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 2017-18 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 section, Higher Education Group, Department of Education and Training, GPO Box 9880, Canberra City, ACT 2601, or by telephoning (02) 6240 9482.
Section | Description |
154-10 | The minimum repayment income for the 2017-18 income year is $55,873. |
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 2017-18 income year: Applicable percentages | Item | If the person’s repayment income is: | 1 | $62,239 | 2 | $68,603 | 3 | $72,208 | 4 | $77,619 | 5 | $84,063 | 6 | $88,487 | 7 | $97,378 | 8 | $103,766 |
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Overview
The Higher Education Support Act 2003 was enacted to provide financial assistance to students and institutions within the Australian higher education sector. This legislation aimed to address the problem of limited access to higher education due to financial constraints and to ensure that students and institutions could manage the costs associated with higher education. The Act was passed by the Parliament of Australia and is administered by the Department of Education and Training. The policy objective behind the Act is to support a skilled and educated workforce by facilitating access to higher education through various financial assistance mechanisms, including the Higher Education Loan Program (HELP). In line with this objective, the Act includes provisions for the setting of repayment incomes and rates for the HELP, which are periodically updated to reflect changes in economic conditions and income levels. The notice mentioned in the Gazette is an example of such provisions, specifying the repayment incomes and rates for the 2017-18 income year to ensure that repayments are fair and aligned with the economic circumstances of the time.
Scope and Application
The Higher Education Support Act 2003, as notified through the C2017G00394 Gazette, sets forth the specific repayment incomes and rates for the Higher Education Loan Program (HELP) for the 2017-18 income year. This legislation applies to individuals who have received assistance under the HELP scheme and who are now required to make repayments. The Act provides a detailed table, with specific income brackets and corresponding repayment rates, to determine the amount each individual must repay based on their income. This Act applies across Australia, given that the HELP scheme is a national program managed by the Department of Education and Training. The repayment incomes and rates are set out in Section 154-10 and 154-20 of the Act, and further details can be obtained from the Study Assist website or by contacting the department directly. The Act does not specify any exclusions or exemptions, and the application of the repayment rates is straightforward, based on the income thresholds provided. Subordinate instruments may be used to further clarify or adjust the repayment incomes and rates in future years.
Key Provisions
The legislation, issued under the Higher Education Support Act 2003, specifies the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2017-18 income year. The key provisions include the minimum repayment income and the specific income thresholds that determine the applicable repayment rates. Section 154-10 states that the minimum repayment income for the 2017-18 income year is $55,873. This means that individuals earning above this amount are required to make repayments on their HELP debts.
Further details on the repayment rates are provided in Section 154-20, which outlines the income thresholds and corresponding percentages for repayment. For instance, if an individual's repayment income falls within the range of $62,239 to $68,603, a particular percentage will apply. These percentages vary incrementally as the income increases, with the highest threshold being $103,766 for the top rate. Each income bracket has a specified repayment percentage, ensuring that repayment obligations are proportionate to the individual's income.
The Act imposes several obligations on the parties involved, primarily focusing on the repayment of HELP loans. Individuals with repayment incomes above the specified thresholds must adhere to the repayment rates outlined in the legislation. They are required to accurately report their income and ensure timely repayments based on the applicable rates. Additionally, the Department of Education and Training is responsible for publishing and updating these rates annually, ensuring that borrowers are aware of their obligations.
Failure to comply with the repayment obligations can result in various consequences. While the legislation does not explicitly detail penalties, non-compliance can lead to legal action, including debt recovery measures. In severe cases, it may result in civil or criminal liability, although specific penalties are not outlined in this notice. The Department of Education and Training can take action to enforce repayment, which may include legal proceedings and additional interest accruing on the outstanding debt.
For more detailed information on the repayment incomes and rates, the public can access the Study Assist website, contact the Department of Education and Training directly, or obtain a copy of the notice from the specified address. This ensures transparency and accessibility for all stakeholders involved in the Higher Education Loan Program.