Notification of the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2024-2025 income year
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 2024-2025 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 from the Director, HELP Policy team, Higher Education Division, Department of Education, GPO Box 9880, Canberra City, ACT 2601, or by telephoning (02) 6240 5397.
HESA section | Description |
154-10 | The minimum repayment income for the 2024-2025 income year is $54,434. |
154-20 | The following are the amounts referred to in s.154-20 of HESA for the 2024-2025 income year: Applicable percentages | | Item | If the person’s repayment income is: | The percentage applicable is: | 1 | More than or equal to
$54,435 | 1.0% | 2 | More than or equal to
$62,851 | 2.0% | 3 | More than or equal to
$66,621 | 2.5% | 4 | More than or equal to
$70,619 | 3.0% | 5 | More than or equal to
$74,856 | 3.5% | 6 | More than or equal to
$79,347 | 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
$84,108 | 4.5% | 8 | More than or equal to
$89,155 | 5.0% | 9 | More than or equal to
$94,504 | 5.5% | 10 | More than or equal to
$100,175 | 6.0% | 11 | More than or equal to
$106,186 | 6.5% | 12 | More than or equal to
$112,557 | 7.0% | 13 | More than or equal to
$119,310 | 7.5% | 14 | More than or equal to
$126,468 | 8% | 15 | More than or equal to
$134,057 | 8.5% | 16 | More than or equal to
$142,101 | 9.0% | 17 | More than or equal to
$150,627 | 9.5% | 18 | More than or equal to
$159,664 | 10.0% | |
|
Overview
The Higher Education Support Act 2003 (HESA) was enacted by the Australian Parliament to establish the framework for the Higher Education Loan Program (HELP), which assists students in paying for their education by providing loans that are repaid once the individual’s income exceeds a certain threshold. The 2024-2025 income year notification under this Act specifies the repayment incomes and rates applicable for the Higher Education Loan Program, addressing the need to periodically adjust these figures in line with changes in the economic environment and income levels. The notice ensures that repayment rates are kept current and fair, thereby supporting the policy objective of ensuring that the repayment mechanism remains equitable and sustainable for both the government and the loan recipients.
Scope and Application
The Higher Education Support Act 2003, as applied through the 2024-2025 income year notification for the Higher Education Loan Program (HELP), outlines the repayment incomes and rates applicable to individuals who have received HELP assistance. The legislation specifically targets individuals who have borrowed funds under the HELP scheme to assist with their tertiary education expenses, thereby ensuring that these borrowers are obligated to repay their loans once they reach a certain income threshold. The repayment incomes and corresponding rates are determined based on the individual's income, with the minimum repayment income set at $54,434 for the specified income year. The Act applies nationally across Australia and does not explicitly exclude any categories of individuals or entities from its purview, unless otherwise specified through subordinate instruments. Further details and the complete list of repayment incomes and rates can be accessed from the Study Assist website or by contacting the Director, HELP Policy team.
Key Provisions
The legislation outlines the repayment incomes and rates for the Higher Education Loan Program (HELP) for the 2024-2025 income year. As per section 154-10 of the Higher Education Support Act 2003 (HESA), the minimum repayment income for the 2024-2025 income year is set at $54,434. The following sections, detailed in section 154-20 of HESA, establish the repayment rates based on varying income brackets. For instance, if a person's repayment income exceeds $54,435, a 1.0% repayment rate applies. The rates increase incrementally, reaching a maximum of 10.0% for incomes exceeding $159,664. These provisions ensure that repayment rates are adjusted according to the individual's income level, thereby aligning with the program's objective of income-contingent repayment.
The legislation imposes specific obligations on entities and individuals subject to the Higher Education Loan Program (HELP). It requires eligible borrowers to repay a portion of their student debt based on their income levels, as specified by the repayment incomes and rates outlined in the Act. The repayment rates are calculated on the basis of the income reported by the borrower, and these repayments are to be made to the relevant authority as stipulated by HESA. The legislation also mandates that the repayment incomes and rates be published and made accessible to the public, ensuring transparency and accessibility of the information. These obligations ensure that the program operates efficiently and that repayments are managed in accordance with the borrower’s capacity to pay.
Failure to comply with the provisions of the Higher Education Support Act 2003 (HESA) can result in various consequences. While the Act does not explicitly detail specific offences or penalties for non-compliance with the repayment incomes and rates for the Higher Education Loan Program (HELP), it falls under the broader regulatory framework of HESA. Non-compliance with HESA provisions generally can lead to civil or criminal penalties, including fines and imprisonment. The maximum penalties for offences under HESA can be significant, depending on the nature and severity of the breach. For example, under HESA, a person can be subject to penalties for making false or misleading statements, which can result in fines of up to $22,200 for individuals and $111,000 for corporations. These potential consequences underscore the importance of adhering to the repayment obligations set forth by the Act.