46Liability to repay amounts

46 Liability to repay amounts

(1) If: (a) a person’s repayment income for an income year exceeds the minimum repayment income for the income year; and (b) on 1 June immediately preceding the making of an assessment in respect of the person’s income of that income year, the person had an accumulated AASL debt; the person is liable to pay to the Commonwealth, in accordance with this Division, the amount worked out using the following formula in reduction of the person’s repayable AASL debt: Start formula Applicable repayable amount minus Relevant income-contingent loans liability end formula

where:

applicable repayable amount means the amount that is the least of the following:

(a) the amount worked out under subsection 154‑20(2) of the Higher Education Support Act 2003 for the income year, as if:
(i) references in that subsection to the person’s repayment income were references to the person’s repayment income within the meaning of this Act; and
(ii) references in that subsection to the person’s minimum repayment income were references to the person’s minimum repayment income within the meaning of this Act;
(b) the amount equal to 10% of the person’s repayment income for the income year;
(c) the amount of the person’s repayable AASL debt for the income year.

relevant income‑contingent loans liability means the amount that is the sum of the following:

(a) the sum of any amounts the person is liable to pay under section 154‑1 or 154‑16 of the Higher Education Support Act 2003 in respect of the income year;
(aa) the sum of any amounts the person is liable to pay under section 23EA or 23EC of the VET Student Loans Act 2016 in respect of the income year;
(b) the sum of any amounts the person is liable to pay under section 1061ZZEZ of the Social Security Act 1991, or section 12ZK of the Student Assistance Act 1973, in respect of the income year;
(c) any amount the person is liable to pay under section 1061ZVHA of the Social Security Act 1991 in respect of the income year;
(d) any amount the person is liable to pay under section 10F of the Student Assistance Act 1973 in respect of the income year.

(2) A person is not liable under this section to pay an amount for an income year if the amount worked out under subsection (1) is zero or less. (3) A person is not liable under this section to pay an amount for an income year if, under section 8 of the Medicare Levy Act 1986: (a) no Medicare levy is payable by the person on the person’s taxable income for the income year; or (b) the amount of the Medicare levy payable by the person on the person’s taxable income for the income year is reduced.