed in an instrument under

subsection (3).

Legislative instruments

(2) The Minister may, by legislative instrument, prescribe a social

security payment for the purposes of subparagraph (1)(b)(iv).

(3) The Minister may, by legislative instrument, prescribe

circumstances for the purposes of subparagraph (1)(c)(iii).

1229E No repayment arrangement in effect

(1) If:

(a) because of section 1229D, this section applies in relation to a

person and a debt; and

Schedule 1 Interest charge

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Bill 2014

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(b) a notice is given to the person under subsection 1229(1) in

relation to the debt; and

at the end of the day (the due day) on which the debt is due to

be paid; and

(d) at the end of the due day, there is no arrangement in effect

under section 1234 in relation to the debt;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (7), for each day in the period

described in subsection (6).

(2) However, subsection (1) does not apply in relation to the person in

the circumstances prescribed in an instrument under subsection (3).

(3) The Minister may, by legislative instrument, prescribe

circumstances for the purposes of subsection (2).

(4) If, because of subsection (2), subsection (1) does not apply in

relation to the person, then:

(a) at a later time, the Secretary may give the person a notice

specifying:

(i) the day on which it was issued; and

(ii) the outstanding amount of the debt at that day; and

(iii) the day on which the outstanding amount is due and

payable; and

(iv) the contact details for inquiries concerning the debt; and

(b) the outstanding amount of the debt is due and payable on the

28th day after the day on which the notice was issued.

(5) If:

(a) a notice is given to the person under paragraph (4)(a) in

relation to the debt; and

(b) an amount (the unpaid amount) of the debt remains unpaid

at the end of the day (the due day) on which the debt is due to

be paid; and

under section 1234 in relation to the debt;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (7), for each day in the period

described in subsection (6).

Interest charge Schedule 1

Amendments Part 1

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Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

Calculation of interest charge

(6) For the purposes of subsection (1) or (5), the period starts at the

beginning of the day after the due day and ends at the end of the

earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the unpaid amount;

(ii) interest charge on any of the unpaid amount;

(b) the day before the first day, after the due day, on which the

person makes a payment under an arrangement under

section 1234 in relation to the debt.

(7) The interest charge for a day in the period described in

subsection (6) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the unpaid amount;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 1229H.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 1229G.

1229F Failure to comply with or termination of repayment

arrangement

(1) If:

(a) because of section 1229D, this section applies in relation to a

person and a debt; and

(b) an arrangement is in effect under section 1234 in relation to

the debt; and

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (3), for each day in the period

described in subsection (2).

(2) The period starts at the beginning of the day after the day (the due

day) on which the payment was required to be made under the

Schedule 1 Interest charge

Part 1 Amendments

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arrangement and ends at the end of the earliest of the following

days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

(b) the day before the first day, after the due day, on which the

person has paid all the payments that have so far become due

and payable under the arrangement;

section 1234.

(3) The interest charge for a day in the period described in

subsection (2) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 1229H.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 1229G.

Repayment arrangement is terminated

(4) If:

(a) because of section 1229D, this section applies in relation to a

person and a debt; and

(b) an arrangement is in effect under section 1234 in relation to

the debt; and

day (the termination day);

then:

(d) the following amounts (if any) are due and payable on the

14th day after the termination day:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt; and

Interest charge Schedule 1

Amendments Part 1

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Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

(e) if, at the end of that 14th day, any of those amounts remains

unpaid, the person is liable to pay, by way of penalty, interest

charge, worked out under subsection (6), for each day in the

period described in subsection (5).

(5) The period starts at the beginning of the day after that 14th day and

ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

(b) the day before the first day, after that 14th day, on which the

person makes a payment under another arrangement under

section 1234 in relation to the debt.

(6) The interest charge for a day in the period described in

subsection (5) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 1229H.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 1229G.

1229G Other rules for interest charge

When interest charge is due and payable

(1) The interest charge under section 1229E or 1229F for a day is due

and payable to the Commonwealth at the end of that day.

Interest charge is a debt

(2) The interest charge under section 1229E or 1229F for a day is a

debt due to the Commonwealth by the person.

Schedule 1 Interest charge

Part 1 Amendments

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Bill 2014

No. , 2014

Provisions that do not apply to interest charge debt

(3) Subsection 1229(1) and paragraph 1229D(1)(b) do not apply in

relation to the debt referred to in subsection (2) of this section.

1229H What is the interest charge rate?

(1) For the purposes of sections 1229E and 1229F, the interest charge

rate for a day is the rate worked out by adding 7 percentage points

to the base interest rate for that day, and dividing that total by the

number of days in the calendar year.

(2) The base interest rate for a day depends on which quarter of the

year the day is in. For each day in a quarter in column 1 of the

table, it is the monthly average yield of 90-day Bank Accepted

Bills published by the Reserve Bank of Australia for the month in

column 2 of the table.

Base interest rate

Item

Column 1

For days in this quarter:

Column 2

the monthly average yield of 90-day Bank

Accepted Bills for this month applies:

1 January to 31 March

the preceding November

1 April to 30 June

the preceding February

1 July to 30 September

the preceding May

1 October to 31 December

the preceding August

(3) If the monthly average yield of 90-day Bank Accepted Bills for a

particular month in column 2 of the table in subsection (2) is not

published by the Reserve Bank of Australia before the beginning of

the relevant quarter, assume that it is the same as the last monthly

average yield of 90-day Bank Accepted Bills published by the

Reserve Bank of Australia before that month.

(4) The base interest rate must be rounded to the second decimal place

(rounding .005 upwards).

7 After subsection 1234(1)

Insert:

Interest charge Schedule 1

Amendments Part 1

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Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

(1A) If a person is required to make a payment under an arrangement

entered into under subsection (1) before the end of a particular day,

the person must make that payment before the end of that day.

Student Assistance Act 1973

8 Section 38 (heading)

Repeal the heading, substitute:

38 Definitions

9 Section 38

Insert:

ABSTUDY debt means an amount paid under the ABSTUDY

Scheme (also known as the Aboriginal Study Assistance Scheme)

that should not have been paid.

Note:

The amount is a debt under paragraph (a) of the definition of debt in

this section.

10 Section 38 (paragraph (c) of the definition of debt)

After "section 40", insert "or 41F".

11 After section 41

Insert:

41A Sections 40 and 41 do not apply to ABSTUDY debts

Sections 40 and 41 do not apply in relation to a person and an

ABSTUDY debt owed by the person to the Commonwealth.

41B Notice in respect of ABSTUDY debt

(1) If an ABSTUDY debt owed by a person to the Commonwealth has

not been wholly paid, the Secretary must give the person a notice

specifying:

(a) the date on which it was issued (the date of the notice); and

Schedule 1 Interest charge

Part 1 Amendments

Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

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(b) the reason the debt was incurred, including a brief

explanation of the circumstances that led to the debt being

incurred; and

(d) the outstanding amount of the debt at the date of the notice;

and

(e) the day on which the outstanding amount is due and payable;

and

(f) the effect of sections 41D and 41E; and

(g) that a range of options is available for repayment of the debt;

and

(h) the contact details for inquiries concerning the debt.

(2) The outstanding amount of the debt is due and payable on the 28th

day after the date of the notice.

41C Interest charge payable on ABSTUDY debts

Sections 41D and 41E apply in relation to a person and a debt if the

debt is an ABSTUDY debt owed by the person to the

Commonwealth and the debt has not been wholly paid.

41D No repayment arrangement in effect

(1) If:

(a) because of section 41C, this section applies in relation to a

person and a debt; and

(b) a notice is given to the person under subsection 41B(1) in

relation to the debt; and

at the end of the day (the due day) on which the debt is due to

be paid; and

(d) at the end of the due day, there is no arrangement in effect

under section 41H in relation to the debt;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (7), for each day in the period

described in subsection (6).

(2) However, subsection (1) does not apply in relation to the person in

the circumstances prescribed in an instrument under subsection (3).

Interest charge Schedule 1

Amendments Part 1

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Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

(3) The Minister may, by legislative instrument, prescribe

circumstances for the purposes of subsection (2).

(4) If, because of subsection (2), subsection (1) does not apply in

relation to the person, then:

(a) at a later time, the Secretary may give the person a notice

specifying:

(i) the day on which it was issued; and

(ii) the outstanding amount of the debt at that day; and

(iii) the day on which the outstanding amount is due and

payable; and

(iv) the contact details for inquiries concerning the debt; and

(b) the outstanding amount of the debt is due and payable on the

28th day after the day on which the notice was issued.

(5) If:

(a) a notice is given to the person under paragraph (4)(a) in

relation to the debt; and

(b) an amount (the unpaid amount) of the debt remains unpaid

at the end of the day (the due day) on which the debt is due to

be paid; and

under section 41H in relation to the debt;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (7), for each day in the period

described in subsection (6).

Calculation of interest charge

(6) For the purposes of subsection (1) or (5), the period starts at the

beginning of the day after the due day and ends at the end of the

earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the unpaid amount;

(ii) interest charge on any of the unpaid amount;

(b) the day before the first day, after the due day, on which the

person makes a payment in accordance with an arrangement

under section 41H in relation to the debt.

Schedule 1 Interest charge

Part 1 Amendments

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Bill 2014

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(7) The interest charge for a day in the period described in

subsection (6) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the unpaid amount;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 41G.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day: see section 41F.

41E Failure to comply with or termination of repayment

arrangement

(1) If:

(a) because of section 41C, this section applies in relation to a

person and a debt; and

(b) an arrangement is in effect under section 41H in relation to

the debt; and

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (3), for each day in the period

described in subsection (2).

(2) The period starts at the beginning of the day after the day (the due

day) on which the payment was required to be made under the

arrangement and ends at the end of the earliest of the following

days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

(b) the day before the first day, after the due day, on which the

person has paid all the payments that have so far become due

and payable under the arrangement;

section 41H.

Interest charge Schedule 1

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Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

(3) The interest charge for a day in the period described in

subsection (2) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 41G.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day: see section 41F.

Repayment arrangement is terminated

(4) If:

(a) because of section 41C, this section applies in relation to a

person and a debt; and

(b) an arrangement is in effect under section 41H in relation to

the debt; and

day (the termination day);

then:

(d) the following amounts (if any) are due and payable on the

14th day after the termination day:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt; and

(e) if, at the end of that 14th day, any of those amounts remains

unpaid, the person is liable to pay, by way of penalty, interest

charge, worked out under subsection (6), for each day in the

period described in subsection (5).

(5) The period starts at the beginning of the day after that 14th day and

ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

Schedule 1 Interest charge

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(b) the day before the first day, after that 14th day, on which the

person makes a payment under another arrangement under

section 41H in relation to the debt.

(6) The interest charge for a day in the period described in

subsection (5) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 41G.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day: see section 41F.

41F When interest charge becomes due and payable

The interest charge under section 41D or 41E for a day is due and

payable to the Commonwealth at the end of that day.

Note:

The interest charge for a day is a debt owed to the Commonwealth:

see section 39.

41G What is the interest charge rate?

(1) For the purposes of sections 41D and 41E, the interest charge rate

for a day is the rate worked out by adding 7 percentage points to

the base interest rate for that day, and dividing that total by the

number of days in the calendar year.

(2) The base interest rate for a day depends on which quarter of the

year the day is in. For each day in a quarter in column 1 of the

table, it is the monthly average yield of 90-day Bank Accepted

Bills published by the Reserve Bank of Australia for the month in

column 2 of the table.

Base interest rate

Item

Column 1

For days in this quarter:

Column 2

the monthly average yield of 90-day Bank

Accepted Bills for this month applies:

1 January to 31 March

the preceding November

Interest charge Schedule 1

Amendments Part 1

No. , 2014

Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

Base interest rate

Item

Column 1

For days in this quarter:

Column 2

the monthly average yield of 90-day Bank

Accepted Bills for this month applies:

1 April to 30 June

the preceding February

1 July to 30 September

the preceding May

1 October to 31 December

the preceding August

(3) If the monthly average yield of 90-day Bank Accepted Bills for a

particular month in column 2 of the table in subsection (2) is not

published by the Reserve Bank of Australia before the beginning of

the relevant quarter, assume that it is the same as the last monthly

average yield of 90-day Bank Accepted Bills published by the

Reserve Bank of Australia before that month.

(4) The base interest rate must be rounded to the second decimal place

(rounding .005 upwards).

41H Arrangement for payment of ABSTUDY debt

(1) The Secretary may, on behalf of the Commonwealth, enter into an

arrangement with a person under which the person is to pay an

ABSTUDY debt, owed by the person to the Commonwealth, or the

outstanding amount of such a debt, in a way set out in the

arrangement.

(2) If a person is required to make a payment under an arrangement

entered into under subsection (1) before the end of a particular day,

the person must make that payment before the end of that day.

(3) An arrangement entered into under subsection (1) has effect, or is

taken to have had effect, on and after the day specified in the

arrangement as the day on which the arrangement commences

(whether that day is the day on which the arrangement is entered

into or an earlier or later day).

(4) If an arrangement entered into under subsection (1) does not

specify a day as mentioned in subsection (3), it has effect on and

after the day on which it is entered into.

Schedule 1 Interest charge

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(5) The Secretary may terminate or alter an arrangement entered into

under subsection (1):

(a) at the debtor's request; or

(b) after giving 28 days notice to the debtor of the proposed

termination or alteration; or

failed to disclose material information about his or her true

capacity to repay the debt.

12 Paragraph 51(1)(b)

After "subsection 40(1A)", insert "or 41B(1) or paragraph 41D(4)(a)".

Interest charge Schedule 1

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Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

Part 2

--Application and transitional provisions

13 Application and transitional provisions

--social security

law

(1)

Section 1229D of the Social Security Act 1991, as inserted by this Act,

applies in relation to:

(a) a debt that arises on or after the commencement of this item;

and

(b) a debt that arose before the commencement of this item, to

the extent that the debt was outstanding immediately before

that commencement.

(2)

Paragraph 1229E(1)(b) of the Social Security Act 1991, as inserted by

this Act, applies in relation to a notice given on or after the

commencement of this item.

(3)

If:

(a) section 1229D of the Social Security Act 1991, as inserted by

this Act, applies in relation to a debt that arose before the

commencement of this item; and

(b) before the commencement of this item, the Secretary gave a

person a notice under subsection 1229(1) of that Act in

relation to the debt;

then, on or after the commencement of this item, the Secretary must

give the person another notice under subsection 1229(1) of that Act, as

amended by this Act, in relation to the debt.

(4)

Paragraph 1229F(1)(c) of the Social Security Act 1991, as inserted by

this Act, applies in relation to a failure that occurs on or after the

commencement of this item (whether the arrangement was entered into

before, on or after that commencement).

(5)

Paragraph 1229F(4)(c) of the Social Security Act 1991, as inserted by

this Act, applies in relation to a termination that occurs on or after the

commencement of this item (whether the arrangement was entered into

before, on or after that commencement).

(6)

The amendment made by item 7 applies in relation to a requirement to

make a payment on or after the commencement of that item (whether

Schedule 1 Interest charge

Part 2 Application and transitional provisions

Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

No. , 2014

the arrangement was entered into before, on or after that

commencement).

14 Application provision

--student assistance law

Sections 41A to 41H of the Student Assistance Act 1973, as inserted by

this Act, apply in relation to:

(a) an ABSTUDY debt that arises on or after the commencement

of this item; and

(b) an ABSTUDY debt that arose before the commencement of

this item, to the extent that the debt was outstanding

immediately before that commencement.

Student start-up loans Schedule 2

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No. , 2014

Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

Schedule 2

--Student start-up loans

Part 1

--Amendments

Bankruptcy Act 1966

1 After paragraph 82(3AB)(a)

Insert:

(aa) Part 2AA.3 of the Social Security Act 1991 (student start-up

loan debts);

(ab) Division 3 or 4 of Part 2 of the Student Assistance Act 1973

(ABSTUDY student start-up loan debts);

Income Tax Assessment Act 1936

2 Subsection 82A(2) (after paragraph (bb) of the definition of

expenses of self-education)

Insert:

(bc) a payment made in respect of, or in respect of the reduction

or discharge of, any indebtedness to the Commonwealth

under Chapter 2AA of the Social Security Act 1991 or under

Part 2 of the Student Assistance Act 1973; or

3 After paragraph 202(ga)

Insert:

(gaa) to facilitate the administration of Part 2 of the Student

Assistance Act 1973, which deals with ABSTUDY student

start-up loans and debts in relation to those loans; and

4 After paragraph 202(haa)

Insert:

(hab) to facilitate the administration of Chapter 2AA of the Social

Security Act 1991, which deals with student start-up loans

and debts in relation to those loans; and

5 After paragraph 202F(1)(fb)

Insert:

Schedule 2 Student start-up loans

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(fc) a decision to give a notice under subsection 1061ZVJD(1) of

the Social Security Act 1991;

(fd) a decision to give a notice under subsection 1061ZVJF(1) of

the Social Security Act 1991;

(fe) a decision to give a notice under subsection 11D(1) of the

Student Assistance Act 1973;

(ff) a decision to give a notice under subsection 11F(1) of the

Student Assistance Act 1973;

Income Tax Assessment Act 1997

6 Section 12-

5 (at the end of table item headed "education

expenses")

Add:

see also student start-up loans

7 Section 12-

5 (after table item headed "State or Territory

bodies (STBs)")

Insert:

student start-up loans

limit on deduction .............................................................. 82A

payment made to reduce a debt to the Commonwealth

under Chapter 2AA of the Social Security Act 1991

(student start-up loans), no deduction unless

provided as fringe benefit .............................................

26-20

payment made to reduce a debt to the Commonwealth

under Part 2 of the Student Assistance Act 1973

(ABSTUDY student start-up loans), no deduction

unless provided as fringe benefit ...................................

26-20

8 After paragraph 26-20(1)(cb)

Insert:

(cc) a payment made to reduce a debt to the Commonwealth

under Chapter 2AA of the Social Security Act 1991 or Part 2

of the Student Assistance Act 1973; or

9 Subsection 995-1(1)

Insert:

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accumulated ABSTUDY SSL debt has the meaning given by

section 9C of the Student Assistance Act 1973.

10 Subsection 995-1(1)

Insert:

accumulated SSL debt has the meaning given by

section 1061ZVEC of the Social Security Act 1991.

Social Security Act 1991

11 After section 19A

Insert:

19AA Student start-up loan definitions

For the purposes of Chapter 2AA:

accumulated HELP debt has the same meaning as in the Higher

Education Support Act 2003.

accumulated SSL debt has the meaning given by

section 1061ZVEC.

approved form has the meaning given by section 388-50 in

Schedule 1 to the Taxation Administration Act 1953.

Commissioner means the Commissioner of Taxation.

compulsory SSL repayment amount means an amount that:

(a) is required to be paid in respect of an accumulated SSL debt

under section 1061ZVHA; and

(b) is included in a notice of assessment made under

section 1061ZVHC.

enrolment test day has the meaning given by

subsection 1223ABF(2).

former accumulated SSL debt has the meaning given by

section 1061ZVEB.

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HELP debt indexation factor has the same meaning as in the

Higher Education Support Act 2003.

HELP repayment income has the same meaning as repayment

income has in the Higher Education Support Act 2003.

income tax has the meaning given by subsection 995-1(1) of the

Income Tax Assessment Act 1997.

income tax law has the meaning given by subsection 995-1(1) of

the Income Tax Assessment Act 1997.

income year has the meaning given by subsection 995-1(1) of the

Income Tax Assessment Act 1997.

Medicare levy means the Medicare levy imposed by the Medicare

Levy Act 1986.

minimum HELP repayment income has the same meaning as

minimum repayment income has in the Higher Education Support

Act 2003.

qualification period, for a student start-up loan, means a period of

6 months starting on 1 January or 1 July in any year.

qualification test day has the meaning given by

subsection 1061ZVBB(3).

repayable SSL debt has the meaning given by section 1061ZVHB.

return means an income tax return within the meaning of

subsection 995-1(1) of the Income Tax Assessment Act 1997.

SSL debt means a debt incurred under section 1061ZVDA.

student start-up loan means a loan for which a person qualifies

under Part 2AA.2.

voluntary SSL repayment means a payment made to the

Commissioner in discharge of an accumulated SSL debt or an SSL

debt. It does not include a payment made in discharge of a

compulsory SSL repayment amount.

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12 Subsection 23(1)

Insert:

accumulated SSL debt has the meaning given by

section 1061ZVEC.

13 Subsection 23(1)

Insert:

approved scholarship course has the meaning given by

section 592M.

14 Subsection 23(1) (definition of Commonwealth Education

Costs Scholarship)

Repeal the definition, substitute:

Commonwealth Education Costs Scholarship means any

scholarship provided to assist with education costs under the

Commonwealth Scholarships Guidelines made for the purposes of

Part 2-4 of the Higher Education Support Act 2003.

15 Subsection 23(1)

Insert:

enrolment test day has the meaning given by

subsection 1223ABF(2).

16 Subsection 23(1)

Insert:

qualification period, for a student start-up loan, has the meaning

given by section 19AA.

17 Subsection 23(1) (after paragraph (e) of the definition of

social security payment)

Insert:

(ea) a payment under Chapter 2AA of this Act (Student start-up

loans); or

Schedule 2 Student start-up loans

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18 Subsection 23(1)

Insert:

student start-up loan has the meaning given by section 19AA.

19 Division 1 of Part 2.11B

Repeal the Division.

20 Section 592M

Omit "Part", substitute "Act".

21 Subsection 592N(1)

Omit "Part", substitute "Act".

22 After Chapter 2A

Insert:

Chapter 2AA--Student start-up loans

Part 2AA.1--Introduction

1061ZVAA Simplified outline of this Chapter

Student start-up loans are social security payments that are

income-contingent loans.

Broadly, full-time students who are receiving youth allowance or

austudy might be qualified for a student start-up loan. A person can

qualify for up to 2 loans each calendar year. To receive a loan, a

person must make a claim before the end of the relevant period for

each loan.

When the person's income reaches the minimum repayment

income under the Higher Education Support Act 2003, and the

person has finished repaying any debt under that Act, the person

must start repaying student start-up loan debt.

Student start-up loans Schedule 2

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Part 2AA.2--Qualification for and amount of

student start-up loan

1061ZVBA Simplified outline of this Part

Broadly, full-time students who are receiving youth allowance or

austudy might be qualified for a student start-up loan. A person can

qualify for up to 2 loans each calendar year.

1061ZVBB Qualification for student start-up loan

Receiving youth allowance

(1) A person is qualified for a student start-up loan for a qualification

period if:

(a) on the person's qualification test day for the period:

(i) the person is qualified for youth allowance and youth

allowance is payable to the person; and

(ii) the person is receiving youth allowance and would be

receiving youth allowance if steps 2 and 3 of the method

statement in point 1067G-A1 of the Youth Allowance

Rate Calculator were disregarded for the purposes of

working out the person's rate of that allowance; and

(iii) the person is qualified for youth allowance under

section 540 in circumstances where paragraph 541(1)(a)

(about full-time study) applies and the relevant course

of education is an approved scholarship course; and

(b) the Secretary is satisfied that the person is not likely to

receive the amount or value of a Commonwealth Education

Costs Scholarship in the period of 6 months starting

immediately after that qualification test day; and

number.

Note 1:

For approved scholarship course, see section 592M.

Note 2:

If the condition in subparagraph (a)(iii) is no longer met in a certain

period starting on the qualification test day, the amount of the loan

Schedule 2 Student start-up loans

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might become an immediately recoverable debt, rather than an

income-contingent SSL debt: see subsection 1223ABF(1).

Receiving austudy payment

(2) A person is qualified for a student start-up loan for a qualification

period if:

(a) on the person's qualification test day for the period:

(i) the person is qualified for austudy payment and austudy

payment is payable to the person; and

(ii) the person is receiving austudy payment and would be

receiving austudy payment if steps 2 and 2A of the

method statement in point 1067L-A1 of the Austudy

Payment Rate Calculator were disregarded for the

purposes of working out the person's rate of that

payment; and

(iii) the person is qualified for austudy payment under

section 568 in circumstances where subsection 569(1)

(about qualifying study) applies and the relevant course

of education is an approved scholarship course; and

(b) the Secretary is satisfied that the person is not likely to

receive the amount or value of a Commonwealth Education

Costs Scholarship in the period of 6 months starting

immediately after that qualification test day; and

number.

Note 1:

For approved scholarship course, see section 592M.

Note 2:

The person might incur a debt if the condition in subparagraph (a)(iii)

is no longer met in a certain period starting on the qualification test

day: see subsection 1223ABF(1).

Qualification test day

(3) A person's qualification test day for a qualification period is the

earliest of the following:

(a) the day the Secretary determines the person's claim for a

student start-up loan for the qualification period;

(b) if the approved scholarship course ends in the qualification

period--the last day of the approved scholarship course;

Student start-up loans Schedule 2

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1061ZVBC Circumstances in which person is not qualified for

student start-up loan

Despite section 1061ZVBB, a person is not qualified for a student

start-up loan for a qualification period if:

(a) immediately before the person's qualification test day for the

period:

(i) a determination is in effect that the person is qualified

for a student start-up loan for the qualification period; or

(ii) a determination is in effect that the person is qualified

for an ABSTUDY student start-up loan under the

Student Assistance Act 1973 for the qualification period;

(b) in the period of 6 months ending immediately before that

qualification test day, the person:

(i) has received a payment known as a student start-up

scholarship payment under the scheme referred to in

section 117 of the Veterans' Entitlements Act; or

(ii) has received a payment known as a student start-up

scholarship payment under the scheme referred to in

section 258 of the Military Rehabilitation and

Compensation Act; or

(iii) has received the amount or value of a Commonwealth

Education Costs Scholarship; or

(iv) was entitled to the amount or value of a Commonwealth

Education Costs Scholarship but has not received the

full entitlement only because the scholarship was

suspended.

1061ZVBD Amount of student start-up loan

The amount of a student start-up loan for which a person is

qualified on or after 1 January 2015 is $1,025.

Note:

The amount of the loan is to be indexed on 1 January 2017 and each

later 1 January in line with CPI increases (see sections 1190 to 1194).

Schedule 2 Student start-up loans

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Part 2AA.3--Indebtedness

Division 1--Introduction

1061ZVCA Simplified outline of this Part

A person incurs an SSL debt if the person receives a student

start-up loan (except in certain circumstances when the loan is

required to be recovered as a social security debt under this Act).

Each SSL debt is incorporated into the person's accumulated SSL

debt. This accumulated SSL debt forms the basis for working out

the amounts the person is obliged to repay.

Division 2--Incurring SSL debts

1061ZVDA SSL debts

(1) A person incurs an SSL debt to the Commonwealth if the person is

paid a student start-up loan for a qualification period.

(2) The SSL debt is incurred by the person on the later of:

(a) the day the person was paid the loan; and

(b) the day after the person's enrolment test day for the

qualification period.

Note:

For enrolment test day, see subsection 1223ABF(2).

(3) The amount of the person's SSL debt is the amount of the loan,

reduced by any amount repaid before the day on which the debt is

incurred.

(4) Despite subsection (1), an SSL debt is not incurred, and is taken

never to have been incurred, in relation to a loan if:

(a) the loan has been fully repaid before the day on which the

SSL debt in respect of the loan would be incurred; or

(b) the amount of the loan is a debt under section 1223 or

1223ABF; or

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subsection 1223ABF(3) in relation to the loan (relating to

exceptional circumstances beyond the person's control).

1061ZVDB SSL debt discharged by death

Upon the death of a person who owes an SSL debt to the

Commonwealth, the debt is taken to have been paid.

Note:

SSL debts are not provable in bankruptcy: see subsection 82(3AB) of

the Bankruptcy Act 1966.

1061ZVDC Notice to Commissioner

(1) If a person incurs an SSL debt, the Secretary must give the

Commissioner a notice specifying the amount of the debt incurred

by the person.

(2) The Secretary may include in the notice any other details the

Commissioner requests for the purpose of ensuring the

Commissioner has the information needed to exercise powers or

perform functions of the Commissioner under this Act.

Division 3--Working out accumulated SSL debts

1061ZVEA Simplified outline of this Division

There are 2 stages to working out a person's accumulated SSL debt

for a financial year.

In stage 1, the person's former accumulated SSL debt is worked

out by adjusting the preceding financial year's accumulated SSL

debt to take account of:

(a)

the HELP debt indexation factor for 1 June in that

financial year; and

(b)

the debts that the person incurs during the last 6 months

of the preceding financial year; and

(c)

voluntary SSL repayments of the debt; and

(d)

compulsory SSL repayment amounts in respect of the

debt.

Schedule 2 Student start-up loans

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In stage 2, the person's accumulated SSL debt is worked out from:

(a)

the person's former accumulated SSL debt; and

(b)

the SSL debts that the person incurs during the first 6

months of the financial year; and

(c)

voluntary SSL repayments of those debts.

1061ZVEB Stage 1--working out a former accumulated SSL debt

(1) A person's former accumulated SSL debt, in relation to the

person's accumulated SSL debt for a financial year, is worked out

by multiplying:

(a) the amount worked out using the following method

statement; by

(b) the HELP debt indexation factor for 1 June in that financial

year.

Method statement

Step 1. Take the person's accumulated SSL debt for the

immediately preceding financial year. (This amount is

taken to be zero if the person has no accumulated SSL

debt for that financial year.)

Step 2. Add the sum of all of the SSL debts (if any) that the

person incurred during the last 6 months of the

immediately preceding financial year.

Step 3. Subtract the sum of the amounts by which the person's

debts referred to in steps 1 and 2 are reduced because of

any voluntary SSL repayments that have been made

during the period:

(a)

starting on 1 June in the immediately preceding

financial year; and

(b)

ending immediately before the next 1 June.

Step 4. Subtract the sum of all of the person's compulsory SSL

repayment amounts that:

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(a)

were assessed during that period (excluding any

assessed as a result of a return given before that

period); or

(b)

were assessed after the end of that period as a

result of a return given before the end of that

period.

Step 5. Subtract the sum of the amounts by which any

compulsory SSL repayment amount of the person is

increased (whether as a result of an increase in the

person's taxable income of an income year or otherwise)

by an amendment of an assessment made during that

period.

Step 6. Add the sum of the amounts by which any compulsory

SSL repayment amount of the person is reduced (whether

as a result of a reduction in the person's taxable income

of an income year or otherwise) by an amendment of an

assessment made during that period.

(2) For the purposes of this section, an assessment, or an amendment

of an assessment, is taken to have been made on the day specified

in the notice of assessment, or notice of amended assessment, as

the date of issue of that notice.

1061ZVEC Stage 2--working out an accumulated SSL debt

(1) A person's accumulated SSL debt, for a financial year, is worked

out as follows:

Former accumulated

SSL debts

SSL debt

incurred

repayments

where:

former accumulated SSL debt is the person's former accumulated

SSL debt in relation to that accumulated SSL debt.

SSL debt repayments is the sum of all of the voluntary SSL

repayments (if any) paid, on or after 1 July in the financial year and

Schedule 2 Student start-up loans

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before 1 June in that year, in reduction of the SSL debts incurred in

that year.

SSL debts incurred is the sum of the amounts of all of the SSL

debts (if any) that the person incurred during the first 6 months of

the financial year.

(2) The person incurs the accumulated SSL debt on 1 June in the

financial year.

(3) The first financial year for which a person can have an

accumulated SSL debt is the financial year starting on 1 July 2015.

1061ZVED Rounding of amounts

(1) If, apart from this section, a person's accumulated SSL debt would

be an amount consisting of a number of whole dollars and a

number of cents, disregard the number of cents.

(2) If, apart from this section, a person's accumulated SSL debt would

be an amount of less than $1.00, the person's accumulated SSL

debt is taken to be zero.

1061ZVEE Accumulated SSL debt discharges earlier debts

(1) The accumulated SSL debt that a person incurs on 1 June in a

financial year discharges, or discharges the unpaid part of:

(a) any SSL debt that the person incurred during the calendar

year immediately preceding that day; and

(b) any accumulated SSL debt that the person incurred on the

immediately preceding 1 June.

(2) Nothing in subsection (1) affects the application of Division 2 of

this Part or sections 1061ZVEB and 1061ZVEC.

1061ZVEF Accumulated SSL debt discharged by death

(1) Upon the death of a person who has an accumulated SSL debt, the

accumulated SSL debt is taken to be discharged.

(2) To avoid doubt, this section does not affect any compulsory SSL

repayment amounts required to be paid in respect of the

Student start-up loans Schedule 2

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accumulated SSL debt, whether or not those amounts were

assessed before the person's death.

Note:

Accumulated SSL debts are not provable in bankruptcy: see

subsection 82(3AB) of the Bankruptcy Act 1966.

Part 2AA.4--Discharge of indebtedness

Division 1--Introduction

1061ZVFA Simplified outline of this Part

A person who owes a debt to the Commonwealth under this

Chapter may make voluntary SSL repayments.

The person is required to make repayments, of amounts based on

his or her income, if that income is above a particular amount and

if the person has repaid the person's accumulated HELP debts

arising under the Higher Education Support Act 2003. The

Commissioner makes assessments of repayment amounts, which

are collected in the same way as amounts of income tax and

accumulated HELP debts.

1061ZVFB Debts under this Chapter

(1) The debts under this Chapter are:

(a) SSL debts; and

(b) accumulated SSL debts.

(2) To avoid doubt, debts that arise under the following sections are

not debts under this Chapter:

(a) section 1223 (Debts arising from lack of qualification,

overpayment etc.);

(b) section 1223ABF (Debts in respect of student start-up loans).

Schedule 2 Student start-up loans

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Division 2--Voluntary discharge of indebtedness

1061ZVGA Voluntary SSL repayments in respect of debts

(1) A person may at any time make a payment in respect of a debt that

the person owes to the Commonwealth under this Chapter.

(2) The payment must be made to the Commissioner.

1061ZVGB Application of voluntary SSL repayments

(1) Any money a person pays under this Division to meet the person's

debts to the Commonwealth under this Chapter is to be applied in

payment of those debts as the person directs at the time of the

payment.

(2) If the person has not given any directions, or the directions given

do not adequately deal with the matter, any money available is to

be applied as follows:

(a) first, in discharge or reduction of any accumulated SSL debt

of the person;

(b) second, in discharge or reduction of:

(i) any SSL debt of the person; or

(ii) if there is more than one such debt, those debts in the

order in which they were incurred.

1061ZVGC Refunding of payments

If:

(a) a person pays an amount to the Commonwealth under this

Division; and

(b) the amount exceeds the sum of:

(i) the amount required to discharge the total debt that the

person owed to the Commonwealth under this Chapter;

and

(ii) the total amount of the person's primary tax debts

(within the meaning of Part IIB of the Taxation

Administration Act 1953);

the Commonwealth must refund to the person an amount equal to

that excess.

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Division 3--Compulsory discharge of indebtedness

Subdivision A--Liability to repay amounts

1061ZVHA Liability to repay amounts

(1) If:

(a) a person's HELP repayment income for an income year

exceeds the minimum HELP repayment income for the

income year; and

(b) on 1 June immediately preceding the making of an

assessment in respect of the person's income of that income

year, the person had an accumulated SSL debt;

the person is liable to pay to the Commonwealth, in accordance

with this Division, so much of the person's repayable SSL debt for

the income year as does not exceed the amount worked out by the

formula:

Applicable percentage of HELP repayment income

HELP liability

where:

applicable percentage of HELP repayment income means the

amount that is the percentage of the person's HELP repayment

income applicable under the table in section 154-20 of the Higher

Education Support Act 2003.

HELP liability means any amount the person is liable to pay under

section 154-1 of the Higher Education Support Act 2003 for the

income year in respect of an accumulated HELP debt.

(2) A person is not liable under this section to pay an amount for an

income year if the amount worked out under subsection (1) is zero

or less.

(3) A person is not liable under this section to pay an amount for an

income year if, under section 8 of the Medicare Levy Act 1986:

(a) no Medicare levy is payable by the person on the person's

taxable income for the income year; or

(b) the amount of the Medicare levy payable by the person on the

person's taxable income for the income year is reduced.

Schedule 2 Student start-up loans

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1061ZVHB Repayable SSL debt for an income year

(1) A person's repayable SSL debt for an income year is:

(a) the person's accumulated SSL debt referred to in

paragraph 1061ZVHA(1)(b) in relation to that income year;

(b) if one or more amounts:

(i) have been paid in reduction of that debt; or

(ii) have been assessed under section 1061ZVHC to be

payable in respect of that debt;

the amount (if any) remaining after deducting from that debt

any amounts referred to in subparagraph (i) or (ii).

(2) A reference in paragraph (1)(b) of this section to an amount

assessed to be payable is, if the amount has been increased or

reduced by an amendment of the relevant assessment, a reference

to the increased amount or the reduced amount.

Subdivision B--Assessments

1061ZVHC Commissioner may make assessments

The Commissioner may, from any information in the

Commissioner's possession, whether from a return or otherwise,

make an assessment of:

(a) the person's accumulated SSL debt on 1 June immediately

before the making of the assessment; and

(b) the amount required to be paid in respect of the person's

repayable SSL debt under section 1061ZVHA.

1061ZVHD Notification of notices of assessment of tax

If:

(a) the Commissioner is required to serve on a person a notice of

assessment in respect of the person's income of an income

year under section 174 of the Income Tax Assessment Act

1936; and

(b) the Commissioner has made, in respect of the person, an

assessment under paragraph 1061ZVHC(b) of this Act of the

amounts referred to in that paragraph; and

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served on the person;

notice of the assessment under that paragraph may be served by

specifying the amounts concerned in the notice referred to in

paragraph (a).

1061ZVHE Commissioner may defer making assessments

(1) A person may apply in the approved form to the Commissioner for

deferral of the making of an assessment in respect of the person

under section 1061ZVHC.

(2) The application must specify:

(a) the income year for which the deferral is being sought; and

(b) the reasons for seeking the deferral.

(3) The income year specified in the application must be:

(a) the income year in which the person makes the application;

(b) the immediately preceding income year; or

(4) The Commissioner may, on application by a person under this

section, defer making an assessment in respect of the person under

section 1061ZVHC if the Commissioner is of the opinion that:

(a) if the assessment were made, payment of the assessed

amount would cause serious hardship to the person; or

(b) there are other special reasons that make it fair and

reasonable to defer making the assessment.

(5) The Commissioner may defer making the assessment for any

period that he or she thinks appropriate.

(6) The Commissioner must, as soon as practicable after an application

is made under this section:

(a) consider the matter to which the application relates; and

(b) notify the applicant of the Commissioner's decision on the

application.

Note:

Deferrals of making assessments, or refusals of applications, are

reviewable under Division 2A of Part 4 of the Administration Act.

Schedule 2 Student start-up loans

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1061ZVHF Commissioner may amend assessments

(1) A person may apply in the approved form to the Commissioner for

an amendment of an assessment made in respect of the person

under section 1061ZVHC so that:

(a) the amount payable under the assessment is reduced; or

(b) no amount is payable under the assessment.

(2) The application:

(a) must be made within 2 years after the day on which the

Commissioner gives notice of the assessment to the person;

(b) must specify the reasons justifying a later application.

(3) The Commissioner may, on application by a person under this

section, amend an assessment made in respect of the person under

section 1061ZVHC so that:

(a) the amount payable under the assessment is reduced; or

(b) no amount is payable under the assessment;

if the Commissioner is of the opinion that:

serious hardship to the person; or

(d) there are other special reasons that make it fair and

reasonable to make the amendment.

(4) The Commissioner must, as soon as practicable after an application

is made under this section:

(a) consider the matter to which the application relates; and

(b) notify the applicant of the Commissioner's decision on the

application.

Note:

Amendments of assessments, or refusals of applications, are

reviewable under Division 2A of Part 4 of the Administration Act.

Student start-up loans Schedule 2

Amendments Part 1

No. , 2014

Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

Part 2AA.5--Tax administration matters

1061ZVJA Simplified outline of this Part

The Secretary and the Commissioner may share information about

tax file numbers for the purposes of administering student start-up

loans. The Commissioner is also responsible for the recovery of

debts under this Chapter and has functions and powers to fulfil that

responsibility relating to returns, assessments, collection and other

administrative matters.

1061ZVJB Verification of tax file numbers

(1) The Secretary may provide to the Commissioner a tax file number

that a person has notified to the Secretary for the purposes of

paragraph 1061ZVBB(1)(c) or (2)(c), for the purpose of verifying

that the number is the person's tax file number.

(2) If the Commissioner is satisfied that the number is the person's tax

file number, the Commissioner may give the Secretary a written

notice informing the Secretary accordingly.

1061ZVJC When person with tax file number incorrectly notifies

number

(1) If the Commissioner is satisfied:

(a) that the tax file number that a person has notified to the

Secretary for the purposes of paragraph 1061ZVBB(1)(c) or

(2)(c):

(i) has been cancelled or withdrawn since the notification

was given; or

(ii) is otherwise wrong; and

(b) that the person has a tax file number;

the Commissioner may give to the Secretary written notice of the

incorrect notification and of the person's tax file number.

(2) That number is taken to be the number that the person notified to

the Secretary.

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1061ZVJD When person without tax file number incorrectly notifies

number

(1) If:

(a) the Commissioner is satisfied that the tax file number that a

person notified to the Secretary for the purposes of

paragraph 1061ZVBB(1)(c) or (2)(c):

(i) has been cancelled since the notification was given; or

(ii) is for any other reason not the person's tax file number;

and

(b) the Commissioner is not satisfied that the person has a tax

file number;

the Commissioner may give to the Secretary a written notice

informing the Secretary accordingly.

(2) The Commissioner must give a copy of any notice under

subsection (1) to the person concerned, together with a written

statement of the reasons for the decision to give the notice.

Note:

Decisions to give notice under subsection (1) are reviewable under

section 202F of the Income Tax Assessment Act 1936.

1061ZVJE When tax file numbers are altered

(1) If the Commissioner issues, to a person who has notified a tax file

number to the Secretary for the purposes of

paragraph 1061ZVBB(1)(c) or (2)(c), a new tax file number in

place of a tax file number that has been withdrawn, the

Commissioner may give to the Secretary a written notice informing

the Secretary accordingly.

(2) That new number is taken to be the number that the person notified

to the Secretary.

1061ZVJF When tax file numbers are cancelled

(1) If the Commissioner cancels a tax file number issued to a person

who has notified the tax file number to the Secretary for the

purposes of paragraph 1061ZVBB(1)(c) or (2)(c), the

Commissioner may give to the Secretary a written notice informing

the Secretary accordingly.

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Social Services and Other Legislation Amendment (Student Measures)

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(2) The Commissioner must give a copy of any notice under

subsection (1) to the person concerned, together with a written

statement of the reasons for the decision to give the notice.

Note:

Decisions to give notice under subsection (1) are reviewable under

section 202F of the Income Tax Assessment Act 1936.

1061ZVJG Returns, assessments, collection and recovery

Subject to Part 2AA.4 and this Part:

(a) Part IV of the Income Tax Assessment Act 1936; and

(b) Division 5 of the Income Tax Assessment Act 1997; and

1953;

apply, so far as they are capable of application, in relation to a

compulsory SSL repayment amount of a person as if it were

income tax assessed to be payable by a taxpayer by an assessment

made under Part IV of the Income Tax Assessment Act 1936.

1061ZVJH Charges and civil penalties for failing to meet obligations

(1) Part 4-25 in Schedule 1 to the Taxation Administration Act 1953

has effect as if:

(a) any compulsory SSL repayment amount of a person were

income tax payable by the person in respect of the income

year in respect of which the assessment of that debt was

made; and

(b) paragraphs 1061ZVBB(1)(c) and (2)(c), and Parts 2AA.3 and

2AA.4 and this Part, were income tax laws.

(2) Subsection (1) does not have the effect of making a person liable to

a penalty for any act or omission that happened before the

commencement of this subsection.

1061ZVJJ Pay as you go (PAYG) withholding

Part 2-5 (other than section 12-55 and Subdivisions 12-E, 12-F and

12-G) in Schedule 1 to the Taxation Administration Act 1953

applies, so far as it is capable of application, in relation to the

collection of amounts of a compulsory SSL repayment amount of a

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person as if the compulsory SSL repayment amount were income

tax.

1061ZVJK Pay as you go (PAYG) instalments

Division 45 in Schedule 1 to the Taxation Administration Act 1953

applies, so far as it is capable of application, in relation to the

collection of a compulsory SSL repayment amount of a person as if

the compulsory SSL repayment amount were income tax.

1061ZVJL Administration of this Chapter

The Commissioner has the general administration of:

(a) paragraphs 1061ZVBB(1)(c) and (2)(c); and

(b) Parts 2AA.3 and 2AA.4 and this Part; and

review of certain Commissioner decisions relating to student

start-up loans).

Note:

One effect of this is that these provisions are taxation laws for the

purposes of the Taxation Administration Act 1953.

23 Section 1190 (table item 68)

Repeal the item.

24 Section 1190 (after table item 69)

Insert:

Student start-up

loans

69A.

student start-up

loan amount

student start-up

loan amount

section 1061ZVBD

25 Subsection 1191(1) (table item 40)

Repeal the item.

26 Subsection 1191(1) (after table item 41)

Insert:

Student start-up loans Schedule 2

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No. , 2014

Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

Student start-up loans

41A.

student start-up loan

amount

1 January

June

highest June

quarter

before

reference

quarter (but

not earlier

than June

quarter

2013)

$1.00

27 Subsection 1192(8A)

Repeal the subsection, substitute:

(8A) The student start-up loan amount (see item 41A of the CPI

Indexation Table in subsection 1191(1)) is not to be indexed on

1 January 2015 or 1 January 2016.

28 Subsection 1222(2) (table item

4D, column headed "Debt")

Before "scholarship", insert "relocation".

29 Subsection 1222(2) (after table item 4D)

Insert:

1223ABF

(debts in respect of

student start-up loans)

deductions

legal proceedings

garnishee notice

repayment by instalments

1231, 1234A

1232

1233

1234

30 Section 1223ABE (heading)

Repeal the heading, substitute:

1223ABE Debts in respect of relocation scholarship payments

31 Paragraphs 1223ABE(1)(a), (2)(a) and (3)(a)

Omit "a student start-up scholarship payment or".

32 After section 1223ABE

Insert:

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1223ABF Debts in respect of student start-up loans

(1) If:

(a) a person is paid a student start-up loan for a qualification

period; and

(b) the person's qualification test day for the period was the day

the Secretary determined the person's claim for the loan; and

subparagraph 1061ZVBB(1)(a)(iii) or (2)(a)(iii) during the

period between the qualification test day and the person's

enrolment test day;

then:

(d) the amount of the loan is a debt due to the Commonwealth;

and

(e) the debt is taken to have arisen when the person was paid the

loan.

Note:

The conditions in subparagraphs 1061ZVBB(1)(a)(iii) and (2)(a)(iii)

relate to whether the person is qualified for youth allowance or

austudy payment because the person is studying in an approved

scholarship course (as defined in section 592M).

(2) A person's enrolment test day, for a qualification period, is the

earliest of the following days:

(a) if the approved scholarship course ends in the qualification

period--the last day of the approved scholarship course;

(b) the last day of the qualification period;

following applies:

(i) if the person's qualification test day for the qualification

period was before the first day of the relevant approved

scholarship course--the first day of that approved

scholarship course;

(ii) otherwise--the qualification test day.

Note:

For approved scholarship course, see section 592M.

(3) Subsection (1) does not apply if, in the Secretary's opinion, the

person ceased to meet the condition in

subparagraph 1061ZVBB(1)(a)(iii) or (2)(a)(iii) because of

exceptional circumstances beyond the person's control.

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33 After subparagraph 1229D(1)(b)(iii)

Insert:

(iiia) student start-up loan (but the debt must not be an SSL

debt or accumulated SSL debt within the meaning of

Chapter 2AA);

34 At the end of subsection 1231(1AA)

Add:

; and (c) must not make a determination that would reduce (including

reduce to nil) a payment of a student start-up loan.

35 Paragraph 1234A(1)(b)

After "social security payment", insert "(other than a student start-up

loan)".

Social Security (Administration) Act 1999

36 Subsection 10(1)

After "Part 4", insert "(other than Division 2A)".

37 Section 12H (heading)

Repeal the heading, substitute:

12H Relocation scholarship payment

38 Section 12H

Omit "a student start-up scholarship payment or".

39 After Subdivision EA of Division 1 of Part 3

Insert:

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No. , 2014

Subdivision EB--Time limits for claims for student start-up

loans

26C Time limit for claim

(1) A person's claim for a student start-up loan for a qualification

period must be made before the end of the qualification period.

(2) Despite subsection (1), a person's claim for a student start-up loan

for a qualification period in which the person is expected to

complete the relevant approved scholarship course must be made at

least 35 days before the course end date.

40 At the end of section 36

Add:

(4) If a person claims a student start-up loan for a qualification period,

the Secretary may determine the person's claim at a time the

Secretary considers appropriate, having regard to the principle that,

for a claim made before the start of the period of study concerned

for the relevant approved scholarship course, the time should

generally be close to the start of that period of study.

Note:

For approved scholarship course, see section 592M of the 1991 Act.

(5) Nothing in subsection (4) affects the operation of section 39.

41 Subsection 39(1)

Omit "subsection (3)", substitute "subsections (3) and (9)".

42 At the end of section 39

Add:

(9) A claim for a student start-up loan for a qualification period made

before the start of the qualification period is taken to have been

made on the first day of the qualification period.

43 Subsection 47(1) (paragraph (ba) of the definition of lump

sum benefit)

Repeal the paragraph.

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44 Section 47DA (heading)

Repeal the heading, substitute:

47DA Relocation scholarship payments

45 Paragraph 47DA(a)

Omit "a student start-up scholarship payment, or a relocation

scholarship payment,", substitute "a relocation scholarship payment".

46 After section 47DA

Insert:

47DB Student start-up loans

(1) If a person is qualified for a student start-up loan for a qualification

period:

(a) the loan becomes payable to the person on the day the

Secretary determines the person's claim for the loan; and

(b) the Secretary must pay the amount of the loan to the person

as soon as reasonably practicable after that day.

(2) Despite subsection (1), if:

(a) a person is qualified for a student start-up loan for a

qualification period because the person is receiving youth

allowance; and

(b) the whole or a part of the person's instalment of youth

allowance is paid to a parent of the person, under section 45

of this Act, in respect of a period that includes the day the

Secretary determines the person's claim for the loan;

the Secretary may pay the whole, or the same proportion, of the

person's loan to that parent or to any other person.

47 Subsection 55(1)

After "47,", insert "47DA, 47DB,".

48 Section 58 (heading)

Repeal the heading, substitute:

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58 Payment of social security payment after death

49 Paragraph 58(1)(a)

Omit "or pension bonus bereavement payment", substitute ", pension

bonus bereavement payment or a student start-up loan".

50 Section 123A (at the end of the definition of relevant

payment)

Add:

; or (g) a payment of a student start-up loan.

51 Subdivision DC of Division 5 of Part 3B (heading)

Repeal the heading, substitute:

Subdivision DC--Relocation scholarship payments

52 Section 123XPF

Repeal the section.

53 At the end of section 127

Add:

(4) The Secretary may not review:

(a) a decision that is a reviewable decision under section 138A

(decision by Commissioner about deferring or amending

assessment relating to student start-up loans); or

(b) a decision under section 138D or 138F (decision following

reconsideration of a decision that is a reviewable decision

under section 138A); or

1061ZVJF(1) of the 1991 Act (decision by Commissioner to

notify Secretary that incorrect or cancelled tax file number

has been given in relation to student start-up loans).

54 After paragraph 129(4)(d)

Insert:

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Bill 2014

(da) a decision that is a reviewable decision under section 138A

(decision by Commissioner about deferring or amending

assessment relating to student start-up loans); or

(db) a decision under section 138D or 138F (decision following

reconsideration of a decision that is a reviewable decision

under section 138A); or

(dc) a decision by the Commissioner to give a notice under

subsection 1061ZVJD(1) or 1061ZVJF(1) of the 1991 Act

(notifying Secretary that incorrect or cancelled tax file

number has been given in relation to student start-up loans);

55 After Division 2 of Part 4

Insert:

Division 2A--Internal review of certain Commissioner

decisions relating to student start-up loans

138A Decisions reviewable under this Division

Each of the following is a reviewable decision for the purposes of

this Division:

(a) a decision by the Commissioner under section 1061ZVHE of

the 1991 Act (Commissioner may defer making

assessments);

(b) a decision by the Commissioner under section 1061ZVHF of

the 1991 Act (Commissioner may amend assessments).

138B Commissioner must give reasons for reviewable decisions

(1) The Commissioner's notice to a person of the making of a

reviewable decision must include reasons for the decision.

(2) Subsection (1) does not affect an obligation, imposed upon the

Commissioner by any other law, to give reasons for a decision.

138C Reviewer of decisions

(1) The Commissioner is the reviewer of a reviewable decision for the

purposes of this Division, subject to subsection (2).

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(2) If:

(a) the reviewable decision was made by a delegate of the

Commissioner; and

(b) the decision is to be reconsidered by a delegate of the

Commissioner;

then the delegate who reconsiders the decision must be a person

who:

(d) occupies a position that is senior to that occupied by any

person involved in making the decision.

138D Reviewer may reconsider reviewable decisions

(1) The reviewer of a reviewable decision may reconsider the decision

if the reviewer is satisfied that there is sufficient reason to do so.

(2) The reviewer may reconsider the decision even if:

(a) an application for reconsideration of the decision has been

made under section 138F; or

(b) the decision has been confirmed, varied or set aside under

section 138F and an application has been made under

section 138H for review of the decision.

(3) After reconsidering the decision, the reviewer must:

(a) confirm the decision; or

(b) vary the decision; or

(4) The reviewer's decision (the decision on review) to confirm, vary

or set aside the decision takes effect:

(a) on the day specified in the decision on review; or

(b) if a day is not specified--on the day on which the decision on

review was made.

(5) The reviewer must give written notice of the decision on review to

the person to whom that decision relates.

(6) The notice:

(a) must be given within a reasonable period after the decision is

made; and

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(b) must contain a statement of the reasons for the reviewer's

decision on review.

Note:

Section 27A of the Administrative Appeals Tribunal Act 1975 requires

the person to be notified of the person's review rights.

138E Notice to AAT Registrar

If:

(a) a reviewer makes a decision under subsection 138D(3); and

(b) at the time of the reviewer's decision, a person has applied to

the Administrative Appeals Tribunal for review of the

decision reviewed by the reviewer;

the reviewer must give the Registrar of the Administrative Appeals

Tribunal written notice of the reviewer's decision under

subsection 138D(3).

138F Reconsideration of reviewable decisions on request

(1) A person whose interests are affected by a reviewable decision

may request the reviewer to reconsider the decision.

(2) The person's request must be made by written notice given to the

reviewer within 28 days, or such longer period as the reviewer

allows, after the day on which the person first received notice of

the decision.

(3) The notice must set out the reasons for making the request.

(4) After receiving the request, the reviewer must reconsider the

decision and:

(a) confirm the decision; or

(b) vary the decision; or

(5) The reviewer's decision (the decision on review) to confirm, vary

or set aside the decision takes effect:

(a) on the day specified in the decision on review; or

(b) if a day is not specified--on the day on which the decision on

review was made.

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(6) The reviewer must give the person written notice of the decision on

review.

(7) The notice:

(a) must be given within a reasonable period after the decision

on review is made; and

(b) must contain a statement of the reasons for the decision on

review.

Note:

Section 27A of the Administrative Appeals Tribunal Act 1975 requires

the person to be notified of the person's review rights.

(8) The reviewer is taken, for the purposes of this Division, to have

confirmed the decision if the reviewer does not give notice of a

decision to the person within 45 days after receiving the person's

request.

138G Withdrawal of request

(1) A person who has requested the reviewer to reconsider a

reviewable decision may, by written notice given to the reviewer,

withdraw the request at any time before the review has been

completed.

(2) If a request is withdrawn, the request is taken never to have been

made.

138H AAT review of reviewable decisions

An application may be made to the Administrative Appeals

Tribunal for the review of a reviewable decision that has been

confirmed, varied or set aside under section 138D (Reviewer may

reconsider reviewable decisions) or 138F (Reconsideration of

reviewable decisions on request).

138J Decision changed before AAT review completed

Decision varied

(1) If the reviewer varies a reviewable decision under

subsection 138D(3) after an application has been made to the

Administrative Appeals Tribunal for review of that decision but

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before the determination of the application, the application is taken

to be an application for review of the decision as varied.

Decision set aside and a new decision substituted

(2) If the reviewer sets aside a reviewable decision under

subsection 138D(3) and substitutes a new decision, after an

application has been made to the Administrative Appeals Tribunal

for review of the reviewable decision but before the determination

of the application, the application is taken to be an application for

review of the new decision.

56 At the end of section 144

Add:

; (t) a decision that is a reviewable decision under section 138A

(decision by Commissioner about deferring or amending

assessment relating to student start-up loans);

(u) a decision under section 138D or 138F (decision following

reconsideration of a decision that is a reviewable decision

under section 138A);

(v) a decision by the Commissioner to give a notice under

subsection 1061ZVJD(1) or 1061ZVJF(1) of the 1991 Act

(notifying Secretary that incorrect or cancelled tax file

number has been given in relation to student start-up loans).

57 Subsection 238(1A)

Repeal the subsection, substitute:

(1A) Subsection (1) does not apply to a social security payment that is:

(a) a low income supplement; or

(b) an essential medical equipment payment; or

Student Assistance Act 1973

58 Subsection 3(1)

Insert:

ABSTUDY SSL debt means a debt incurred under section 8B.

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59 Subsection 3(1)

Insert:

ABSTUDY student start-up loan means a loan for which a person

qualifies under Division 2 of Part 2.

Note:

Part 2 is taken to be part of the ABSTUDY Scheme and ABSTUDY

student start-up loans are taken to be made under the ABSTUDY

Scheme: see section 7B.

60 Subsection 3(1)

Insert:

ABSTUDY student start-up loan overpayment has the meaning

given by subsection 38A(1).

61 Subsection 3(1)

Insert:

accumulated ABSTUDY SSL debt has the meaning given by

section 9C.

62 Subsection 3(1)

Insert:

accumulated HELP debt has the same meaning as in the Higher

Education Support Act 2003.

63 Subsection 3(1)

Insert:

approved form has the meaning given by section 388-50 in

Schedule 1 to the Taxation Administration Act 1953.

64 Subsection 3(1)

Insert:

approved scholarship course has the same meaning as in the

ABSTUDY Scheme.

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65 Subsection 3(1)

Insert:

Commonwealth Education Costs Scholarship means any

scholarship provided to assist with education costs under the

Commonwealth Scholarships Guidelines made for the purposes of

Part 2-4 of the Higher Education Support Act 2003.

66 Subsection 3(1)

Insert:

compulsory ABSTUDY SSL repayment amount means an amount

that:

(a) is required to be paid in respect of an accumulated

ABSTUDY SSL debt under section 10F; and

(b) is included in a notice of assessment made under

section 10H.

67 Subsection 3(1)

Insert:

enrolment test day has the meaning given by subsection 38A(2).

68 Subsection 3(1)

Insert:

former accumulated ABSTUDY SSL debt has the meaning given

by section 9B.

69 Subsection 3(1)

Insert:

HELP debt indexation factor has the same meaning as in the

Higher Education Support Act 2003.

70 Subsection 3(1)

Insert:

HELP repayment income has the same meaning as repayment

income has in the Higher Education Support Act 2003.

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71 Subsection 3(1) (definition of income tax law)

Repeal the definition, substitute:

income tax law has the meaning given by subsection 995-1(1) of

the Income Tax Assessment Act 1997.

72 Subsection 3(1)

Insert:

minimum HELP repayment income has the same meaning as

minimum repayment income has in the Higher Education Support

Act 2003.

73 Subsection 3(1)

Insert:

qualification period, for an ABSTUDY student start-up loan,

means a period of 6 months starting on 1 January or 1 July in any

year.

74 Subsection 3(1)

Insert:

qualification test day, for a qualification period for an ABSTUDY

student start-up loan, has the meaning given by subsection 7C(2).

75 Subsection 3(1)

Insert:

repayable ABSTUDY SSL debt has the meaning given by

section 10G.

76 Subsection 3(1)

Insert:

return means an income tax return within the meaning of

subsection 995-1(1) of the Income Tax Assessment Act 1997.

77 Subsection 3(1)

Insert:

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tax file number has the same meaning as in Part VA of the Income

Tax Assessment Act 1936.

78 Subsection 3(1)

Insert:

voluntary ABSTUDY SSL repayment means a payment made to

the Commissioner in discharge of an accumulated ABSTUDY SSL

debt or an ABSTUDY SSL debt. It does not include a payment

made in discharge of a compulsory ABSTUDY SSL repayment

amount.

79 After Part 1

Insert:

Part 2--ABSTUDY student start-up loans

Division 1--Introduction

6A Simplified outline of this Part

ABSTUDY student start-up loans are income-contingent loans

made under the ABSTUDY Scheme.

Broadly, full-time students who are receiving Living Allowance

might be qualified for an ABSTUDY student start-up loan. A

person can qualify for up to 2 loans each calendar year. To receive

a loan, a person must make a claim before the end of the relevant

period for each loan.

When the person's income reaches the minimum repayment

income under the Higher Education Support Act 2003, and the

person has finished repaying any debt under that Act, or under the

Social Security Act 1991 in relation to a student start-up loan under

Chapter 2AA of that Act, the person must start repaying

ABSTUDY student start-up loan debt.

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Division 2--Qualification for and amount of ABSTUDY

student start-up loan

7A Simplified outline of this Division

Broadly, full-time students who are receiving Living Allowance

might be qualified for an ABSTUDY student start-up loan. A

person can qualify for up to 2 loans each calendar year.

7B ABSTUDY Scheme

(1) For the purposes of a reference in this Act or another law to the

ABSTUDY Scheme:

(a) this Part is taken to be part of the ABSTUDY Scheme; and

(b) ABSTUDY student start-up loans are taken to be made under

the ABSTUDY Scheme.

(2) This Part does not limit the ABSTUDY Scheme. In particular, the

ABSTUDY Scheme may make provision for matters relating to

ABSTUDY student start-up loans for which provision is not made

in this Act.

7C Qualification for ABSTUDY student start-up loan

(1) A person is qualified for an ABSTUDY student start-up loan for a

qualification period if:

(a) on the person's qualification test day for the period:

(i) the person is qualified for a payment known as Living

Allowance under the ABSTUDY Scheme and Living

Allowance is payable to the person; and

(ii) the person is receiving Living Allowance and would be

receiving Living Allowance if any amounts of

pharmaceutical allowance and rent assistance payable to

the person under the ABSTUDY Scheme were

disregarded for the purposes of working out the person's

rate of that allowance; and

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(iii) the person is qualified for Living Allowance because the

person is undertaking full-time study in a course of

education that is an approved scholarship course; and

(b) the Secretary is satisfied that the person is not likely to

receive the amount or value of a Commonwealth Education

Costs Scholarship in the period of 6 months starting

immediately after that qualification test day; and

number.

Note:

If the condition in subparagraph (a)(iii) is no longer met in a certain

period starting on the qualification test day, the amount of the loan

might become an immediately recoverable debt, rather than an

income-contingent SSL debt: subsection 38A(1) and section 39.

Qualification test day

(2) A person's qualification test day for a qualification period is the

earliest of the following:

(a) the day the Secretary determines the person's claim for an

ABSTUDY student start-up loan for the qualification period;

(b) if the approved scholarship course ends in the qualification

period--the last day of the approved scholarship course;

7D Circumstances in which person is not qualified for ABSTUDY

student start-up loan

Despite section 7C, a person is not qualified for an ABSTUDY

student start-up loan for a qualification period if:

(a) immediately before the person's qualification test day for the

period:

(i) a determination is in effect that the person is qualified

for an ABSTUDY student start-up loan for the

qualification period; or

(ii) a determination is in effect that the person is qualified

for a student start-up loan under the Social Security Act

1991 for the qualification period; or

(b) in the period of 6 months ending immediately before that

qualification test day, the person:

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(i) has received a payment known as a student start-up

scholarship payment under the scheme referred to in

section 117 of the Veterans' Entitlements Act 1986; or

(ii) has received a payment known as a student start-up

scholarship payment under the scheme referred to in

section 258 of the Military Rehabilitation and

Compensation Act 2004; or

(iii) has received the amount or value of a Commonwealth

Education Costs Scholarship; or

(iv) was entitled to the amount or value of a Commonwealth

Education Costs Scholarship but has not received the

full entitlement only because the scholarship was

suspended.

7E Amount of ABSTUDY student start-up loan

(1) The amount of an ABSTUDY student start-up loan for which a

person is qualified on or after 1 January 2015 is $1,025.

(2) The amount of an ABSTUDY student start-up loan is to be indexed

under Division 2 of Part 3.16 of the Social Security Act 1991, on

1 January 2017 and each subsequent 1 January, as if it were a

student start-up loan amount referred to in the table in

subsection 1191(1) of that Act.

Division 3--Indebtedness: incurring ABSTUDY SSL debts

8A Simplified outline of this Division

A person incurs an ABSTUDY SSL debt if the person receives an

ABSTUDY student start-up loan (except in certain circumstances

when the loan is required to be recovered as a debt under this Act).

8B ABSTUDY SSL debts

(1) A person incurs an ABSTUDY SSL debt to the Commonwealth if

the person is paid an ABSTUDY student start-up loan for a

qualification period.

(2) The ABSTUDY SSL debt is incurred by the person on the later of:

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(a) the day the person was paid the loan; and

(b) the day after the person's enrolment test day for the

qualification period.

Note:

For enrolment test day, see subsection 38A(2).

(3) The amount of the person's ABSTUDY SSL debt is the amount of

the loan, reduced by any amount repaid before the day on which

the debt is incurred.

(4) Despite subsection (1), an ABSTUDY SSL debt is not incurred,

and is taken never to have been incurred, in relation to a loan if:

(a) the loan has been fully repaid before the day on which the

ABSTUDY SSL debt in respect of the loan would be

incurred; or

(b) the amount of the loan is a debt under section 39; or

in relation to the loan (relating to exceptional circumstances

beyond the person's control).

8C ABSTUDY SSL debt discharged by death

Upon the death of a person who owes an ABSTUDY SSL debt to

the Commonwealth, the debt is taken to have been paid.

Note:

ABSTUDY SSL debts are not provable in bankruptcy: see

subsection 82(3AB) of the Bankruptcy Act 1966.

8D Notice to Commissioner

(1) If a person incurs an ABSTUDY SSL debt, the Secretary must give

the Commissioner a notice specifying the amount of the debt

incurred by the person.

(2) The Secretary may include in the notice any other details the

Commissioner requests for the purpose of ensuring the

Commissioner has the information needed to exercise powers or

perform functions of the Commissioner under this Act.

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Division 4--Indebtedness: working out accumulated

ABSTUDY SSL debts

9A Simplified outline of this Division

Each ABSTUDY SSL debt a person incurs is incorporated into the

person's accumulated ABSTUDY SSL debt. This accumulated

ABSTUDY SSL debt forms the basis for working out the amounts

the person is obliged to repay.

There are 2 stages to working out a person's accumulated

ABSTUDY SSL debt for a financial year.

In stage 1, the person's former accumulated ABSTUDY SSL debt

is worked out by adjusting the preceding financial year's

accumulated ABSTUDY SSL debt to take account of:

(a)

the HELP debt indexation factor for 1 June in that

financial year; and

(b)

the debts that the person incurs during the last 6 months

of the preceding financial year; and

(c)

voluntary ABSTUDY SSL repayments of the debt; and

(d)

compulsory ABSTUDY SSL repayment amounts in

respect of the debt.

In stage 2, the person's accumulated ABSTUDY SSL debt is

worked out from:

(a)

the person's former accumulated ABSTUDY SSL debt;

and

(b)

the ABSTUDY SSL debts that the person incurs during

the first 6 months of the financial year; and

(c)

voluntary ABSTUDY SSL repayments of those debts.

9B Stage 1--working out a former accumulated ABSTUDY SSL

debt

(1) A person's former ABSTUDY accumulated SSL debt, in relation

to the person's accumulated ABSTUDY SSL debt for a financial

year, is worked out by multiplying:

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(a) the amount worked out using the following method

statement; by

(b) the HELP debt indexation factor for 1 June in that financial

year.

Method statement

Step 1. Take the person's accumulated ABSTUDY SSL debt for

the immediately preceding financial year. (This amount is

taken to be zero if the person has no accumulated

ABSTUDY SSL debt for that financial year.)

Step 2. Add the sum of all of the ABSTUDY SSL debts (if any)

that the person incurred during the last 6 months of the

immediately preceding financial year.

Step 3. Subtract the sum of the amounts by which the person's

debts referred to in steps 1 and 2 are reduced because of

any voluntary ABSTUDY SSL repayments that have

been made during the period:

(a)

starting on 1 June in the immediately preceding

financial year; and

(b)

ending immediately before the next 1 June.

Step 4. Subtract the sum of all of the person's compulsory

ABSTUDY SSL repayment amounts that:

(a)

were assessed during that period (excluding any

assessed as a result of a return given before that

period); or

(b)

were assessed after the end of that period as a

result of a return given before the end of that

period.

Step 5. Subtract the sum of the amounts by which any

compulsory ABSTUDY SSL repayment amount of the

person is increased (whether as a result of an increase in

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the person's taxable income of an income year or

otherwise) by an amendment of an assessment made

during that period.

Step 6. Add the sum of the amounts by which any compulsory

ABSTUDY SSL repayment amount of the person is

reduced (whether as a result of a reduction in the person's

taxable income of an income year or otherwise) by an

amendment of an assessment made during that period.

(2) For the purposes of this section, an assessment, or an amendment

of an assessment, is taken to have been made on the day specified

in the notice of assessment, or notice of amended assessment, as

the date of issue of that notice.

9C Stage 2--working out an accumulated ABSTUDY SSL debt

(1) A person's accumulated ABSTUDY SSL debt, for a financial year,

is worked out as follows:

Former accumulated

ABSTUDY SSL

ABSTUDY SSL debt

debts incurred

debt repayments

where:

ABSTUDY SSL debt repayments is the sum of all of the voluntary

ABSTUDY SSL repayments (if any) paid, on or after 1 July in the

financial year and before 1 June in that year, in reduction of the

ABSTUDY SSL debts incurred in that year.

ABSTUDY SSL debts incurred is the sum of the amounts of all of

the SSL debts (if any) that the person incurred during the first 6

months of the financial year.

former accumulated ABSTUDY SSL debt is the person's former

accumulated ABSTUDY SSL debt in relation to that accumulated

ABSTUDY SSL debt.

(2) The person incurs the accumulated ABSTUDY SSL debt on 1 June

in the financial year.

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(3) The first financial year for which a person can have an

accumulated ABSTUDY SSL debt is the financial year starting on

1 July 2015.

9D Rounding of amounts

(1) If, apart from this section, a person's accumulated ABSTUDY SSL

debt would be an amount consisting of a number of whole dollars

and a number of cents, disregard the number of cents.

(2) If, apart from this section, a person's accumulated ABSTUDY SSL

debt would be an amount of less than $1.00, the person's

accumulated ABSTUDY SSL debt is taken to be zero.

9E Accumulated ABSTUDY SSL debt discharges earlier debts

(1) The accumulated ABSTUDY SSL debt that a person incurs on

1 June in a financial year discharges, or discharges the unpaid part

of:

(a) any ABSTUDY SSL debt that the person incurred during the

calendar year immediately preceding that day; and

(b) any accumulated ABSTUDY SSL debt that the person

incurred on the immediately preceding 1 June.

(2) Nothing in subsection (1) affects the application of section 8B, 8C,

9B or 9C.

9F Accumulated ABSTUDY SSL debt discharged by death

(1) Upon the death of a person who has an accumulated ABSTUDY

SSL debt, the accumulated ABSTUDY SSL debt is taken to be

discharged.

(2) To avoid doubt, this section does not affect any compulsory

ABSTUDY SSL repayment amounts required to be paid in respect

of the accumulated ABSTUDY SSL debt, whether or not those

amounts were assessed before the person's death.

Note:

Accumulated ABSTUDY SSL debts are not provable in bankruptcy:

see subsection 82(3AB) of the Bankruptcy Act 1966.

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Division 5--Discharge of indebtedness

Subdivision A--Introduction

10A Simplified outline of this Division

A person who owes a debt to the Commonwealth under this Part

may make voluntary ABSTUDY SSL repayments.

The person is required to make repayments, of amounts based on

his or her income, if that income is above a particular amount and

if the person has repaid the person's accumulated HELP debts

arising under the Higher Education Support Act 2003 and

accumulated SSL debts arising under Chapter 2AA of the Social

Security Act 1991. The Commissioner makes assessments of

repayment amounts, which are collected in the same way as

amounts of income tax and those other income-contingent loan

debts.

10B Debts under this Part

(1) The debts under this Part are:

(a) ABSTUDY SSL debts; and

(b) accumulated ABSTUDY SSL debts.

(2) To avoid doubt, debts that arise under section 39 are not debts

under this Part.

(3) To avoid doubt, nothing in this section affects section 7B (about

the relationship of this Part to the ABSTUDY Scheme).

Subdivision B--Voluntary discharge of indebtedness

10C Voluntary ABSTUDY SSL repayments in respect of debts

(1) A person may at any time make a payment in respect of a debt that

the person owes to the Commonwealth under this Part.

(2) The payment must be made to the Commissioner.

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10D Application of voluntary ABSTUDY SSL repayments

(1) Any money a person pays under this Subdivision to meet the

person's debts to the Commonwealth under this Part is to be

applied in payment of those debts as the person directs at the time

of the payment.

(2) If the person has not given any directions, or the directions given

do not adequately deal with the matter, any money available is to

be applied as follows:

(a) first, in discharge or reduction of any accumulated

ABSTUDY SSL debt of the person;

(b) second, in discharge or reduction of:

(i) any ABSTUDY SSL debt of the person; or

(ii) if there is more than one such debt, those debts in the

order in which they were incurred.

10E Refunding of payments

If:

(a) a person pays an amount to the Commonwealth under this

Subdivision; and

(b) the amount exceeds the sum of:

(i) the amount required to discharge the total debt that the

person owed to the Commonwealth under this Part; and

(ii) the total amount of the person's primary tax debts

(within the meaning of Part IIB of the Taxation

Administration Act 1953);

the Commonwealth must refund to the person an amount equal to

that excess.

Subdivision C--Compulsory discharge of indebtedness

10F Liability to repay amounts

(1) If:

(a) a person's HELP repayment income for an income year

exceeds the minimum HELP repayment income for the

income year; and

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(b) on 1 June immediately preceding the making of an

assessment in respect of the person's income of that income

year, the person had an accumulated ABSTUDY SSL debt;

the person is liable to pay to the Commonwealth, in accordance

with this Subdivision, so much of the person's repayable

ABSTUDY SSL debt for the income year as does not exceed the

amount worked out by the formula:

Applicable percentage

Relevant income-contingent

of HELP repayment income

loans liability

where:

applicable percentage of HELP repayment income means the

amount that is the percentage of the person's HELP repayment

income applicable under the table in section 154-20 of the Higher

Education Support Act 2003.

relevant income-contingent loans liability means the amount that

is the sum of the following:

(a) any amount the person is liable to pay under section 154-1 of

the Higher Education Support Act 2003 for the income year

in respect of an accumulated HELP debt;

(b) any amount the person is liable to pay under

section 1061ZVHA of the Social Security Act 1991 for the

income year in respect of an accumulated SSL debt.

(2) A person is not liable under this section to pay an amount for an

income year if the amount worked out under subsection (1) is zero

or less.

(3) A person is not liable under this section to pay an amount for an

income year if, under section 8 of the Medicare Levy Act 1986:

(a) no Medicare levy is payable by the person on the person's

taxable income for the income year; or

(b) the amount of the Medicare levy payable by the person on the

person's taxable income for the income year is reduced.

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10G Repayable ABSTUDY SSL debt for an income year

(1) A person's repayable ABSTUDY SSL debt for an income year is:

(a) the person's accumulated ABSTUDY SSL debt referred to in

paragraph 10F(1)(b) in relation to that income year; or

(b) if one or more amounts:

(i) have been paid in reduction of that debt; or

(ii) have been assessed under section 10H to be payable in

respect of that debt;

the amount (if any) remaining after deducting from that debt

any amounts referred to in subparagraph (i) or (ii).

(2) A reference in paragraph (1)(b) of this section to an amount

assessed to be payable is, if the amount has been increased or

reduced by an amendment of the relevant assessment, a reference

to the increased amount or the reduced amount.

Subdivision D--Assessments

10H Commissioner may make assessments

The Commissioner may, from any information in the

Commissioner's possession, whether from a return or otherwise,

make an assessment of:

(a) the person's accumulated ABSTUDY SSL debt on 1 June

immediately before the making of the assessment; and

(b) the amount required to be paid in respect of the person's

repayable SSL debt under section 10F.

10J Notification of notices of assessment of tax

If:

(a) the Commissioner is required to serve on a person a notice of

assessment in respect of the person's income of an income

year under section 174 of the Income Tax Assessment Act

1936; and

(b) the Commissioner has made, in respect of the person, an

assessment under paragraph 10H(b) of this Act of the

amounts referred to in that paragraph; and

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served on the person;

notice of the assessment under that paragraph may be served by

specifying the amounts concerned in the notice referred to in

paragraph (a).

10K Commissioner may defer making assessments

(1) A person may apply in the approved form to the Commissioner for

deferral of the making of an assessment in respect of the person

under section 10H.

(2) The application must specify:

(a) the income year for which the deferral is being sought; and

(b) the reasons for seeking the deferral.

(3) The income year specified in the application must be:

(a) the income year in which the person makes the application;

(b) the immediately preceding income year; or

(4) The Commissioner may, on application by a person under this

section, defer making an assessment in respect of the person under

section 10H if the Commissioner is of the opinion that:

(a) if the assessment were made, payment of the assessed

amount would cause serious hardship to the person; or

(b) there are other special reasons that make it fair and

reasonable to defer making the assessment.

(5) The Commissioner may defer making the assessment for any

period that he or she thinks appropriate.

(6) The Commissioner must, as soon as practicable after an application

is made under this section:

(a) consider the matter to which the application relates; and

(b) notify the applicant of the Commissioner's decision on the

application.

Note:

Deferrals of making assessments, or refusals of applications, are

reviewable under Division 1A of Part 9.

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10L Commissioner may amend assessments

(1) A person may apply in the approved form to the Commissioner for

an amendment of an assessment made in respect of the person

under section 10H so that:

(a) the amount payable under the assessment is reduced; or

(b) no amount is payable under the assessment.

(2) The application:

(a) must be made within 2 years after the day on which the

Commissioner gives notice of the assessment to the person;

(b) must specify the reasons justifying a later application.

(3) The Commissioner may, on application by a person under this

section, amend an assessment made in respect of the person under

section 10H so that:

(a) the amount payable under the assessment is reduced; or

(b) no amount is payable under the assessment;

if the Commissioner is of the opinion that:

serious hardship to the person; or

(d) there are other special reasons that make it fair and

reasonable to make the amendment.

(4) The Commissioner must, as soon as practicable after an application

is made under this section:

(a) consider the matter to which the application relates; and

(b) notify the applicant of the Commissioner's decision on the

application.

Note:

Amendments of assessments, or refusals of applications, are

reviewable under Division 1A of Part 9.

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Division 6--Tax administration matters

11A Simplified outline of this Division

The Secretary and the Commissioner may share information about

tax file numbers for the purposes of administering ABSTUDY

student start-up loans. The Commissioner is also responsible for

the recovery of debts under this Part and has functions and powers

to fulfil that responsibility relating to returns, assessments,

collection and other administrative matters.

11B Verification of tax file numbers

(1) The Secretary may provide to the Commissioner a tax file number

that a person has notified to the Secretary for the purposes of

paragraph 7C(1)(c), for the purpose of verifying that the number is

the person's tax file number.

(2) If the Commissioner is satisfied that the number is the person's tax

file number, the Commissioner may give the Secretary a written

notice informing the Secretary accordingly.

11C When person with tax file number incorrectly notifies number

(1) If the Commissioner is satisfied:

(a) that the tax file number that a person has notified to the

Secretary for the purposes of paragraph 7C(1)(c):

(i) has been cancelled or withdrawn since the notification

was given; or

(ii) is otherwise wrong; and

(b) that the person has a tax file number;

the Commissioner may give to the Secretary written notice of the

incorrect notification and of the person's tax file number.

(2) That number is taken to be the number that the person notified to

the Secretary.

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11D When person without tax file number incorrectly notifies

number

(1) If:

(a) the Commissioner is satisfied that the tax file number that a

person notified to the Secretary for the purposes of

paragraph 7C(1)(c):

(i) has been cancelled since the notification was given; or

(ii) is for any other reason not the person's tax file number;

and

(b) the Commissioner is not satisfied that the person has a tax

file number;

the Commissioner may give to the Secretary a written notice

informing the Secretary accordingly.

(2) The Commissioner must give a copy of any notice under

subsection (1) of this section to the person concerned, together

with a written statement of the reasons for the decision to give the

notice.

Note:

Decisions to give notice under subsection (1) are reviewable under

section 202F of the Income Tax Assessment Act 1936.

11E When tax file numbers are altered

(1) If the Commissioner issues, to a person who has notified a tax file

number to the Secretary for the purposes of paragraph 7C(1)(c), a

new tax file number in place of a tax file number that has been

withdrawn, the Commissioner may give to the Secretary a written

notice informing the Secretary accordingly.

(2) That new number is taken to be the number that the person notified

to the Secretary.

11F When tax file numbers are cancelled

(1) If the Commissioner cancels a tax file number issued to a person

who has notified the tax file number to the Secretary for the

purposes of paragraph 7C(1)(c), the Commissioner may give to the

Secretary a written notice informing the Secretary accordingly.

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(2) The Commissioner must give a copy of any notice under

subsection (1) of this section to the person concerned, together

with a written statement of the reasons for the decision to give the

notice.

Note:

Decisions to give notice under subsection (1) are reviewable under

section 202F of the Income Tax Assessment Act 1936.

11G Returns, assessments, collection and recovery

Subject to Division 5 and this Division:

(a) Part IV of the Income Tax Assessment Act 1936; and

(b) Division 5 of the Income Tax Assessment Act 1997; and

1953;

apply, so far as they are capable of application, in relation to a

compulsory ABSTUDY SSL repayment amount of a person as if it

were income tax assessed to be payable by a taxpayer by an

assessment made under Part IV of the Income Tax Assessment Act

1936.

11H Charges and civil penalties for failing to meet obligations

(1) Part 4-25 in Schedule 1 to the Taxation Administration Act 1953

has effect as if:

(a) any compulsory ABSTUDY SSL repayment amount of a

person were income tax payable by the person in respect of

the income year in respect of which the assessment of that

debt was made; and

(b) paragraph 7C(1)(c), and Divisions 3, 4 and 5 and this

Division, were income tax laws.

(2) Subsection (1) does not have the effect of making a person liable to

a penalty for any act or omission that happened before the

commencement of this subsection.

11J Pay as you go (PAYG) withholding

Part 2-5 (other than section 12-55 and Subdivisions 12-E, 12-F and

12-G) in Schedule 1 to the Taxation Administration Act 1953

applies, so far as it is capable of application, in relation to the

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collection of amounts of a compulsory ABSTUDY SSL repayment

amount of a person as if the compulsory ABSTUDY SSL

repayment amount were income tax.

11K Pay as you go (PAYG) instalments

Division 45 in Schedule 1 to the Taxation Administration Act 1953

applies, so far as it is capable of application, in relation to the

collection of a compulsory ABSTUDY SSL repayment amount of

a person as if the compulsory ABSTUDY SSL repayment amount

were income tax.

11L Administration of this Part

The Commissioner has the general administration of:

(a) paragraph 7C(1)(c); and

(b) Divisions 3, 4 and 5 and this Division; and

Commissioner decisions relating to ABSTUDY student

start-up loans).

Note:

One effect of this is that these Divisions are taxation laws for the

purposes of the Taxation Administration Act 1953.

80 Section 38 (definition of ABSTUDY debt)

Repeal the definition, substitute:

ABSTUDY debt means:

(a) an amount paid under the ABSTUDY Scheme (also known

as the Aboriginal Study Assistance Scheme) that should not

have been paid; or

(b) an ABSTUDY student start-up loan overpayment.

Note:

The amount in paragraph (a) is a debt under paragraph (a) of the

definition of debt in this section. The amount in paragraph (b) is a debt

under paragraph (aa) of the definition of debt in this section.

81 Section 38 (after paragraph (a) of the definition of debt)

Insert:

(aa) an ABSTUDY student start-up loan overpayment;

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82 Section 38 (paragraph (c) of the definition of debt)

Omit "or (b)", substitute ", (aa) or (b)".

83 After section 38

Insert:

38A ABSTUDY student start-up loan overpayments

(1) If:

(a) a person is paid an ABSTUDY student start-up loan for a

qualification period; and

(b) the person's qualification test day for the period was the day

the Secretary determined the person's claim for the loan; and

subparagraph 7C(1)(a)(iii) during the period between the

qualification test day and the person's enrolment test day;

then the amount of the loan is an ABSTUDY student start-up loan

overpayment.

Note:

The condition in subparagraph 7C(1)(a)(iii) relates to whether the

person is qualified for Living Allowance because the person is

studying in an approved scholarship course (as defined in the

ABSTUDY Scheme).

(2) A person's enrolment test day, for a qualification period, is the

earliest of the following days:

(a) if the approved scholarship course ends in the qualification

period--the last day of the approved scholarship course;

(b) the last day of the qualification period;

following applies:

(i) if the person's qualification test day for the qualification

period was before the first day of the relevant approved

scholarship course--the first day of that approved

scholarship course;

(ii) otherwise--the qualification test day.

(3) Subsection (1) does not apply if, in the Secretary's opinion, the

person ceased to meet the condition in subparagraph 7C(1)(a)(iii)

because of exceptional circumstances beyond the person's control.

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84 Section 39

Before "If", insert "(1)".

85 Paragraph 39(a)

Omit "or (b)", substitute ", (aa) or (b)".

86 At the end of section 39

Add:

(2) A debt that arises under subsection (1) because of an ABSTUDY

student start-up loan overpayment is taken to have arisen when the

person is paid the loan to which the overpayment relates.

87 At the end of section 39AA

Add "(other than from the amount of an ABSTUDY student start-up

loan)".

88 Subsection 44A(5)

Omit "subsection (6)", substitute "subsections (6) and (7)".

89 Subsection 44A(7)

Repeal the subsection, substitute:

(7) Subsection (5) does not apply in relation to qualification for an

ABSTUDY student start-up loan under section 7C.

90 After subsection 55A(1)

Insert:

(1AAA) Payments in relation to ABSTUDY student start-up loans are to be

made out of the Consolidated Revenue Fund, which is appropriated

accordingly.

91 Section 302

Before "Unless", insert "(1)".

92 At the end of section 302

Add:

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(2) This Division does not apply to:

(a) a decision to give a notice under subsection 11D(1) or 11F(1)

(decision by Commissioner to notify Secretary that incorrect

or cancelled tax file number has been given in relation to

ABSTUDY student start-up loan); or

(b) a decision that is a reviewable decision under section 308A

(decision by Commissioner about deferring or amending

assessment relating to ABSTUDY student start-up loans); or

reconsideration of a decision that is a reviewable decision

under section 308A).

93 After Division 1 of Part 9

Insert:

Division 1A--Internal review of certain Commissioner

decisions relating to ABSTUDY student start-up

loans

308A Decisions reviewable under this Division

Each of the following is a reviewable decision for the purposes of

this Division:

(a) a decision by the Commissioner under section 10K

(Commissioner may defer making assessments);

(b) a decision by the Commissioner under section 10L

(Commissioner may amend assessments).

308B Commissioner must give reasons for reviewable decisions

(1) The Commissioner's notice to a person of the making of a

reviewable decision must include reasons for the decision.

(2) Subsection (1) does not affect an obligation, imposed upon the

Commissioner by any other law, to give reasons for a decision.

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308C Reviewer of decisions

(1) The Commissioner is the reviewer of a reviewable decision for the

purposes of this Division, subject to subsection (2).

(2) If:

(a) the reviewable decision was made by a delegate of the

Commissioner; and

(b) the decision is to be reconsidered by a delegate of the

Commissioner;

then the delegate who reconsiders the decision must be a person

who:

(d) occupies a position that is senior to that occupied by any

person involved in making the decision.

308D Reviewer may reconsider reviewable decisions

(1) The reviewer of a reviewable decision may reconsider the decision

if the reviewer is satisfied that there is sufficient reason to do so.

(2) The reviewer may reconsider the decision even if:

(a) an application for reconsideration of the decision has been

made under section 308F; or

(b) the decision has been confirmed, varied or set aside under

section 308F and an application has been made under

section 308H for review of the decision.

(3) After reconsidering the decision, the reviewer must:

(a) confirm the decision; or

(b) vary the decision; or

(4) The reviewer's decision (the decision on review) to confirm, vary

or set aside the decision takes effect:

(a) on the day specified in the decision on review; or

(b) if a day is not specified--on the day on which the decision on

review was made.

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(5) The reviewer must give written notice of the decision on review to

the person to whom that decision relates.

(6) The notice:

(a) must be given within a reasonable period after the decision is

made; and

(b) must contain a statement of the reasons for the reviewer's

decision on review.

Note:

Section 27A of the Administrative Appeals Tribunal Act 1975 requires

the person to be notified of the person's review rights.

308E Notice to AAT Registrar

If:

(a) a reviewer makes a decision under subsection 308D(3); and

(b) at the time of the reviewer's decision, a person has applied to

the Administrative Appeals Tribunal for review of the

decision reviewed by the reviewer;

the reviewer must give the Registrar of the Administrative Appeals

Tribunal written notice of the reviewer's decision under

subsection 308D(3).

308F Reconsideration of reviewable decisions on request

(1) A person whose interests are affected by a reviewable decision

may request the reviewer to reconsider the decision.

(2) The person's request must be made by written notice given to the

reviewer within 28 days, or such longer period as the reviewer

allows, after the day on which the person first received notice of

the decision.

(3) The notice must set out the reasons for making the request.

(4) After receiving the request, the reviewer must reconsider the

decision and:

(a) confirm the decision; or

(b) vary the decision; or

Student start-up loans Schedule 2

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Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

(5) The reviewer's decision (the decision on review) to confirm, vary

or set aside the decision takes effect:

(a) on the day specified in the decision on review; or

(b) if a day is not specified--on the day on which the decision on

review was made.

(6) The reviewer must give the person written notice of the decision on

review.

(7) The notice:

(a) must be given within a reasonable period after the decision

on review is made; and

(b) must contain a statement of the reasons for the decision on

review.

Note:

Section 27A of the Administrative Appeals Tribunal Act 1975 requires

the person to be notified of the person's review rights.

(8) The reviewer is taken, for the purposes of this Division, to have

confirmed the decision if the reviewer does not give notice of a

decision to the person within 45 days after receiving the person's

request.

308G Withdrawal of request

(1) A person who has requested the reviewer to reconsider a

reviewable decision may, by written notice given to the reviewer,

withdraw the request at any time before the review has been

completed.

(2) If a request is withdrawn, the request is taken never to have been

made.

308H AAT review of reviewable decisions

An application may be made to the Administrative Appeals

Tribunal for the review of a reviewable decision that has been

confirmed, varied or set aside under section 308D (Reviewer may

reconsider reviewable decisions) or 308F (Reconsideration of

reviewable decisions on request).

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No. , 2014

308J Decision changed before AAT review completed

Decision varied

(1) If the reviewer varies a reviewable decision under

subsection 308D(3) after an application has been made to the

Administrative Appeals Tribunal for review of that decision but

before the determination of the application, the application is taken

to be an application for review of the decision as varied.

Decision set aside and a new decision substituted

(2) If the reviewer sets aside a reviewable decision under

subsection 308D(3) and substitutes a new decision, after an

application has been made to the Administrative Appeals Tribunal

for review of the reviewable decision but before the determination

of the application, the application is taken to be an application for

review of the new decision.

94 Before paragraph 313(a)

Insert:

(aa) by the Commissioner under subsection 11D(1) or 11F(1) to

notify the Secretary of an incorrect or cancelled tax file

number given in relation to an ABSTUDY student start-up

loan; or

(ab) that is a reviewable decision under section 308A (decision by

Commissioner about deferring or amending assessment

relating to ABSTUDY student start-up loans); or

(ac) under section 308D or 308F (decision following

reconsideration of a decision that is a reviewable decision

under section 308A); or

Taxation Administration Act 1953

95 Section 8AAZA

Insert:

compulsory ABSTUDY SSL repayment amount has the same

meaning as in the Student Assistance Act 1973.

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96 Section 8AAZA

Insert:

compulsory SSL repayment amount has the same meaning as in

Chapter 2AA of the Social Security Act 1991.

97 After paragraph 8AAZLD(aa)

Insert:

(ab) then against any compulsory SSL repayment amount of the

entity; and

(ac) then against any compulsory ABSTUDY SSL repayment

amount of the entity; and

98 Paragraph 8WA(1AA)(b)

After "(ga),", insert "(gaa),".

99 Paragraph 8WA(1AA)(b)

After "(haa),", insert "(hab),".

100 Paragraphs 8WB(1A)(a) and (b)

After "(ga),", insert "(gaa),".

101 Paragraphs 8WB(1A)(a) and (b)

After "(haa),", insert "(hab),".

102 Section 6-1 in Schedule 1

Omit ", liability to repay contributions under the Higher Education

Contribution Scheme (HECS), liability to repay debts under the Higher

Education Loan Program (HELP), liability to repay debts in relation to

trade support loan and liability to repay financial supplement debts

under the Student Financial Supplement Scheme (SFSS)", substitute

"and liability to repay debts under certain income-contingent loan

schemes".

103 After paragraph 11-1(ca) in Schedule 1

Insert:

(cb) amounts of liabilities to the Commonwealth under

Chapter 2AA of the Social Security Act 1991; and

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(cc) amounts of liabilities to the Commonwealth under Part 2 of

the Student Assistance Act 1973; and

104 Subsection 15-25(1) in Schedule 1

After "(ca),", insert "(cb), (cc),".

105 After paragraph 15-30(ca) in Schedule 1

Insert:

(cb) the percentage referred to in the definition of applicable

percentage of HELP repayment income in

subsection 1061ZVHA(1) (about repayments of accumulated

SSL debt) of the Social Security Act 1991 for any financial

year starting on or after 1 July 2015;

(cc) the percentage referred to in the definition of applicable

percentage of HELP repayment income in

subsection 10F(1) (about repayments of accumulated

ABSTUDY SSL debt) of the Student Assistance Act 1973 for

any financial year starting on or after 1 July 2015;

106 Paragraph 15-50(1)(b) in Schedule 1

After "(ca),", insert "(cb), (cc),".

107 After paragraph 45-5(1)(ca) in Schedule 1

Insert:

(cb) amounts of liabilities to the Commonwealth under

Chapter 2AA of the Social Security Act 1991; and

(cc) amounts of liabilities to the Commonwealth under Part 2 of

the Student Assistance Act 1973; and

108 Section 45-340 in Schedule 1 (method statement, after

step 3)

Insert:

Step 3AA. The amount (if any) that you would have been liable to

pay for the

base year in respect of an

accumulated SSL

debt if your taxable income for the base year had been

your

adjusted taxable income, or your

adjusted

withholding income, for that year is worked out.

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Social Services and Other Legislation Amendment (Student Measures)

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Step 3AB. The amount (if any) that you would have been liable to

pay for the

base year in respect of an

accumulated

ABSTUDY SSL debt if your taxable income for the base

year had been your

adjusted taxable income, or your

adjusted withholding income, for that year is worked

out.

109 Section 45-340 in Schedule 1 (method statement, step 4)

After "3", insert ", 3AA, 3AB".

110 Section 45-375 in Schedule 1 (method statement, after

step 3)

Insert:

Step 3AA. The amount (if any) that you would have been liable to

pay for the variation year in respect of an

accumulated

SSL debt if your taxable income for that year had been

your

adjusted assessed taxable income for that year is

worked out.

Step 3AB. The amount (if any) that you would have been liable to

pay for the variation year in respect of an

accumulated

ABSTUDY SSL debt if your taxable income for that year

had been your

adjusted assessed taxable income for that

year is worked out.

111 Section 45-375 in Schedule 1 (method statement, step 4)

After "3", insert ", 3AA, 3AB".

112 Subsection 250-10(2) in Schedule 1 (after table item 36A)

Insert:

36B

compulsory SSL

repayment amount

under the Social

Security Act 1991

5-5

Income Tax Assessment Act 1997

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36C

compulsory

ABSTUDY SSL

repayment amount

under the Student

Assistance Act 1973

5-5

Income Tax Assessment Act 1997

Taxation (Interest on Overpayments and Early Payments)

Act 1983

113 Subsection 3(1)

Insert:

compulsory ABSTUDY SSL repayment amount has the same

meaning as in the Student Assistance Act 1973.

114 Subsection 3(1)

Insert:

compulsory SSL repayment amount has the same meaning as in

Chapter 2AA of the Social Security Act 1991.

115 Subsection 3C(1) (after table item 45)

Insert:

Amounts that are treated under Part 2AA.5 of the Social Security Act 1991 as

if they were income tax

Amounts that are treated under Division 6 of Part 2 of the Student Assistance

Act 1973 as if they were income tax

Note:

If item 115 of Schedule 1 to the Minerals Resource Rent Tax Repeal and Other

Measures Act 2014 commences at or before the time the provision(s) covered by table

item 3 in subsection 2(1) of this Act commence, this provision does not commence at

all.

116 Section 3C (after table item 45)

Insert:

Amounts that are treated under Part 2AA.5 of the Social Security Act 1991 as

if they were income tax

Amounts that are treated under Division 6 of Part 2 of the Student Assistance

Act 1973 as if they were income tax

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Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

Note:

If item 115 of Schedule 1 to the Minerals Resource Rent Tax Repeal and Other

Measures Act 2014 does not commence at or before the time the provision(s) covered

by table item 3 in subsection 2(1) of this Act commence, this provision does not

commence at all.

117 After subparagraph 8A(1)(a)(iia)

Insert:

(iib) compulsory SSL repayment amount; or

(iic) compulsory ABSTUDY SSL repayment amount; or

118 After paragraph 8A(2)(ba)

Insert:

(bb) compulsory SSL repayment amount; or

(bc) compulsory ABSTUDY SSL repayment amount; or

119 After subparagraph 8E(1)(d)(iii)

Insert:

(iiia) a compulsory SSL repayment amount that is notified in

the notice of assessment;

(iiib) a compulsory ABSTUDY SSL repayment amount that

is notified in the notice of assessment;

120 After subparagraph 8E(2)(d)(iii)

Insert:

(iiia) a compulsory SSL repayment amount, worked out by

reference to the person's taxable income of the year of

income, payable by the person immediately before the

post-notice crediting;

(iiib) a compulsory ABSTUDY SSL repayment amount,

worked out by reference to the person's taxable income

of the year of income, payable by the person

immediately before the post-notice crediting;

121 After paragraph 12A(1A)(b)

Insert:

(ba) compulsory SSL repayment amount;

(bb) compulsory ABSTUDY SSL repayment amount;

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Trade Support Loans Act 2014

122 Section 3

After "under that Act", insert "and certain other income-contingent loan

schemes".

123 Section 39

After "under that Act", insert "and any debts under certain other

income-contingent loan schemes".

124 Subsection 46(1)

Omit all the words after "the formula:", substitute:

Applicable percentage

Relevant income-contingent

of repayment income

loans liability

where:

applicable percentage of repayment income means the amount

that is the percentage of the person's repayment income applicable

under the table in section 154-20 of the Higher Education Support

Act 2003.

relevant income-contingent loans liability means the amount that

is the sum of the following:

(a) any amount the person is liable to pay under section 154-1 of

the Higher Education Support Act 2003 for the income year

in respect of an accumulated HELP debt;

(b) any amount the person is liable to pay under

section 1061ZVHA of the Social Security Act 1991 for the

income year in respect of an accumulated SSL debt;

the Student Assistance Act 1973 in respect of an accumulated

ABSTUDY SSL debt.

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No. , 2014

Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

Part 2

--Application and saving provisions

125 Saving provision

--approved scholarship courses

Despite the amendment of subsection 592N(1) made by this Schedule, a

legislative instrument made for that subsection continues in force after

the commencement of the amendment and has effect after that

commencement for the purposes of the whole of the Social Security Act

1991, not just Part 2.11B of that Act.

126 Application and saving provisions

--repeal of student

start-up scholarship provisions

(1)

Despite the repeal of Division 1 of Part 2.11B of the Social Security Act

1991 by this Schedule, that Division continues to apply on and after the

commencement of this item in relation to a qualification time that

occurs before that commencement.

(2)

Despite the amendment made by item 27 of this Schedule,

subsection 1192(8A) of the Social Security Act 1991, as in force

immediately before the commencement of this item, continues to apply

on and after that commencement in relation to the student start-up

scholarship payment amount.

(3)

Despite the amendment made by item 31 of this Schedule,

section 1223ABE of the Social Security Act 1991, as in force

immediately before the commencement of this item, continues to apply

in relation to a student start-up scholarship payment made before, on or

after that commencement.

(4)

Despite the amendment made by item 38 of this Schedule, section 12H

of the Social Security (Administration) Act 1999, as in force

immediately before the commencement of this item, continues to apply

on and after that commencement in relation to a student start-up

scholarship payment for which a person was qualified before that

commencement.

(5)

Despite the amendments made by items 43 and 45 of this Schedule,

sections 47 and 47DA of the Social Security (Administration) Act 1999,

as in force immediately before the commencement of this item,

continue to apply on and after that commencement in relation to a

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Social Services and Other Legislation Amendment (Student Measures)

Bill 2014

No. , 2014

student start-up scholarship payment made after that commencement for

which a person was qualified before that commencement.

(6)

Despite the amendment made by item 52 of this Schedule, Part 3B of

the Social Security (Administration) Act 1999, as in force immediately

before the commencement of this item, continues to apply on and after

that commencement in relation to a student start-up scholarship

payment, whether it is payable before, on or after that commencement.

Commonwealth of Australia Bills

SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (STUDENT MEASURES) BILL 2014