DEPARTMENT OF EDUCATION AND TRAINING
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 2016-17 income year. It has been made under the Higher Education Support Act 2003. A copy of the repayment incomes and rates can be obtained from the Study Assist website at www.studyassist.gov.au or the Director, Legislation Strategy and HELP Policy team, Higher Education Group, Department of Education and Training, GPO Box 9880, Canberra City, ACT 2601, or by telephoning (02) 6240 9604.
Section | Description |
154-10 | The minimum repayment income for the 2016-17 income year is $54,869. |
154-20 | The following are the amounts referred to in paragraph (b) of the second column of items 1 to 8 of the table in section 154-20 for the 2016-17 income year: Applicable percentages | Item | If the person’s repayment income is: | 1 | $61,120 | 2 | $67,369 | 3 | $70,910 | 4 | $76,223 | 5 | $82,551 | 6 | $86,895 | 7 | $95,627 | 8 | $101,900 |
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Overview
The Higher Education Support Act 2003, enacted by the Australian Parliament, was introduced to address the financial challenges faced by students and graduates in accessing and repaying higher education loans. The act provides the legal framework for the Higher Education Loan Program (HELP), ensuring that individuals who receive government-supported higher education loans are able to manage their debt repayments in a way that is fair and sustainable. This act is integral in maintaining the balance between supporting higher education and ensuring that the financial burden of loan repayments is appropriately managed. The 2016-17 income year notification under this act specifies the repayment incomes and rates for the HELP, ensuring that the thresholds and percentages are updated to reflect the current economic conditions and income levels. This notification serves as an essential tool for both the Department of Education and Training and the students, providing clear guidelines on the financial obligations associated with their education loans.
Scope and Application
The notification under the Higher Education Support Act 2003 pertains to the Higher Education Loan Program (HELP) for the 2016-17 income year, specifying the repayment incomes and repayment rates applicable to individuals who have received assistance under the program. This Act applies to all persons who have borrowed funds under the HELP scheme and are required to repay these funds, according to their income levels. The notification sets out the minimum repayment income for the specified income year and delineates various income thresholds with corresponding repayment rates. The legislation is applicable across the Commonwealth of Australia, with a uniform approach to repayment rates and incomes, ensuring consistency in the obligations of borrowers nationwide. This notification extends its reach to all individuals who have taken out HELP loans and are liable for repayment, irrespective of their location within Australia. However, the notification itself does not explicitly state any exclusions, exemptions, or specific thresholds other than those detailed for the 2016-17 income year. Further details and the complete table of repayment incomes and rates can be accessed through the Study Assist website or by contacting the relevant department directly.
Key Provisions
The key sections of the Higher Education Support Act 2003 that are relevant to this notification (sections 154-10 and 154-20) establish the minimum repayment income for the 2016-17 income year, which is $54,869, and provide specific income thresholds and corresponding percentages for determining repayment rates. These sections detail the amounts referred to in the second column of the table in section 154-20, which are used to calculate the repayment rates based on the income levels of individuals participating in the Higher Education Loan Program (HELP). These figures are critical for determining how much former students, who have borrowed under this program, are required to repay based on their income levels.
The Act imposes several obligations on the parties it governs. Individuals who have taken out loans under the HELP scheme must adhere to the repayment rates as specified by the Act. These rates are calculated based on the income thresholds outlined in the notification, and borrowers are required to make repayments according to these rates. The Department of Education and Training is responsible for publishing the necessary information to ensure that borrowers are aware of their obligations and can calculate their repayments accurately. The Act also mandates that the Department provides accessible means for individuals to obtain the necessary income thresholds and rates, such as through the Study Assist website or other specified channels.
Failure to comply with the repayment obligations set out in the Higher Education Support Act 2003 can result in significant consequences. The Act does not specify the exact offences or penalties in this notification, but breaches of repayment obligations can lead to legal action being taken by the Department of Education and Training. Typically, penalties for non-compliance may include interest on unpaid amounts, which can accrue over time and increase the total debt. Additionally, persistent non-compliance could potentially lead to further civil or administrative actions, including garnishing wages or imposing other financial restrictions. It is important for borrowers to understand and meet their repayment obligations to avoid these potential consequences.