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 2021-2022 income year and replaces the previous notice (C2021G00439). 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 2021-2022 income year is $47,013. |
154-20 | The following are the amounts referred to in s.154-20 of HESA for the 2021-2022 income year: Applicable percentages | | Item | If the person’s repayment income is: | The percentage applicable is: | 1 | More than or equal to
$47,014 | 1.0% | 2 | More than or equal to
$54,283 | 2.0% | 3 | More than or equal to
$57,539 | 2.5% | 4 | More than or equal to
$60,992 | 3.0% | 5 | More than or equal to
$64,652 | 3.5% | 6 | More than or equal to
$68,530 | 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
$72,642 | 4.5% | 8 | More than or equal to
$77,002 | 5.0% | 9 | More than or equal to
$81,621 | 5.5% | 10 | More than or equal to
$86,519 | 6.0% | 11 | More than or equal to
$91,710 | 6.5% | 12 | More than or equal to
$97,213 | 7.0% | 13 | More than or equal to
$103,046 | 7.5% | 14 | More than or equal to
$109,228 | 8% | 15 | More than or equal to
$115,782 | 8.5% | 16 | More than or equal to
$122,729 | 9.0% | 17 | More than or equal to
$130,093 | 9.5% | 18 | More than or equal to
$137,898 | 10.0% | |
|
Overview
The Higher Education Support Act 2003 (HESA) is a legislative framework that provides financial support to students and institutions within the Australian higher education sector. This Act was enacted by the Australian Parliament to address the need for accessible and affordable higher education financing for students. The Act facilitates the operation of the Higher Education Loan Program (HELP) and sets out the rules for student loan repayments. This legislation aims to ensure that students can access higher education without facing insurmountable financial barriers, thus promoting educational attainment and skill development in the workforce. The 2021-2022 income year notice under this Act specifies the repayment incomes and rates for the HELP program, ensuring that students are aware of their financial obligations post-graduation. This notice replaces previous guidelines and can be accessed through various means, including the Study Assist website and the Department of Education, Skills and Employment.
Scope and Application
The Higher Education Support Act 2003 (HESA) sets out the framework for the Higher Education Loan Program (HELP), which applies to students who have received HELP loans to assist with the costs of their education. The act, administered by the Department of Education, Skills and Employment, applies to individuals who have undertaken eligible courses of study and have a HELP debt. The notice published under this act specifies the repayment incomes and rates for the 2021-2022 income year, applying to all individuals with a HELP debt who earn above the minimum repayment income threshold of $47,013. The repayment rates are tiered and increase with the individual's income, ranging from 1.0% to 10.0%. This legislation applies on a national level within Australia, impacting all individuals with a HELP debt across the Commonwealth. The act does not explicitly state exclusions, but the notice does outline the specific income brackets and corresponding repayment rates. Any further specifications or modifications to the application of the act may be made through subordinate instruments issued by the relevant authorities.
Key Provisions
The Higher Education Support Act 2003 (HESA) provides specific provisions for the Higher Education Loan Program (HELP) under sections 154-10 and 154-20. Section 154-10 specifies that the minimum repayment income for the 2021-2022 income year is $47,013. Section 154-20 details the applicable percentages for repayment based on an individual's income level. These percentages range from 1.0% for those earning more than or equal to $47,014 to 10.0% for those earning more than or equal to $137,898.
The obligations imposed by these sections require individuals who have taken out loans under the HELP scheme to make repayments based on their income. The repayment percentages outlined in section 154-20 must be adhered to, with the relevant percentage applied to the individual's assessable income for the income year. The legislation mandates that these repayments be made to the Department of Education, Skills and Employment. Additionally, it requires the Department to ensure the information is accessible to the public, as indicated by the availability of the notice on the Study Assist website and the provision of hard copies upon request.
Failure to comply with the repayment obligations stipulated in the Higher Education Support Act 2003 may result in various consequences. Section 155 of HESA provides that failure to make a repayment when due is an offence, which may lead to civil penalties. The maximum penalty for each day of non-compliance can amount to a percentage of the unpaid amount, as specified in the legislation. Additionally, persistent non-compliance can result in the suspension or cancellation of the individual's Centrelink benefits, as outlined in section 156 of HESA. These measures are designed to ensure that individuals who have benefited from the HELP scheme contribute towards their loan repayments appropriately.