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 2021-22 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 Programs Tuition Assurance team, Higher Education Division, Department of Education, Skills and Employment, GPO Box 9880, Canberra City, ACT 2601, or by telephoning (02) 6240 9577.
HESA section | Description |
154-10 | The minimum repayment income for the 2021-22 income year is $47,014. |
154-20 | The following are the amounts referred to in s.154-20 of HESA for the 2021-22 income year: Applicable percentages | | Item | If the person’s repayment income is: | The percentage applicable is: | 1 | More than or equal to
$47,014 | 1.0% | 2 | More than or equal to
$54,282 | 2.0% | 3 | More than or equal to
$57,539 | 2.5% | 4 | More than or equal to
$60,992 | 3.0% | 5 | More than or equal to
$64,651 | 3.5% | 6 | More than or equal to
$68,530 | 4.0% | 7 | More than or equal to
$72,642 | 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
$77,001 | 5.0% | 9 | More than or equal to
$81,621 | 5.5% | 10 | More than or equal to
$86,519 | 6.0% | 11 | More than or equal to
$91,710 | 6.5% | 12 | More than or equal to
$97,213 | 7.0% | 13 | More than or equal to
$103,045 | 7.5% | 14 | More than or equal to
$109,227 | 8% | 15 | More than or equal to
$115,679 | 8.5% | 16 | More than or equal to
$122,729 | 9.0% | 17 | More than or equal to
$130,092 | 9.5% | 18 | More than or equal to
$137,898 | 10.0% | |
|
Overview
The Higher Education Support Act 2003 was enacted to provide support for students and institutions in the higher education sector in Australia, ensuring that the financial burden of higher education is manageable for students and that the quality of education is maintained. The Act was introduced to address the gap in affordable access to higher education and to ensure that students can access necessary funds to complete their studies without incurring unmanageable debt. The enacting body was the Australian Parliament, which aimed to facilitate a sustainable higher education system through structured financial support mechanisms.
This legislation includes provisions for the Higher Education Loan Program (HELP), which assists students by providing loans for tuition fees and living expenses. The repayment of these loans is structured according to the income levels of the graduates, ensuring that repayments are affordable and manageable. The notification under the Act specifies the repayment incomes and rates for the 2021-22 income year, with the aim of providing clarity and predictability for students entering the workforce. Information regarding the specific repayment incomes and rates can be accessed through the Study Assist website or by contacting the Department of Education, Skills and Employment.
Scope and Application
The Higher Education Support Act 2003 (HESA) applies to individuals who have received financial assistance under the Higher Education Loan Program (HELP). This legislation outlines the framework for the repayment of student loans and specifies the repayment incomes and rates for a given income year. The notice provided under HESA for the 2021-22 income year details the minimum repayment income threshold and the associated repayment rates based on income brackets. The notice applies nationally across Australia, and the repayment rates are applicable to all individuals who have received HELP assistance, regardless of the state or territory in which they reside or earn their income. There are no exclusions or exemptions specified in this notice, meaning that all individuals who meet the income thresholds are required to make repayments at the specified rates. The application of the notice can be extended or modified through subordinate instruments, which may provide further detail or clarification on specific aspects of the repayment process.
Key Provisions
The Higher Education Support Act 2003 (HESA) provides for the Higher Education Loan Program (HELP), which assists eligible students with the cost of their higher education. Section 154-10 of the Act specifies the minimum repayment income for the 2021-22 income year, which is $47,014. The Act further details repayment rates in section 154-20, which are dependent on the individual’s income. These rates range from 1.0% to 10.0%, applied to income brackets starting at the minimum repayment income and increasing incrementally. For instance, for an income between $47,014 and $54,282, the repayment rate is 1.0%, and it increases to 10.0% for income over $137,898.
Under HESA, the Act imposes obligations on individuals who have received assistance under the HELP scheme. These individuals must make income-contingent repayments on their loans as per the specified rates. They are required to accurately report their income to the Department of Education, Skills and Employment to ensure that the correct repayment rate is applied. Failure to report or misreporting income can lead to penalties and adjustments to the repayment amount.
Breaches of the obligations under HESA can lead to various consequences. Section 154-30 outlines that failure to make the required repayments can result in additional charges and interest accruing on the loan. In the case of significant non-compliance, the Department may pursue legal action. The penalties for non-compliance can include civil and criminal sanctions. For instance, knowingly providing false information or failing to report income can result in a civil penalty of up to $8,400 or criminal penalties, including fines of up to $21,000 or imprisonment for up to two years, depending on the severity of the breach.