Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A person's former accumulated VETSL debt , in relation to the person's accumulated VETSL debt for a financial year, is worked out by multiplying:
(a) the amount worked out using the following method statement; by
(b) the HELP debt indexation factor (within the meaning of the Higher Education Support Act 2003 ) for 1 June in that financial year.
Method statement
Step 1. Take the person's accumulated VETSL debt for the immediately preceding financial year. (This amount is taken to be zero if the person has no accumulated VETSL debt for that financial year.)
Step 2. Add the sum of all of the VETSL debts (if any) that the person incurred during the last 6 months of the immediately preceding financial year. If the total is a number of whole dollars and a number of cents, the total is taken to be the number of whole dollars. If the total is an amount of less than one dollar, the total is taken to be zero.
Step 3. Subtract the sum of the amounts by which the person's debts referred to in steps 1 and 2 are reduced because of any voluntary repayments that have been made during the period:
(a) starting on 1 June in the immediately preceding financial year; and
(b) ending immediately before the next 1 June.
Step 4. Subtract the sum of all of the person's compulsory VETSL repayment amounts that:
(a) were assessed during that period (excluding any assessed as a result of a return given before that period); or
(b) were assessed after the end of that period as a result of a return given before the end of that period.
Step 5. Subtract the sum of the amounts by which any compulsory VETSL repayment amount of the person is increased (whether as a result of an increase in the person's taxable income of an income year or otherwise) by an amendment of an assessment made during that period.
Step 6. Add the sum of the amounts by which any compulsory VETSL repayment amount of the person is reduced (whether as a result of a reduction in the person's taxable income of an income year or otherwise) by an amendment of an assessment made during that period.
Example: Lorraine is studying part - time for a Diploma of Early Childhood Education and Care. On 1 June 2020, Lorraine had an accumulated VETSL debt of $15,000. She incurred a VETSL debt of $1,500 on 31 March 2020. She made a voluntary repayment of $525 on 1 May 2021. Lorraine lodged her 2019 - 20 income tax return and a compulsory VETSL repayment amount of $3,000 was assessed and notified on her income tax notice of assessment on 3 September 2020.
To work out Lorraine's former accumulated VETSL debt before indexation on 1 June 2021:
Step 1: Take the previous accumulated VETSL debt of $15,000 on 1 June 2020.
Step 2: Add the VETSL debt of $1,500 incurred on 31 March 2020.
Step 3: Subtract the $525 voluntary repayment made on 1 May 2021.
Step 4: Subtract the $3,000 compulsory repayment assessed on 3 September 2020.
Step 5: Does not apply because since 1 June 2020 Lorraine had no amendments to any assessment.
Step 6: Does not apply because since 1 June 2020 Lorraine had no amendments to any assessment.
Lorraine's former accumulated VETSL debt before indexation on 1 June 2021 is:
If, for example, the indexation factor for 1 June 2021 were 1.030, then the former accumulated VETSL debt would be:
(2) For the purposes of this section, an assessment, or an amendment of an assessment, is taken to have been made on the day specified in the notice of assessment, or notice of amended assessment, as the date of issue of that notice.