Student Assistance (Loans Guarantee and Subsidy) Act 1982 (Cth)

Student Assistance (Loans Guarantee and Subsidy) Act 1982

No. 158 of 1982

An Act to provide for the giving of guarantees and subsidies by the Commonwealth in respect of certain loans made to eligible students

[Assented to 31 December 1982]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title

1. This Act may be cited as the Student Assistance (Loans Guarantee and Subsidy) Act 1982.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Interpretation

3. (1) In this Act, unless the contrary intention appears—

"approved bank" means—

• (a)

  a trading bank as defined in sub‑section 5 (1) of the Banking Act 1959;

       

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(b) a bank established by a State Act; or

(c) any other bank approved in writing by the Treasurer;

"approved loan" means a loan made, on prescribed terms and subject to prescribed conditions, in any year by an approved bank to an eligible student for the purpose of contributing to the maintenance and educational expenses of the student and to the maintenance of any dependants of the student;

"guarantee" means a guarantee under this Act;

"permanent resident of Australia" means a person who is a permanent resident of Australia for the purposes of the Student Assistance Act 1973;

"year" means the period of 12 months commencing on 1 January 1983 and each succeeding period of 12 months.

(2)Subject to sub‑section (3), for the purposes of this Act, a person is an eligible student in a year if he is an Australian citizen, or a permanent resident of Australia, who is enrolled in a course of study, instruction or research, or in a part of such a course, approved by the Minister for the purposes of this sub‑section, and—

(a) he has been granted Tertiary Education Assistance under the Student Assistance Act 1973 and a living allowance is payable to him in that year in accordance with the regulations under that Act;

(b) he has been granted a Post‑graduate Award under the Student Assistance Act 1973 and benefit under that award is payable to him in that year;

(c) he has been granted assistance under an assistance scheme prescribed for the purposes of this paragraph and a living allowance is payable to him in that year under that scheme;

(d) he has been granted assistance under an assistance scheme prescribed for the purposes of this paragraph and a living allowance is payable to him in that year under that scheme and the Minister is satisfied that he is enrolled in that course, or that part of a course, as a full‑time student; or

(e) he satisfies a prescribed means test and the Minister is satisfied that he is enrolled in that course, or that part of a course, as a full‑time student.

(3) For the purposes of this Act, a person is not an eligible student if he is included in a prescribed class of persons.

(4) For the purposes of this Act, a loan shall be deemed to be made in the year in which the principal moneys are made available to the borrower.

Guarantees by the Commonwealth

4. (1) Subject to this Act, the Treasurer may, on behalf of the Commonwealth, give to an approved bank a guarantee of—

(a) the repayment of the principal moneys made available under the terms of any agreement for an approved loan entered into by the bank; and

 

(b) the payment of any interest required to be paid under the terms of such an agreement.

(2) The Treasurer shall not give a guarantee with respect to a loan made to a student in any year if—

(a) the sum of—

(i) the amount of the principal moneys made available under the terms of the agreement for the loan; and

(ii) the amount, or the sum of the amounts, of the principal moneys made available under the terms of any other agreement or agreements for a loan or loans made to that student in that year in respect of which a guarantee has, or guarantees have, been given,

exceeds the amount prescribed for the purposes of this paragraph; or

(b) the sum of—

(i) the amount of the principal moneys made available under the terms of the agreement for the loan; and

(ii) the amount, or the sum of the amounts, of the principal moneys made available under the terms of any other agreement or agreements for a loan or loans made to that student in that year or in any previous year or years in respect of which a guarantee has, or guarantees have, been given,

exceeds the amount prescribed for the purposes of this paragraph.

(3) The Treasurer may give 2 or more guarantees under this Act in a single instrument.

Limitation on amount of principal moneys guaranteed

5. Guarantees in respect of loans made in any year shall not guarantee the repayment of principal moneys exceeding in the aggregate $50,000,000, or such greater amount as is prescribed in respect of that year.

Validity of guarantees

6. The validity of a guarantee purporting to have been given in pursuance of this Act shall not be called in question in any legal proceedings on the ground that the guarantee was not given in accordance with this Act.

Recovery, with interest, of money expended by the Commonwealth

7. If, under a guarantee in relation to an approved loan, the Commonwealth makes a payment to an approved bank—

(a) the person to whom the loan was made is liable to pay to the Commonwealth—

(i) an amount (in this section referred to as the "guaranteed amount") equal to the amount of that payment; and

(ii) interest at the prescribed rate, from the day on which the Commonwealth makes that payment, on so much of the guaranteed amount as is from time to time unpaid; and

 

(b) the guaranteed amount, and the interest payable on that amount under sub‑paragraph (a) (ii), may be recovered as a debt due to the Commonwealth by action in a court of competent jurisdiction.

Subsidy of interest

8. The Minister shall, from time to time but at least once during each year, pay to each approved bank an amount of money ascertained in accordance with the regulations as subsidy of the interest payable in respect of approved loans made by the bank to eligible students, and money so paid shall be applied, in such manner as the Minister by instrument in writing specifies, by the bank towards the discharge of the liability of those students to pay interest in respect of those loans.

Delegation

9. (1) The Treasurer or the Minister may, either generally or as otherwise provided by the instrument of delegation, by writing signed by him, delegate to a person all or any of his powers under this Act, other than this power of delegation.

(2) A power so delegated, when exercised by the delegate, shall, for the purposes of this Act, be deemed to have been exercised by the person who delegated the power.

(3) A delegation under this section does not prevent the exercise of a power by the person who delegated the power.

Annual report

10. (1) The Minister shall, as soon as practicable after 31 December 1983 and after each 31 December thereafter, cause a report on the operation of this Act during the year ending on that date to be laid before each House of the Parliament.

(2) The first report by the Minister shall relate to the period commencing on the date of commencement of this Act and ending on 31 December 1983.

Regulations

11. The Governor‑General may make regulations, not inconsistent with this Act, prescribing matters—

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

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