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 2019-20 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 2019-20 income year is $45,880, as referred in s.152-10 of HESA. |
154-20 | The following are the amounts referred to in s.154-20 of HESA for the 2019-20 income year: Applicable percentages | | Item | If the person’s repayment income is: | The percentage applicable is: | 1 | More than or equal to
$45,881 | 1.0% | 2 | More than or equal to
$52,974 | 2.0% | 3 | More than or equal to
$56,152 | 2.5% | 4 | More than or equal to
$59,522 | 3.0% | 5 | More than or equal to
$63,093 | 3.5% | 6 | More than or equal to
$66,878 | 4.0% | 7 | More than or equal to
$70,891 | 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
$75,145 | 5.0% | 9 | More than or equal to
$79,653 | 5.5% | 10 | More than or equal to
$84,433 | 6.0% | 11 | More than or equal to
$89,499 | 6.5% | 12 | More than or equal to
$94,869 | 7.0% | 13 | More than or equal to
$100,561 | 7.5% | 14 | More than or equal to
$106,594 | 8% | 15 | More than or equal to
$112,990 | 8.5% | 16 | More than or equal to
$119,770 | 9.0% | 17 | More than or equal to
$126,956 | 9.5% | 18 | More than or equal to
$134,573 | 10.0% | |
|
Overview
The Higher Education Support Act 2003 (HESA) was enacted by the Australian Parliament to address the need for a structured approach to the repayment of student loans for those who have benefited from government-supported higher education. This Act established the Higher Education Loan Program (HELP), which facilitates the repayment of loans taken out by students for their tertiary education. The legislation aims to ensure that the repayment of these loans is fair and manageable for the borrowers, while also maintaining the sustainability of the loan system. The Department of Education and Training, under the authority of HESA, issues notifications to specify the repayment incomes and rates for each income year, ensuring that the policy objectives of HESA are implemented effectively. These notifications outline the specific income thresholds and the corresponding repayment rates for the current income year, ensuring transparency and accessibility for borrowers.
Scope and Application
The Higher Education Support Act 2003 applies to individuals who have taken out loans under the Higher Education Loan Program (HELP). This legislation sets out the conditions for repayment of these loans and specifies the repayment incomes and rates for a given income year. The act applies to the Commonwealth of Australia, and the repayment incomes and rates are determined by the Department of Education and Training. The notice specifies the repayment incomes and rates for the 2019-20 income year and can be obtained from the Study Assist website or by contacting the Director, HELP Policy and Programs team, Higher Education Group, Department of Education and Training. The notice sets out the minimum repayment income for the 2019-20 income year and provides a table of repayment rates based on the individual's income. The act may be extended or restricted through subordinate instruments.
The Higher Education Support Act 2003 does not apply to individuals who have taken out loans under other loan programs, such as the Trade Support Loan Program or the Parental Help Loan Program. Additionally, the act does not apply to individuals who have not taken out loans under the HELP program. The act sets out specific exclusions and exemptions, such as for individuals who are receiving certain government benefits or who are living outside of Australia. The act also specifies thresholds for repayment incomes and rates, which are adjusted annually to account for changes in the cost of living and other factors. Overall, the Higher Education Support Act 2003 provides a framework for the repayment of HELP loans and ensures that individuals who have taken out these loans are able to repay them in a fair and reasonable manner.
Key Provisions
The Higher Education Support Act 2003 (HESA) sets out provisions for the Higher Education Loan Program (HELP), detailing the repayment incomes and rates for the 2019-20 income year. According to section 154-10, the minimum repayment income for this period is $45,880. This threshold is critical as it determines the point at which repayments on HELP debts commence. Section 154-20 further elaborates on the applicable percentages based on the repayment income. For instance, if a person's repayment income is more than or equal to $45,880, the applicable percentage is 1.0%. This percentage increases incrementally as the income increases, reaching up to 10.0% for those with a repayment income more than or equal to $134,573.
The obligations under the Act are primarily centred on ensuring that individuals who have taken out HELP loans and meet the specified income thresholds commence repayments. These repayments are calculated based on the individual's income and the applicable percentages as outlined in the Act. Borrowers are required to notify the Department of Education and Training of their income details to ensure accurate calculation and collection of repayments. This process ensures that the HELP scheme is self-sustaining and that the debt is managed effectively.
Failure to comply with the repayment obligations can result in serious consequences. The Act stipulates that non-compliance may lead to various civil or criminal penalties, although specific penalties are not detailed in the provided text. Generally, under the HESA, penalties for non-compliance can include fines and, in severe cases, legal action to recover the outstanding debt. The exact penalties would be determined based on the nature and severity of the breach, as well as any mitigating factors that may apply. However, the maximum penalties are not explicitly stated in the provided excerpt.