Commonwealth Consolidated Acts Commonwealth Consolidated ActsPart 1 -- Amendments commencing on Royal Assent
1 Section 3 (index of definitions)
Insert the following entries in their appropriate alphabetical positions, determined on a letter - by - letter basis:
accumulated FS debt | 19AB(2) |
adjusted accumulated FS debt | 19AB(2) |
amount notionally repaid | 19AB(2) |
amount outstanding | 19AB(2) |
amount repaid | 19AB(2) |
approved course of education or study | 19AB(2), 541B(1) |
austudy payment general rate | 19AB(3) |
AWE | 19AB(2) |
category 1 student | 19AB(2) |
category 2 student | 19AB(2) |
Commissioner | 19AB(2) |
Commissioner of Taxation | 19AB(2) |
contract period | 19AB(2) |
cooling off period | 19AB(2) |
discount | 19AB(2) |
earlier date | 19AB(2) |
eligibility period | 19AB(2) |
financial corporation | 19AB(2) |
financial supplement contract | 19AB(2) |
FS assessment debt | 19AB(2) |
FS debt | 19AB(2) |
index number | 19AB(2) |
intending to undertake a course | 19AB(5) |
interest subsidy | 19AB(2) |
intermediate prescribed amount | 19AB(2) |
later date | 19AB(2) |
maximum amount of financial supplement | 19AB(2) |
maximum prescribed amount | 19AB(2) |
minimum amount of financial supplement | 19AB(2) |
minimum prescribed amount | 19AB(2) |
office | 19AB(2) |
original amount | 19AB(2) |
overpayment | 19AB(2) |
participating corporation | 19AB(2) |
principal sum | 19AB(2) |
relevant debt | 19AB(2) |
revised amount | 19AB(2) |
saved amount | 19AB(2) |
short course | 19AB(2) |
Social Security Student Financial Supplement Scheme 1998 | 19AB(2) |
supplement entitlement notice | 19AB(2) |
termination date | 19AB(2) |
termination notice | 19AB(2) |
tertiary course | 19AB(2) |
trade back | 19AB(2) |
trade in | 19AB(2) |
undertaking a course | 19AB(5) |
weekday | 19AB(2) |
wrongly paid supplement | 19AB(2) |
year | 19AB(2) |
year of income | 19AB(2) |
youth allowance general rate | 19AB(4) |
2 Before section 19B
Insert:
19AB Student Financial Supplement Scheme definitions
(1) This section has effect for the purposes of Chapter 2B.
(2) Unless the contrary intention appears:
"accumulated FS debt" has the meaning given by section 1061ZZEQ.
"adjusted accumulated FS debt" has the meaning given by section 1061ZZES.
"amount notionally repaid" has the meaning given by subsection 1061ZZCN(5) or (7), as applicable.
"amount outstanding" has the meaning given by section 1061ZZCG or 1061ZZCH, as applicable.
"amount repaid" has the meaning given by subsection 1061ZZCJ(3), as affected by section 1061ZZCL.
"approved course of education or study" has the same meaning as in subsection 541B(5).
Note: This expression is used, with the same meaning, in sections 569B and 1061PC.
"austudy payment general rate" has the meaning given by subsection (3).
"AWE" has the meaning given by section 1061ZZFF.
"category 1 student" has the meaning given by section 1061ZZ.
"category 2 student" has the meaning given by section 1061ZZA.
"Commissioner" means Commissioner of Taxation.
"Commissioner of Taxation" includes a Second Commissioner of Taxation and a Deputy Commissioner of Taxation.
"contract period" of a financial supplement contract has the meaning given by subsection 1061ZZAX(7) or 1061ZZAY(3).
"cooling off period" means a period referred to in section 1061ZZBD.
"discount" has the meaning given by section 1061ZZCM.
"earlier date" has the meaning given by paragraph 1061ZZEQ(2)(b).
"eligibility period" for a person means an eligibility period under section 1061ZY and includes an eligibility period for the purposes of the Social Security Student Financial Supplement Scheme 1998.
"financial corporation" means:
(a) a foreign corporation within the meaning of paragraph 51(xx) of the Constitution whose sole or principal business activities in Australia are the borrowing of money and the provision of finance; or
(b) a financial corporation within the meaning of that paragraph;
and includes a bank.
"financial supplement contract" means a contract referred to in subsection 1061ZZAX(2) or 1061ZZAY(1).
"FS assessment debt" means an amount that is required to be paid in respect of an accumulated FS debt under section 1061ZZEZ and is included in an assessment made under Division 7 of Part 2B.3 or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998.
"FS debt" has the meaning given by section 1061ZZEO.
"index number" for a quarter means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician for the quarter.
"intending to undertake a course" : see subsection (5).
"interest subsidy" , in relation to financial supplement paid to a person by a participating corporation under a financial supplement contract, means the part of any subsidy paid by the Commonwealth to the corporation, without cost to the person, in respect of the supplement under the agreement entered into with the corporation under section 1061ZZAG, that is in lieu of interest.
"intermediate prescribed amount" has the meaning given by section 1061ZZFD.
"later date" has the meaning given by paragraph 1061ZZEQ(1)(a) or (2)(a), as the case requires.
"maximum amount of financial supplement" has the meaning given by section 1061ZZAK or 1061ZZAO, as the case requires, as affected by section 1061ZZAQ.
"maximum prescribed amount" has the meaning given by section 1061ZZFE.
"minimum amount of financial supplement" has the meaning given by section 1061ZZAP.
"minimum prescribed amount" has the meaning given by section 1061ZZFC.
"office" means a branch office but does not include an agency or administrative office.
"original amount" has the meaning given by subsection 1061ZZCW(1).
"overpayment" , for a person in relation to an eligibility period, means either of the following:
(a) a debt or overpayment that is to be recovered under Chapter 5 from the person during the eligibility period;
(b) an amount the person is liable to pay to the Commonwealth under section 1061ZZDE, 1061ZZDL, 1061ZZDV or 1061ZZEE that the Secretary has decided is to be recovered during the eligibility period.
"participating corporation" has the meaning given by subsection 1061ZZAG(3).
"principal sum" , at a time during the contract period of a financial supplement contract, means the total of the amounts of financial supplement paid under the contract before that time by the participating corporation to the other party to the contract.
"relevant debt" has the meaning given by section 1061ZZFB.
"revised amount" has the meaning given by subsection 1061ZZCW(1).
"saved amount" means an amount referred to in subsection 1061ZZBO(3).
"short course" means a tertiary course that is designed to be completed in, at most, 30 weeks (including vacations).
"Social Security Student Financial Supplement Scheme 1998" means the scheme of that name established by the Minister under Chapter 2B of this Act as in force before the commencement of this section.
"supplement entitlement notice" given to a person means a notice given to the person under subsection 1061ZZAC(3) or 1061ZZAD(4), or a notice referred to in subsection 1061ZZAE(3).
"termination date" of a financial supplement contract means the date set out in the contract under subsection 1061ZZAX(6) or as mentioned in subsection 1061ZZAY(2).
"termination notice" means a notice given under section 1061ZZCQ or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998 .
"tertiary course" means a tertiary course that is an approved course of education or study.
"trade back" has the meaning given by section 1061ZZAT.
"trade in" has the meaning given by section 1061ZZAR.
"undertaking a course" : see subsection (5).
"weekday" means a day from Monday to Friday (inclusive), whether or not the day is a public holiday.
"wrongly paid supplement" has the meaning given by subsections 1061ZZDB(4), 1061ZZDI(4), 1061ZZDS(4) and 1061ZZEC(4).
"year" means a calendar year.
"year of income" has the same meaning as in the Income Tax Assessment Act 1936 .
"youth allowance general rate" has the meaning given by subsection (4).
(3) A person's austudy payment general rate is the rate of austudy payment that would be payable to the person if the rate were worked out:
(a) using the Austudy Payment Rate Calculator; and
(b) not including any amount as pharmaceutical allowance or remote area allowance.
(4) A person's youth allowance general rate is the rate of youth allowance that would be payable to the person if the rate were worked out:
(a) using the Youth Allowance Rate Calculator; and
(b) not including any amount as pharmaceutical allowance, rent assistance or remote area allowance.
(5) The question whether a person is intending to undertake a course or is undertaking a course is to be determined, so far as practicable and with any necessary changes, in the same way as the question whether a person is intending to undertake study or is undertaking study, as the case may be, is determined under section 541B.
3 Subsection 23(1) (definition of financial supplement )
Repeal the definition, substitute:
"financial supplement" means a loan that has been or may be made under a financial supplement contract as defined by section 19AB.
4 Subsection 23(1) (at the end of the definition of recipient notification notice )
Add:
; or (s) section 1061ZZBR.
5 Subsection 23(1) (at the end of the definition of recipient statement notice )
Add:
; or (s) section 1061ZZBY.
6 Chapter 2B
Repeal the Chapter, substitute:
Chapter 2B--Student Financial Supplement Scheme
Part 2B.1 -- Establishment of scheme
The object of this Chapter is to establish a Student Financial Supplement Scheme enabling certain tertiary students to obtain a repayable financial supplement by entering into a contract for that purpose with a financial corporation that participates in the scheme.
(1) The scheme provides for the reduction of the rate of youth allowance, austudy payment or pensioner education supplement payable to a person who obtains financial supplement.
(2) The scheme contains provisions under which the amount of supplement that the person is eligible to obtain depends on the total rate of youth allowance, austudy payment or pensioner education supplement that the person chooses to receive. Those provisions allow the person to choose to repay some or all of the youth allowance, austudy payment or pensioner education supplement, or to receive a lower rate of payment of such an allowance, payment or supplement, in order to receive a higher amount of financial supplement.
(3) The scheme provides that the person is not liable to pay interest to the financial corporation in respect of financial supplement received by the person, but provides for payment by the Commonwealth, without cost to the person, to the financial corporation of a subsidy that includes an amount in lieu of interest.
(4) The scheme provides for the amount of the financial supplement that has to be repaid under a contract to be indexed on 1 June in the year next following the year in which the contract is entered into, and on 1 June in each later year. The amount by which the supplement is increased by indexation is owed by the person to the Commonwealth and not to the financial corporation.
(5) Under the scheme, the person is entitled, but not required, to make early repayments in respect of the supplement during the period of the contract. The scheme provides for a discount for any repayments made before the end of that period.
(6) The scheme provides that, if financial supplement paid to a person is not repaid in full before the end of the period of the contract, the obligation to repay the outstanding amount of the supplement is transferred to the Commonwealth, and the indexed amount is repayable by the person to the Commonwealth through the taxation system when the person's income reaches a specified level.
Division 2 -- Eligibility to obtain financial supplement
1061ZY Eligibility to obtain financial supplement
A person is eligible to obtain financial supplement for a period (an eligibility period ) that is a year or a part of a year if:
(a) the person is undertaking, or intending to undertake, a tertiary course at an educational institution throughout the period; and
(b) the person does not undertake a course of primary or secondary education at any time during the period; and
(c) the person is a category 1 student or a category 2 student in respect of the period; and
(d) the amount of financial supplement that the person is eligible to obtain under Division 6 for the year is not less than the minimum amount of financial supplement.
(1) A person is a category 1 student in respect of a period if, throughout the period, one or more of the payments referred to in this section are payable to the person.
(2) The payment may be youth allowance if:
(a) the person's youth allowance general rate is more than zero; and
(b) the youth allowance is payable because the person is undertaking full - time study.
(3) The payment may be austudy payment if the person's austudy payment general rate is more than zero.
(4) The payment may be pensioner education supplement.
(1) A person is a category 2 student in respect of a period if:
(a) the person is not a category 1 student in respect of the period; and
(b) throughout the period the person is undertaking full - time study; and
(c) throughout the period youth allowance at the youth allowance general rate is not payable to the person, and is not so payable only because of the operation of:
(i) Module F (the parental income test) of the Youth Allowance Rate Calculator in section 1067G; or
(ii) Module G (the family actual means test) of that Calculator; and
(d) where throughout the period youth allowance at the youth allowance general rate is not payable to the person only because of the operation of Module F of that Calculator--the person's combined parental income for the appropriate tax year under Submodule 4 of that Module is throughout the period less than the person's modified parental income free area; and
(e) where throughout the period youth allowance at the youth allowance general rate is not payable to the person only because of the operation of Module G of that Calculator--the actual means of the person's family under that Module is throughout the period less than the person's modified parental income free area; and
(f) neither section 1061ZZAA nor 1061ZZAB applies to the person.
(2) For the purposes of paragraphs (1)(d) and (e), the person's modified parental income free area is the indexed amount that would be the person's parental income free area under point 1067G - F22 if the amount of $23,400 that was specified in paragraph 1067G - F22(a) when that paragraph was enacted had been $54,949.
1061ZZAA Failure by person to comply with request to provide person's tax file number
(1) This section applies to a person if:
(a) the Secretary has requested the person under section 1061ZZBP to:
(i) give the Secretary a written statement of the person's tax file number; or
(ii) apply to the Commissioner of Taxation for a tax file number and give the Secretary a written statement of the person's tax file number after it has been issued; and
(b) at the end of 28 days after the request is made, the person has neither:
(i) given the Secretary a written statement of the person's tax file number; nor
(ii) given the Secretary an employment declaration and satisfied either subsection (2) or (3).
(2) The person satisfies this subsection if:
(a) the employment declaration states that the person:
(i) has a tax file number but does not know what it is; and
(ii) has asked the Commissioner of Taxation to inform him or her of the number; and
(b) the person has given the Secretary a document authorising the Commissioner to tell the Secretary:
(i) whether the person has a tax file number; and
(ii) if the person has a tax file number--the tax file number; and
(c) the Commissioner has not told the Secretary that the person has no tax file number.
(3) The person satisfies this subsection if:
(a) the employment declaration states that the person has applied for a tax file number; and
(b) the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:
(i) if a tax file number is issued to the person--the tax file number; or
(ii) if the application is refused--that the application has been refused; or
(iii) if the application is withdrawn--that the application has been withdrawn; and
(c) the Commissioner has not told the Secretary that the person has not applied for a tax file number; and
(d) the Commissioner has not told the Secretary that an application by the person for a tax file number has been refused; and
(e) the application for a tax file number has not been withdrawn.
(1) Subject to subsection (4), this section applies to a person if:
(a) the person is requested under section 1061ZZBQ to give the Secretary a written statement of the tax file number of a parent of the person; and
(b) at the end of 28 days after the request is made the person has neither:
(i) given the Secretary a written statement of the parent's tax file number; nor
(ii) given the Secretary a declaration by the parent in a form approved by the Secretary and satisfied either subsection (2) or (3).
(2) The person satisfies this subsection if:
(a) the parent's declaration states that the parent:
(i) has a tax file number but does not know what it is; and
(ii) has asked the Commissioner of Taxation to inform him or her of his or her tax file number; and
(b) the person has given the Secretary a document signed by the parent that authorises the Commissioner to tell the Secretary:
(i) whether the parent has a tax file number; and
(ii) if the parent has a tax file number--the tax file number; and
(c) the Commissioner has not told the Secretary that the parent has no tax file number.
(3) The person satisfies this subsection if:
(a) the parent's declaration states that he or she has applied for a tax file number; and
(b) the person has given the Secretary a document signed by the parent that authorises the Commissioner of Taxation to tell the Secretary:
(i) if a tax file number is issued to the parent--the tax file number; or
(ii) if the application is refused--that the application has been refused; or
(iii) if the application is withdrawn--that the application has been withdrawn; and
(c) the Commissioner has not told the Secretary that an application by the parent for a tax file number has been refused; and
(d) the application for a tax file number has not been withdrawn.
(4) The Secretary may waive the request for a statement of the parent's tax file number if the Secretary is satisfied that:
(a) the person does not know the parent's tax file number; and
(b) the person can obtain none of the following from the parent:
(i) the parent's tax file number;
(ii) a statement of the parent's tax file number;
(iii) a declaration by the parent under subparagraph (1)(b)(ii).
Division 3 -- Decision and notice about eligibility to obtain financial supplement
(1) If a person claims youth allowance, austudy payment or pensioner education supplement, the Secretary must decide whether the person is eligible to obtain financial supplement for a period that is the whole or a part of a year.
(2) Also, if:
(a) the Secretary has made a decision in a year that a person is eligible to obtain financial supplement for a period that is the whole or a part of that year; and
(b) the person is likely to:
(i) continue to undertake the person's tertiary course in the next year; or
(ii) undertake a new tertiary course in the next year when enrolments in the course are next accepted;
the Secretary must make a new decision, as early as practicable in the next year, about whether the person is eligible to obtain financial supplement for a period that is the whole or a part of that next year.
(3) If the Secretary decides that the person is eligible to obtain financial supplement for a period, the Secretary must give the person a notice (a supplement entitlement notice ):
(a) stating that the person is eligible to obtain financial supplement for that period; and
(b) specifying the minimum and maximum amounts of financial supplement that the person can obtain.
1061ZZAD Revocation or variation of decision after review
(1) This section applies if:
(a) the Secretary has made a decision under section 1061ZZAC in relation to a person; and
(b) the Secretary has given the person a supplement entitlement notice under subsection 1061ZZAC(3) as a result of the decision; and
(c) after the notice was given the decision is reviewed under Chapter 6; and
(d) as a result of the review, the decision is revoked or varied.
(2) The revocation or variation revokes the supplement entitlement notice and the notice ceases to be valid for the purpose of applying for financial supplement.
(3) The Secretary must give the person a statement telling the person:
(a) that the decision has been revoked, or has been varied in a manner set out in the statement, as the case may be; and
(b) that the supplement entitlement notice has been revoked and ceases to be valid for the purpose of applying for financial supplement.
(4) If the decision is varied and, after the variation, the person is or becomes eligible to obtain financial supplement for a period, the Secretary must give the person a notice (also a supplement entitlement notice ):
(a) stating that the person is eligible to obtain financial supplement for that period; and
(b) specifying the minimum and maximum amounts of financial supplement that the person can obtain.
(1) This section applies if, immediately before the commencement of this Chapter, a person held a notice given under Part 3 of the Social Security Student Financial Supplement Scheme 1998.
(2) If the person had not used the notice before that commencement in an application for financial supplement under that Scheme, the person is eligible to obtain financial supplement under this Chapter for the period to which the notice related.
(3) The notice is taken to be a supplement entitlement notice given under this Division.
Division 4 -- Agreements between Commonwealth and financial corporations
1061ZZAF Applications for financial supplement
A person may apply for financial supplement only to a participating corporation.
(1) The Minister may enter into an agreement, on behalf of the Commonwealth, with a financial corporation for the payment by the corporation after the commencement of this Chapter, in the year in which this Chapter commences or a later year, of financial supplement.
(2) An agreement referred to in subsection (1) does not have any effect unless it:
(a) is expressed to have effect subject to this Chapter; and
(b) provides for the payment by the Commonwealth to the financial corporation, in respect of each amount of financial supplement paid by the corporation to a person that has not been repaid, or in respect of which the rights of the corporation have been transferred to the Commonwealth, of a subsidy of such amount or amounts, or at such rate or rates, and in respect of such period or periods, as are stated in the agreement.
(3) If such an agreement is entered into, the corporation is a participating corporation for the purposes of this Chapter in respect of the year, or each year, concerned.
(4) The parties to an agreement referred to in subsection (2) (including such an agreement as previously amended under this subsection) may enter into an agreement amending or terminating it.
(5) The amendment or termination of an agreement does not affect any financial supplement contract that was in force immediately before the amendment or termination took effect.
(6) If an agreement was in force, immediately before the commencement of this Chapter, between the Commonwealth and a financial corporation under section 1.7 of the Social Security Student Financial Supplement Scheme 1998, the amendment or termination of the agreement, and the commencement of an agreement under this section, do not affect any financial supplement contract made under that Scheme.
(7) An agreement between the Commonwealth and a financial corporation is not subject to any stamp duty or other tax under a law of a State or Territory.
(8) An officer may disclose to a participating corporation any information about a person that is relevant to the exercise or performance by the corporation of any of its rights or obligations in respect of the person under this Chapter.
(9) A participating corporation may disclose to an officer any information about a person that is relevant to the exercise or performance of any rights, powers or obligations conferred or imposed on an officer or on the Commonwealth in respect of the person under this Chapter.
Division 5 -- Application for financial supplement
A person who is eligible to obtain financial supplement for an eligibility period may apply to a participating corporation, during that period, for financial supplement.
A person may only apply for financial supplement by:
(a) completing an application form approved by the Secretary; and
(b) lodging it, with the person's supplement entitlement notice, at an office of a participating corporation.
1061ZZAJ Changing an application
A person who has applied for financial supplement for the eligibility period may, at any time, lodge another application form approved by the Secretary at an office of the participating corporation, telling the corporation that the person requires for that period:
(a) a specified lesser amount of financial supplement, which must be:
(i) not less than the total amount of financial supplement already paid to the person for the period; and
(ii) not less than the minimum amount of financial supplement in respect of the person for the year that constitutes, or includes, the eligibility period; or
(b) a specified greater amount of financial supplement, which must be not more than the maximum amount of financial supplement in respect of the person for the period.
Division 6 -- Amount of financial supplement
Subdivision A -- Category 1 students
1061ZZAK Maximum amount of financial supplement
(1) If the relevant eligibility period of a person who is a category 1 student is a year, the maximum amount of financial supplement for the period in respect of the person is the lesser of:
(a) $7,000; and
(b) the amount worked out using the following Method statement.
Method statement
Step 1 . Work out the total amount of youth allowance general rate, austudy payment general rate or pensioner education supplement that would be payable to the person for the eligibility period if the person did not apply for financial supplement.
Step 2 . Work out the total amount of advance payment deductions (if any) to be made from the person's rate of youth allowance or austudy payment, under Part 3.16A, in the eligibility period.
Subtract that total amount from the total amount worked out under Step 1.
Step 3 . Work out the total amount of overpayments (if any) for the eligibility period.
Subtract that total amount from the total amount worked out under Step 2.
Step 4 . Work out the total amount of deductions (if any) that are to be paid to the Commissioner of Taxation, under section 1359, for the eligibility period.
Note: Section 1359 provides for the deduction and payment to the Commissioner of Taxation of amounts of tax that a person is required to pay.
Subtract that total amount from the total amount worked out under Step 3.
Step 5 . Work out the total amount (if any) of youth allowance general rate, austudy payment general rate or pensioner education supplement that has already been paid for the eligibility period.
Ignore any amount that has already been dealt with under Step 2.
Ignore any amount that is taken never to have been paid because of section 1061ZZAW.
Subtract the total amount from the amount worked out under Step 4.
Step 6 . Multiply the amount left by 2.
Step 7 . If the result is not a number of whole dollars, round the result up to the next number of whole dollars.
(2) If the relevant eligibility period of a person who is a category 1 student is less than a year, the maximum amount of financial supplement for the period in respect of the person is the lesser of:
(a) the amount worked out using the Method statement in subsection (1); and
(b) the amount worked out using the following Method statement.
Method statement
Step 1 . Multiply $7,000 by the number of weekdays in the eligibility period.
Step 2 . Divide the result by the number of weekdays in the year in which the eligibility period is included.
If the result is not a number of whole dollars, round the result up to the next number of whole dollars.
(3) This section has effect subject to Subdivision C.
Subdivision B -- Category 2 students
1061ZZAL Change in eligibility period
(1) The maximum amount of financial supplement in respect of a person who is a category 2 student depends on the person's eligibility period.
(2) If the person is undertaking, or intends to undertake, a short course, it is necessary to work out whether the person's eligibility period is to be changed under section 1061ZZAM.
(3) If the person is neither undertaking, nor intending to undertake, a short course, it is necessary to work out whether the person's eligibility period is to be changed under section 1061ZZAN.
1061ZZAM Eligibility period (short course)
(1) This section explains whether, and how, to change the eligibility period for a person who is undertaking, or intending to undertake, a short course.
(2) Subject to subsection (3), the eligibility period that would have applied to the person apart from this subsection (the eligibility period otherwise applicable ) must be changed if the person applied for financial supplement more than 4 weeks after being given a supplement entitlement notice.
(3) The Secretary may decide that the eligibility period otherwise applicable is not to be changed if the Secretary is satisfied that:
(a) the person took reasonable steps to apply within 4 weeks after being given a supplement entitlement notice; and
(b) circumstances beyond the person's control prevented the person from applying within the 4 weeks; and
(c) the person applied as soon as practicable after the circumstances stopped.
(4) If the eligibility period otherwise applicable is to be changed, the person's new eligibility period is the period:
(a) starting on the later of:
(i) the day when the person applied; and
(ii) the start of the eligibility period otherwise applicable; and
(b) ending when the eligibility period otherwise applicable would have ended.
1061ZZAN Eligibility period (no short course)
(1) This section explains whether, and how, to change the eligibility period for a person who is neither undertaking, nor intending to undertake, a short course.
(2) Subject to subsection (3), the eligibility period that would have applied to the person apart from this subsection (the eligibility period otherwise applicable ) must be changed if the person applied for financial supplement after 31 May in the year in which the period is included.
(3) The Secretary may decide that the period is not to be changed if the Secretary is satisfied that:
(a) the person took reasonable steps to apply within 4 weeks after being given a supplement entitlement notice; and
(b) circumstances beyond the person's control prevented the person from applying within the 4 weeks; and
(c) the person applied as soon as practicable after the circumstances stopped.
(4) If the eligibility period otherwise applicable is to be changed and the person applied before 1 October in the year, the person's new eligibility period is the period:
(a) starting on the later of 1 July and the start of the eligibility period otherwise applicable; and
(b) ending when the eligibility period otherwise applicable would have ended.
(5) If the eligibility period otherwise applicable is to be changed and the person applied on or after 1 October in the year, the person's new eligibility period is the period:
(a) starting on the later of:
(i) the day when the person applied; and
(ii) the start of the eligibility period otherwise applicable; and
(b) ending when the eligibility period otherwise applicable would have ended.
1061ZZAO Maximum amount of financial supplement
(1) If:
(a) the person is undertaking, or intending to undertake, a short course; or
(b) the person is neither undertaking, nor intending to undertake, a short course and the person's eligibility period is less than a year;
the maximum amount of financial supplement for the eligibility period in respect of the person is worked out using the following Method statement.
Method statement
Step 1 . Multiply $2,000 by the number of weekdays in the eligibility period.
Step 2 . Divide the result by the number of weekdays in the year that includes the eligibility period.
If the result is not a number of whole dollars, round the result up to the next number of whole dollars.
(2) If the person is neither undertaking, nor intending to undertake, a short course, and the person's eligibility period is a year, the maximum amount of financial supplement for the eligibility period in respect of the person is $2,000.
(3) This section has effect subject to Subdivision C.
Subdivision C -- Provisions applying to both category 1 students and category 2 students
1061ZZAP Minimum amount of financial supplement
The minimum amount of financial supplement in respect of a person is $500.
1061ZZAQ Person doing more than one course
(1) This section applies if a person undertakes, or intends to undertake, more than one tertiary course in the same period in a year.
(2) The maximum amount of financial supplement for the period in respect of the person is the maximum amount worked out under this Division for the period in respect of the person for one of the courses.
(1) Financial supplement will be paid to a person who is eligible to obtain financial supplement at a rate determined by the person's financial supplement contract.
(2) If youth allowance, austudy payment or pensioner education supplement is payable to the person, the payment of financial supplement will reduce the rate at which the youth allowance, austudy payment or pensioner education supplement is payable.
(3) The reduction of the rate of payment is a trade in .
(4) The Division explains how trade in works.
(1) The period for which a payment of financial supplement will be made is an instalment period .
(2) Subject to subsection (3), the rate of youth allowance, austudy payment or pensioner education supplement that would have been payable to the person in an instalment period is reduced by an amount equal to one - half of the amount of financial supplement to be paid during the instalment period under the financial supplement contract.
(3) If, apart from this subsection, the amount by which the rate would be reduced is an amount including one - half of a cent, the amount is to be increased by one - half of a cent.
(4) This section has effect despite any other provision of this Act.
Subdivision A -- Purpose of Division
(1) If a person who is eligible to obtain financial supplement wishes to obtain financial supplement, the person may repay an amount of youth allowance, austudy payment or pensioner education supplement.
(2) If a person who is obtaining financial supplement wishes to increase the amount of financial supplement, the person may repay an amount of youth allowance, austudy payment or pensioner education supplement.
(3) The repayment of the youth allowance, austudy payment or pensioner education supplement is a trade back .
(4) This Division explains how trade back works.
(5) This Division also sets out the effect of trade back.
(6) This Division does not affect the operation of Chapter 5.
1061ZZAU Election to repay youth allowance, austudy payment or pensioner education supplement
(1) A person to whom youth allowance, austudy payment or pensioner education supplement was payable during a payment period may elect to repay to the Commonwealth some or all of the youth allowance, austudy payment or pensioner education supplement.
(2) The person must make the election using the form approved under paragraph 1061ZZAI(a).
(3) A payment period is:
(a) the part of a year starting on 1 January and ending on 31 May; or
(b) the part of a year starting on 1 July and ending on 30 September.
(1) A person who is not obtaining financial supplement may, in order to obtain financial supplement, repay to the Commonwealth youth allowance, austudy payment or pensioner education supplement:
(a) while the person is eligible to obtain financial supplement; and
(b) during the payment period.
(2) However, if the person does not repay youth allowance, austudy payment or pensioner education supplement during the payment period, the person may, in order to obtain financial supplement, repay youth allowance, austudy payment or pensioner education supplement after that period if the Secretary is satisfied that:
(a) the person took reasonable steps to repay it during the payment period; and
(b) circumstances beyond the person's control prevented the person from repaying it during the period; and
(c) the person repays it as soon as practicable after the end of the payment period and during the year that includes the payment period.
(3) A person who is obtaining financial supplement may, in order to increase the amount of financial supplement, repay to the Commonwealth youth allowance, austudy payment or pensioner education supplement:
(a) while the person is eligible to obtain financial supplement; and
(b) during the year in which the youth allowance, austudy payment or pensioner education supplement was paid.
If an amount is repaid by a person under this Division, the amount is taken never to have been paid to the person.
Division 9 -- Financial supplement contracts
Subdivision A -- Making a contract for payment of financial supplement
1061ZZAX Making a contract between person and participating corporation
(1) If a person applies to a participating corporation under Division 5 for the payment of financial supplement for an eligibility period, the corporation must, as soon as practicable, accept the application by written notice to the person.
(2) A contract is made when the corporation accepts the application by giving the notice referred to in subsection (1). The contract is a financial supplement contract .
(3) A financial supplement contract is a contract for the making of a loan by the corporation to the person under this Division without any requirement on the person to pay interest.
(4) The contract must be for the amount of financial supplement for which the person from time to time asks, but the amount must not be less than the minimum amount, or more than the maximum amount, of financial supplement that the person is, from time to time, eligible to obtain under Division 6.
(5) The contract must also allow, but not compel, the person to make repayments during the contract period under Division 13 of the amount outstanding at any time under the contract.
(6) The contract must set out the termination date for the contract. The date to be set out is the last day of the contract period.
(7) The contract period is the period beginning on the day when the contract is made and ending on 31 May in the year in which the last of the periods referred to in paragraph 1061ZZCH(1)(b) ends.
(1) A contract is also a financial supplement contract if it is a contract referred to in section 8.2 of the Social Security Student Financial Supplement Scheme 1998.
(2) The termination date for the contract is the date set out in the contract.
(3) The contract period is the period beginning on the day when the contract was made and ending on 31 May in the year in which the last of the periods referred to in paragraph 1061ZZCH(1)(b) ended or ends.
1061ZZAZ Liability for money paid under a financial supplement contract
(1) A participating corporation may rely on advice given by the Commonwealth to decide:
(a) whether it must pay financial supplement to a person; and
(b) the amount of financial supplement.
(2) An amount paid to a person by a corporation, relying on advice given by the Commonwealth, is taken to be financial supplement paid under the contract even though the person may not have been eligible to obtain the amount.
(3) Subsection (2) does not affect the operation of Part 2B.2.
1061ZZBA Validity of financial supplement contract
(1) The validity of a financial supplement contract with a person is not affected merely because the person was not eligible to obtain financial supplement when the contract was made, or ceases at a later time to be eligible.
(2) The contract is not invalid, and is not voidable, under any other law (whether written or unwritten) in force in a State or Territory.
(3) The contract is not invalid merely because the person is an undischarged bankrupt when the contract is made.
(4) Bankruptcy does not release a person from his or her obligations under the contract.
Subdivision B -- When a financial supplement contract can be cancelled
1061ZZBB Person has right to cancel financial supplement contract
(1) A person who makes a financial supplement contract has a right to cancel the contract.
(2) Subsection (1) does not affect the operation of section 1061ZZCU.
(3) If, under section 1061ZZBF, the person waives his or her right to cancel the contract, sections 1061ZZBC to 1061ZZBE do not apply to the contract.
1061ZZBC How to cancel financial supplement contract
(1) To exercise the right to cancel the contract, the person must give to the participating corporation written notice that the person is withdrawing his or her application for financial supplement
(2) The notice must be lodged at an office of the corporation.
1061ZZBD When to cancel financial supplement contract
The person's right may be exercised within 14 days (the cooling off period ) after the day when the contract is made under section 1061ZZAX.
1061ZZBE Payments made during cooling off period
(1) In the cooling off period, the participating corporation must not make a payment to the person under the contract.
(2) If the corporation makes a payment to the person under the contract within the cooling off period, the payment is taken not to be a payment of financial supplement if the person repays to the corporation an amount equal to the payment within 7 days after the date of the payment.
(3) If the corporation makes a payment to the person under the contract after the cooling off period and the person has exercised the right to cancel the contract, the payment is taken not to be a payment of financial supplement if the person repays to the corporation an amount equal to the payment within 7 days after the date of the payment.
1061ZZBF Person may waive right to cancel contract
The person may waive the right to cancel the contract.
1061ZZBG How to waive right to cancel contract
To waive the right to cancel the contract, the person must give to the participating corporation written notice that he or she is waiving the right to cancel the contract.
1061ZZBH When to waive right to cancel contract
To exercise the right of waiver, the person must give the participating corporation the notice referred to in section 1061ZZBG immediately after the contract is made under section 1061ZZAX.
Subdivision C -- Financial supplement contract exempt from certain laws and taxes
1061ZZBI Financial supplement contract exempt from certain laws and taxes
(1) A law of a State or Territory about giving credit or other financial assistance does not apply to a financial supplement contract.
(2) An application for the payment of financial supplement, a financial supplement contract, or an act or thing done or transaction entered into under such a contract, is not taxable under any law of a State or Territory.
Division 10 -- Payment of financial supplement
1061ZZBJ Payment by instalments
(1) Financial supplement is to be paid by instalments for periods determined by the Secretary.
(2) Instalments of financial supplement are to be paid at times determined by the Secretary.
If the amount of an instalment includes a fraction of a cent, the amount is to be rounded to the nearest whole cent (0.5 cent being rounded upwards).
1061ZZBL To whom instalments must be paid
(1) If a person who is a category 1 student is trading in, or trading back, youth allowance, financial supplement must be paid to the person to whom instalments of youth allowance are or were being paid under section 559D or 559E.
(2) If a person who is a category 1 student is trading in, or trading back, austudy payment, financial supplement must be paid to the person to whom instalments of austudy payment are or were being paid under section 584D.
(3) If a person who is a category 1 student is trading in, or trading back, pensioner education supplement, financial supplement must be paid to the person to whom instalments of pensioner education supplement are or were being paid under section 1061PZK.
(4) If a person who is a category 2 student obtains financial supplement, it must be paid to the person to whom instalments of youth allowance would be paid under section 559D or 559E if youth allowance were payable to the student.
(5) This section does not affect the liability of a person to make repayments under Part 2B.3.
1061ZZBM Payment into bank account
(1) If an amount of financial supplement is paid to a person, it must be paid to the credit of a bank account nominated and maintained by the person.
(2) The bank account may be maintained by the person alone or jointly or in common with someone else.
Division 11 -- Protection of financial supplement
1061ZZBN Financial supplement to be absolutely inalienable
Financial supplement is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.
1061ZZBO Effect of garnishee or attachment order
(1) This section applies if:
(a) a person has an account with a financial institution (whether the account is maintained by the person alone, or jointly or in common with someone else); and
(b) a court order in the nature of a garnishee order comes into force in respect of the account; and
(c) an amount of financial supplement has been paid (whether on the person's own behalf or not) to the credit of the account in the 4 weeks immediately before the court order came into force.
(2) The court order does not apply to the saved amount (if any) in the account.
(3) The saved amount is the amount worked out using the following Method statement.
Method statement
Step 1 . Work out the amount of financial supplement paid to the credit of the account in the 4 weeks.
Step 2 . Subtract from that amount the total amount withdrawn from the account in the 4 weeks.
The amount left is the saved amount.
Division 12 -- Obligations of category 2 students
Subdivision A -- Statements about tax file numbers
Request for tax file number
(1) The Secretary may request, but not compel, a person who is a category 2 student and is obtaining financial supplement:
(a) if the person has a tax file number--to give the Secretary a written statement of the person's tax file number; or
(b) if the person does not have a tax file number:
(i) to apply to the Commissioner of Taxation for a tax file number; and
(ii) to give the Secretary a written statement of the person's tax file number after the Commissioner has issued it.
Failure to satisfy request
(2) A person is not eligible to obtain financial supplement if, at the end of 28 days after a request is made:
(a) the person has failed to satisfy the request; and
(b) the Secretary has not exempted the person from having to satisfy the request.
Request for parent's tax file number
(1) If:
(a) a person (the recipient ) who is a category 2 student is obtaining financial supplement; and
(b) the income of a parent of the recipient is required to be taken into account for the purpose of working out the recipient's eligibility for financial supplement; and
(c) the parent is in Australia ;
the Secretary may request, but not compel, the recipient to give the Secretary a written statement of the parent's tax file number.
Failure to satisfy request
(2) A recipient is not eligible to obtain financial supplement if, at the end of 28 days after the request is made:
(a) the recipient has failed to satisfy the request; and
(b) the Secretary has not exempted the recipient from having to satisfy the request.
(3) In this section:
"parent" has the same meaning as in paragraph (b) of the definition of parent in subsection 5(1).
Note 1: In some cases the request can be satisfied in relation to a parent by giving the Secretary a declaration by the parent about the parent's tax file number and an authority by the parent to the Commissioner of Taxation to give the Secretary certain information relevant to the parent's tax file number (see subsections 1061ZZAB(2) and (3).
Note 2: The Secretary may waive the requirement in some cases (see subsection 1061ZZAB(4)).
Subdivision B -- Notice of events or changes in circumstances
1061ZZBR Secretary may give notice requiring information
(1) The Secretary may give a notice under this section to a person who is a category 2 student if:
(a) financial supplement is paid to the person on the person's own behalf; or
(b) financial supplement is paid to someone else, on the person's behalf, under section 1061ZZBL.
(2) The notice must require the person to tell the Department if:
(a) a stated event or change of circumstances happens; or
(b) the person becomes aware that a stated event or change of circumstances is likely to happen.
1061ZZBS Event or change relevant to payment
An event or change of circumstances is not to be stated in a notice given under section 1061ZZBR unless the event or change of circumstances might affect the payment of financial supplement.
1061ZZBT Formalities related to notice
Subject to section 1061ZZBU, a notice under section 1061ZZBR:
(a) must be in writing; and
(b) may be given personally or by post; and
(c) must state how the person is to give the information to the Department; and
(d) must state the period in which the person is to give the information to the Department; and
(e) must state that the notice is a recipient notification notice given under this Act.
A notice under section 1061ZZBR is not invalid merely because it does not comply with paragraph 1061ZZBT(c) or (e).
1061ZZBV Period within which information to be given
(1) Subject to this section, the period stated under paragraph 1061ZZBT(d) must be the period of 14 days after:
(a) the day on which the event or change of circumstances happens; or
(b) the day on which the person becomes aware that the event or change of circumstances is likely to happen.
(2) If the Secretary is satisfied that there are special circumstances related to the person to whom the notice under section 1061ZZBR is to be given, the period to be stated under paragraph 1061ZZBT(d) is such period as the Secretary directs in writing, being a period that ends not less than 15 days, and not more than 28 days, after:
(a) the day on which the event or change of circumstances happens; or
(b) the day on which the person becomes aware that the event or change of circumstances is likely to happen.
(3) If the notice specifies an event consisting of the death of a person, the period to be stated under paragraph 1061ZZBT(d) is a period of 28 days after the day on which the event happens.
(4) If the notice requires the person to tell the Department of a proposal by the person to leave Australia , subsection (1) does not apply to that requirement.
(5) If the notice requires information about receipt of a compensation payment, the period stated under paragraph 1061ZZBT(d) in relation to the information must end at least 7 days after the day when the person becomes aware that he or she has received, or is to receive, a compensation payment.
1061ZZBW Refusal or failure to comply with notice
A person must not, without reasonable excuse, intentionally or recklessly refuse or fail to comply with a notice under section 1061ZZBR to the extent that the person is capable of complying with the notice.
Penalty: Imprisonment for 6 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the amount of a penalty unit by the resulting number. The amount of a penalty unit is stated in section 4AA of that Act.
This Subdivision extends to:
(a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and
(b) all people irrespective of their nationality or citizenship.
Subdivision C -- Notice about a matter relevant to payment of financial supplement
1061ZZBY Secretary may give notice requiring statement on matter
(1) The Secretary may give a notice under this section to a person who is a category 2 student if:
(a) financial supplement is paid to the person on the person's own behalf; or
(b) financial supplement is paid to someone else, on the person's behalf, under section 1061ZZBL.
(2) The notice must require the person to give the Department a statement about a matter that might affect the payment of financial supplement.
1061ZZBZ Formalities related to notice
Subject to section 1061ZZCA, a notice under section 1061ZZBY:
(a) must be in writing; and
(b) may be given personally or by post; and
(c) must state how the statement is to be given to the Department; and
(d) must state the period within which the person is to give the statement to the Department; and
(e) must state that the notice is a recipient statement notice given under this Act.
A notice under section 1061ZZBY is not invalid merely because it does not comply with paragraph 1061ZZBZ(c) or (e).
1061ZZCB Period within which statement to be given
The period stated under paragraph 1061ZZBZ(d) must be at least 14 days after the day on which the notice is given.
1061ZZCC Statement must be in approved form
A statement given in response to a notice under section 1061ZZBY must be in writing and in accordance with a form approved by the Secretary.
1061ZZCD Refusal or failure to comply with notice
A person must not, without reasonable excuse, intentionally or recklessly refuse or fail to comply with a notice under section 1061ZZBY to the extent that the person is capable of complying with the notice.
Penalty: Imprisonment for 6 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the amount of a penalty unit by the resulting number. The amount of a penalty unit is stated in section 4AA of that Act.
This Subdivision extends to:
(a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and
(b) all people irrespective of their nationality or citizenship.
Division 13 -- Early repayments of financial supplement
1061ZZCF Application of Subdivision
This Subdivision has effect subject to section 1061ZZEE.
(1) The amount outstanding under a financial supplement contract at a time (the test time ) before 1 June in the year immediately after the year in which the contract was made is the amount worked out using the formula:
(2) For the purpose of applying the formula in subsection (1) at the test time:
"amounts repaid" means the total of the amounts repaid under the contract before the test time.
"discounts" means the total of the discounts to which the person became entitled before the test time.
"principal sum" means the principal sum at the test time.
1061ZZCH Calculation of amount outstanding under financial supplement contract at a later time
(1) Subject to subsections 1061ZZCN(6) and (7), the amount outstanding under a financial supplement contract at a time (the test time ) during a period of 12 months (the test period ) referred to in either of the following paragraphs:
(a) the period of 12 months beginning on 1 June in the year immediately after the year in which the contract was made; or
(b) any of the following 3 periods of 12 months;
is the amount worked out using the formula:
(2) For the purpose of applying the formula in subsection (1) at the test time:
"amounts repaid" means the total of the amounts repaid under the contract during the test period but before the test time.
"discounts" means the total of the discounts to which the person became entitled during the test period but before the test time.
"indexation factor" means the number worked out using the method statement in subsection (3).
"previous amount outstanding" means the amount outstanding under the contract immediately before the beginning of the test period.
(3) The Method statement for the purposes of the definition of indexation factor in subsection (2) is as follows:
Method statement
Step 1 . Work out the total of the index number for the March quarter in the later reference period and the index numbers for the 3 immediately preceding quarters.
Step 2 . Work out the total of the index number for the March quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters.
Step 3 . Divide the total worked out under Step 1 by the total worked out under Step 2.
Step 4 . Round the result to 3 decimal places.
(4) In subsection (3):
"earlier reference period" means the period of 12 months immediately before the later reference period.
"later reference period" means the period of 12 months immediately before the test period.
(5) If an indexation factor worked out under subsection (3) would end with a number greater than 4, were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001.
(6) If, apart from this subsection, an amount worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.
1061ZZCI Notification of amount outstanding
(1) The Secretary must give to a person who is a party to a financial supplement contract with a participating corporation a notice of an amount outstanding under the contract that exists on:
(a) 1 June in the year following the year in which the contract was made; or
(b) 1 June in any of the following 3 years.
(2) The notice must state the amount outstanding under the contract at that date.
Subdivision B -- Person's rights to make repayments during contract period
1061ZZCJ Person not required to, but may, make repayments during contract period
(1) Subject to sections 1061ZZDE, 1061ZZDL, 1061ZZDV and 1061ZZEE, a person who is a party to a financial supplement contract with a participating corporation is not required during the contract period to make a repayment of the amount outstanding under the contract.
(2) Non - payment by the person during the contract period of the amount outstanding is not a default under the contract for the purposes of any law of the Commonwealth, of a State or of a Territory.
(3) However, the person may, at any time during the contract period, make a repayment (an amount repaid ) to the corporation of the whole or a part of the amount outstanding at that time.
(4) Subsection (3) has effect subject to section 1061ZZCL.
1061ZZCK What happens if person makes an excess repayment
If a person purports to make a repayment to a participating corporation under a financial supplement contract by paying an amount under subsection 1061ZZCJ(3) that exceeds the amount that, having regard to the discount to which the person is entitled, would be needed to pay in full the amount outstanding, the excess:
(a) is taken not to be a repayment; and
(b) must be repaid by the corporation to the person.
1061ZZCL Amount repaid not to include certain amounts
If the person makes a repayment under subsection 1061ZZCJ(3), the amount repaid is to be disregarded for the purposes of this Division:
(a) to the extent to which it relates to wrongly paid supplement; or
(b) if it is repaid after the giving of a notice under section 1061ZZCZ, 1061ZZDG, 1061ZZDQ or 1061ZZEA.
1061ZZCM How to work out discount
(1) If, during the contract period, a person makes a repayment of an amount that is less than the amount outstanding, the person is entitled, in respect of the repayment, to a discount of an amount worked out using the formula:
(2) If, during the contract period, a person makes a repayment of an amount that is equal to the amount outstanding, the person is entitled, in respect of the repayment, to a discount of an amount worked out using the formula:
(3) If, apart from this subsection, an amount worked out under subsection (1) or (2) would be an amount of dollars and cents, the amount is to be rounded to the nearest number of whole dollars (rounding 50 cents upwards).
1061ZZCN Effect of making a repayment during contract period
Application
(1) This section applies if a person, at a time (the repayment time ) during the contract period of a financial supplement contract made by the person with a participating corporation, makes a repayment (the relevant repayment ) in respect of the amount outstanding under the contract. For the purposes of this section, it is first necessary to work out whether an indexation amount is taken to have existed in respect of the contract immediately before the repayment time.
When an indexation amount is taken to have existed
(2) For the purposes of this section, an indexation amount is taken to have existed in respect of the contract immediately before the repayment time if:
(a) an amount outstanding under the contract existed immediately before the repayment time under section 1061ZZCH; and
(b) that amount outstanding exceeds the amount worked out using the formula:
Meaning of expressions used in formula
(3) For the purpose of applying the formula in subsection (2) immediately before the repayment time:
"amounts repaid" means the total of the amounts repaid under the contract before the repayment time.
"amounts previously notionally repaid" means the total of the amounts notionally repaid under the contract before the repayment time because of the application of this section in respect of previous repayments.
"principal sum" means the principal sum immediately before the repayment time.
What constitutes indexation amount
(4) The indexation amount referred to in subsection (2) is the amount of the excess referred to in paragraph (2)(b).
If no indexation amount
(5) If no indexation amount existed in respect of the contract immediately before the repayment time, the person is taken to have repaid to the corporation at the repayment time an amount (an amount notionally repaid ) equal to the discount to which the person is entitled in respect of the relevant repayment.
If discount does not exceed indexation amount
(6) If:
(a) an indexation amount existed in respect of the contract immediately before the repayment time; and
(b) the discount to which the person is entitled in respect of the relevant repayment is equal to or less than the indexation amount;
the amount outstanding under the contract is taken to be reduced by the discount.
If discount exceeds indexation amount
(7) If:
(a) an indexation amount existed in respect of the contract immediately before the repayment time; and
(b) the discount to which the person is entitled in respect of the relevant repayment exceeds the indexation amount;
the following paragraphs have effect:
(c) the amount outstanding under the contract is taken to be reduced by the indexation amount;
(d) the person is taken to have repaid to the corporation at the repayment time an amount (an amount notionally repaid ) equal to the excess.
Commonwealth to pay corporation amounts notionally repaid
(8) The Commonwealth must pay to the corporation an amount equal to any amount notionally repaid.
1061ZZCO Rights and liabilities of participating corporation if repayment made
(1) This section applies if, immediately after a repayment is made under a financial supplement contract made by a participating corporation, the total of the amounts repaid and the amounts notionally repaid is equal to or exceeds the principal sum.
(2) The corporation's rights under the contract are, by this subsection, transferred to the Commonwealth immediately after the repayment is made.
(3) If the total of the amounts repaid and the amounts notionally repaid exceeds the principal sum, the corporation must pay the excess to the Commonwealth.
Subdivision C -- What happens at the end of the contract period
1061ZZCP Corporation's rights at end of contract period
(1) This section applies if, at the end of the contract period of a financial supplement contract made by a participating corporation, the corporation's rights under the contract have not previously been transferred to the Commonwealth.
(2) The corporation's rights under the contract are, by this subsection, transferred to the Commonwealth at the end of the contract period.
(3) If the principal sum exceeds the total of the amounts repaid and the amounts notionally repaid, the Commonwealth must pay the excess to the corporation.
(1) As soon as practicable after the termination date of a financial supplement contract made by a person with a participating corporation, the Secretary must arrange for written notice (the termination notice ) to be given to the person if such a notice has not already been given under the Social Security Student Financial Supplement Scheme 1998 or the Student Assistance Act 1973 as in force at a time before 1 July 1998.
(2) The termination notice must:
(a) state that, at the end of the contract period, the person no longer owes a debt to the corporation under the contract and will not receive a discount for repayments made after that time; and
(b) state that, on a date referred to in the notice, being 1 June immediately following the termination date, the person incurred or will incur an FS debt or FS debts to the Commonwealth; and
(c) specify the amount of that debt or the amounts of those debts; and
(d) state that the person is entitled at any time to make repayments in respect of that debt or those debts and that so much of that debt or those debts as is not voluntarily repaid by the person will be recovered through the taxation system.
1061ZZCR Secretary may give notice correcting information in previous notice
If, after a notice has been given to a person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998 (including a notice previously given under this section or under a provision of that Scheme or Act corresponding to this section), the Secretary is satisfied that significant information in the notice was not, or is no longer, correct, the Secretary must arrange for a further written notice to be given to the person setting out the correct information.
1061ZZCS Person may request notice to be corrected
(1) If a person considers that a notice given to the person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, was not, or is no longer, correct in a significant respect, the person may, by writing, request the Secretary to correct the notice.
(2) The person must make the request within 14 days after the date when the notice was received by the person or within such further period as the Secretary allows.
(3) A request must set out the information that is considered to be incorrect and the grounds on which the person considers the information to be incorrect.
(4) If a request is received by the Secretary, the Secretary must arrange, as soon as practicable, for it to be considered and for written notice of the decision on the request to be given to the person.
1061ZZCT Effect of notices and requests
(1) A notice to a person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, is intended only to give information to the person and an FS debt of the person is not affected by a failure to give a notice or by any incorrect statement or information in a notice given under this Division or that corresponding provision.
(2) The making by a person of a request for a notice to be corrected does not affect an FS debt of the person.
Part 2B.2 -- Payments of financial supplement under scheme to stop in certain circumstances
Division 1 -- Payments to stop at request of recipient
1061ZZCU Person may ask for payment to stop
A person who is a party to a financial supplement contract with a participating corporation may, by written notice to the corporation lodged at an office of the corporation, tell the corporation that he or she does not want further payments under the contract to be made after a day stated in the notice.
(1) If a person gives a notice referred to in section 1061ZZCU, the corporation is discharged from liability to make further payments to the person under the contract from the end of the day stated in the notice.
(2) However, if the corporation continues to make payments to the person after that day, any amounts paid after that day or the end of 4 weeks after the day on which the notice was given to the corporation, whichever is the later:
(a) are taken not to be payments of financial supplement made under the contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt due to it by the person.
Subdivision A -- Notice that payments are to stop
1061ZZCW Secretary must give notice to person and corporation
(1) This section applies if:
(a) a person is a party to a financial supplement contract with a participating corporation; and
(b) the decision (the original decision ) made in respect of the person under section 1061ZZAC, or under Part 3 of the Social Security Student Financial Supplement Scheme 1998, is reviewed under Chapter 6; and
(c) the person remains eligible to obtain financial supplement for the year or part of the year to which the contract relates; and
(d) because of the review, the original decision is varied so that the maximum amount (the original amount ) of financial supplement that the person is eligible to obtain under the contract is reduced to another amount (the revised amount ); and
(e) the revised amount is equal to or less than the amount of financial supplement that the person has already been paid under the contract.
(2) The Secretary must give written notice to the person and to the corporation:
(a) stating:
(i) that this section applies to the contract; and
(ii) that the corporation must stop paying financial supplement to the person; and
(b) specifying:
(i) the revised amount that the person is eligible to obtain; and
(ii) the amount (if any) of financial supplement paid in excess of the revised amount.
(1) If the Secretary gives a notice under section 1061ZZCW to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.
(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.
(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt due to it by the person.
1061ZZCY This Subdivision is subject to sections 1061ZZFS and 1061ZZFT
This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.
Subdivision B -- Original amount paid because person failed to notify change of circumstances
1061ZZCZ Secretary may give notice to person and corporation
(1) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZCW; and
(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and
(c) the person was paid the original amount after the end of that period; and
(d) the payment of the original amount after the end of that period resulted from the person's failure to comply with the notice referred to in paragraph (b);
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
(2) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.5 of the Social Security Student Financial Supplement Scheme 1998; and
(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and
(c) the person was paid the original amount after the commencement of this Chapter; and
(d) the payment of the original amount after the commencement of this Chapter resulted from the person's failure to comply with the notice referred to in paragraph (b);
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
If the Secretary gives a notice under section 1061ZZCZ to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
1061ZZDB Transfer of corporation's rights to Commonwealth
(1) On the giving of the notice to the corporation, the corporation's rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZCZ(1), the rights transferred are the corporation's rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the end of the period referred to in paragraph 1061ZZCZ(1)(b); and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).
(3) If the notice was given under subsection 1061ZZCZ(2), the rights transferred are the corporation's rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).
(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement .
1061ZZDC Apportionment of financial supplement
Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZCZ(1) or (2) are taken to have been made:
(a) first, in or towards the repayment of the wrongly paid supplement; and
(b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.
1061ZZDD Liability of Commonwealth to corporation
The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.
1061ZZDE Liability of person to Commonwealth
(1) If the notice was given to the person under subsection 1061ZZCZ(1), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDD; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDB(2).
(2) If the notice was given to the person under subsection 1061ZZCZ(2), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDD; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDB(3).
1061ZZDF This Subdivision not to affect Subdivision A
This Subdivision does not affect the operation of Subdivision A.
Subdivision C -- Original amount paid because of false or misleading information
1061ZZDG Secretary may give notice to person and corporation
(1) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZCW; and
(b) false or misleading information was given to the Commonwealth in relation to the calculation of the original amount; and
(c) the payment of financial supplement in excess of the revised amount resulted from the false or misleading information;
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
(2) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.5 of the Social Security Student Financial Supplement Scheme 1998; and
(b) false or misleading information was given to the Commonwealth in relation to the calculation of the original amount; and
(c) the payment of financial supplement in excess of the revised amount resulted from the false or misleading information;
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
If the Secretary gives a notice under section 1061ZZDG to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
1061ZZDI Transfer of corporation's rights to Commonwealth
(1) On the giving of the notice to the corporation, the corporation's rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZDG(1), the rights transferred are the corporation's rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the time when the person had been paid an amount equal to the revised amount; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).
(3) If the notice was given under subsection 1061ZZDG(2), the rights transferred are the corporation's rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).
(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement .
1061ZZDJ Apportionment of financial supplement
Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZDG(1) or (2) are taken to have been made:
(a) first, in or towards the repayment of the wrongly paid supplement; and
(b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.
1061ZZDK Liability of Commonwealth to corporation
The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.
1061ZZDL Liability of person to Commonwealth
(1) If the notice was given to the person under subsection 1061ZZDG(1), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDK; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDI(2).
(2) If the notice was given to the person under subsection 1061ZZDG(2), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDK; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDI(3).
1061ZZDM This Subdivision not to affect Subdivision A
This Subdivision does not affect the operation of Subdivision A.
Division 3 -- Payments to stop if person ceases to be eligible to obtain financial supplement
Subdivision A -- Notice that payments are to stop
1061ZZDN Secretary must give notice to person and corporation
(1) This section applies if:
(a) a person is a party to a financial supplement contract with a participating corporation; and
(b) the decision (the original decision ) made in respect of the person under section 1061ZZAC or under Part 3 of the Social Security Student Financial Supplement Scheme 1998 is reviewed under Chapter 6; and
(c) because of the review, the original decision is varied so that the person ceases to be eligible to obtain financial supplement.
(2) The Secretary must give written notice to the person and the corporation:
(a) stating that the person ceased to be eligible; and
(b) specifying the date when the person ceased to be eligible.
(1) If the Secretary gives a notice under section 1061ZZDN to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.
(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.
(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt payable to it by the person.
1061ZZDP This Subdivision is subject to sections 1061ZZFS and 1061ZZFT
This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.
Subdivision B -- Financial supplement paid because person failed to notify change of circumstances
1061ZZDQ Secretary may give notice to person and corporation
(1) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZDN; and
(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about becoming aware of the likely happening of, a stated event or change in circumstances, within the period prescribed for complying with the notice; and
(c) the person ceased to be eligible to obtain financial supplement because of the event or change in circumstances; and
(d) the person was paid financial supplement after the end of the period referred to in paragraph (b); and
(e) the payment of financial supplement after the end of that period resulted from the person's failure to comply with the notice referred to in paragraph (b);
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
(2) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.24 of the Social Security Student Financial Supplement Scheme 1998; and
(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and
(c) the person was paid financial supplement after the commencement of this Chapter; and
(d) the payment of financial supplement after the commencement of this Chapter resulted from the person's failure to comply with the notice referred to in paragraph (b);
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
If the Secretary gives a notice under section 1061ZZDQ to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
1061ZZDS Transfer of corporation's rights to Commonwealth
(1) On the giving of the notice to the corporation, the corporation's rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZDQ(1), the rights transferred are the corporation's rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the end of the period referred to in paragraph 1061ZZDQ(1)(b); and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDO(3).
(3) If the notice was given under subsection 1061ZZDQ(2), the rights transferred are the corporation's rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDO(3).
(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement .
1061ZZDT Apportionment of financial supplement
Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZDQ(1) or (2) are taken to have been made:
(a) first, in or towards the repayment of the wrongly paid supplement; and
(b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.
1061ZZDU Liability of Commonwealth to corporation
The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.
1061ZZDV Liability of person to Commonwealth
(1) If the notice was given to the person under subsection 1061ZZDQ(1), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDU; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDS(2).
(2) If the notice was given to the person under subsection 1061ZZDQ(2), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDU; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDS(3).
1061ZZDW This Subdivision not to affect Subdivision A
This Subdivision does not affect the operation of Subdivision A.
Subdivision A -- Notice that payments are to stop
1061ZZDX Secretary must give notice to person and corporation
(1) This section applies if:
(a) a person is a party to a financial supplement contract with a participating corporation; and
(b) the decision (the original decision ) made in respect of the person under section 1061ZZAC or under Part 3 of the Social Security Student Financial Supplement Scheme 1998 is reviewed under Chapter 6; and
(c) because of the review the original decision is varied so that the statement in the supplement entitlement notice given to the person that the person was eligible to obtain financial supplement during an eligibility period was incorrect.
(2) The Secretary must give written notice to the person and the corporation stating that the person had never been eligible to obtain financial supplement.
(1) If the Secretary gives a notice under section 1061ZZDX to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.
(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.
(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt payable to it by the person.
1061ZZDZ This Subdivision is subject to sections 1061ZZFS and 1061ZZFT
This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.
Subdivision B -- Financial supplement paid because of false or misleading information
1061ZZEA Secretary may give notice to person and corporation
If the Secretary is satisfied that the incorrectness of a statement referred to in section 1061ZZDX that was given to a person who is a party to a financial supplement contract with a participating corporation resulted from false or misleading information given to the Commonwealth about the person, the Secretary may give notice to the person and the corporation stating that he or she is so satisfied and that this Subdivision applies in relation to them.
If the Secretary gives a notice under section 1061ZZEA to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
1061ZZEC Transfer of corporation's rights to Commonwealth
(1) On the giving of the notice to the corporation, the corporation's rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the statement was in a supplement entitlement notice given under subsection 1061ZZAC(3) or 1061ZZAD(4), the rights transferred are the corporation's rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the start of the contract period; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3).
(3) If the statement was in a supplement entitlement notice referred to in subsection 1061ZZAE(3), the rights transferred are the corporation's rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3).
(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement .
1061ZZED Liability of Commonwealth to corporation
The Commonwealth is liable to pay to the corporation an amount worked out, as at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3), using the formula:
(1) No amount is taken to be outstanding under the contract after the notice is given.
(2) However, the person is liable to pay to the Commonwealth an amount worked out, as at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3), using the formula:
In sections 1061ZZED and 1061ZZEE:
"amounts notionally repaid" means the total of the amounts notionally repaid before the notice was given.
"amounts repaid" means the total of the amounts repaid under the contract before the notice was given.
"interest subsidy" means the interest subsidy in relation to financial supplement paid under the contract.
"principal sum" means the principal sum at the time when the notice was given.
1061ZZEG This Subdivision not to affect Subdivision A
This Subdivision does not affect the operation of Subdivision A.
Division 5 -- Payments to stop if person dies
1061ZZEH Secretary may give notice to corporation if other party to contract dies
If the Secretary becomes aware that a person who is a party to a financial supplement contract with a participating corporation has died, the Secretary may give written notice to the corporation stating that this Division applies in respect of the contract.
If the Secretary gives a notice under section 1061ZZEH to the corporation, the following provisions have effect.
1061ZZEJ Discharge of corporation's liability
(1) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments under the contract.
(2) However, if the corporation continues to make payments under the contract after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the contract; and
(b) are repayable from the person's estate to the corporation; and
(c) may be recovered by the corporation as a debt payable to it from the person's estate.
1061ZZEK Transfer of corporation's rights to Commonwealth
(1) The corporation's rights referred to in subsection (2) are transferred to the Commonwealth, by this subsection, at the earlier of:
(a) the time when the corporation stopped making payments under the contract; or
(b) the end of 4 weeks after the time when the notice was given.
(2) The rights transferred are the corporation's rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the start of the contract period; and
(b) ending at the end of the period of 4 weeks referred to in paragraph (1)(b).
1061ZZEL Liability of Commonwealth to corporation
(1) The Commonwealth is liable to pay to the corporation an amount worked out, as at the earlier of:
(a) the time when the corporation stopped making payments under the contract; or
(b) the end of the period of 4 weeks referred to in paragraph 1061ZZEK(1)(b);
using the formula:
(2) In this section:
"amounts notionally repaid" means the total of the amounts notionally repaid before the notice was given.
"amounts repaid" means the total of the amounts repaid under the contract before the notice was given.
"principal sum" means the principal sum at the time when the notice was given.
1061ZZEM Discharge of person's liability
The person's liability to the Commonwealth under the contract as a result of the transfer referred to in section 1061ZZEK is discharged by this section.
Part 2B.3 -- Repayment of financial supplement through taxation system after termination date
Division 1 -- Purpose and application of Part
1061ZZEN Purpose and application of Part
This Part provides for the recovery through the taxation system of a person's debt in respect of financial supplement at the end of 4 years beginning on 1 June in the year immediately after the year in which the relevant financial supplement contract was made.
Division 2 -- FS debt and accumulated FS debt
1061ZZEO FS debt owed by person
(1) If, at the termination date of a financial supplement contract made by a person with a participating corporation, there was or is an amount outstanding under the contract, the person owes an FS debt to the Commonwealth.
(2) The FS debt is taken to have been incurred, or is incurred, as the case may be, on 1 June immediately after the termination date.
1061ZZEP How to work out FS debt
(1) The FS debt is worked out using the formula:
(2) In subsection (1):
"amount outstanding" means the amount outstanding under the contract at the termination date.
"indexation factor" means the factor worked out under section 1061ZZET.
1061ZZEQ Accumulated FS debt incurred by person
(1) If:
(a) a person had or has an FS debt or FS debts on 1 June in a year (the later date ); and
(b) the debt was not or is not, or the debts did not or do not include, an FS debt that existed on the previous 1 June;
the person is taken to have incurred, or incurs, as the case may be, an accumulated FS debt to the Commonwealth on the later date.
(2) If:
(a) a person had or has an FS debt or FS debts on 1 June in a year (the later date ); and
(b) the debt was or is, or the debts included or include, an FS debt that existed on the previous 1 June (the earlier date );
the person is taken to have incurred, or incurs, as the case may be, an accumulated FS debt to the Commonwealth on the later date.
1061ZZER How to work out accumulated FS debt
(1) A person's accumulated FS debt referred to in subsection 1061ZZEQ(1) is an amount equal to the FS debt or the total of the FS debts referred to in that subsection.
(2) A person's accumulated FS debt referred to in subsection 1061ZZEQ(2) is an amount worked out using the formula:
(3) In subsection (2):
"adjusted accumulated FS debt" means the person's adjusted accumulated FS debt on the earlier date.
"indexation factor" means the factor worked out under section 1061ZZET.
"later FS debts" means any FS debt, or the total of any FS debts, of the person that did not exist on the earlier date.
1061ZZES Adjusted accumulated FS debt
(1) A person's adjusted accumulated FS debt on the earlier date is the amount worked out using the formula:
(2) In this section:
"accumulated FS debt" means the person's accumulated FS debt on the earlier date as worked out under this Division as it previously applied in respect of that date.
"FSA debts" means the total of:
(a) any FS assessment debt or FS assessment debts of the person, assessed on or after the earlier date and before the later date, excluding any FS assessment debt assessed because of a return lodged before the earlier date; and
(b) any FS assessment debt or FS assessment debts of the person, assessed on or after the later date because of a return lodged before the later date.
"increases in FSA debts" means any amount, or the total of any amounts, by which any FS assessment debt is increased by an amendment of the relevant assessment (whether because of an increase in the person's taxable income or otherwise) where the amendment was made on or after the earlier date and before the later date.
"reductions in FSA debts" means any amount, or the total of any amounts, by which any FS assessment debt is reduced by an amendment of the relevant assessment (whether as a result of a reduction in the person's taxable income or otherwise) where the amendment was made on or after the earlier date and before the later date.
"repayments" means any amount, or the total of any amounts, repaid, except in discharge of an FS assessment debt, on or after the earlier date and before the later date in reduction of the accumulated FS debt on the earlier date as worked out under this Division as it previously applied in respect of that date.
(3) For the purposes of subsection (2), an assessment or an amendment of an assessment is taken to have been made on the date stated in the notice of assessment or notice of amended assessment, as the case may be, to be the date of that notice.
(1) The indexation factor for the purpose of calculating a person's FS debt or accumulated FS debt at 1 June in a year (the relevant year ), is worked out using the following Method statement.
Method statement
Step 1 . Work out the total of the index number for the March quarter in the relevant year and the index numbers for the 3 immediately preceding quarters.
Step 2 . Work out the total of the index number for the March quarter immediately before the relevant year and the index numbers for the 3 immediately preceding quarters.
Step 3 . Divide the total worked out using Step 1 by the total worked out using Step 2.
Step 4 . Round the result to 3 decimal places.
(2) If an indexation factor worked out using the Method statement would end with a number greater than 4 were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001.
(3) If, apart from this subsection, the amount of an FS debt or accumulated FS debt worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.
1061ZZEU Accumulated FS debt discharges earlier debts
(1) An accumulated FS debt that a person is taken to have incurred or incurs on 1 June in a year (the relevant date ) discharges, or discharges the unpaid part of:
(a) an accumulated FS debt that the person incurred on the previous 1 June; and
(b) an FS debt that the person incurred on the relevant date.
(2) The accumulated FS debt also discharges the person's liability to pay the amount outstanding immediately before the relevant date.
(3) However, in applying sections 1061ZZEP to 1061ZZET, subsection (1) of this section is disregarded.
Division 3 -- Information to be given to Commissioner of Taxation
1061ZZEV Secretary to give notice to Commissioner of Taxation
If a person who has made a financial supplement contract with a participating corporation has an FS debt immediately after the termination date of the contract, the Secretary must, if such a notice has not already been given under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, give to the Commissioner of Taxation, as soon as practicable after that date, a notice stating as many of the following matters as the Secretary knows:
(a) the person's name;
(b) the person's identifying number;
(c) the person's last - known address;
(d) the person's tax file number;
(e) the amount of the FS debt or the amounts of the FS debts that the person incurred on 1 June immediately following the termination date;
(f) any other information about the person that is reasonably required by the Commissioner to administer this Part.
1061ZZEW Secretary to give further notice to Commissioner of Taxation
If the Secretary or an officer of the Department is convinced that significant information in a notice referred to in section 1061ZZEV was not, or is no longer, correct, the Secretary must give to the Commissioner of Taxation a further notice setting out the correct information.
1061ZZEX Secretary to give certificate to Commissioner of Taxation
The Secretary must, if asked by the Commissioner of Taxation to do so, give a written certificate to the Commissioner setting out a matter mentioned by the Commissioner that was, or was required to be, set out in a notice under section 1061ZZEV or 1061ZZEW.
Division 4 -- Voluntary repayments of FS debts
1061ZZEY Voluntary repayments of FS debts
(1) If a person has a debt to the Commonwealth under this Part, he or she may at any time make a payment to reduce the debt.
(2) A payment under subsection (1) must be made to the Commissioner of Taxation.
Division 5 -- Compulsory repayments of accumulated FS debt
(1) Subject to subsection (2), a person is liable, in respect of each year of income, to make payments, in accordance with this Part, to reduce the person's relevant debt until that debt is repaid.
(2) The person is liable to make a payment in respect of a year of income only if:
(a) the person's taxable income for the year of income is greater than the minimum prescribed amount for the year of income; and
(b) the person had an accumulated FS debt on 1 June immediately before an assessment of the person's income is made for the year of income.
The person is liable to pay, in respect of a year of income, an amount equal to so much of the relevant debt as does not exceed:
(a) if the person's taxable income for the year of income is not greater than the intermediate prescribed amount for the year of income--2% of the taxable income; or
(b) if the person's taxable income for the year of income is greater than the intermediate prescribed amount for the year of income but is not greater than the maximum prescribed amount for the year of income--3% of the taxable income; or
(c) if the person's taxable income for the year of income is greater than the maximum prescribed amount for the year of income--4% of the taxable income.
1061ZZFB Meaning of relevant debt
(1) The person's relevant debt is:
(a) if an amount or amounts have been paid to reduce the person's accumulated FS debt referred to in paragraph 1061ZZEZ(2)(b) or an amount or amounts have been assessed under Division 7 or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, to be payable to reduce it--the amount remaining after deducting from that accumulated FS debt the amount or the sum of the amounts so paid or assessed to be payable; or
(b) otherwise--the person's accumulated FS debt referred to in that paragraph.
(2) An amount assessed under Division 7, or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, to be payable to reduce a person's accumulated FS debt is, if the amount has been increased or reduced by an amendment of the relevant assessment, taken to be the increased or reduced amount.
1061ZZFC Meaning of minimum prescribed amount
(1) For the year of income that ended on 30 June 1998 , the minimum prescribed amount is $29,307.
(2) For a later year of income, the minimum prescribed amount is the number of whole dollars in the amount worked out using the formula:
1061ZZFD Meaning of intermediate prescribed amount
(1) For the year of income that ended on 30 June 1998 , the intermediate prescribed amount is $33,305.
(2) For a later year of income, the intermediate prescribed amount is the number of whole dollars in the amount worked out using the formula:
1061ZZFE Meaning of maximum prescribed amount
(1) For the year of income that ended on 30 June 1998 , the maximum prescribed amount is $46,629.
(2) For a later year of income, the maximum prescribed amount is the number of whole dollars in the amount worked out using the formula:
(1) In sections 1061ZZFC, 1061ZZFD and 1061ZZFE:
"AWE" means:
(a) the average weekly earnings for all employees for the reference period in the December quarter immediately before the year of income, as published by the Australian Statistician; and
(b) the average weekly earnings for all employees for the reference period in each of the 4 quarters immediately before that December quarter, as published by the Australian Statistician.
(2) The reference period in a particular quarter in a year is the period described by the Australian Statistician as the pay period ending on or before the third Friday of the middle month of that quarter.
Division 6 -- Application of tax legislation
1061ZZFG Application of tax legislation
(1) Part IV, and Division 1 of Part VI, of the Income Tax Assessment Act 1936 , and Part IVC of the Taxation Administration Act 1953 , apply, so far as they can be applied and subject to this Part, to a person's FS assessment debt as if it were income tax assessed to be payable by a taxpayer by an assessment made under Part IV of the Income Tax Assessment Act 1936 .
(2) Sections 222A to 222F, 222 and 226G to 226ZB of the Income Tax Assessment Act 1936 apply as if a person's FS assessment debt were income tax payable by the person for the year of income for which the assessment of that debt was made.
1061ZZFH Commissioner of Taxation may make assessment
(1) The Commissioner of Taxation may make an assessment of:
(a) the amount of a person's accumulated FS debt at 1 June immediately before the assessment is made; and
(b) the amount required to be paid to reduce that debt under Division 5.
(2) To make an assessment, the Commissioner may use any information in his or her possession, whether or not it came from a return.
1061ZZFI Notice of assessment may be served
If:
(a) the Commissioner of Taxation is required to serve on a person a notice of assessment in respect of the person's income of a year of income under section 174 of the Income Tax Assessment Act 1936 ; and
(b) an assessment (the relevant assessment ) has been made in respect of the person of the amounts referred to in section 1061ZZFH but notice of the relevant assessment has not been served on the person;
notice of the relevant assessment may be served by setting out the amounts concerned in the notice referred to in paragraph (a).
Division 8 -- Commissioner of Taxation may delay assessment
1061ZZFJ Commissioner of Taxation may delay assessment
(1) The Commissioner of Taxation may, on written application by a person who has an accumulated FS debt, delay the making of an assessment under section 1061ZZFH.
(2) An assessment may be delayed if the Commissioner considers that:
(a) were the assessment to be made, payment of the assessed amount would cause serious hardship to the person; or
(b) there are other special reasons that make it fair and reasonable to delay the assessment.
(3) The Commissioner may delay the assessment for a period that he or she considers appropriate.
1061ZZFK Commissioner of Taxation may amend assessment
(1) The Commissioner of Taxation may, on written application by a person who has an accumulated FS debt, amend an assessment made under section 1061ZZFH so that no amount is payable under the assessment.
(2) The Commissioner may amend the assessment if he or she considers that:
(a) payment of the assessed amount has caused or would cause serious hardship to the person; or
(b) there are other special reasons that make it fair and reasonable to make the amendment.
1061ZZFL When Commissioner of Taxation must make decision to delay or amend assessment
(1) If an application referred to in section 1061ZZFJ or 1061ZZFK is made, the Commissioner of Taxation must, as soon as practicable:
(a) consider it; and
(b) give to the applicant written notice of his or her decision on the application.
(2) A notice of the decision must:
(a) include a statement that, if the applicant is dissatisfied with the decision of the Commissioner on the application, an application may, subject to the Administrative Appeals Tribunal Act 1975 , be made to the Administrative Appeals Tribunal for review of the decision; and
(b) except if subsection 28(4) of that Act applies, also include a statement to the effect that the applicant may ask for a statement under section 28 of that Act.
(3) A failure to comply with subsection (2) does not affect the validity of the notice or of the decision to which the notice relates.
Division 9 -- Review of Commissioner of Taxation's decision
1061ZZFM Application to Administrative Appeals Tribunal
An applicant under section 1061ZZFJ or 1061ZZFK may apply to the Administrative Appeals Tribunal for review of:
(a) a decision of the Commissioner of Taxation on the application referred to in section 1061ZZFJ; or
(b) a decision by the Commissioner refusing to amend an assessment after receiving the application referred to in section 1061ZZFK.
Division 10 -- Treatment of payments under financial supplement scheme
1061ZZFN Payments not subject to taxation
(1) An amount paid, or other benefit given, to a person under this Chapter is not subject to taxation under a law of the Commonwealth unless a provision of such a law expressly provides to the contrary.
(2) However, subsection (1) does not affect the liability to taxation of a participating corporation for a subsidy or other amount paid to the corporation under this Chapter.
1061ZZFO Application of payments
An amount paid by a person to reduce the person's debt to the Commonwealth under this Part must be applied in accordance with the person's direction or, if there is no direction or the direction does not adequately deal with the matter:
(a) first, to discharge or reduce the person's FS assessment debts; and
(b) then, to discharge or reduce the person's accumulated FS debt.
1061ZZFP Debt discharged by death
If a person dies owing a debt owing to the Commonwealth under this Part, other than an FS assessment debt, the debt is discharged by force of this section.
Division 1 -- Application of the Bankruptcy Act 1966
1061ZZFQ Application of Division
This Division applies if, after a person makes a financial supplement contract with a participating corporation, whether before or after the termination date:
(a) the person becomes bankrupt; or
(b) the person enters into a deed of assignment, a deed of arrangement or a composition under Part X of the Bankruptcy Act 1966 .
(1) A debt arising under or out of the contract is not a provable debt in the bankruptcy or for the purposes of the deed of assignment, deed of arrangement or composition.
(2) A right of the Commonwealth or of the corporation to bring an action or other proceeding against the person in respect of the debt is not affected by the bankruptcy, deed of assignment, deed of arrangement or composition.
(3) The trustee of the estate of the bankrupt person or the trustee of the deed of assignment, deed of arrangement or composition is not entitled to recover under the Bankruptcy Act 1966 a payment made by the person to the Commonwealth or to the corporation in respect of the debt.
(4) In this section:
"debt arising under or out of the contract" :
(a) includes, but is not limited to:
(i) an amount outstanding under the contract; and
(ii) an amount that the person is liable to pay under section 1061ZZDE, 1061ZZDL, 1061ZZDV or 1061ZZEE; and
(iii) an accumulated FS debt that discharges, or discharges the unpaid part of, an FS debt; but
(b) does not include:
(i) a debt constituted by an obligation to repay the amount of a payment that, because of paragraph 1061ZZCV(2)(a), 1061ZZCX(3)(a), 1061ZZDO(3)(a) or 1061ZZDY(3)(a), is not a payment of financial supplement; or
(ii) an FS assessment debt that is required to be paid to reduce an accumulated FS debt.
Division 2 -- Review of decisions
1061ZZFS What happens if a decision of the Secretary is set aside
(1) Subject to subsection (2), if a decision of the Secretary under this Chapter is set aside after a review under Chapter 6, this Chapter has effect, and is taken to have always had effect, as if the decision had not been made.
(2) If the decision is set aside after a review under Chapter 6 and another decision is substituted for the original decision, this Chapter has effect, and is taken to have always had effect, as if the substituted decision had been the original decision.
1061ZZFT What happens if a decision of the Secretary is varied
If a decision of the Secretary under this Chapter is varied after a review under Chapter 6, this Chapter has effect, and is taken to have always had effect, as if the decision as varied had been the original decision.
Division 3 -- Transfer of rights under this Chapter
If any rights of a participating corporation to receive a payment from a person under this Chapter are transferred to the Commonwealth, the Secretary must, as soon as practicable, arrange for a written notice to be given to the person:
(a) stating that the rights have been transferred; and
(b) identifying any future payments that, because of the transfer, are required to be made to the Commonwealth.
1061ZZFV Transfers not subject to State or Territory taxes
A transfer to the Commonwealth under this Chapter of any of the corporation's rights under a financial supplement contract, or any other act or thing done or transaction entered into under this Chapter, is not subject to taxation under a law of a State or Territory.
7 After section 1361
Insert:
1361A Evidentiary certificates relating to financial supplement
(1) A certificate given by the Secretary stating:
(a) that a specified amount was the principal sum at a particular time under a specified financial supplement contract; or
(b) that a specified amount was the sum of the amounts repaid, or the sum of the amounts notionally repaid, before a particular time or during a particular period in respect of a specified financial supplement contract; or
(c) that a specified amount was the amount, or the total of the amounts, of subsidy paid by the Commonwealth to a specified participating corporation in respect of a specified financial supplement contract in lieu of interest on the principal sum or in lieu of interest on the principal sum in relation to a specified period; or
(d) that a specified amount was, at a particular time, the amount outstanding under a specified financial supplement contract; or
(e) that a specified amount was, at a particular time, the indexation amount in relation to a specified financial supplement contract; or
(f) that the rights, or specified rights, of a specified participating corporation in respect of a specified person under a specified financial supplement contract were transferred by the corporation to the Commonwealth on a specified date; or
(g) that, on a specified day, a person had an FS debt or FS debts to the Commonwealth of a specified amount or specified amounts; or
(h) that, on a specified day, a notice, to a specified effect, under a provision of Chapter 2B was given to a specified person by the Secretary;
is prima facie evidence of the matters stated in the certificate.
(2) In any proceeding, a document purporting to be a certificate by the Secretary under this section is taken, unless the contrary is established, to be such a certificate and to have been duly given.
Part 2 -- Amendments commencing on 1 July 1999
8 Section 3 (index of definitions)
Omit:
weekday | 19AB(2) |
9 Subsection 19AB(2) (definition of weekday )
Repeal the definition.
10 Subsection 1061ZZAK(2) (steps 1 and 2 of the method statement)
Omit "weekdays", substitute "days".
11 Subsection 1061ZZAO(1) (steps 1 and 2 of the method statement)
Omit "weekdays", substitute "days".