Tony Smith (Speaker) Share this | Hansard source

The question is that the amendments be considered immediately.

Senate's amendments—

(1) Page 45 (after line 31), after Schedule 4, insert:

Schedule 4A—Up -front payment discount

Higher Education Support Act 2003

1 At the end of Subdivision 36 -D

Add:

36 -50 Provider must not accept up -front payments of more than 90% of student contribution amounts

A higher education provider must not accept, from a person who:

(a) is enrolled in a unit of study with the provider; and

(b) is entitled to *HECS-HELP assistance for the unit;

*up-front payments in relation to the unit totalling more than 90% of the person's *student contribution amount for the unit.

Note: For entitlement to HECS-HELP assistance: see Division 90.

2 Paragraph 90 -1(f)

Repeal the paragraph, substitute:

(f) the student either:

  (i) *meets the tax file number requirements (see section 187-1); or

  (ii) pays, as one or more *up-front payments in relation to the unit, 90% of the student's *student contribution amount for the unit; and

3 Subsection 93 -15(1)

Omit "all or".

4 At the end of section 93 -15

Add:

(3) A payment made in relation to a unit of study for which a person is liable to pay the person's *student contribution amount is not an up-front payment in relation to the unit to the extent that:

(a) the payment; or

(b) if other such payments have already been made in relation to the unit—the sum of the payment and all of those other payments;

exceeds 90% of the person's *student contribution amount for the unit.

Note 1: For when the Commonwealth pays one-ninth of the up-front payments made in relation to a unit of study, see sections 96-2 and 96-3.

Note 2: It is a condition of grants under Part 2-2 that a higher education provider not accept, from a student who is entitled to HECS-HELP assistance for a unit of study, up-front payments in relation to the unit totalling more than 90% of a student's student contribution amount for the unit: see section 36-50.

5 Section 96 -1 (at the end of the heading)

Add "—no upfront payment of student contribution amount".

6 Section 96 -1

After "education provider", insert "and no *up-front payments are made in relation to the unit".

7 After section 96 -1

Insert:

96 -2 Payments to higher education providers—partial up -front payment of student contribution amount

Up -front payments made for one unit of study only

(1) If:

(a) a student is entitled to an amount of *HECS-HELP assistance for a unit of study (the relevant unit) in which the student is enrolled with a higher education provider; and

(b) one or more *up-front payments have been made in relation to the relevant unit; and

(c) both of the following apply:

  (i) the amount of that up-front payment, or the sum of those up-front payments, is less than 90% of the student's *student contribution amount for the relevant unit;

  (ii) the amount of that up-front payment, or the sum of those up-front payments, is $500 or more; and

(d) either:

  (i) the student is not enrolled with a provider as a *Commonwealth supported student in relation to any other units of study that have the same *census date as the relevant unit; or

  (ii) if the student is so enrolled in relation to one or more such other units of study, no up-front payments have been made for any of those units;

the Commonwealth must pay the amount of HECS-HELP assistance for the relevant unit in accordance with subsections (3) and (4).

Up -front payments made for more than one unit of study

(2) If:

(a) a student is entitled to an amount of *HECS-HELP assistance for a unit of study (the relevant unit) in which the student is enrolled with a higher education provider; and

(b) one or more *up-front payments have been made in relation to the relevant unit; and

(c) the student is enrolled with the provider as a *Commonwealth supported student in relation to one or more other units of study that have the same *census date as the relevant unit; and

(d) one or more up-front payments have been made in relation to one or more of those other units; and

(e) both of the following apply:

  (i) the sum of the up-front payments made in relation to the relevant unit and those other units is less than 90% of the sum of the student's *student contribution amounts for the relevant unit and those other units;

  (ii) the sum of the up-front payments made in relation to the relevant unit and those other units is $500 or more;

the Commonwealth must pay the amount of HECS-HELP assistance for the relevant unit in accordance with subsections (3) and (4).

Payment of loan amount

(3) The Commonwealth must:

(a) as a benefit to the student, lend to the student an amount equal to the difference between the amount of *HECS-HELP assistance for the relevant unit and the *HECS-HELP discount for the relevant unit; and

(b) pay to the provider the amount lent in discharge of that amount of the student's liability to pay the student's *student contribution amount for the relevant unit.

Payment of discount amount

(4) The Commonwealth must, as a benefit to the student, pay to the provider an amount equal to the *HECS-HELP discount for the relevant unit in discharge of that amount of the student's liability to pay the student's *student contribution amount for the relevant unit.

HECS -HELP discount

(5) The HECS-HELP discount for a unit of study is an amount equal to one-ninth of the *up-front payment, or the sum of all of the up-front payments made, in relation to the unit.

Example: Robert is required to pay a student contribution amount for a unit of study of $2,745 by 31 January 2021, and makes an up-front payment in relation to the unit of $900 on 20 January 2021.

Robert is entitled to HECS-HELP assistance for the unit of $1,845 ($2,745 minus $900), which the Commonwealth must pay to the higher education provider.

The up-front payment in relation to the unit exceeded $500 so there is a HECS-HELP discount of $100 (one-ninth of $900). The Commonwealth lends to Robert the remainder of the HECS-HELP assistance in relation to the unit, an amount of $1,745 ($1,845 minus $100).

96 -3 Payments to higher education providers—full up -front payment of student contribution amount

If:

(a) a student is entitled to an amount of *HECS-HELP assistance for a unit of study in which the student is enrolled with a higher education provider; and

(b) one or more *up-front payments have been made in relation the unit; and

(c) the amount of that up-front payment, or the sum of those up-front payments, is equal to 90% of the student's *student contribution amount for the unit;

the Commonwealth must, as a benefit to the student, pay to the provider the amount of HECS-HELP assistance for the unit in discharge of that amount of the student's liability to pay the student's student contribution amount for the unit.

Note: The student does not incur a HECS-HELP debt in relation to the amount of HECS-HELP assistance paid by the Commonwealth to the provider under this section.

8 Subsection 137 -5(1)

After "section 96-1", insert "or 96-2".

9 Paragraph 193 -1(5 ) ( b)

Omit "for the unit have been made totalling 100%", substitute "in relation to the unit have been made totalling 90%".

10 Paragraph 193 -5(1 ) ( d)

After "to the unit,", insert "90% of".

11 Subclause 1(1) of Schedule 1

Insert:

HECS -HELP discount has the meaning given by subsection 96-2(5).

12 Application of amendments

The amendments made by this Schedule apply in relation to an up-front payment made in relation to a unit of study that has a census date on or after 1 January 2021.

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