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Schedule 3—Higher Education Loan Program

Schedule 3 Higher Education Loan Program

Part 1 Amendments

Higher Education Support Act 2003

1  Paragraph 36-10(1)(c)

After “subsections (2)”, insert “, (2AA), (2AB)”.

2  Before subsection 36-10(2)

Insert:

Australian citizens and current or former permanent humanitarian visa holders

3  Paragraphs 36-10(2)(b) and (c)

Repeal the paragraphs, substitute:

                     (b)  a * permanent humanitarian visa holder who will be resident within Australia for the duration of the unit; or

                     (c)  a person in relation to whom both of the following apply:

                              (i)  when the person commenced the * course of study of which the unit is a part, the student was a permanent humanitarian visa holder;

                             (ii)  the person is a * permanent visa holder who will be resident in Australia for the duration of the unit.

4  After subsection 36-10(2)

Insert:

Current and former special category visa holders

       (2AA)  A person also meets the citizenship or residency requirements for the purposes of paragraph (1)(c) if:

                     (a)  the person is a New Zealand citizen; and

                     (b)  the person holds a special category visa under the Migration Act 1958 ; and

                     (c)  the person first began to be usually resident in Australia as a * dependent child and has not ceased being usually resident in Australia since that time; and

                     (d)  that time was at least 10 years before the day the person made the * request for Commonwealth assistance; and

                     (e)  the person has been in Australia (whether or not continuously) for at least 8 years of the 10 year period immediately before that day, of which at least 18 months was in the most recent 2 year period; and

                      (f)  the person will be resident in Australia for the duration of the unit.

       (2AB)  A person also meets the citizenship or residency requirements for the purposes of paragraph (1)(c) if:

                     (a)  when the person commenced the * course of study of which the unit is a part, the person met, under subsection (2AA), the citizenship or residency requirements; and

                     (b)  the person is a * permanent visa holder who will be resident in Australia for the duration of the unit.

When a person is resident within Australia

5  Subsection 36-10(2A)

Omit “subparagraph (2)(b) or (c)”, substitute “this section”.

6  Before subsection 36-10(2B)

Insert:

When an Australian citizen does not meet citizenship or residency requirements

7  Subsection 36-10(2B)

Omit “subsections (2) and (2A), a person”, substitute “paragraph (2)(a), a person who is an Australian citizen”.

8  Paragraph 90-1(aa)

After “ * accredited course”, insert “or * enabling course”.

9  Before subsection 90-5(1)

Insert:

Australian citizens and current or former permanent humanitarian visa holders

10  At the end of subsection 90-5(1)

Add:

               ; or (c)  a student in relation to whom both of the following apply:

                              (i)  the student was a permanent humanitarian visa holder when the person commenced the course of study of which the unit is a part;

                             (ii)  the student is a * permanent visa holder who will be resident in Australia for the duration of the unit.

11  Subsection 90-5(2)

Omit “paragraph (1)(b)”, substitute “this section”.

12  Subsection 90-5(2A)

Repeal the subsection, substitute:

Current and former special category visa holders

          (2A)  A student also meets the citizenship or residency requirements under this section in relation to a unit of study if:

                     (a)  the student is a New Zealand citizen; and

                     (b)  the student holds a special category visa under the Migration Act 1958 ; and

                     (c)  the student first began to be usually resident in Australia as a * dependent child and has not ceased being usually resident in Australia since that time; and

                     (d)  that time was at least 10 years before the day referred to in subsection (2B) (the test day ); and

                     (e)  the student has been in Australia (whether or not continuously) for at least 8 years of the 10 year period immediately before the test day, of which at least 18 months was in the most recent 2 year period; and

                      (f)  the student will be resident in Australia for the duration of the unit.

          (2B)  A student also meets the citizenship or residency requirements under this section in relation to a unit of study if:

                     (a)  when the student commenced the * course of study of which the unit is a part, the student met, under subsection (2A), the citizenship or residency requirements in relation to the unit; and

                     (b)  the student is a * permanent visa holder who will be resident in Australia for the duration of the unit.

13  Before subsection 90-5(3)

Insert:

When an Australian citizen does not meet citizenship or residency requirements

14  Subsection 90-5(3)

Omit “subsections (1), (2) and (2A), a student”, substitute “paragraph (1)(a), a student who is an Australian citizen”.

15  Before subsection 104-5(1)

Insert:

Australian and New Zealand citizens and certain permanent visa holders

16  After paragraph 104-5(1)(b)

Insert:

                   (ba)  a New Zealand citizen who will be resident in Australia for the duration of the unit; or

                   (bb)  a * permanent visa holder (except if the student is covered by paragraph (c)) who will be resident in Australia for the duration of the unit; or

                   (bc)  a student in relation to whom both of the following apply:

                              (i)  the student was a permanent humanitarian visa holder when the person commenced the course of which the unit is a part;

                             (ii)  the student is a permanent visa holder who will be resident in Australia for the duration of the unit; or

17  Subsection 104-5(2)

Omit “paragraph (1)(b) or (c)”, substitute “this section”.

18  Subsection 104-5(2A)

Repeal the subsection, substitute:

Current and former special category visa holders

          (2A)  A student also meets the citizenship or residency requirements under this section in relation to a unit of study if:

                     (a)  the student is a New Zealand citizen; and

                     (b)  the student holds a special category visa under the Migration Act 1958 ; and

                     (c)  the student first began to be usually resident in Australia as a * dependent child and has not ceased being usually resident in Australia since that time; and

                     (d)  that time was at least 10 years before the day referred to in subsection (2B) (the test day ); and

                     (e)  the student has been in Australia (whether or not continuously) for at least 8 years of the 10 year period immediately before the test day, of which at least 18 months was in the most recent 2 year period; and

                      (f)  the student will be resident in Australia for the duration of the unit.

          (2B)  A student also meets the citizenship or residency requirements under this section in relation to a unit of study if:

                     (a)  when the student commenced the * course of study of which the unit is a part, the student met, under subsection (2A), the citizenship or residency requirements in relation to the unit; and

                     (b)  the student is a * permanent visa holder who will be resident in Australia for the duration of the unit.

19  Before subsection 104-5(3)

Insert:

When an Australian citizen does not meet citizenship or residency requirements

20  Subsections 104-5(3) and (4)

Omit “subsections (1), (2) and (2A), a student”, substitute “paragraph (1)(a), a student who is an Australian citizen”.

21  After paragraph 118-5(1)(b)

Insert:

                   (ba)  a student in relation to whom both of the following apply:

                              (i)  the student was a permanent humanitarian visa holder on the day referred to in subsection (3);

                             (ii)  the student is a * permanent visa holder; or

22  Paragraph 118-5(1)(c)

After “subsection (2)”, insert “or (2A)”.

23  Subsection 118-5(2)

Repeal the subsection, substitute:

Current and former special category visa holders

             (2)  This subsection applies to a student if:

                     (a)  the student is a New Zealand citizen; and

                     (b)  the student holds a special category visa under the Migration Act 1958 ; and

                     (c)  the student first began to be usually resident in Australia as a * dependent child and has not ceased being usually resident in Australia since that time; and

                     (d)  that time was at least 10 years before the day referred to in subsection (3) (the test day ); and

                     (e)  the student has been in Australia (whether or not continuously) for at least 8 years of the 10 year period immediately before the test day, of which at least 18 months was in the most recent 2 year period.

          (2A)  This subsection applies to a student if:

                     (a)  on the day referred to in subsection (3), the student met, under subsection (2), the citizenship or residency requirements; and

                     (b)  the student is a * permanent visa holder.

24  Subsection 118-5(3)

Omit “subsection (2)”, substitute “this section”.

25  Before subsection 126-5(1)

Insert:

Australian and New Zealand citizens and permanent visa holders

26  At the end of subsection 126-5(1)

Add:

               ; or (c)  a New Zealand citizen resident in Australia; or

                     (d)  a * permanent visa holder resident in Australia; or

                     (e)  a student in relation to whom both of the following apply:

                              (i)  the student was a permanent humanitarian visa holder on the day referred to in subsection (1B);

                             (ii)  the student is a permanent visa holder resident in Australia.

27  Subsection 126-5(1A)

Repeal the subsection, substitute:

Special category visa holders

          (1A)  A student also meets the citizenship or residency requirements under this section in relation to a * student services and amenities fee imposed on the student by a higher education provider if:

                     (a)  the student is a New Zealand citizen; and

                     (b)  the student holds a special category visa under the Migration Act 1958 ; and

                     (c)  the student first began to be usually resident in Australia as a * dependent child and has not ceased being usually resident in Australia since that time; and

                     (d)  that time was at least 10 years before the day referred to in subsection (1B) (the test day ); and

                     (e)  the student has been in Australia (whether or not continuously) for at least 8 years of the 10 year period immediately before the test day, of which at least 18 months was in the most recent 2 year period; and

                      (f)  the student is resident in Australia.

       (1AB)  A student also meets the citizenship or residency requirements under this section in relation to a * student services and amenities fee imposed on the student by a higher education provider if:

                     (a)  on the day referred to in subsection (1B), the student met, under subsection (1A), the citizenship or residency requirements in relation to the fee; and

                     (b)  the student is a * permanent visa holder resident in Australia.

28  Subsection 126-5(1B)

Omit “subsection (1A)”, substitute “this section”.

29  Before subsection 126-5(2)

Insert:

When an Australian citizen does not meet citizenship or residency requirements

30  Subsection 126-5(2)

Omit “subsections (1) and (1A), a student”, substitute “paragraph (1)(a), a student who is an Australian citizen”.

VET Student Loans Act 2016

31  Section 6 (definition of qualifying New Zealand citizen )

Omit “subsection 11(2)”, substitute “subsections 11(2) and (3)”.

32  At the end of subsection 11(1)

Add:

               ; or (d)  a New Zealand citizen who is usually resident in Australia; or

                     (e)  a holder of a permanent visa (within the meaning of subsection 30(1) of the Migration Act 1958 ) who is usually resident in Australia; or

                      (f)  a student in relation to whom both of the following apply:

                              (i)  the student was a holder of a permanent humanitarian visa (within the meaning of the Migration Act 1958 ) on the day the Secretary approved a VET student loan to the student;

                             (ii)  the student is the holder of a permanent visa (within the meaning of that Act) who is usually resident in Australia.

33  At the end of section 11

Add:

             (3)  A qualifying New Zealand citizen is also a New Zealand citizen who:

                     (a)  on the day the Secretary approved a VET student loan to the citizen, he or she was a qualifying New Zealand citizen under subsection (2); and

                     (b)  is the holder of a permanent visa (within the meaning of the Migration Act 1958 ) who is usually resident in Australia.

Part 2 Amendments commencing 1 July 2018

Higher Education Support Act 2003

34  Section 140-15

Repeal the section.

35  Paragraph 154-10(a)

Repeal the paragraph, substitute:

                     (a)  for the 2018-19 income year—$41,999; or

36  Section 154-20 (table)

Repeal the table, substitute:

 

Applicable percentages

Item

If the person’s repayment income is:

The percentage applicable is:

1

More than the * minimum repayment income, but less than:

(a) for the 2018-19 * income year—$44,520; or

(b) for a later income year—that amount indexed under section 154-25.

1%

2

Equal to, or more than, the amount under item 1, but less than:

(a) for the 2018-19 * income year—$47,191; or

(b) for a later income year—that amount indexed under section 154-25.

1.5%

3

Equal to, or more than, the amount under item 2, but less than:

(a) for the 2018-19 * income year—$50,022; or

(b) for a later income year—that amount indexed under section 154-25.

2%

4

Equal to, or more than, the amount under item 3, but less than:

(a) for the 2018-19 * income year—$53,024; or

(b) for a later income year—that amount indexed under section 154-25.

2.5%

5

Equal to, or more than, the amount under item 4, but less than:

(a) for the 2018-19 * income year—$56,205; or

(b) for a later income year—that amount indexed under section 154-25.

3%

6

Equal to, or more than, the amount under item 5, but less than:

(a) for the 2018-19 * income year—$59,577; or

(b) for a later income year—that amount indexed under section 154-25.

3.5%

7

Equal to, or more than, the amount under item 6, but less than:

(a) for the 2018-19 * income year—$63,152; or

(b) for a later income year—that amount indexed under section 154-25.

4%

8

Equal to, or more than, the amount under item 7, but less than:

(a) for the 2018-19 * income year—$66,941; or

(b) for a later income year—that amount indexed under section 154-25.

4.5%

9

Equal to, or more than, the amount under item 8, but less than:

(a) for the 2018-19 * income year—$70,958; or

(b) for a later income year—that amount indexed under section 154-25.

5%

10

Equal to, or more than, the amount under item 9, but less than:

(a) for the 2018-19 * income year—$75,215; or

(b) for a later income year—that amount indexed under section 154-25.

5.5%

11

Equal to, or more than, the amount under item 10, but less than:

(a) for the 2018-19 * income year—$79,728; or

(b) for a later income year—that amount indexed under section 154-25.

6%

12

Equal to, or more than, the amount under item 11, but less than:

(a) for the 2018-19 * income year—$84,512; or

(b) for a later income year—that amount indexed under section 154-25.

6.5%

13

Equal to, or more than, the amount under item 12, but less than:

(a) for the 2018-19 * income year—$89,582; or

(b) for a later income year—that amount indexed under section 154-25.

7%

14

Equal to, or more than, the amount under item 13, but less than:

(a) for the 2018-19 * income year—$94,957; or

(b) for a later income year—that amount indexed under section 154-25.

7.5%

15

Equal to, or more than, the amount under item 14, but less than:

(a) for the 2018-19 * income year—$100,655; or

(b) for a later income year—that amount indexed under section 154-25.

8%

16

Equal to, or more than, the amount under item 15, but less than:

(a) for the 2018-19 * income year—$106,694; or

(b) for a later income year—that amount indexed under section 154-25.

8.5%

17

Equal to, or more than, the amount under item 16, but less than:

(a) for the 2018-19 * income year—$113,096; or

(b) for a later income year—that amount indexed under section 154-25.

9%

18

Equal to, or more than, the amount under item 17, but less than:

(a) for the 2018-19 * income year—$119,882; or

(b) for a later income year—that amount indexed under section 154-25.

9.5%

19

Equal to, or more than, the amount under item 18.

10%

37  Subsection 154-25(1)

Repeal the subsection, substitute:

             (1)  The following amounts for the 2019-20 * income year, or a later income year:

                     (a)  the * minimum repayment income;

                     (b)  the amounts referred to in paragraph (a) of the second column of items 1 to 18 of the table in section 154-20;

are indexed by multiplying the corresponding amounts for the 2018-19 income year by the amount worked out using the formula:

38  Subsections 154-25(2) and (3)

Repeal the subsections.

39  Paragraph 154-30(b)

Omit “to 9”, substitute “to 18”.

40  Section 198-1 (note 1)

Omit “sections 140-10 and 140-15”, substitute “section 140-10”.

41  Subclause 1(1) of Schedule 1 (definition of AWE )

Repeal the definition.

42  Subclause 1(1) of Schedule 1 (paragraph (a) of the definition of index number )

Repeal the paragraph, substitute:

                     (a)  for the purposes of Parts 4-1 and 4-2, has the meaning given by clause 2 of this Schedule; and

43  Subclause 1(1) of Schedule 1 (definition of reference period )

Repeal the definition.

44  At the end of Schedule 1

Add:

2   Index numbers

             (1)  For the purposes of Parts 4-1 and 4-2, the index number for a * quarter is the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the * Australian Statistician in respect of that quarter.

             (2)  Subject to subclause (3), if, at any time before or after the commencement of this Act:

                     (a)  the * Australian Statistician has published or publishes an * index number in respect of a * quarter; and

                     (b)  that index number is in substitution for an index number previously published by the Australian Statistician in respect of that quarter;

disregard the publication of the later index number for the purposes of this clause.

             (3)  If, at any time before or after the commencement of this Act, the * Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, in applying this clause after the change took place or takes place, have regard only to * index numbers published in terms of the new reference base.

Part 3 Application and transitional provisions

45  Amendments made by Part 1 of this Schedule

(1)       The amendments of the Higher Education Support Act 2003 made by Part 1 of this Schedule (except the repeal of paragraphs 36-10(2)(b) and (c) of that Act) apply in relation to any unit of study with a census date that is on or after 1 January 2018 (whether the unit of study is part of a course commenced before or after that day).

(2)       The amendments of the VET Student Loans Act 2016 made by Part 1 of this Schedule apply in relation to any part of a course with a census day that is on or after 1 January 2018 (whether the course commenced before or after that day).

46  Commonwealth supported students

            The repeal of paragraphs 36-10(2)(b) and (c) of the Higher Education Support Act 2003 by Part 1 of this Schedule applies in relation to:

                     (a)  courses commenced on or after 1 January 2018; or

                     (b)  for courses commenced before 1 January 2018—units of study in such courses if the units are commenced on or after 1 January 2023.

47  Indexation

(1)       The amendments of the Higher Education Support Act 2003 made by Part 2 of this Schedule (except the amendments of section 154-25 of that Act) apply in relation to the 2018-19 income year and later income years.

(2)       The amendments of section 154-25 of the Higher Education Support Act 2003 made by Part 2 of this Schedule apply in relation to the 2019-20 income year and later income years.