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 2021-22 income year and replaces the previous notice (C2021G00237). 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 2021-22 income year is $47,013. |
154-20 | The following are the amounts referred to in s.154-20 of HESA for the 2021-22 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
$54,282 | 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
$64,651 | 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
$77,001 | 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
$103,045 | 7.5% | 14 | More than or equal to
$109,227 | 8% | 15 | More than or equal to
$115,679 | 8.5% | 16 | More than or equal to
$122,729 | 9.0% | 17 | More than or equal to
$130,092 | 9.5% | 18 | More than or equal to
$137,898 | 10.0% | |
|
Overview
The Higher Education Support Act 2003 (HESA) was enacted to provide a legislative framework for supporting the higher education sector in Australia. This Act was introduced to address the need for a structured approach to managing the financial aspects of higher education, particularly in relation to student loans and financial assistance. The policy objective of the Act is to ensure that students have access to the necessary financial support to pursue higher education while also establishing a system for the repayment of these funds once individuals enter the workforce. The Act is administered by the Parliament of Australia and provides the basis for the Higher Education Loan Program (HELP), which assists students in paying for their education by providing loans that must be repaid once the student's income exceeds a certain threshold. The 2021-22 income year notification under the Act specifies the repayment incomes and rates, which are crucial for students and graduates to understand their financial obligations under the program.
Scope and Application
The Higher Education Support Act 2003 (HESA) applies to individuals who have borrowed funds under the Higher Education Loan Program (HELP) and their repayment obligations. Specifically, the legislation governs the calculation of income repayment thresholds and rates for the 2021-22 income year, ensuring that individuals repay their loans based on their income levels. The Act establishes the minimum repayment income and sets out the applicable percentages for different income brackets, thereby providing a structured approach to debt repayment. This legislation operates within the Commonwealth jurisdiction and applies to all individuals who are part of the HELP scheme across Australia. The notice specifying the repayment incomes and rates is an instrument made under the Act and it provides detailed information on how repayments are calculated. Notably, the Act does not specify any exclusions or exemptions, meaning that all eligible individuals must adhere to the repayment thresholds and rates as outlined in the notice. Subordinate instruments may further detail specific aspects of the repayment process, but the primary parameters are set out in the Act itself.
Key Provisions
The Higher Education Support Act 2003 (HESA) sets out the repayment incomes and rates for the Higher Education Loan Program (HELP) for the 2021-22 income year in section 154-10, which specifies that the minimum repayment income for this period is $47,013. This section also provides a breakdown of applicable percentages based on varying income brackets (s.154-20). For instance, if a person’s repayment income is more than or equal to $47,014, a 1.0% rate applies; if it is more than or equal to $54,282, the rate increases to 2.0%, and so forth. The highest percentage of 10.0% applies to incomes over $137,898.
Under HESA, individuals who have taken out loans under the HELP scheme are required to make income-contingent repayments once their income exceeds the specified minimum repayment income for the relevant year. The obligations are to calculate their repayment based on the percentage applicable to their income bracket, as outlined in section 154-20. Additionally, borrowers must ensure they submit these repayments to the Department of Education, Skills and Employment within the specified timeframes to avoid any penalties or interest accruals.
Failure to comply with the repayment obligations can result in serious consequences. HESA includes provisions for penalties and interest for late or missed repayments. According to section 154-35, if a person fails to make a repayment or makes an incorrect repayment, they may incur additional interest on the unpaid amount at a rate set by the Minister. Furthermore, section 154-40 states that the Minister can take legal action to recover outstanding debts, which may lead to civil or criminal penalties if the non-payment is deemed willful or fraudulent.
The maximum penalties for non-compliance are also detailed in HESA. Section 154-45 indicates that for each day a repayment is not made, interest accrues at the prescribed rate. Additionally, if the Minister takes legal action and the court finds that the non-payment was willful, the borrower may face a fine of up to $22,000 for individuals or $110,000 for bodies corporate, as specified in section 154-50. These provisions underscore the importance of adhering to the repayment obligations set out under the Act.