DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT
NOTIFICATION UNDER THE HIGHER EDUCATION SUPPORT ACT 2003
The following notice specifies the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2020-21 income year. It has been made under the Higher Education Support Act 2003 (HESA). A copy of the repayment incomes and rates can be obtained from the Study Assist website at www.studyassist.gov.au or the Director, HELP Policy and Programs team, Higher Education Group, Department of Education and Training, GPO Box 9880, Canberra City, ACT 2601, or by telephoning (02) 6240 9577.
HESA section | Description |
154-10 | The minimum repayment income for the 2020-21 income year is $46,620. |
154-20 | The following are the amounts referred to in s.154-20 of HESA for the 2020-21 income year: Applicable percentages | | Item | If the person’s repayment income is: | The percentage applicable is: | 1 | More than or equal to
$46,620 | 1.0% | 2 | More than or equal to
$53,827 | 2.0% | 3 | More than or equal to
$57,056 | 2.5% | 4 | More than or equal to
$60,480 | 3.0% | 5 | More than or equal to
$64,109 | 3.5% | 6 | More than or equal to
$67,955 | 4.0% | 7 | More than or equal to
$72,032 | 4.5% |
|
Section | Description |
..cont | | Applicable percentages | | Item | If the person’s repayment income is: | The percentage applicable is: | 8 | More than or equal to
$76,355 | 5.0% | 9 | More than or equal to
$80,396 | 5.5% | 10 | More than or equal to
$85,793 | 6.0% | 11 | More than or equal to
$90,940 | 6.5% | 12 | More than or equal to
$96,397 | 7.0% | 13 | More than or equal to
$102,180 | 7.5% | 14 | More than or equal to
$108,310 | 8% | 15 | More than or equal to
$114,708 | 8.5% | 16 | More than or equal to
$121,699 | 9.0% | 17 | More than or equal to
$129,000 | 9.5% | 18 | More than or equal to
$136,740 | 10.0% | |
|
Overview
The Higher Education Support Act 2003 (HESA) was enacted by the Parliament of Australia to establish the Higher Education Loan Program (HELP), which assists students in meeting the costs of their higher education by providing loans. The Act aims to ensure that the repayment of these loans is fair and manageable, particularly for those who have attained higher incomes post-graduation. The 2020-21 notification under HESA specifies the repayment incomes and rates for the HELP scheme, ensuring that repayments are aligned with the income levels of the borrowers. This approach helps to balance the interests of students, who require financial assistance to pursue their education, with the need for a sustainable repayment system that is equitable and effective.
Scope and Application
The Higher Education Support Act 2003 (HESA) applies to individuals who have received loans under the Higher Education Loan Program (HELP) and who are now repaying those loans. This legislation sets out the repayment incomes and rates for the 2020-21 income year, which are applicable to individuals with specific income thresholds. The repayment rates range from 1.0% to 10.0%, depending on the individual's income. The legislation also indicates that these repayment rates are subject to change and can be obtained from the Study Assist website or by contacting the Director, HELP Policy and Programs team. The notice under the HESA provides clear guidelines on the income brackets and the corresponding repayment rates for the specified income year. This Act applies on a Commonwealth level, affecting all individuals with HELP loans across Australia. There are no stated exclusions or exemptions, and the application of the Act is not extended or restricted through subordinate instruments.
Key Provisions
The main operative sections of this legislation pertain to the Higher Education Loan Program (HELP) repayment incomes and rates for the 2020-21 income year. Section 154-10 specifies that the minimum repayment income threshold is set at $46,620 (1). This is the income level at which repayments begin to be required from borrowers under the HELP scheme. Section 154-20 then provides a detailed schedule of repayment rates corresponding to different income brackets (2). These rates range from 1.0% for incomes of $46,620 or more, up to 10.0% for incomes of $136,740 or more. Each bracket is specified with a minimum income amount and the associated repayment percentage.
The obligations imposed by the Act on parties governed by it primarily revolve around the repayment of HELP loans. Borrowers are required to make repayments when their income exceeds the specified minimum repayment income threshold, which is $46,620 for the 2020-21 income year (1). Additionally, the specified percentage applicable to their income must be used to calculate the amount of the repayment. This percentage is determined by the income bracket in which the borrower's income falls, as outlined in section 154-20 (2). Accurate reporting of income and timely repayments are crucial to comply with these obligations.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the provided text. However, failure to comply with the repayment obligations under the Higher Education Support Act 2003 could potentially lead to legal action by the Department of Education, Skills and Employment, or other authorised entities. This might include measures to recover unpaid amounts, interest accruals, or additional administrative penalties as per the legislation. The maximum penalties for such breaches, if any, are not explicitly stated in the provided text, and would need to be referred to in the full Act or associated regulations.