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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 

i 

 

Contents 

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

 

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

 

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

 

Schedule 1--Interest charge

 

4

 

Part 1--Amendments

 

4

 

Social Security Act 1991

 

4

 

Student Assistance Act 1973

 

11

 

Part 2--Application and transitional provisions

 

19

 

Schedule 2--Student start-up loans

 

21

 

Part 1--Amendments

 

21

 

Bankruptcy Act 1966

 

21

 

Income Tax Assessment Act 1936

 

21

 

Income Tax Assessment Act 1997

 

22

 

Social Security Act 1991

 

23

 

Social Security (Administration) Act 1999

 

47

 

Student Assistance Act 1973

 

55

 

Taxation Administration Act 1953

 

84

 

Taxation (Interest on Overpayments and Early Payments) Act 1983

 

88

 

Trade Support Loans Act 2014

 

90

 

Part 2--Application and saving provisions

 

91

 

 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

1 

 

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 

10 

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

11 

according to its terms. 

12 

   

   

 

 

2 

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. 

   

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

3 

 

3  Schedule(s) 

 

  Each Act that is specified in a Schedule to this Act is amended or 

repealed as set out in the applicable items in the Schedule 

concerned, and any other item in a Schedule to this Act has effect 

according to its terms. 

Schedule 1  Interest charge 

Part 1  Amendments 

 

 

4 

Social Services and Other Legislation Amendment (Student Measures) 

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) 

10 

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

11 

4  After paragraph 1229(1)(e) 

12 

Insert: 

13 

 

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

14 

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

15 

sections 1229E and 1229F; and 

16 

5  At the end of section 1229 

17 

Add: 

18 

 

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

19 

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

20 

in relation to the person and the debt. 

21 

6  After section 1229C 

22 

Insert: 

23 

Interest charge  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

5 

 

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; 

10 

 

(ii)  austudy payment; 

11 

 

(iii)  fares allowance; 

12 

 

(iv)  a social security payment prescribed in an instrument 

13 

under subsection (2); and 

14 

 

(c)  for a payment of a youth allowance: 

15 

 

(i)  qualification for the youth allowance was under 

16 

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

17 

(about full-time study) applied; or 

18 

 

(ii)  qualification for the youth allowance was under 

19 

section 540AA (about new apprentices); or 

20 

 

(iii)  qualification for the youth allowance was in 

21 

circumstances prescribed in an instrument under 

22 

subsection (3). 

23 

Legislative instruments 

24 

 

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

25 

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

26 

 

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

27 

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

28 

1229E  No repayment arrangement in effect 

29 

 

(1)  If: 

30 

 

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

31 

person and a debt; and 

32 

Schedule 1  Interest charge 

Part 1  Amendments 

 

 

6 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

 

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

relation to the debt; and 

 

(c)  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 

 

(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). 

10 

 

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

11 

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

12 

 

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

13 

circumstances for the purposes of subsection (2). 

14 

 

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

15 

relation to the person, then: 

16 

 

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

17 

specifying: 

18 

 

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

19 

 

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

20 

 

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

21 

payable; and 

22 

 

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

23 

 

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

24 

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

25 

 

(5)  If: 

26 

 

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

27 

relation to the debt; and 

28 

 

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

29 

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

30 

be paid; and 

31 

 

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

32 

under section 1234 in relation to the debt; 

33 

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

34 

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

35 

described in subsection (6). 

36 

Interest charge  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

7 

 

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 

10 

section 1234 in relation to the debt. 

11 

 

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

12 

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

13 

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

14 

remains unpaid: 

15 

 

(a)  the unpaid amount; 

16 

 

(b)  the interest charge from previous days. 

17 

Note 1: 

For interest charge rate see section 1229H. 

18 

Note 2: 

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

19 

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

20 

section 1229G. 

21 

1229F  Failure to comply with or termination of repayment 

22 

arrangement 

23 

 

(1)  If: 

24 

 

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

25 

person and a debt; and 

26 

 

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

27 

the debt; and 

28 

 

(c)  the person fails to make a payment under the arrangement; 

29 

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

30 

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

31 

described in subsection (2). 

32 

 

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

33 

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

34 

Schedule 1  Interest charge 

Part 1  Amendments 

 

 

8 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

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; 

10 

 

(c)  the day before the day the arrangement is terminated under 

11 

section 1234. 

12 

 

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

13 

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

14 

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

15 

remains unpaid: 

16 

 

(a)  the outstanding amount of the debt; 

17 

 

(b)  the interest charge from previous days. 

18 

Note 1: 

For interest charge rate see section 1229H. 

19 

Note 2: 

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

20 

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

21 

section 1229G. 

22 

Repayment arrangement is terminated 

23 

 

(4)  If: 

24 

 

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

25 

person and a debt; and 

26 

 

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

27 

the debt; and 

28 

 

(c)  the arrangement is then terminated under section 1234 on a 

29 

day (the termination day); 

30 

then: 

31 

 

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

32 

14th day after the termination day: 

33 

 

(i)  the outstanding amount of the debt; 

34 

 

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

35 

debt; and 

36 

Interest charge  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

9 

 

 

(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 

10 

debt; 

11 

 

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

12 

person makes a payment under another arrangement under 

13 

section 1234 in relation to the debt. 

14 

 

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

15 

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

16 

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

17 

remains unpaid: 

18 

 

(a)  the outstanding amount of the debt; 

19 

 

(b)  the interest charge from previous days. 

20 

Note 1: 

For interest charge rate see section 1229H. 

21 

Note 2: 

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

22 

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

23 

section 1229G. 

24 

1229G  Other rules for interest charge 

25 

When interest charge is due and payable 

26 

 

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

27 

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

28 

Interest charge is a debt 

29 

 

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

30 

debt due to the Commonwealth by the person. 

31 

Schedule 1  Interest charge 

Part 1  Amendments 

 

 

10 

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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 

10 

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

11 

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

12 

column 2 of the table. 

13 

 

14 

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 

15 

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

16 

published by the Reserve Bank of Australia before the beginning of 

17 

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

18 

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

19 

Reserve Bank of Australia before that month. 

20 

 

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

21 

(rounding .005 upwards). 

22 

7  After subsection 1234(1) 

23 

Insert: 

24 

Interest charge  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

11 

 

 

(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 

10 

Scheme (also known as the Aboriginal Study Assistance Scheme) 

11 

that should not have been paid. 

12 

Note: 

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

13 

this section. 

14 

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

15 

After "section 40", insert "or 41F". 

16 

11  After section 41 

17 

Insert: 

18 

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

19 

 

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

20 

ABSTUDY debt owed by the person to the Commonwealth. 

21 

41B  Notice in respect of ABSTUDY debt 

22 

 

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

23 

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

24 

specifying: 

25 

 

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

26 

Schedule 1  Interest charge 

Part 1  Amendments 

 

 

12 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

 

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

explanation of the circumstances that led to the debt being 

incurred; and 

 

(c)  the period to which the debt relates; 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; 

10 

and 

11 

 

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

12 

 

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

13 

day after the date of the notice. 

14 

41C  Interest charge payable on ABSTUDY debts 

15 

 

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

16 

debt is an ABSTUDY debt owed by the person to the 

17 

Commonwealth and the debt has not been wholly paid. 

18 

41D  No repayment arrangement in effect 

19 

 

(1)  If: 

20 

 

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

21 

person and a debt; and 

22 

 

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

23 

relation to the debt; and 

24 

 

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

25 

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

26 

be paid; and 

27 

 

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

28 

under section 41H in relation to the debt; 

29 

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

30 

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

31 

described in subsection (6). 

32 

 

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

33 

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

34 

Interest charge  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

13 

 

 

(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 

10 

 

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

11 

 

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

12 

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

13 

 

(5)  If: 

14 

 

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

15 

relation to the debt; and 

16 

 

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

17 

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

18 

be paid; and 

19 

 

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

20 

under section 41H in relation to the debt; 

21 

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

22 

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

23 

described in subsection (6). 

24 

Calculation of interest charge 

25 

 

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

26 

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

27 

earlier of the following days: 

28 

 

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

29 

unpaid: 

30 

 

(i)  the unpaid amount; 

31 

 

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

32 

 

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

33 

person makes a payment in accordance with an arrangement 

34 

under section 41H in relation to the debt. 

35 

Schedule 1  Interest charge 

Part 1  Amendments 

 

 

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No.      , 2014 

 

 

(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 

10 

arrangement 

11 

 

(1)  If: 

12 

 

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

13 

person and a debt; and 

14 

 

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

15 

the debt; and 

16 

 

(c)  the person fails to make a payment under the arrangement; 

17 

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

18 

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

19 

described in subsection (2). 

20 

 

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

21 

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

22 

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

23 

days: 

24 

 

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

25 

unpaid: 

26 

 

(i)  the outstanding amount of the debt; 

27 

 

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

28 

debt; 

29 

 

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

30 

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

31 

and payable under the arrangement; 

32 

 

(c)  the day before the day the arrangement is terminated under 

33 

section 41H. 

34 

Interest charge  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

15 

 

 

(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 

10 

 

(4)  If: 

11 

 

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

12 

person and a debt; and 

13 

 

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

14 

the debt; and 

15 

 

(c)  the arrangement is then terminated under section 41H on a 

16 

day (the termination day); 

17 

then: 

18 

 

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

19 

14th day after the termination day: 

20 

 

(i)  the outstanding amount of the debt; 

21 

 

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

22 

debt; and 

23 

 

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

24 

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

25 

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

26 

period described in subsection (5). 

27 

 

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

28 

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

29 

 

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

30 

unpaid: 

31 

 

(i)  the outstanding amount of the debt; 

32 

 

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

33 

debt; 

34 

Schedule 1  Interest charge 

Part 1  Amendments 

 

 

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Bill 2014 

No.      , 2014 

 

 

(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. 

10 

Note 2: 

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

11 

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

12 

41F  When interest charge becomes due and payable 

13 

 

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

14 

payable to the Commonwealth at the end of that day. 

15 

Note: 

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

16 

see section 39. 

17 

41G  What is the interest charge rate

18 

 

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

19 

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

20 

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

21 

number of days in the calendar year. 

22 

 

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

23 

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

24 

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

25 

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

26 

column 2 of the table. 

27 

 

28 

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 

17 

 

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 

10 

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

11 

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

12 

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

13 

arrangement. 

14 

 

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

15 

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

16 

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

17 

 

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

18 

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

19 

arrangement as the day on which the arrangement commences 

20 

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

21 

into or an earlier or later day). 

22 

 

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

23 

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

24 

after the day on which it is entered into. 

25 

Schedule 1  Interest charge 

Part 1  Amendments 

 

 

18 

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Bill 2014 

No.      , 2014 

 

 

(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 

 

(c)  without notice, if the Secretary is satisfied that the person has 

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)". 

10 

Interest charge  Schedule 1 

Application and transitional provisions  Part 2 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

19 

 

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. 

10 

(2) 

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

11 

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

12 

commencement of this item. 

13 

(3) 

If: 

14 

 

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

15 

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

16 

commencement of this item; and 

17 

 

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

18 

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

19 

relation to the debt; 

20 

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

21 

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

22 

amended by this Act, in relation to the debt. 

23 

(4) 

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

24 

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

25 

commencement of this item (whether the arrangement was entered into 

26 

before, on or after that commencement). 

27 

(5) 

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

28 

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

29 

commencement of this item (whether the arrangement was entered into 

30 

before, on or after that commencement). 

31 

(6) 

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

32 

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

33 

Schedule 1  Interest charge 

Part 2  Application and transitional provisions 

 

 

20 

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. 

10 

Student start-up loans  Schedule 2 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

21 

 

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 

10 

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

11 

expenses of self-education

12 

Insert: 

13 

 

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

14 

or discharge of, any indebtedness to the Commonwealth 

15 

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

16 

Part 2 of the Student Assistance Act 1973; or 

17 

3  After paragraph 202(ga) 

18 

Insert: 

19 

 

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

20 

Assistance Act 1973, which deals with ABSTUDY student 

21 

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

22 

4  After paragraph 202(haa) 

23 

Insert: 

24 

 

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

25 

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

26 

and debts in relation to those loans; and 

27 

5  After paragraph 202F(1)(fb) 

28 

Insert: 

29 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

22 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

 

(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 

10 

expenses") 

11 

Add: 

12 

see also student start-up loans 

 

7  Section 12-

5 (after table item headed "State or Territory 

13 

bodies (STBs)") 

14 

Insert: 

15 

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) 

16 

Insert: 

17 

 

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

18 

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

19 

of the Student Assistance Act 1973; or 

20 

9  Subsection 995-1(1) 

21 

Insert: 

22 

Student start-up loans  Schedule 2 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

23 

 

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 

10 

 

  For the purposes of Chapter 2AA: 

11 

accumulated HELP debt has the same meaning as in the Higher 

12 

Education Support Act 2003

13 

accumulated SSL debt has the meaning given by 

14 

section 1061ZVEC. 

15 

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

16 

Schedule 1 to the Taxation Administration Act 1953

17 

Commissioner means the Commissioner of Taxation. 

18 

compulsory SSL repayment amount means an amount that: 

19 

 

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

20 

under section 1061ZVHA; and 

21 

 

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

22 

section 1061ZVHC. 

23 

enrolment test day has the meaning given by 

24 

subsection 1223ABF(2). 

25 

former accumulated SSL debt has the meaning given by 

26 

section 1061ZVEB. 

27 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

24 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

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

10 

Medicare levy means the Medicare levy imposed by the Medicare 

11 

Levy Act 1986

12 

minimum HELP repayment income has the same meaning as 

13 

minimum repayment income has in the Higher Education Support 

14 

Act 2003

15 

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

16 

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

17 

qualification test day has the meaning given by 

18 

subsection 1061ZVBB(3). 

19 

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

20 

return means an income tax return within the meaning of 

21 

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

22 

SSL debt means a debt incurred under section 1061ZVDA. 

23 

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

24 

under Part 2AA.2. 

25 

voluntary SSL repayment means a payment made to the 

26 

Commissioner in discharge of an accumulated SSL debt or an SSL 

27 

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

28 

compulsory SSL repayment amount. 

29 

Student start-up loans  Schedule 2 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

25 

 

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

10 

Repeal the definition, substitute: 

11 

Commonwealth Education Costs Scholarship means any 

12 

scholarship provided to assist with education costs under the 

13 

Commonwealth Scholarships Guidelines made for the purposes of 

14 

Part 2-4 of the Higher Education Support Act 2003

15 

15  Subsection 23(1) 

16 

Insert: 

17 

enrolment test day has the meaning given by 

18 

subsection 1223ABF(2). 

19 

16  Subsection 23(1) 

20 

Insert: 

21 

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

22 

given by section 19AA. 

23 

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

24 

social security payment

25 

Insert: 

26 

 

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

27 

loans); or 

28 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

26 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

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 

10 

Insert: 

11 

Chapter 2AA--Student start-up loans 

12 

Part 2AA.1--Introduction 

13 

   

14 

1061ZVAA  Simplified outline of this Chapter 

15 

Student start-up loans are social security payments that are 

16 

income-contingent loans. 

17 

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

18 

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

19 

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

20 

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

21 

each loan. 

22 

When the person's income reaches the minimum repayment 

23 

income under the Higher Education Support Act 2003, and the 

24 

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

25 

must start repaying student start-up loan debt. 

26 

Student start-up loans  Schedule 2 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

27 

 

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 

10 

period if: 

11 

 

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

12 

 

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

13 

allowance is payable to the person; and 

14 

 

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

15 

receiving youth allowance if steps 2 and 3 of the method 

16 

statement in point 1067G-A1 of the Youth Allowance 

17 

Rate Calculator were disregarded for the purposes of 

18 

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

19 

 

(iii)  the person is qualified for youth allowance under 

20 

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

21 

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

22 

of education is an approved scholarship course; and 

23 

 

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

24 

receive the amount or value of a Commonwealth Education 

25 

Costs Scholarship in the period of 6 months starting 

26 

immediately after that qualification test day; and 

27 

 

(c)  the person notifies the Secretary of the person's tax file 

28 

number. 

29 

Note 1: 

For approved scholarship course, see section 592M. 

30 

Note 2: 

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

31 

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

32 

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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 

10 

method statement in point 1067L-A1 of the Austudy 

11 

Payment Rate Calculator were disregarded for the 

12 

purposes of working out the person's rate of that 

13 

payment; and 

14 

 

(iii)  the person is qualified for austudy payment under 

15 

section 568 in circumstances where subsection 569(1) 

16 

(about qualifying study) applies and the relevant course 

17 

of education is an approved scholarship course; and 

18 

 

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

19 

receive the amount or value of a Commonwealth Education 

20 

Costs Scholarship in the period of 6 months starting 

21 

immediately after that qualification test day; and 

22 

 

(c)  the person notifies the Secretary of the person's tax file 

23 

number. 

24 

Note 1: 

For approved scholarship course, see section 592M. 

25 

Note 2: 

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

26 

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

27 

day: see subsection 1223ABF(1). 

28 

Qualification test day 

29 

 

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

30 

earliest of the following: 

31 

 

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

32 

student start-up loan for the qualification period; 

33 

 

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

34 

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

35 

 

(c)  the last day of the qualification period. 

36 

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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 

10 

Student Assistance Act 1973 for the qualification period; 

11 

or 

12 

 

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

13 

qualification test day, the person: 

14 

 

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

15 

scholarship payment under the scheme referred to in 

16 

section 117 of the Veterans' Entitlements Act; or 

17 

 

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

18 

scholarship payment under the scheme referred to in 

19 

section 258 of the Military Rehabilitation and 

20 

Compensation Act; or 

21 

 

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

22 

Education Costs Scholarship; or 

23 

 

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

24 

Education Costs Scholarship but has not received the 

25 

full entitlement only because the scholarship was 

26 

suspended. 

27 

1061ZVBD  Amount of student start-up loan 

28 

 

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

29 

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

30 

Note: 

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

31 

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

32 

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No.      , 2014 

 

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 

10 

1061ZVDA  SSL debts 

11 

 

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

12 

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

13 

 

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

14 

 

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

15 

 

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

16 

qualification period. 

17 

Note: 

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

18 

 

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

19 

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

20 

incurred. 

21 

 

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

22 

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

23 

 

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

24 

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

25 

 

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

26 

1223ABF; or 

27 

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No.      , 2014 

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(c)  the Secretary has formed an opinion under 

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 

10 

Commissioner a notice specifying the amount of the debt incurred 

11 

by the person. 

12 

 

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

13 

Commissioner requests for the purpose of ensuring the 

14 

Commissioner has the information needed to exercise powers or 

15 

perform functions of the Commissioner under this Act. 

16 

Division 3--Working out accumulated SSL debts 

17 

1061ZVEA  Simplified outline of this Division 

18 

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

19 

for a financial year. 

20 

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

21 

out by adjusting the preceding financial year's accumulated SSL 

22 

debt to take account of: 

23 

 

(a) 

the HELP debt indexation factor for 1 June in that 

24 

financial year; and 

25 

 

(b) 

the debts that the person incurs during the last 6 months 

26 

of the preceding financial year; and 

27 

 

(c) 

voluntary SSL repayments of the debt; and 

28 

 

(d) 

compulsory SSL repayment amounts in respect of the 

29 

debt. 

30 

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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 

10 

statement; by 

11 

 

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

12 

year. 

13 

Method statement 

14 

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

15 

immediately preceding financial year. (This amount is 

16 

taken to be zero if the person has no accumulated SSL 

17 

debt for that financial year.) 

18 

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

19 

person incurred during the last 6 months of the 

20 

immediately preceding financial year. 

21 

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

22 

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

23 

any voluntary SSL repayments that have been made 

24 

during the period: 

25 

 

(a) 

starting on 1 June in the immediately preceding 

26 

financial year; and 

27 

 

(b) 

ending immediately before the next 1 June. 

28 

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

29 

repayment amounts that: 

30 

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No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

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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) 

10 

by an amendment of an assessment made during that 

11 

period. 

12 

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

13 

SSL repayment amount of the person is reduced (whether 

14 

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

15 

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

16 

assessment made during that period. 

17 

 

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

18 

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

19 

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

20 

the date of issue of that notice. 

21 

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

22 

 

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

23 

out as follows: 

24 

Former accumulated

SSL debts

SSL debt

SSL debt

incurred

repayments

 

25 

where: 

26 

former accumulated SSL debt is the person's former accumulated 

27 

SSL debt in relation to that accumulated SSL debt. 

28 

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

29 

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

30 

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No.      , 2014 

 

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 

10 

 

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

11 

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

12 

number of cents, disregard the number of cents. 

13 

 

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

14 

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

15 

debt is taken to be zero. 

16 

1061ZVEE  Accumulated SSL debt discharges earlier debts 

17 

 

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

18 

financial year discharges, or discharges the unpaid part of: 

19 

 

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

20 

year immediately preceding that day; and 

21 

 

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

22 

immediately preceding 1 June. 

23 

 

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

24 

this Part or sections 1061ZVEB and 1061ZVEC. 

25 

1061ZVEF  Accumulated SSL debt discharged by death 

26 

 

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

27 

accumulated SSL debt is taken to be discharged. 

28 

 

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

29 

repayment amounts required to be paid in respect of the 

30 

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No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

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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 

10 

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

11 

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

12 

arising under the Higher Education Support Act 2003. The 

13 

Commissioner makes assessments of repayment amounts, which 

14 

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

15 

accumulated HELP debts. 

16 

1061ZVFB  Debts under this Chapter 

17 

 

(1)  The debts under this Chapter are: 

18 

 

(a)  SSL debts; and 

19 

 

(b)  accumulated SSL debts. 

20 

 

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

21 

not debts under this Chapter: 

22 

 

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

23 

overpayment etc.); 

24 

 

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

25 

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No.      , 2014 

 

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. 

10 

 

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

11 

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

12 

be applied as follows: 

13 

 

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

14 

of the person; 

15 

 

(b)  second, in discharge or reduction of: 

16 

 

(i)  any SSL debt of the person; or 

17 

 

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

18 

order in which they were incurred. 

19 

1061ZVGC  Refunding of payments 

20 

 

  If: 

21 

 

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

22 

Division; and 

23 

 

(b)  the amount exceeds the sum of: 

24 

 

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

25 

person owed to the Commonwealth under this Chapter; 

26 

and 

27 

 

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

28 

(within the meaning of Part IIB of the Taxation 

29 

Administration Act 1953); 

30 

the Commonwealth must refund to the person an amount equal to 

31 

that excess. 

32 

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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; 

10 

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

11 

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

12 

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

13 

formula: 

14 

Applicable percentage of HELP repayment income

HELP liability

 

15 

where: 

16 

applicable percentage of HELP repayment income means the 

17 

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

18 

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

19 

Education Support Act 2003

20 

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

21 

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

22 

income year in respect of an accumulated HELP debt. 

23 

 

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

24 

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

25 

or less. 

26 

 

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

27 

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

28 

 

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

29 

taxable income for the income year; or 

30 

 

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

31 

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

32 

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No.      , 2014 

 

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; 

or 

 

(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 

10 

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

11 

 

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

12 

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

13 

reduced by an amendment of the relevant assessment, a reference 

14 

to the increased amount or the reduced amount. 

15 

Subdivision B--Assessments 

16 

1061ZVHC  Commissioner may make assessments 

17 

 

  The Commissioner may, from any information in the 

18 

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

19 

make an assessment of: 

20 

 

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

21 

before the making of the assessment; and 

22 

 

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

23 

repayable SSL debt under section 1061ZVHA. 

24 

1061ZVHD  Notification of notices of assessment of tax 

25 

 

  If: 

26 

 

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

27 

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

28 

year under section 174 of the Income Tax Assessment Act 

29 

1936; and 

30 

 

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

31 

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

32 

amounts referred to in that paragraph; and 

33 

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No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

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(c)  notice of the assessment under that paragraph has not been 

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: 

10 

 

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

11 

 

(b)  the reasons for seeking the deferral. 

12 

 

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

13 

 

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

14 

or 

15 

 

(b)  the immediately preceding income year; or 

16 

 

(c)  the immediately succeeding income year. 

17 

 

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

18 

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

19 

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

20 

 

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

21 

amount would cause serious hardship to the person; or 

22 

 

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

23 

reasonable to defer making the assessment. 

24 

 

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

25 

period that he or she thinks appropriate. 

26 

 

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

27 

is made under this section: 

28 

 

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

29 

 

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

30 

application. 

31 

Note: 

Deferrals of making assessments, or refusals of applications, are 

32 

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

33 

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Social Services and Other Legislation Amendment (Student Measures) 

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No.      , 2014 

 

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; 

or 

10 

 

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

11 

 

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

12 

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

13 

section 1061ZVHC so that: 

14 

 

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

15 

 

(b)  no amount is payable under the assessment; 

16 

if the Commissioner is of the opinion that: 

17 

 

(c)  payment of the assessed amount has caused or would cause 

18 

serious hardship to the person; or 

19 

 

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

20 

reasonable to make the amendment. 

21 

 

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

22 

is made under this section: 

23 

 

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

24 

 

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

25 

application. 

26 

Note: 

Amendments of assessments, or refusals of applications, are 

27 

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

28 

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41 

 

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 

10 

 

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

11 

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

12 

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

13 

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

14 

 

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

15 

file number, the Commissioner may give the Secretary a written 

16 

notice informing the Secretary accordingly. 

17 

1061ZVJC  When person with tax file number incorrectly notifies 

18 

number 

19 

 

(1)  If the Commissioner is satisfied: 

20 

 

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

21 

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

22 

(2)(c): 

23 

 

(i)  has been cancelled or withdrawn since the notification 

24 

was given; or 

25 

 

(ii)  is otherwise wrong; and 

26 

 

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

27 

the Commissioner may give to the Secretary written notice of the 

28 

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

29 

 

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

30 

the Secretary. 

31 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

42 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

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 

10 

file number; 

11 

the Commissioner may give to the Secretary a written notice 

12 

informing the Secretary accordingly. 

13 

 

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

14 

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

15 

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

16 

Note: 

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

17 

section 202F of the Income Tax Assessment Act 1936

18 

1061ZVJE  When tax file numbers are altered 

19 

 

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

20 

number to the Secretary for the purposes of 

21 

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

22 

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

23 

Commissioner may give to the Secretary a written notice informing 

24 

the Secretary accordingly. 

25 

 

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

26 

to the Secretary. 

27 

1061ZVJF  When tax file numbers are cancelled 

28 

 

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

29 

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

30 

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

31 

Commissioner may give to the Secretary a written notice informing 

32 

the Secretary accordingly. 

33 

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Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

43 

 

 

(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 

 

(c)  Part 4-15 in Schedule 1 to the Taxation Administration Act 

10 

1953

11 

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

12 

compulsory SSL repayment amount of a person as if it were 

13 

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

14 

made under Part IV of the Income Tax Assessment Act 1936

15 

1061ZVJH  Charges and civil penalties for failing to meet obligations 

16 

 

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

17 

has effect as if: 

18 

 

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

19 

income tax payable by the person in respect of the income 

20 

year in respect of which the assessment of that debt was 

21 

made; and 

22 

 

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

23 

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

24 

 

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

25 

a penalty for any act or omission that happened before the 

26 

commencement of this subsection. 

27 

1061ZVJJ  Pay as you go (PAYG) withholding 

28 

 

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

29 

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

30 

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

31 

collection of amounts of a compulsory SSL repayment amount of a 

32 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

44 

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Bill 2014 

No.      , 2014 

 

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 

10 

 

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

11 

 

(c)  Division 2A of Part 4 of the Administration Act (Internal 

12 

review of certain Commissioner decisions relating to student 

13 

start-up loans). 

14 

Note: 

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

15 

purposes of the Taxation Administration Act 1953

16 

23  Section 1190 (table item 68) 

17 

Repeal the item. 

18 

24  Section 1190 (after table item 69) 

19 

Insert: 

20 

 

Student start-up 

loans 

 

 

69A. 

student start-up 

loan amount 

student start-up 

loan amount 

section 1061ZVBD 

25  Subsection 1191(1) (table item 40) 

21 

Repeal the item. 

22 

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

23 

Insert: 

24 

Student start-up loans  Schedule 2 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

45 

 

 

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: 

4E 

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) 

10 

Repeal the heading, substitute: 

11 

1223ABE  Debts in respect of relocation scholarship payments 

12 

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

13 

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

14 

32  After section 1223ABE 

15 

Insert: 

16 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

46 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

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 

 

(c)  the person ceases to meet the condition in 

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

period between the qualification test day and the person's 

enrolment test day; 

10 

then: 

11 

 

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

12 

and 

13 

 

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

14 

loan. 

15 

Note: 

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

16 

relate to whether the person is qualified for youth allowance or 

17 

austudy payment because the person is studying in an approved 

18 

scholarship course (as defined in section 592M). 

19 

 

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

20 

earliest of the following days: 

21 

 

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

22 

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

23 

 

(b)  the last day of the qualification period; 

24 

 

(c)  the 35th day of the period starting on whichever of the 

25 

following applies: 

26 

 

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

27 

period was before the first day of the relevant approved 

28 

scholarship course--the first day of that approved 

29 

scholarship course; 

30 

 

(ii)  otherwise--the qualification test day. 

31 

Note: 

For approved scholarship course, see section 592M. 

32 

 

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

33 

person ceased to meet the condition in 

34 

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

35 

exceptional circumstances beyond the person's control. 

36 

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Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

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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) 

10 

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

11 

loan)". 

12 

Social Security (Administration) Act 1999 

13 

36  Subsection 10(1) 

14 

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

15 

37  Section 12H (heading) 

16 

Repeal the heading, substitute: 

17 

12H  Relocation scholarship payment 

18 

38  Section 12H 

19 

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

20 

39  After Subdivision EA of Division 1 of Part 3 

21 

Insert: 

22 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

48 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

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 

10 

Add: 

11 

 

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

12 

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

13 

Secretary considers appropriate, having regard to the principle that, 

14 

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

15 

for the relevant approved scholarship course, the time should 

16 

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

17 

Note: 

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

18 

 

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

19 

41  Subsection 39(1) 

20 

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

21 

42  At the end of section 39 

22 

Add: 

23 

 

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

24 

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

25 

made on the first day of the qualification period. 

26 

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

27 

sum benefit

28 

Repeal the paragraph. 

29 

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Amendments  Part 1 

 

 

No.      , 2014 

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Bill 2014 

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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 

10 

period: 

11 

 

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

12 

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

13 

 

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

14 

as soon as reasonably practicable after that day. 

15 

 

(2)  Despite subsection (1), if: 

16 

 

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

17 

qualification period because the person is receiving youth 

18 

allowance; and 

19 

 

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

20 

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

21 

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

22 

Secretary determines the person's claim for the loan; 

23 

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

24 

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

25 

47  Subsection 55(1) 

26 

After "47,", insert "47DA, 47DB,". 

27 

48  Section 58 (heading) 

28 

Repeal the heading, substitute: 

29 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

50 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

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: 

10 

Subdivision DC--Relocation scholarship payments 

11 

52  Section 123XPF 

12 

Repeal the section. 

13 

53  At the end of section 127 

14 

Add: 

15 

 

(4)  The Secretary may not review: 

16 

 

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

17 

(decision by Commissioner about deferring or amending 

18 

assessment relating to student start-up loans); or 

19 

 

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

20 

reconsideration of a decision that is a reviewable decision 

21 

under section 138A); or 

22 

 

(c)  a decision to give a notice under subsection 1061ZVJD(1) or 

23 

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

24 

notify Secretary that incorrect or cancelled tax file number 

25 

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

26 

54  After paragraph 129(4)(d) 

27 

Insert: 

28 

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Amendments  Part 1 

 

 

No.      , 2014 

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Bill 2014 

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(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); 

10 

or 

11 

55  After Division 2 of Part 4 

12 

Insert: 

13 

Division 2A--Internal review of certain Commissioner 

14 

decisions relating to student start-up loans 

15 

138A  Decisions reviewable under this Division 

16 

 

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

17 

this Division: 

18 

 

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

19 

the 1991 Act (Commissioner may defer making 

20 

assessments); 

21 

 

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

22 

the 1991 Act (Commissioner may amend assessments). 

23 

138B  Commissioner must give reasons for reviewable decisions 

24 

 

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

25 

reviewable decision must include reasons for the decision. 

26 

 

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

27 

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

28 

138C  Reviewer of decisions 

29 

 

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

30 

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

31 

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52 

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No.      , 2014 

 

 

(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: 

 

(c)  was not involved in making the decision; and 

 

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

person involved in making the decision. 

10 

138D  Reviewer may reconsider reviewable decisions 

11 

 

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

12 

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

13 

 

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

14 

 

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

15 

made under section 138F; or 

16 

 

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

17 

section 138F and an application has been made under 

18 

section 138H for review of the decision. 

19 

 

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

20 

 

(a)  confirm the decision; or 

21 

 

(b)  vary the decision; or 

22 

 

(c)  set the decision aside and substitute a new decision. 

23 

 

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

24 

or set aside the decision takes effect: 

25 

 

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

26 

 

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

27 

review was made. 

28 

 

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

29 

the person to whom that decision relates. 

30 

 

(6)  The notice: 

31 

 

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

32 

made; and 

33 

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Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

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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; 

10 

the reviewer must give the Registrar of the Administrative Appeals 

11 

Tribunal written notice of the reviewer's decision under 

12 

subsection 138D(3). 

13 

138F  Reconsideration of reviewable decisions on request 

14 

 

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

15 

may request the reviewer to reconsider the decision. 

16 

 

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

17 

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

18 

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

19 

the decision. 

20 

 

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

21 

 

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

22 

decision and: 

23 

 

(a)  confirm the decision; or 

24 

 

(b)  vary the decision; or 

25 

 

(c)  set the decision aside and substitute a new decision. 

26 

 

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

27 

or set aside the decision takes effect: 

28 

 

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

29 

 

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

30 

review was made. 

31 

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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 

10 

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

11 

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

12 

request. 

13 

138G  Withdrawal of request 

14 

 

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

15 

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

16 

withdraw the request at any time before the review has been 

17 

completed. 

18 

 

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

19 

made. 

20 

138H  AAT review of reviewable decisions 

21 

 

  An application may be made to the Administrative Appeals 

22 

Tribunal for the review of a reviewable decision that has been 

23 

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

24 

reconsider reviewable decisions) or 138F (Reconsideration of 

25 

reviewable decisions on request). 

26 

138J  Decision changed before AAT review completed 

27 

Decision varied 

28 

 

(1)  If the reviewer varies a reviewable decision under 

29 

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

30 

Administrative Appeals Tribunal for review of that decision but 

31 

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No.      , 2014 

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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 

10 

Add: 

11 

 

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

12 

(decision by Commissioner about deferring or amending 

13 

assessment relating to student start-up loans); 

14 

 

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

15 

reconsideration of a decision that is a reviewable decision 

16 

under section 138A); 

17 

 

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

18 

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

19 

(notifying Secretary that incorrect or cancelled tax file 

20 

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

21 

57  Subsection 238(1A) 

22 

Repeal the subsection, substitute: 

23 

 

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

24 

 

(a)  a low income supplement; or 

25 

 

(b)  an essential medical equipment payment; or 

26 

 

(c)  a student start-up loan. 

27 

Student Assistance Act 1973 

28 

58  Subsection 3(1) 

29 

Insert: 

30 

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

31 

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56 

Social Services and Other Legislation Amendment (Student Measures) 

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No.      , 2014 

 

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 

10 

given by subsection 38A(1). 

11 

61  Subsection 3(1) 

12 

Insert: 

13 

accumulated ABSTUDY SSL debt has the meaning given by 

14 

section 9C. 

15 

62  Subsection 3(1) 

16 

Insert: 

17 

accumulated HELP debt has the same meaning as in the Higher 

18 

Education Support Act 2003

19 

63  Subsection 3(1) 

20 

Insert: 

21 

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

22 

Schedule 1 to the Taxation Administration Act 1953

23 

64  Subsection 3(1) 

24 

Insert: 

25 

approved scholarship course has the same meaning as in the 

26 

ABSTUDY Scheme. 

27 

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No.      , 2014 

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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: 

10 

 

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

11 

ABSTUDY SSL debt under section 10F; and 

12 

 

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

13 

section 10H. 

14 

67  Subsection 3(1) 

15 

Insert: 

16 

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

17 

68  Subsection 3(1) 

18 

Insert: 

19 

former accumulated ABSTUDY SSL debt has the meaning given 

20 

by section 9B. 

21 

69  Subsection 3(1) 

22 

Insert: 

23 

HELP debt indexation factor has the same meaning as in the 

24 

Higher Education Support Act 2003

25 

70  Subsection 3(1) 

26 

Insert: 

27 

HELP repayment income has the same meaning as repayment 

28 

income has in the Higher Education Support Act 2003

29 

Schedule 2  Student start-up loans 

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58 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

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) 

10 

Insert: 

11 

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

12 

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

13 

year. 

14 

74  Subsection 3(1) 

15 

Insert: 

16 

qualification test day, for a qualification period for an ABSTUDY 

17 

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

18 

75  Subsection 3(1) 

19 

Insert: 

20 

repayable ABSTUDY SSL debt has the meaning given by 

21 

section 10G. 

22 

76  Subsection 3(1) 

23 

Insert: 

24 

return means an income tax return within the meaning of 

25 

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

26 

77  Subsection 3(1) 

27 

Insert: 

28 

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No.      , 2014 

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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 

10 

Insert: 

11 

Part 2--ABSTUDY student start-up loans 

12 

Division 1--Introduction 

13 

6A  Simplified outline of this Part 

14 

ABSTUDY student start-up loans are income-contingent loans 

15 

made under the ABSTUDY Scheme. 

16 

Broadly, full-time students who are receiving Living Allowance 

17 

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

18 

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

19 

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

20 

period for each loan. 

21 

When the person's income reaches the minimum repayment 

22 

income under the Higher Education Support Act 2003, and the 

23 

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

24 

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

25 

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

26 

ABSTUDY student start-up loan debt. 

27 

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60 

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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 

10 

 

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

11 

the ABSTUDY Scheme. 

12 

 

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

13 

ABSTUDY Scheme may make provision for matters relating to 

14 

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

15 

in this Act. 

16 

7C  Qualification for ABSTUDY student start-up loan 

17 

 

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

18 

qualification period if: 

19 

 

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

20 

 

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

21 

Allowance under the ABSTUDY Scheme and Living 

22 

Allowance is payable to the person; and 

23 

 

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

24 

receiving Living Allowance if any amounts of 

25 

pharmaceutical allowance and rent assistance payable to 

26 

the person under the ABSTUDY Scheme were 

27 

disregarded for the purposes of working out the person's 

28 

rate of that allowance; and 

29 

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No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

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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 

 

(c)  the person notifies the Secretary of the person's tax file 

number. 

Note: 

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

10 

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

11 

might become an immediately recoverable debt, rather than an 

12 

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

13 

Qualification test day 

14 

 

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

15 

earliest of the following: 

16 

 

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

17 

ABSTUDY student start-up loan for the qualification period; 

18 

 

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

19 

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

20 

 

(c)  the last day of the qualification period. 

21 

7D  Circumstances in which person is not qualified for ABSTUDY 

22 

student start-up loan 

23 

 

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

24 

student start-up loan for a qualification period if: 

25 

 

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

26 

period: 

27 

 

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

28 

for an ABSTUDY student start-up loan for the 

29 

qualification period; or 

30 

 

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

31 

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

32 

1991 for the qualification period; or 

33 

 

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

34 

qualification test day, the person: 

35 

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62 

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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 

10 

Education Costs Scholarship but has not received the 

11 

full entitlement only because the scholarship was 

12 

suspended. 

13 

7E  Amount of ABSTUDY student start-up loan 

14 

 

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

15 

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

16 

 

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

17 

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

18 

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

19 

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

20 

subsection 1191(1) of that Act. 

21 

Division 3--Indebtedness: incurring ABSTUDY SSL debts 

22 

8A  Simplified outline of this Division 

23 

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

24 

ABSTUDY student start-up loan (except in certain circumstances 

25 

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

26 

8B  ABSTUDY SSL debts 

27 

 

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

28 

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

29 

qualification period. 

30 

 

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

31 

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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 

10 

ABSTUDY SSL debt in respect of the loan would be 

11 

incurred; or 

12 

 

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

13 

 

(c)  the Secretary has formed an opinion under subsection 38A(3) 

14 

in relation to the loan (relating to exceptional circumstances 

15 

beyond the person's control). 

16 

8C  ABSTUDY SSL debt discharged by death 

17 

 

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

18 

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

19 

Note: 

ABSTUDY SSL debts are not provable in bankruptcy: see 

20 

subsection 82(3AB) of the Bankruptcy Act 1966

21 

8D  Notice to Commissioner 

22 

 

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

23 

the Commissioner a notice specifying the amount of the debt 

24 

incurred by the person. 

25 

 

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

26 

Commissioner requests for the purpose of ensuring the 

27 

Commissioner has the information needed to exercise powers or 

28 

perform functions of the Commissioner under this Act. 

29 

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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 

10 

is worked out by adjusting the preceding financial year's 

11 

accumulated ABSTUDY SSL debt to take account of: 

12 

 

(a) 

the HELP debt indexation factor for 1 June in that 

13 

financial year; and 

14 

 

(b) 

the debts that the person incurs during the last 6 months 

15 

of the preceding financial year; and 

16 

 

(c) 

voluntary ABSTUDY SSL repayments of the debt; and 

17 

 

(d) 

compulsory ABSTUDY SSL repayment amounts in 

18 

respect of the debt. 

19 

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

20 

worked out from: 

21 

 

(a) 

the person's former accumulated ABSTUDY SSL debt; 

22 

and 

23 

 

(b) 

the ABSTUDY SSL debts that the person incurs during 

24 

the first 6 months of the financial year; and 

25 

 

(c) 

voluntary ABSTUDY SSL repayments of those debts. 

26 

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

27 

debt 

28 

 

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

29 

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

30 

year, is worked out by multiplying: 

31 

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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) 

10 

that the person incurred during the last 6 months of the 

11 

immediately preceding financial year. 

12 

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

13 

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

14 

any voluntary ABSTUDY SSL repayments that have 

15 

been made during the period: 

16 

 

(a) 

starting on 1 June in the immediately preceding 

17 

financial year; and 

18 

 

(b) 

ending immediately before the next 1 June. 

19 

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

20 

ABSTUDY SSL repayment amounts that: 

21 

 

(a) 

were assessed during that period (excluding any 

22 

assessed as a result of a return given before that 

23 

period); or 

24 

 

(b) 

were assessed after the end of that period as a 

25 

result of a return given before the end of that 

26 

period. 

27 

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

28 

compulsory ABSTUDY SSL repayment amount of the 

29 

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

30 

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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 

10 

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

11 

the date of issue of that notice. 

12 

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

13 

 

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

14 

is worked out as follows: 

15 

Former accumulated

ABSTUDY SSL

ABSTUDY SSL

ABSTUDY SSL debt

debts incurred

debt repayments

 

16 

where: 

17 

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

18 

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

19 

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

20 

ABSTUDY SSL debts incurred in that year. 

21 

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

22 

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

23 

months of the financial year. 

24 

former accumulated ABSTUDY SSL debt is the person's former 

25 

accumulated ABSTUDY SSL debt in relation to that accumulated 

26 

ABSTUDY SSL debt. 

27 

 

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

28 

in the financial year. 

29 

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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. 

10 

9E  Accumulated ABSTUDY SSL debt discharges earlier debts 

11 

 

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

12 

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

13 

of: 

14 

 

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

15 

calendar year immediately preceding that day; and 

16 

 

(b)  any accumulated ABSTUDY SSL debt that the person 

17 

incurred on the immediately preceding 1 June. 

18 

 

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

19 

9B or 9C. 

20 

9F  Accumulated ABSTUDY SSL debt discharged by death 

21 

 

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

22 

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

23 

discharged. 

24 

 

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

25 

ABSTUDY SSL repayment amounts required to be paid in respect 

26 

of the accumulated ABSTUDY SSL debt, whether or not those 

27 

amounts were assessed before the person's death. 

28 

Note: 

Accumulated ABSTUDY SSL debts are not provable in bankruptcy: 

29 

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

30 

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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 

10 

Security Act 1991. The Commissioner makes assessments of 

11 

repayment amounts, which are collected in the same way as 

12 

amounts of income tax and those other income-contingent loan 

13 

debts. 

14 

10B  Debts under this Part 

15 

 

(1)  The debts under this Part are: 

16 

 

(a)  ABSTUDY SSL debts; and 

17 

 

(b)  accumulated ABSTUDY SSL debts. 

18 

 

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

19 

under this Part. 

20 

 

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

21 

the relationship of this Part to the ABSTUDY Scheme). 

22 

Subdivision B--Voluntary discharge of indebtedness 

23 

10C  Voluntary ABSTUDY SSL repayments in respect of debts 

24 

 

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

25 

the person owes to the Commonwealth under this Part. 

26 

 

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

27 

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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; 

10 

 

(b)  second, in discharge or reduction of: 

11 

 

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

12 

 

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

13 

order in which they were incurred. 

14 

10E  Refunding of payments 

15 

 

  If: 

16 

 

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

17 

Subdivision; and 

18 

 

(b)  the amount exceeds the sum of: 

19 

 

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

20 

person owed to the Commonwealth under this Part; and 

21 

 

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

22 

(within the meaning of Part IIB of the Taxation 

23 

Administration Act 1953); 

24 

the Commonwealth must refund to the person an amount equal to 

25 

that excess. 

26 

Subdivision C--Compulsory discharge of indebtedness 

27 

10F  Liability to repay amounts 

28 

 

(1)  If: 

29 

 

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

30 

exceeds the minimum HELP repayment income for the 

31 

income year; and 

32 

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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 

10 

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

11 

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

12 

Education Support Act 2003

13 

relevant income-contingent loans liability means the amount that 

14 

is the sum of the following: 

15 

 

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

16 

the Higher Education Support Act 2003 for the income year 

17 

in respect of an accumulated HELP debt; 

18 

 

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

19 

section 1061ZVHA of the Social Security Act 1991 for the 

20 

income year in respect of an accumulated SSL debt. 

21 

 

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

22 

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

23 

or less. 

24 

 

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

25 

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

26 

 

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

27 

taxable income for the income year; or 

28 

 

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

29 

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

30 

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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). 

10 

 

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

11 

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

12 

reduced by an amendment of the relevant assessment, a reference 

13 

to the increased amount or the reduced amount. 

14 

Subdivision D--Assessments 

15 

10H  Commissioner may make assessments 

16 

 

  The Commissioner may, from any information in the 

17 

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

18 

make an assessment of: 

19 

 

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

20 

immediately before the making of the assessment; and 

21 

 

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

22 

repayable SSL debt under section 10F. 

23 

10J  Notification of notices of assessment of tax 

24 

 

  If: 

25 

 

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

26 

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

27 

year under section 174 of the Income Tax Assessment Act 

28 

1936; and 

29 

 

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

30 

assessment under paragraph 10H(b) of this Act of the 

31 

amounts referred to in that paragraph; and 

32 

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(c)  notice of the assessment under that paragraph has not been 

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: 

10 

 

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

11 

 

(b)  the reasons for seeking the deferral. 

12 

 

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

13 

 

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

14 

or 

15 

 

(b)  the immediately preceding income year; or 

16 

 

(c)  the immediately succeeding income year. 

17 

 

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

18 

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

19 

section 10H if the Commissioner is of the opinion that: 

20 

 

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

21 

amount would cause serious hardship to the person; or 

22 

 

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

23 

reasonable to defer making the assessment. 

24 

 

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

25 

period that he or she thinks appropriate. 

26 

 

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

27 

is made under this section: 

28 

 

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

29 

 

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

30 

application. 

31 

Note: 

Deferrals of making assessments, or refusals of applications, are 

32 

reviewable under Division 1A of Part 9. 

33 

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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; 

or 

10 

 

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

11 

 

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

12 

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

13 

section 10H so that: 

14 

 

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

15 

 

(b)  no amount is payable under the assessment; 

16 

if the Commissioner is of the opinion that: 

17 

 

(c)  payment of the assessed amount has caused or would cause 

18 

serious hardship to the person; or 

19 

 

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

20 

reasonable to make the amendment. 

21 

 

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

22 

is made under this section: 

23 

 

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

24 

 

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

25 

application. 

26 

Note: 

Amendments of assessments, or refusals of applications, are 

27 

reviewable under Division 1A of Part 9. 

28 

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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 

10 

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

11 

paragraph 7C(1)(c), for the purpose of verifying that the number is 

12 

the person's tax file number. 

13 

 

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

14 

file number, the Commissioner may give the Secretary a written 

15 

notice informing the Secretary accordingly. 

16 

11C  When person with tax file number incorrectly notifies number 

17 

 

(1)  If the Commissioner is satisfied: 

18 

 

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

19 

Secretary for the purposes of paragraph 7C(1)(c): 

20 

 

(i)  has been cancelled or withdrawn since the notification 

21 

was given; or 

22 

 

(ii)  is otherwise wrong; and 

23 

 

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

24 

the Commissioner may give to the Secretary written notice of the 

25 

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

26 

 

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

27 

the Secretary. 

28 

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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 

10 

file number; 

11 

the Commissioner may give to the Secretary a written notice 

12 

informing the Secretary accordingly. 

13 

 

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

14 

subsection (1) of this section to the person concerned, together 

15 

with a written statement of the reasons for the decision to give the 

16 

notice. 

17 

Note: 

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

18 

section 202F of the Income Tax Assessment Act 1936

19 

11E  When tax file numbers are altered 

20 

 

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

21 

number to the Secretary for the purposes of paragraph 7C(1)(c), a 

22 

new tax file number in place of a tax file number that has been 

23 

withdrawn, the Commissioner may give to the Secretary a written 

24 

notice informing the Secretary accordingly. 

25 

 

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

26 

to the Secretary. 

27 

11F  When tax file numbers are cancelled 

28 

 

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

29 

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

30 

purposes of paragraph 7C(1)(c), the Commissioner may give to the 

31 

Secretary a written notice informing the Secretary accordingly. 

32 

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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 

10 

 

(c)  Part 4-15 in Schedule 1 to the Taxation Administration Act 

11 

1953

12 

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

13 

compulsory ABSTUDY SSL repayment amount of a person as if it 

14 

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

15 

assessment made under Part IV of the Income Tax Assessment Act 

16 

1936

17 

11H  Charges and civil penalties for failing to meet obligations 

18 

 

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

19 

has effect as if: 

20 

 

(a)  any compulsory ABSTUDY SSL repayment amount of a 

21 

person were income tax payable by the person in respect of 

22 

the income year in respect of which the assessment of that 

23 

debt was made; and 

24 

 

(b)  paragraph 7C(1)(c), and Divisions 3, 4 and 5 and this 

25 

Division, were income tax laws. 

26 

 

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

27 

a penalty for any act or omission that happened before the 

28 

commencement of this subsection. 

29 

11J  Pay as you go (PAYG) withholding 

30 

 

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

31 

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

32 

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

33 

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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 

10 

 

  The Commissioner has the general administration of: 

11 

 

(a)  paragraph 7C(1)(c); and 

12 

 

(b)  Divisions 3, 4 and 5 and this Division; and 

13 

 

(c)  Division 1A of Part 9 (Internal review of certain 

14 

Commissioner decisions relating to ABSTUDY student 

15 

start-up loans). 

16 

Note: 

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

17 

purposes of the Taxation Administration Act 1953

18 

80  Section 38 (definition of ABSTUDY debt

19 

Repeal the definition, substitute: 

20 

ABSTUDY debt means: 

21 

 

(a)  an amount paid under the ABSTUDY Scheme (also known 

22 

as the Aboriginal Study Assistance Scheme) that should not 

23 

have been paid; or 

24 

 

(b)  an ABSTUDY student start-up loan overpayment. 

25 

Note: 

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

26 

definition of debt in this section. The amount in paragraph (b) is a debt 

27 

under paragraph (aa) of the definition of debt in this section. 

28 

81  Section 38 (after paragraph (a) of the definition of debt

29 

Insert: 

30 

 

(aa)  an ABSTUDY student start-up loan overpayment; 

31 

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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 

10 

 

(c)  the person ceases to meet the condition in 

11 

subparagraph 7C(1)(a)(iii) during the period between the 

12 

qualification test day and the person's enrolment test day; 

13 

then the amount of the loan is an ABSTUDY student start-up loan 

14 

overpayment

15 

Note: 

The condition in subparagraph 7C(1)(a)(iii) relates to whether the 

16 

person is qualified for Living Allowance because the person is 

17 

studying in an approved scholarship course (as defined in the 

18 

ABSTUDY Scheme). 

19 

 

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

20 

earliest of the following days: 

21 

 

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

22 

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

23 

 

(b)  the last day of the qualification period; 

24 

 

(c)  the 35th day of the period starting on whichever of the 

25 

following applies: 

26 

 

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

27 

period was before the first day of the relevant approved 

28 

scholarship course--the first day of that approved 

29 

scholarship course; 

30 

 

(ii)  otherwise--the qualification test day. 

31 

 

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

32 

person ceased to meet the condition in subparagraph 7C(1)(a)(iii) 

33 

because of exceptional circumstances beyond the person's control. 

34 

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No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

79 

 

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 

10 

Add "(other than from the amount of an ABSTUDY student start-up 

11 

loan)". 

12 

88  Subsection 44A(5) 

13 

Omit "subsection (6)", substitute "subsections (6) and (7)". 

14 

89  Subsection 44A(7) 

15 

Repeal the subsection, substitute: 

16 

 

(7)  Subsection (5) does not apply in relation to qualification for an 

17 

ABSTUDY student start-up loan under section 7C. 

18 

90  After subsection 55A(1) 

19 

Insert: 

20 

 

(1AAA)  Payments in relation to ABSTUDY student start-up loans are to be 

21 

made out of the Consolidated Revenue Fund, which is appropriated 

22 

accordingly. 

23 

91  Section 302 

24 

Before "Unless", insert "(1)". 

25 

92  At the end of section 302 

26 

Add: 

27 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

80 

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No.      , 2014 

 

 

(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 

 

(c)  a decision under section 308D or 308F (decision following 

reconsideration of a decision that is a reviewable decision 

10 

under section 308A). 

11 

93  After Division 1 of Part 9 

12 

Insert: 

13 

Division 1A--Internal review of certain Commissioner 

14 

decisions relating to ABSTUDY student start-up 

15 

loans 

16 

308A  Decisions reviewable under this Division 

17 

 

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

18 

this Division: 

19 

 

(a)  a decision by the Commissioner under section 10K 

20 

(Commissioner may defer making assessments); 

21 

 

(b)  a decision by the Commissioner under section 10L 

22 

(Commissioner may amend assessments). 

23 

308B  Commissioner must give reasons for reviewable decisions 

24 

 

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

25 

reviewable decision must include reasons for the decision. 

26 

 

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

27 

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

28 

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Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

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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: 

10 

 

(c)  was not involved in making the decision; and 

11 

 

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

12 

person involved in making the decision. 

13 

308D  Reviewer may reconsider reviewable decisions 

14 

 

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

15 

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

16 

 

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

17 

 

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

18 

made under section 308F; or 

19 

 

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

20 

section 308F and an application has been made under 

21 

section 308H for review of the decision. 

22 

 

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

23 

 

(a)  confirm the decision; or 

24 

 

(b)  vary the decision; or 

25 

 

(c)  set the decision aside and substitute a new decision. 

26 

 

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

27 

or set aside the decision takes effect: 

28 

 

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

29 

 

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

30 

review was made. 

31 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

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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 

10 

 

  If: 

11 

 

(a)  a reviewer makes a decision under subsection 308D(3); and 

12 

 

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

13 

the Administrative Appeals Tribunal for review of the 

14 

decision reviewed by the reviewer; 

15 

the reviewer must give the Registrar of the Administrative Appeals 

16 

Tribunal written notice of the reviewer's decision under 

17 

subsection 308D(3). 

18 

308F  Reconsideration of reviewable decisions on request 

19 

 

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

20 

may request the reviewer to reconsider the decision. 

21 

 

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

22 

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

23 

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

24 

the decision. 

25 

 

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

26 

 

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

27 

decision and: 

28 

 

(a)  confirm the decision; or 

29 

 

(b)  vary the decision; or 

30 

 

(c)  set the decision aside and substitute a new decision. 

31 

Student start-up loans  Schedule 2 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

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(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 

10 

 

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

11 

review. 

12 

Note: 

Section 27A of the Administrative Appeals Tribunal Act 1975 requires 

13 

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

14 

 

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

15 

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

16 

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

17 

request. 

18 

308G  Withdrawal of request 

19 

 

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

20 

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

21 

withdraw the request at any time before the review has been 

22 

completed. 

23 

 

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

24 

made. 

25 

308H  AAT review of reviewable decisions 

26 

 

  An application may be made to the Administrative Appeals 

27 

Tribunal for the review of a reviewable decision that has been 

28 

confirmed, varied or set aside under section 308D (Reviewer may 

29 

reconsider reviewable decisions) or 308F (Reconsideration of 

30 

reviewable decisions on request). 

31 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

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Bill 2014 

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 

10 

application has been made to the Administrative Appeals Tribunal 

11 

for review of the reviewable decision but before the determination 

12 

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

13 

review of the new decision. 

14 

94  Before paragraph 313(a) 

15 

Insert: 

16 

 

(aa)  by the Commissioner under subsection 11D(1) or 11F(1) to 

17 

notify the Secretary of an incorrect or cancelled tax file 

18 

number given in relation to an ABSTUDY student start-up 

19 

loan; or 

20 

 

(ab)  that is a reviewable decision under section 308A (decision by 

21 

Commissioner about deferring or amending assessment 

22 

relating to ABSTUDY student start-up loans); or 

23 

 

(ac)  under section 308D or 308F (decision following 

24 

reconsideration of a decision that is a reviewable decision 

25 

under section 308A); or 

26 

Taxation Administration Act 1953 

27 

95  Section 8AAZA 

28 

Insert: 

29 

compulsory ABSTUDY SSL repayment amount has the same 

30 

meaning as in the Student Assistance Act 1973

31 

Student start-up loans  Schedule 2 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

85 

 

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 

10 

98  Paragraph 8WA(1AA)(b) 

11 

After "(ga),", insert "(gaa),". 

12 

99  Paragraph 8WA(1AA)(b) 

13 

After "(haa),", insert "(hab),". 

14 

100  Paragraphs 8WB(1A)(a) and (b) 

15 

After "(ga),", insert "(gaa),". 

16 

101  Paragraphs 8WB(1A)(a) and (b) 

17 

After "(haa),", insert "(hab),". 

18 

102  Section 6-1 in Schedule 1 

19 

Omit ", liability to repay contributions under the Higher Education 

20 

Contribution Scheme (HECS), liability to repay debts under the Higher 

21 

Education Loan Program (HELP), liability to repay debts in relation to 

22 

trade support loan and liability to repay financial supplement debts 

23 

under the Student Financial Supplement Scheme (SFSS)", substitute 

24 

"and liability to repay debts under certain income-contingent loan 

25 

schemes". 

26 

103  After paragraph 11-1(ca) in Schedule 1 

27 

Insert: 

28 

 

(cb)  amounts of liabilities to the Commonwealth under 

29 

Chapter 2AA of the Social Security Act 1991; and 

30 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

86 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

No.      , 2014 

 

 

(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 

10 

year starting on or after 1 July 2015; 

11 

 

(cc)  the percentage referred to in the definition of applicable 

12 

percentage of HELP repayment income in 

13 

subsection 10F(1) (about repayments of accumulated 

14 

ABSTUDY SSL debt) of the Student Assistance Act 1973 for 

15 

any financial year starting on or after 1 July 2015; 

16 

106  Paragraph 15-50(1)(b) in Schedule 1 

17 

After "(ca),", insert "(cb), (cc),". 

18 

107  After paragraph 45-5(1)(ca) in Schedule 1 

19 

Insert: 

20 

 

(cb)  amounts of liabilities to the Commonwealth under 

21 

Chapter 2AA of the Social Security Act 1991; and 

22 

 

(cc)  amounts of liabilities to the Commonwealth under Part 2 of 

23 

the Student Assistance Act 1973; and 

24 

108  Section 45-340 in Schedule 1 (method statement, after 

25 

step 3) 

26 

Insert: 

27 

Step 3AA.  The amount (if any) that you would have been liable to 

28 

pay for the 

*

base year in respect of an 

*

accumulated SSL 

29 

debt if your taxable income for the base year had been 

30 

your 

*

adjusted taxable income, or your 

*

adjusted 

31 

withholding income, for that year is worked out. 

32 

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No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

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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) 

10 

Insert: 

11 

Step 3AA.  The amount (if any) that you would have been liable to 

12 

pay for the variation year in respect of an 

*

accumulated 

13 

SSL debt if your taxable income for that year had been 

14 

your 

*

adjusted assessed taxable income for that year is 

15 

worked out. 

16 

Step 3AB.  The amount (if any) that you would have been liable to 

17 

pay for the variation year in respect of an 

*

accumulated 

18 

ABSTUDY SSL debt if your taxable income for that year 

19 

had been your 

*

adjusted assessed taxable income for that 

20 

year is worked out. 

21 

111  Section 45-375 in Schedule 1 (method statement, step 4) 

22 

After "3", insert ", 3AA, 3AB". 

23 

112  Subsection 250-10(2) in Schedule 1 (after table item 36A) 

24 

Insert: 

25 

36B 

compulsory SSL 

repayment amount 

under the Social 

Security Act 1991 

5-5 

Income Tax Assessment Act 1997 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

88 

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Bill 2014 

No.      , 2014 

 

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

10 

115  Subsection 3C(1) (after table item 45) 

11 

Insert: 

12 

46 

Amounts that are treated under Part 2AA.5 of the Social Security Act 1991 as 

if they were income tax 

47 

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 

13 

Measures Act 2014 commences at or before the time the provision(s) covered by table 

14 

item 3 in subsection 2(1) of this Act commence, this provision does not commence at 

15 

all. 

16 

116  Section 3C (after table item 45) 

17 

Insert: 

18 

46 

Amounts that are treated under Part 2AA.5 of the Social Security Act 1991 as 

if they were income tax 

47 

Amounts that are treated under Division 6 of Part 2 of the Student Assistance 

Act 1973 as if they were income tax 

Student start-up loans  Schedule 2 

Amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

89 

 

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: 

10 

 

(bb)  compulsory SSL repayment amount; or 

11 

 

(bc)  compulsory ABSTUDY SSL repayment amount; or 

12 

119  After subparagraph 8E(1)(d)(iii) 

13 

Insert: 

14 

 

(iiia)  a compulsory SSL repayment amount that is notified in 

15 

the notice of assessment; 

16 

 

(iiib)  a compulsory ABSTUDY SSL repayment amount that 

17 

is notified in the notice of assessment; 

18 

120  After subparagraph 8E(2)(d)(iii) 

19 

Insert: 

20 

 

(iiia)  a compulsory SSL repayment amount, worked out by 

21 

reference to the person's taxable income of the year of 

22 

income, payable by the person immediately before the 

23 

post-notice crediting; 

24 

 

(iiib)  a compulsory ABSTUDY SSL repayment amount, 

25 

worked out by reference to the person's taxable income 

26 

of the year of income, payable by the person 

27 

immediately before the post-notice crediting; 

28 

121  After paragraph 12A(1A)(b) 

29 

Insert: 

30 

 

(ba)  compulsory SSL repayment amount; 

31 

 

(bb)  compulsory ABSTUDY SSL repayment amount; 

32 

Schedule 2  Student start-up loans 

Part 1  Amendments 

 

 

90 

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Bill 2014 

No.      , 2014 

 

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

 

10 

where: 

11 

applicable percentage of repayment income means the amount 

12 

that is the percentage of the person's repayment income applicable 

13 

under the table in section 154-20 of the Higher Education Support 

14 

Act 2003

15 

relevant income-contingent loans liability means the amount that 

16 

is the sum of the following: 

17 

 

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

18 

the Higher Education Support Act 2003 for the income year 

19 

in respect of an accumulated HELP debt; 

20 

 

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

21 

section 1061ZVHA of the Social Security Act 1991 for the 

22 

income year in respect of an accumulated SSL debt; 

23 

 

(c)  any amount the person is liable to pay under section 10F of 

24 

the Student Assistance Act 1973 in respect of an accumulated 

25 

ABSTUDY SSL debt. 

26 

Student start-up loans  Schedule 2 

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No.      , 2014 

Social Services and Other Legislation Amendment (Student Measures) 

Bill 2014 

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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 

10 

1991 by this Schedule, that Division continues to apply on and after the 

11 

commencement of this item in relation to a qualification time that 

12 

occurs before that commencement. 

13 

(2) 

Despite the amendment made by item 27 of this Schedule, 

14 

subsection 1192(8A) of the Social Security Act 1991, as in force 

15 

immediately before the commencement of this item, continues to apply 

16 

on and after that commencement in relation to the student start-up 

17 

scholarship payment amount. 

18 

(3) 

Despite the amendment made by item 31 of this Schedule, 

19 

section 1223ABE of the Social Security Act 1991, as in force 

20 

immediately before the commencement of this item, continues to apply 

21 

in relation to a student start-up scholarship payment made before, on or 

22 

after that commencement. 

23 

(4) 

Despite the amendment made by item 38 of this Schedule, section 12H 

24 

of the Social Security (Administration) Act 1999, as in force 

25 

immediately before the commencement of this item, continues to apply 

26 

on and after that commencement in relation to a student start-up 

27 

scholarship payment for which a person was qualified before that 

28 

commencement. 

29 

(5) 

Despite the amendments made by items 43 and 45 of this Schedule, 

30 

sections 47 and 47DA of the Social Security (Administration) Act 1999

31 

as in force immediately before the commencement of this item, 

32 

continue to apply on and after that commencement in relation to a 

33 

Schedule 2  Student start-up loans 

Part 2  Application and saving provisions 

 

 

92 

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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. 

 


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