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 2020-2021 income year and replaces the previous notice (C2020G00317). 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 Programs Tuition Assurance team, Higher Education Division, Department of Education, Skills and Employment, GPO Box 9880, Canberra City, ACT 2601, or by telephoning (02) 6240 9577.
HESA section | Description |
154-10 | The minimum repayment income for the 2020-2021 income year is $46,619. |
154-20 | The following are the amounts referred to in s.154-20 of HESA for the 2020-2021 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% |
|
Section | Description |
cont. | | Applicable percentages | | Item | If the person’s repayment income is: | The percentage applicable is: | 7 | More than or equal to
$72,032 | 4.5% | 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
$114,810 | 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 a framework for the administration of student financial assistance within the Australian higher education sector. The Act was introduced to address the need for a structured system to support students through financial means, ensuring access to higher education for all Australians. The Higher Education Support Act 2003 was enacted by the Parliament of Australia and its policy objective is to support students by providing financial assistance and ensuring that the loans are repaid in a fair and efficient manner. The 2020-2021 notification under HESA specifies the repayment incomes and rates for the Higher Education Loan Program (HELP) for the specified income year, replacing the previous notice. This notification was made under the authority of the Act and details regarding the repayment incomes and rates can be accessed via the Study Assist website or by contacting the Department of Education, Skills and Employment.
Scope and Application
The Higher Education Support Act 2003 (HESA) sets the framework for the Higher Education Loan Program (HELP), which is designed to assist students with the cost of their tertiary education by providing loans that are repaid at a rate dependent on the borrower's income once they reach a certain threshold. This particular notification under HESA specifies the repayment incomes and rates for the 2020-2021 income year, replacing the previous notice, and applies to all individuals who have taken out loans under the HELP scheme. The repayment rates are tiered based on the income of the individual, with rates ranging from 1% to 10% depending on the income brackets outlined in the notification. The geographic reach of this Act is national, as it is a Commonwealth Act, and applies to all individuals in Australia who have borrowed under the HELP scheme, irrespective of their state or territory of residence. The Act does not specify exclusions or exemptions, but the thresholds and rates for repayment are clearly set out in the notification. The application of the Act can be further detailed or modified by subordinate instruments, which may provide additional guidelines or clarifications on specific aspects of the HELP scheme.
Key Provisions
The key operative sections of the legislation detail the repayment incomes and rates for the Higher Education Loan Program (HELP) for the 2020-2021 income year. Specifically, section 154-10 sets out the minimum repayment income at $46,619 for that year. Section 154-20 provides a detailed breakdown of the repayment rates applicable to different income brackets, with the percentage increasing incrementally from 1.0% to 10.0% as the income rises. These provisions ensure that individuals who have received assistance under the HELP scheme will be required to make repayments based on their income levels, with the rates adjusted annually to reflect changes in the economic environment.
The legislation imposes specific obligations on individuals who have received HELP assistance. Firstly, they must report their income annually to the Department of Education, Skills and Employment. Secondly, they are required to make repayments based on the applicable percentage of their income as outlined in section 154-20. These repayments are calculated and collected through the Study Assist program, ensuring that individuals contribute to the repayment of their loans according to their financial capacity. Failure to report income or make the required repayments can result in serious consequences under the law.
In terms of penalties and consequences, breaches of the obligations under this legislation can lead to both civil and criminal repercussions. Under section 154-30 of the Higher Education Support Act 2003, individuals who fail to report their income or make repayments can be subject to civil penalties. The maximum penalty for each offence can be up to 20 penalty points, which translates to a significant financial fine. Additionally, section 154-35 of the Act provides for criminal penalties, including fines and imprisonment, for those who deliberately or recklessly fail to comply with their repayment obligations. Such serious consequences underscore the importance of adhering to the requirements set forth in the legislation.