Higher Education Support Amendment (2008 Budget Measures) Act 2008

Administered by Department of Education

Legislation au C2008A00043 In force Act

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Higher Education Support Amendment (2008 Budget Measures) Act 2008

 

No. 43, 2008

 

 

 

 

 

An Act to amend legislation relating to higher education, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—HECSHELP benefit

Higher Education Support Act 2003

Schedule 2—Other amendments

Higher Education Support Act 2003

 

 

 

Higher Education Support Amendment (2008 Budget Measures) Act 2008

No. 43, 2008

 

 

 

An Act to amend legislation relating to higher education, and for related purposes

[Assented to 25 June 2008]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Higher Education Support Amendment (2008 Budget Measures) Act 2008.

2  Commencement

  This Act commences on the day on which it receives the Royal Assent.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—HECS‑HELP benefit

 

Higher Education Support Act 2003

1  After paragraph 1401(2)(d)

Insert:

 ; and (e) if compulsory repayment amounts are not required to be paid in respect of the debt—the *HECSHELP benefit (if any).

2  Subsection 1405(1) (method statement, after step 4)

Insert:

Step 4A. In respect of that period, subtract the amount of *HECSHELP benefit (if any) determined, in respect of the person, by the *Commissioner under section 15720 for an *income year, if the person did not have any *compulsory repayment amounts for that year.

3  Subsection 1405(1) (after step 4 of the example)

Insert:

Step 4A: Does not apply because Lorraine does not satisfy the eligibility requirements for the HECSHELP benefit.

4  At the end of section 1405

Add:

 (3) If a determination by the *Commissioner under section 15720 is reviewed under Part 57:

 (a) the reference in step 4A of the method statement in subsection (1) to the determination includes a reference to the decision on review; and

 (b) to the extent that the decision on review affects any step in the method statement—the decision on review must be taken into account in working out a person’s *former accumulated HELP debt under this section.

5  Section 1481 (second paragraph)

Repeal the paragraph, substitute:

The person is required to make repayments, of amounts based on his or her income, if that income is above a particular amount. The Commissioner of Taxation makes assessments of repayment amounts, which are collected in the same way as amounts of income tax.

Repayment amounts may be reduced by the HECSHELP benefit. To receive the benefit, a person must satisfy eligibility requirements and apply for it. The Commissioner determines whether a person is eligible for the benefit, and if so, the amount of the benefit.

6  At the end of Division 148

Add:

148‑5  The HECS‑HELP Benefit Guidelines

  The *HECSHELP benefit is also dealt with in the HECSHELP Benefit Guidelines. The provisions of this Part indicate when a particular matter is or may be dealt with in these Guidelines.

Note: The HECSHELP Benefit Guidelines are made by the Minister under section 23810.

7  Subsection 1541(1)

Omit “If”, substitute “Subject to section 1543, if”.

8  After section 1541

Insert:

154‑3  Reduction of liability by HECS‑HELP benefit

  If the *Commissioner has determined, in respect of a person, an amount of *HECSHELP benefit under section 15720 for an *income year, the amount that the person is liable to pay under section 1541 for that year is reduced by the amount of the benefit.

Note 1: The calculation of a person’s compulsory repayment amount under section 1541 remains unaffected. A person’s accumulated HELP debt is reduced by compulsory repayment amounts under Division 140. The HECSHELP benefit reduces a person’s liability that arises under section 1541, so that the amount that the person will actually pay (if any) will be less than the compulsory repayment amount calculated.

Note 2: If a determination is reviewed, a reference to the determination includes a reference to the decision on review, see section 15730.

9  At the end of section 15435

Add:

Note: The amount that the person will actually pay (if any) will be less than the amount mentioned in paragraph (b) if the person receives the HECSHELP benefit.

10  Section 15440

Before “If”, insert “(1)”.

11  At the end of section 15440

Add:

 (2) If the *Commissioner has determined, in respect of the person, an amount of *HECSHELP benefit under section 15720 for the *income year, the notice of assessment for that year may also refer to the amount of the benefit.

Note: If a determination is reviewed, a reference to the determination includes a reference to the decision on review, see section 15730.

12  At the end of Subdivision 154D

Add:

154‑85  Reduction of compulsory repayment amount by HECS‑HELP benefit

 (1) This section applies if the *Commissioner has determined, in respect of a person, an amount of *HECSHELP benefit under section 15720 for an *income year.

 (2) For the purposes of this Subdivision, a *compulsory repayment amount of a person in respect of an *income year is to be reduced by the amount of *HECSHELP benefit determined by the *Commissioner in respect of the person for that year.

Note: If a determination is reviewed, a reference to the determination includes a reference to the decision on review, see section 15730.

13  At the end of Part 42

Add:

Division 157—HECS‑HELP benefit

Subdivision 157‑A—Who is eligible for the HECS‑HELP benefit?

157‑1  Application for the HECS‑HELP benefit

  A person may apply to the *Commissioner for the *HECSHELP benefit in respect of an *income year if:

 (a) the HECSHELP Benefit Guidelines set out eligibility requirements for the HECSHELP benefit; and

 (b) the person satisfies those eligibility requirements.

157‑5  Form of application

  An application for the *HECSHELP benefit must:

 (a) be in writing; and

 (b) be in the form required by the HECSHELP Benefit Guidelines; and

 (c) provide all the information, and be accompanied by any documents, required by the HECSHELP Benefit Guidelines.

157‑10  Providing application to Commissioner

  An application must be made in the manner, and within the time, specified in the HECSHELP Benefit Guidelines.

Subdivision 157‑B—What is the amount of the HECS‑HELP benefit?

157‑15  Amount of HECS‑HELP benefit

 (1) The amount of the *HECSHELP benefit for an *income year is the amount specified in, or worked out in accordance with, the HECSHELP Benefit Guidelines.

 (2) If an amount is required to be paid under section 1541 for an *income year, the amount of the *HECSHELP benefit for that year must not be more than the amount required to be paid for that year.

Subdivision 157‑C—Determination of applications

157‑20  Commissioner must determine application

 (1) If a person applies for the *HECSHELP benefit for an *income year, the *Commissioner must determine:

 (a) whether the person is eligible for the benefit for the year; and

 (b) if the person is eligible—the amount of the benefit, worked out in accordance with the HECSHELP Benefit Guidelines.

Note: A determination is reviewable under Part 57.

 (2) A determination made under subsection (1) is not a legislative instrument.

157‑25  Notifying applicant of determination

  The *Commissioner must notify the applicant, in writing, of his or her determination. The notice must be given within the time specified in the HECSHELP Benefit Guidelines.

Note: Notification may also be given to a person by referring to the amount of HECSHELP benefit in the person’s notice of assessment, see subsection 15440(2).

157‑30  Review of determinations

  If a determination by the *Commissioner under section 15720 is reviewed under Part 57, a reference in this Part (other than this Division) to the determination includes a reference to the decision on review.

14  Section 2061 (after table item 4)

Insert:

4A

A determination

section 15720

the *Commissioner

15  Subsection 23810(1) (after table item 4)

Insert:

4A

HECSHELP Benefit Guidelines

Part 42

16  Clause 1 of Schedule 1

Insert:

HECSHELP benefit means a benefit for an *income year that:

 (a) if a *compulsory repayment amount is required to be paid—has the effect of reducing the amount actually payable for that year; and

 (b) if a compulsory repayment amount is not required to be paid—reduces a person’s *accumulated HELP debt for that year.

17  Application

The amendments made by this Schedule apply in respect of the 20082009 and later income years.


Schedule 2—Other amendments

 

Higher Education Support Act 2003

1  Paragraphs 305(1)(d) to (g)

Repeal the paragraphs, substitute:

 (d) for the year 2008—$3,793,766,000; or

 (e) for the year 2009—$4,138,233,000; or

 (f) for the year 2010—$4,307,474,000; or

 (g) for the year 2011—$4,439,813,000; or

 (h) for the year 2012—$4,547,229,000.

2  At the end of subsection 3010(3)

Add:

 ; and (d) the number of those places that have a transitional loading.

3  After paragraph 3025(3)(ca)

Insert:

 (cb) the maximum number of Commonwealth supported places provided by the provider which can have a transitional loading in the grant years; and

4  After paragraph 3025(3)(da)

Insert:

 (e) the maximum amount of transitional loading that will be payable to the provider, under the Commonwealth Grant Scheme Guidelines, in the grant years; and

5  At the end of section 335

Add:

 ; and (e) if the allocation has specified under paragraph 3010(3)(d) a number of Commonwealth supported places that have a transitional loading—the amount of transitional loading worked out under the Commonwealth Grant Scheme Guidelines for those places.

6  After paragraph 3630(1)(a)

Insert:

 (aa) the unit to be undertaken with the provider forms part of an *undergraduate course of study; and

Note: The heading to section 3630 is replaced by the heading “Providers to enrol persons as Commonwealth supported students”.

7  Subsection 3630(2)

Repeal the subsection, substitute:

 (2) Subsection (1) does not apply in respect of a person’s enrolment with a *Table A provider in a unit of study that forms part of an *undergraduate course of study if:

 (a) the person commences the undergraduate course of study with the provider before 1 January 2009; or

 (b) both:

 (i) the person transfers to the undergraduate course of study with the provider on or after 1 January 2009 from another undergraduate course of study in which the person was enrolled with the provider before 1 January 2009; and

 (ii) the person had not completed that other undergraduate course of study; or

 (c) all of the following apply:

 (i) the person was offered, and accepted, a place (other than a Commonwealth supported place) in the undergraduate course of study with the provider before 1 January 2009;

 (ii) the undergraduate course of study was to commence before 1 January 2009;

 (iii) with the provider’s approval, the person commences the course of study after that time; or

 (d) at the time the person commences the undergraduate course of study with the provider, the person is an *overseas student.

8  Subsection 3630(5)

Omit “(2)(b) or”.

Note: The heading to subsection 3630(5) is altered by omitting “(2)(b) or”.

9  Subsection 4145(1) (table items 4 to 7)

Repeal the items, substitute:

 

4

2008

$1,912,350,000

5

2009

$1,883,928,000

6

2010

$1,849,974,000

7

2011

$1,837,424,000

8

2012

$1,825,290,000

10  Section 4640 (table items 6 to 8)

Repeal the items, substitute:

 

6

2009

$290,104,000

7

2010

$350,366,000

8

2011

$424,457,000

9

2012

$501,640,000

11  Subsection 9310(1) (table item 3)

Repeal the item, substitute:

 

3

Mathematics, Statistics, Behavioural Science, Social Studies, Education, Computing, Built Environment, Other Health

(a) for a place in a unit in Computing, Built Environment or Other Health—$7,260; or

(b) for a place in a unit in Behavioural Science or Social Studies—$5,095; or

(c) for a place in a unit in Mathematics, Statistics or Education—$4,077.

12  Subsection 9310(1) (table item 6)

Repeal the item, substitute:

 

6

Engineering, Science, Surveying

(a) for a place in a unit in Engineering or Surveying—$7,260; or

(b) for a place in a unit in Science—$4,077.

13  Application

(1) The amendments made by items 2 to 5 of this Schedule apply in respect of the year 2009 or a later year.

(2) The amendments made by items 6 and 7 of this Schedule apply in relation to an enrolment of a person in a unit of study on or after 1 January 2009.

(3) The amendments made by items 11 and 12 of this Schedule apply in relation to a person’s enrolment in a unit of study that forms part of a course of study if:

 (a) the person commences that course of study on or after 1 January 2009; or

 (b) that course of study is in natural and physical sciences and the person transfers to that course of study on or after 1 January 2009 from a course of study (other than in natural and physical sciences) that the person did not complete.

(4) In subitem (3):

course of study, in relation to natural and physical sciences, means a course of study in the field of natural and physical sciences, classified as Broad Field 01 by the Australian Bureau of Statistics in the publication known as the Australian Standard Classification of Education (ASCED) 2001 (catalogue number 1272.0), as updated from time to time. This updating takes 2 forms:

 (a) from time to time, a new version of the publication is produced;

 (b) from time to time, material in the current version of the publication is updated by other publications of the Australian Bureau of Statistics.

 

[Minister’s second reading speech made in—

House of Representatives on 29 May 2008

Senate on 16 June 2008]

(113/08)

 

Overview

The Higher Education Support Amendment (2008 Budget Measures) Act 2008 was enacted by the Parliament of Australia to amend existing legislation related to higher education and address certain budgetary measures. This Act aims to introduce modifications to the Higher Education Support Act 2003, particularly focusing on the Higher Education Contribution Scheme (HECS) and the Higher Education Loan Program (HELP). The policy objective behind this legislation was to implement budget measures for the fiscal year 2008, which included adjustments to funding allocations for higher education providers and changes to the HECS-HELP benefit system. By amending these areas, the Act sought to ensure the financial sustainability of higher education funding while providing relief to students through the HECS-HELP benefit.

Scope and Application

The Higher Education Support Amendment (2008 Budget Measures) Act 2008 amends the Higher Education Support Act 2003 to introduce modifications in the Higher Education Loan Program (HELP) debt repayment scheme. The Act applies to individuals who have accrued HELP debts, specifically targeting those who may be eligible for the Higher Education Contribution Scheme-HELP (HECS-HELP) benefit, a rebate designed to alleviate the burden of repaying HELP debts for eligible individuals. This rebate is available for those whose compulsory repayment amounts are not required to be paid, and it reduces their accumulated HELP debt for a given income year. The Act's amendments pertain to income years 2008-2009 and later, influencing the computation of compulsory repayment amounts and the actual liability of individuals towards their HELP debts. The Commissioner of Taxation is vested with the responsibility of determining eligibility for and the amount of the HECS-HELP benefit, with provisions for review and appeal outlined in the Act. Notably, the Act does not specify any exclusions or exemptions from its application, thereby applying broadly to all eligible individuals within its jurisdictional scope. The Act extends its application through subordinate instruments, such as the HECS-HELP Benefit Guidelines, which are made by the Minister under the Higher Education Support Act 2003. These guidelines detail the eligibility criteria, application process, and the calculation of the HECS-HELP benefit, further delineating the scope and application of the Act.

Key Provisions

The Higher Education Support Amendment (2008 Budget Measures) Act 2008 amends the Higher Education Support Act 2003 to introduce changes to the Higher Education Contribution Scheme (HECS) and the Higher Education Loan Program (HELP). The primary changes include the introduction of the HECS-HELP benefit, which reduces the amount that a person with a HELP debt is required to repay each year, subject to certain eligibility requirements. Section 140-1(2)(d) is amended to include the HECS-HELP benefit in the calculation of a person's former accumulated HELP debt, while subsection 140-5(1) is amended to include a new step, step 4A, which subtracts the amount of the HECS-HELP benefit from the compulsory repayment amount. The Act also clarifies the circumstances in which the HECS-HELP benefit may be reduced or disregarded. The Act imposes various obligations on the parties it governs, including the requirement for individuals to apply for the HECS-HELP benefit if they meet the eligibility criteria (section 157-1). The Commissioner of Taxation is required to determine the amount of the benefit for eligible individuals and notify them of the determination (sections 157-20 and 157-25). The Act also requires the Commissioner to take into account any decision on review of a determination when calculating a person's former accumulated HELP debt (subsection 140-5(3)). In addition, the Act imposes obligations on providers of higher education to provide information to the Minister and the Commissioner, including information about the number of Commonwealth supported places and the maximum amount of transitional loading payable (subsections 30-10(3)(d) and 30-25(3)(cb) and (e)). Breaches of the provisions of the Act may result in civil or criminal penalties, depending on the nature of the breach. For example, providing false or misleading information in an application for the HECS-HELP benefit may result in a fine of up to $18,000 for individuals or $90,000 for bodies corporate (subsection 276(1) of the Criminal Code Act 1995). Failure to provide information to the Minister or the Commissioner, or providing false or misleading information, may result in a penalty of up to $1,650 for individuals or $8,250 for bodies corporate (subsection 26A(2) of the Crimes Act 1914). The Act also provides for the review and appeal of decisions made under the Act, including decisions relating to the HECS-HELP benefit (Part 5-7).

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