Higher Education Support Act 2003 - HECS-HELP Benefit Guidelines

Administered by Department of Education, Employment and Workplace Relations

Legislation au F2008L04659 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Guidelines issued under subsection 238-10 of the Higher Education Support Act 2003

 

HECS-HELP Benefit Guidelines

 

Issued by the authority of the Minister for Education

 

Subject:-  Higher Education Support Act 2003

   HECS-HELP Benefit Guidelines

 

Authority

 

Section 238-10 of the Higher Education Support Act 2003 (‘the Act’) provides that the Minister may make guidelines providing for matters required or permitted by the Act or necessary or convenient to be provided in order to carry out or give effect to the Act.  In particular section 238-10 specifies the Minister may make HECS-HELP Benefit Guidelines (‘the Guidelines’) matters set out in Part 4-2 of the Act.

 

 

The provisions of Part 4-2, and in particular Division 157 indicate when a particular matter is or may be dealt with in these Guidelines.

 

Purpose and operation

 

The purpose of the HECS-HELP Benefit Guidelines is to specify:

  • the eligibility requirements for the HECS-HELP benefit;
  • how the amount of an eligible person’s HECS-HELP benefit for an income year is worked out;
  • the form, manner and time within which an eligible person must apply for the HECS‑HELP benefit;
  • the time within which the Commissioner of Taxation must notify an applicant of a determination of their HECS-HELP benefit.

 

Commencement

 

The Guidelines commence on the day after the day on which they are registered on the Federal Register of Legislative Instruments.

 

 

Consultation

 

The Guidelines give effect to an election commitment.  They are to be used by the Commissioner of Taxation in administering the HECS-HELP benefit.  The Australian Taxation Office has been consulted extensively on development of the Guidelines and is in agreement with them.

 

 

Overview of the HECS-HELP Benefit Guidelines

 

Chapter 1 – Introduction

 

The purpose of this chapter is to set out the purpose of the Guidelines and to define terms used in the Guidelines.

 

In particular, the following terms that bear on a person’s eligibility for the HECS-HELP benefit are defined:

  • A person’s Debt incurred at course completion constitutes a cap on the amount of the HECS‑HELP benefit that a person can receive in relation to an eligible course of study and relates to the amount of the person’s HELP debt that was incurred at the time of completion of their mathematics/science course or their early childhood education teaching course;
  • Employed week sets 15 hours as the minimum number of hours in a week that a person must work in order to be eligible for the HECS-HELP benefit for that week in an income year;
  • Entitlement weeks sets 260 weeks as the maximum number of weeks over a lifetime that a person can claim the HECS-HELP benefit in relation to an eligible course of study; and
  • Relevant debt defines that part of the a person’s accumulated HELP debt, adjusted for further study, indexation and any discharge of the debt amount, that is used in the calculation of the person’s Debt incurred at course completion.

 

 

Chapter 2 – Eligibility Requirements

 

This chapter specifies the eligibility requirements for the HECS-HELP benefit for a person for an income year in accordance with section 157-1 of the Act.  Specifically it defines who is eligible for the HECS-HELP benefit as a mathematics or science graduate and who is eligible for the HECS-HELP benefit as an early childhood education teacher.

 

Section 2.5 specifies that to be eligible as a mathematics or science graduate, a person must have completed an eligible course in the second half of 2008 or later, have a HELP debt at completion of that course and not have discharged their HELP debt in the intervening time, and be employed in a designated occupation listed in the Guidelines.  The person must also have a requirement to make a compulsory repayment of their HELP debt for the income year in which they are claiming the HECS-HELP benefit.

 

Section 2.10 lists the eligible occupations for a mathematics or science graduate.

 

Section 2.15 specifies that to be eligible as an early childhood education teacher, a person must have completed an eligible course, have incurred a HECS or HELP debt at completion of that course and not have discharged their HECS/HELP debt in the intervening time, be employed as an early childhood education teacher (as defined in Chapter 1) in a location with a postcode listed in the Guidelines that lists postcodes for regional or remote areas, Indigenous Australian communities or areas of high socio‑economic disadvantage.

 

To be eligible for the HECS-HELP benefit as an early childhood education teacher a person is not required to have a compulsory repayment amount for their HELP debt in the income year for which they are applying for the HECS-HELP benefit.  If the person is not required to make a compulsory repayment of their HELP debt, the amount of their HECS-HELP benefit is deducted from the amount of their accumulated HELP debt.

 

 

 

Chapter 3 – Working out an Eligible person’s HECS-HELP Benefit for an Income Year

 

This chapter specifies how an eligible’s person’s HECS-HELP benefit amount for an income year is worked out in accordance with section 157-15(1) of the Act.

 

Section 3.5  specifies that for the first year of the scheme (2008-09) the maximum HECS‑HELP benefit for a mathematics and science graduate will be $1,500 and for an early childhood education teacher will be $1,600.  These amounts represent around half on average of a person’s compulsory repayment and are consistent with the Government’s commitments to halve an eligible person’s HELP debt repayments.  The chapter specifies the rules for the indexation of these amounts, consistent with other indexation arrangements in the Act.

 

Section 3.10 sets out the manner of calculation of the HECS-HELP benefit for a person who is a mathematics or science graduate and separately for a person who is eligible for the HECS-HELP benefit as an early childhood education teacher.  It also addresses the circumstance where a person is eligible for the HECS-HELP benefit as both a mathematics or science graduate and an early childhood education teacher in the same income year and the sum of the amounts of the benefit calculated for each category of eligibility would exceed the person’s compulsory repayment amount.

 

Section 3.15 provides four examples of the calculation of the HECS-HELP benefit to assist in interpretation of the Guidelines.

 


Chapter 4 – Applying for the HECS-HELP Benefit

 

This chapter specifies for the purposes of subsection 157-5 of the Act the manner in which a person must apply to the Commissioner of Taxation for the HECS-HELP benefit, the information that must be included in an application form and the time within which an application must be made.

 

Section 4.5 specifies that an application for the HECS-HELP benefit must be made in a form approved by the Commissioner of Taxation and in accordance with instructions issued by the Commissioner. This section also specifies that an application is valid only if the applicant lodges an income tax return for the income year or advises the Commissioner that they are not required to do so.

 

Section 4.10 specifies that the application form must contain enough information to identify the applicant and assess their eligibility for the HECS – HELP benefit and allows for other information to be required to be attached to the form.

 

Section 4.15 provides for a limit of two years from the end of an income year to apply for the HECS-HELP benefit for that year.

 

 

Chapter 5 – Notifications of Determinations made by the Minister

 

This chapter specifies for the purposes of subsection 157-25 of the Act the time within which the Commissioner must notify an applicant in writing of his or her determination of the person’s HECS-HELP benefit.

 

 

 

 

Overview

The Higher Education Support Act 2003 was enacted to provide a framework for the administration of the Higher Education Support Scheme (HESS), which includes the Higher Education Loan Program (HELP) and the Higher Education Contribution Scheme (HECS). The legislation was introduced to address the need for a comprehensive system to support higher education funding in Australia. The HECS-HELP Benefit Guidelines, issued under the authority of the Minister for Education, aim to specify eligibility requirements, calculation methods, application procedures, and notification timelines for the HECS-HELP benefit. These guidelines were developed to assist the Commissioner of Taxation in administering the HECS-HELP benefit effectively and were extensively consulted upon, with the Australian Taxation Office in agreement with their content. The purpose of these guidelines is to clearly define who is eligible for the HECS-HELP benefit, how the benefit amount is calculated, the process for applying for the benefit, and the timeframes within which the Commissioner must notify applicants of their benefit determinations. These guidelines ensure that the administration of the HECS-HELP benefit is consistent and transparent, supporting eligible individuals in managing their higher education debts.

Scope and Application

The HECS-HELP Benefit Guidelines, issued under section 238-10 of the Higher Education Support Act 2003, specify the eligibility requirements for the HECS-HELP benefit, the calculation of the benefit amount for an income year, the application process for the benefit, and the timeframe for notifying applicants of the determination of their benefit. These Guidelines apply to eligible individuals who have completed a course of study and incurred a Higher Education Loan Program (HELP) debt, specifically mathematics or science graduates and early childhood education teachers, and are employed in designated occupations or teaching locations. The Guidelines set out the maximum benefit amounts, indexation rules, and eligibility criteria, including the requirement for a HELP debt and employment in specific occupations or areas. Applications must be submitted in an approved form within two years from the end of the relevant income year, and the Commissioner of Taxation must notify applicants of the benefit determination within a specified period. The Guidelines are applicable nationally, as they are a Commonwealth instrument, and are not subject to state or territory variations. They do not specify exclusions or exemptions beyond those outlined in the Act, and their application is not extended or restricted by subordinate instruments.

Key Provisions

The main operative sections of the HECS-HELP Benefit Guidelines (2008) under the Higher Education Support Act 2003 (the Act) provide specific rules and processes for the Higher Education Contribution Scheme (HECS) - Help Benefit. These Guidelines, as specified in section 238-10 of the Act, address eligibility criteria, calculation methods for the benefit, application procedures, and timelines for processing applications. Chapter 1 introduces the purpose of the Guidelines and defines key terms, such as 'Debt incurred at course completion', 'Employed week', 'Entitlement weeks', and 'Relevant debt'. Chapter 2 details the eligibility requirements, distinguishing between mathematics or science graduates and early childhood education teachers. Chapter 3 outlines the calculation of the HECS-HELP benefit, including indexation rules and specific scenarios where a person might be eligible for the benefit under multiple categories. Chapter 4 provides the form, manner, and timing for applications, while Chapter 5 specifies the timeframe within which the Commissioner of Taxation must notify applicants of their benefit determinations. The HECS-HELP Benefit Guidelines impose several obligations and requirements on eligible individuals and the Commissioner of Taxation. Eligible individuals must meet specific criteria, such as having completed an eligible course of study, incurring a HECS or HELP debt at course completion, and being employed in designated occupations. They must also submit a valid application form within two years from the end of the income year for which they are claiming the benefit. The Commissioner of Taxation, on the other hand, is required to process these applications in accordance with the Guidelines, ensuring they adhere to the specified forms and instructions, and to notify applicants of their benefit determinations within the stipulated timeframe. These Guidelines aim to streamline the application process and ensure that eligible individuals receive the benefit they are entitled to. The HECS-HELP Benefit Guidelines establish various consequences for non-compliance with the specified requirements and procedures. For instance, submitting an invalid application form or failing to include the necessary information can result in the application being rejected. Additionally, applying beyond the two-year limit from the end of the income year can invalidate the claim. Failure to adhere to these guidelines may also lead to administrative penalties or the denial of the benefit. While the Guidelines themselves do not explicitly state maximum penalties, non-compliance with the Act or associated regulations could lead to financial penalties or other legal repercussions, depending on the severity of the breach.

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Education Law
Instrument
Regulation
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Definitions & Interpretation
Eligibility Requirements
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HECS-HELP Benefit Guidelines

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.