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
$80,936 | 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 provide for the financial support of students undertaking higher education and to establish the Higher Education Loan Program (HELP). This legislation was introduced to address the financial barriers that students faced in accessing higher education and to ensure the sustainability of the higher education system. The Act sets out the framework for the repayment of student loans, including the determination of repayment incomes and rates. The Commonwealth Parliament enacted this legislation to ensure that higher education remains accessible and affordable for students across Australia. The policy objective of HESA is to facilitate the efficient and equitable provision of financial assistance to students, enabling them to pursue higher education while also ensuring the repayment of loans to maintain the integrity of the funding system. The notice under HESA specifies the repayment incomes and rates for the HELP for the 2020-21 income year, 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 (HESA) governs the Higher Education Loan Program (HELP) and establishes the framework for the repayment of student loans. The act applies to individuals who have received a Commonwealth supported place in a course of study at an eligible higher education provider. The notice under HESA specifies the repayment incomes and repayment rates applicable for the 2020-21 income year, detailing the income thresholds and corresponding percentages for loan repayments. These repayments are contingent upon the individual's income and are designed to ensure that the repayment of the loan is fair and proportionate to the individual's earning capacity. The legislation sets out a national scope, applying across Australia, and is enforced by the Department of Education, Skills and Employment. The notice excludes individuals whose income falls below the specified thresholds, and the application of the act can be extended or modified through subordinate instruments issued by the department.
Key Provisions
The key provisions of the Higher Education Support Act 2003, as applied in the 2020-21 income year, focus primarily on determining repayment incomes and rates for the Higher Education Loan Program (HELP). Under section 154-10 of the HESA, the minimum repayment income for the 2020-21 income year is set at $46,620. This threshold is the starting point from which repayment obligations begin. Section 154-20 then outlines the applicable percentages for various income brackets, which range from 1.0% to 10.0%, depending on the income level of the individual. These percentages are applied to calculate the actual amount of the repayment.
In terms of obligations, individuals who have received assistance under the HELP scheme are required to repay a portion of their debt based on their income and the applicable rates stipulated in the Act. The repayment income brackets and corresponding percentages provide a structured approach to ensure that repayments are fair and proportionate to an individual’s earnings. This structured repayment system is designed to ensure that those who benefited from the HELP scheme contribute back to the system as their earnings increase.
Failure to comply with the repayment obligations outlined in the Act can result in various consequences. Although the specific penalties are not detailed in the provided text, breaches of repayment obligations under HESA can generally lead to both civil and criminal penalties. These can include fines, legal action, and in severe cases, the accumulation of additional debt. The exact nature and severity of the penalties would depend on the specifics of the breach and the discretion of the relevant authorities. It is important for individuals to adhere to their repayment obligations to avoid these potential consequences.