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
$53,287 | 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 to establish the legal framework for the Higher Education Loan Program (HELP), enabling students to defer the payment of their student debts until they reach a specified income threshold. The act aims to ensure that individuals who have benefited from higher education contribute to the cost of their education as they commence their careers. This legislation was passed by the Parliament of Australia and is administered by the Department of Education, Skills and Employment. The primary policy objective is to make higher education more accessible while ensuring that the financial burden of education is shared equitably between students and the government. The notification issued under HESA for the 2020-21 income year specifies the repayment incomes and rates for the HELP scheme, which can be accessed through the Study Assist website or by contacting the Department of Education and Training.
Scope and Application
The Higher Education Support Act 2003, as notified under the 2020-21 income year framework, governs the repayment of Higher Education Loan Program (HELP) loans. It applies to individuals who have received Commonwealth-supported higher education assistance and are now required to repay their loans based on their income. The Act sets out specific repayment incomes and rates for the 2020-21 financial year, which are detailed in the notice made under the HESA. The income thresholds and corresponding repayment rates are graduated, with the minimum repayment income starting at $46,620 and increasing in increments up to a maximum of 10% for income levels exceeding $136,740. This legislation operates on a national level, applying across Australia, and is administered by the Department of Education, Skills and Employment. There are no stated exclusions or exemptions within the notice itself, though the Act may include provisions elsewhere that could affect eligibility or obligations. The application and enforcement of the Act may be further detailed or adjusted through subordinate instruments issued under the authority of the Act.
Key Provisions
The Higher Education Support Act 2003 (HESA) sets out the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2020-21 income year. Under section 154-10 of the Act, the minimum repayment income for this period is $46,620. This is the starting point at which repayments are required to be made. Section 154-20 further details the repayment rates, which are graduated based on the individual's income. The rates start at 1.0% for incomes equal to or above $46,620 and increase progressively to 10.0% for incomes equal to or above $136,740. The percentages applicable are detailed in a table, with each income bracket corresponding to a specific repayment rate.
The Act imposes obligations on individuals who have taken out loans under the HELP scheme to repay a portion of their debt based on their income levels. These obligations are determined by the income thresholds and rates specified in the Act. Individuals are required to report their income annually to the Department of Education, Skills and Employment, and repay the specified percentage of their income as outlined in the Act. This ensures that the loan is gradually paid off over time, correlating with the individual's earning capacity.
Failure to comply with the repayment obligations set out in the Higher Education Support Act 2003 can lead to serious consequences. Section 154-50 of the Act specifies that any person who fails to make the required repayments can be subject to civil or criminal penalties. The exact nature and severity of these penalties depend on the circumstances of the breach, but they can include fines, legal action, and in some cases, criminal charges. The Act does not specify maximum penalties in the provided text, but it is understood that penalties can be severe, reflecting the importance of complying with the repayment obligations.