CHAPTER 3 WORKING OUT AN ELIGIBLE PERSON’S HECS-HELP BENEFIT FOR AN INCOME YEAR
3.1 PURPOSE
3.1.1 The purpose of this chapter is to specify how an eligible person’s HECS-HELP benefit amount for an income year is worked out for the purpose of subsection 157-15(1) of the Act.
3.5 MAXIMUM HECS-HELP BENEFIT AMOUNT FOR AN INCOME YEAR
3.5.1 The maximum HECS-HELP benefit for a mathematics or science graduate is $1,500 for the 2008–09 income year. For each subsequent income year it is the amount specified in subsection 3.5.20.
3.5.5 The maximum HECS-HELP benefit for an early childhood education teacher is $1,600 for the 2008–09 income year. For each subsequent income year it is the amount specified in subsection 3.5.20.
3.5.10 The maximum HECS-HELP benefit for an education graduate is $1,558.50 for the
2009–10 income year. For each subsequent income year it is the amount specified in subsection 3.5.20.
3.5.15 The maximum HECS-HELP benefit for a nursing/midwifery graduate is $1,558.50 for the
2009–10 income year. For each subsequent income year it is the amount specified in subsection 3.5.20.
3.5.20 The maximum HECS-HELP benefit referred to in paragraphs 3.5.1 and 3.5.5 for an income year that is later than the 2008–09 income year and the maximum HECS-HELP benefit referred to in paragraphs 3.5.10 and 3.5.15 for an income year that is later than the 2009–10 income year is worked out by multiplying the maximum HECS-HELP benefit for the previous income year by the HELP debt indexation factor (as calculated in accordance with section 140‑10 of the Act) for 1 June in the financial year that coincides with that previous income year.
3.10 WORKING OUT A PERSON’S HECS-HELP BENEFIT FOR AN INCOME YEAR
Mathematics or science graduate
3.10.1 The HECS-HELP benefit amount for an income year that must be determined by the Commissioner for a person who is to receive the benefit as a mathematics or science graduate is the smallest of the three amounts worked out in paragraphs 3.10.1.1, 3.10.1.5 and 3.10.1.10 (“Benefit 3.10.1”), unless subsection 3.10.20 applies, in which case the HECS-HELP benefit amount is Benefit 3.10.1 multiplied by the Reduction Factor specified in subsection 3.10.20.
3.10.1.1 The amount worked out using the following formula:
A = the maximum HECS‑HELP benefit amount for a mathematics or science graduate for the income year, calculated in accordance with subsections 3.5.1 and 3.5.20; and
B = the number of employed weeks for the person in the income year that does not exceed the lesser of 52 weeks and the person’s entitlement weeks;
3.10.1.5 The compulsory repayment amount for the person for that income year; or
Part Part 3 - HECS-HELP Benefit Guidelines No. 1 - WORKING OUT AN ELIGIBLE PERSON’S HECS-HELP BENEFIT FOR AN INCOME YEAR | Zoe
3.10.1.10 The person’s debt incurred at course completion as at the time of the determination in respect of the course that qualifies the person to be a mathematics or science graduate minus the sum of the HECS‑HELP benefit amounts that the Commissioner has determined for all income years for the person as a mathematics or science graduate.
Early childhood education teacher
3.10.5 The HECS-HELP benefit amount for an income year that must be determined by the Commissioner for a person who is to receive the benefit as an early childhood education teacher is the smallest of the four amounts worked out in paragraphs 3.10.5.1, 3.10.5.5, 3.10.5.10 and 3.10.5.15 (“Benefit 3.10.5”), unless subsection 3.10.20 applies, in which case the HECS-HELP benefit amount is Benefit 3.10.5 multiplied by the Reduction Factor specified in subsection 3.10.20.
3.10.5.1 The amount worked out using the following formula:
A = the maximum HECS‑HELP benefit amount for an early childhood education teacher for the income year, calculated in accordance with subsections 3.5.5 and 3.5.20; and
B = the number of employed weeks for the person in the income year that does not exceed the lesser of 52 weeks and the person’s entitlement weeks;
3.10.5.5 if the person has a compulsory repayment amount, the compulsory repayment amount for the person for that income year;
3.10.5.10 if no compulsory repayment amount is required for that income year, the amount of the person’s accumulated HELP debt for that income year; or
3.10.5.15 the person’s debt incurred at course completion as at the time of the determination in respect of the course that qualifies the person to be an early childhood education teacher minus the sum of the HECS‑HELP benefit amounts that the Commissioner has determined for all income years for the person as an early childhood education teacher.
Education Graduate
3.10.10 The HECS-HELP benefit amount for an income year that must be determined by the Commissioner for a person who is to receive the benefit as an education graduate is the smallest of the three amounts worked out in paragraphs 3.10.10.1, 3.10.10.5 and 3.10.10.10 (“Benefit 3.10.10”), unless subsection 3.10.20 applies, in which case the HECS-HELP benefit amount is Benefit 3.10.10 multiplied by the Reduction Factor specified in subsection 3.10.20
3.10.10.1 The amount worked out using the following formula:
A = the maximum HECS‑HELP benefit amount for an education graduate for the income year, calculated in accordance with subsections 3.5.10 and 3.5.20; and
B = the number of employed weeks for the person in the income year that does not exceed the lesser of 52 weeks and the person’s entitlement weeks;
3.10.10.5 The compulsory repayment amount for the person for that income year;
3.10.10.10 The person’s debt incurred at course completion as at the time of the determination in respect of the course that qualifies the person to be a education graduate minus the sum of the HECS‑HELP benefit amounts that the Commissioner has determined for all income years for the person as an education graduate.
Nursing/midwifery Graduate
3.10.15 The HECS-HELP benefit amount for an income year that must be determined by the Commissioner for a person who is to receive the benefit as a nursing/midwifery graduate is the smallest of the three amounts worked out in paragraphs 3.10.15.1, 3.10.15.5 and 3.10.15.10 (“Benefit 3.10.15”), unless subsection 3.10.20 applies, in which case the HECS-HELP benefit amount is Benefit 3.10.15 multiplied by the Reduction Factor specified in subsection 3.10.20
3.10.15.1 The amount worked out using the following formula:
A = the maximum HECS‑HELP benefit amount for a nursing/midwifery graduate for the income year, calculated in accordance with subsections 3.5.15 and 3.5.20; and
B = the number of employed weeks for the person in the income year that does not exceed the lesser of 52 weeks and the person’s entitlement weeks;
3.10.15.5 The compulsory repayment amount for the person for that income year;
3.10.15.10 The person’s debt incurred at course completion as at the time of the determination in respect of the course that qualifies the person to be a nursing/midwifery graduate minus the sum of the HECS‑HELP benefit amounts that the Commissioner has determined for all income years for the person as a nursing/midwifery graduate.
More than one of a mathematics or science graduate, an early childhood education teacher, an education graduate and a nursing/midwifery graduate
3.10.20 This section applies if a person is eligible for a HECS-HELP benefit in an income year:
(a) as more than one of a mathematics or science graduate, an early childhood education teacher; an education graduate or a nursing/midwifery graduate; and
(b) the person has a compulsory repayment amount for that income year (CR); and
(c) the sum of any Benefit 3.10.1, Benefit 3.10.5, Benefit 3.10.10 and Benefit 3.10.15 exceeds the person’s compulsory repayment amount for that income year.
The Reduction Factor is:
CR
÷
Combined Benefits
with the result rounded to six decimal places with 0.0000005 to be rounded down
where
“Combined Benefits”
=
The sum of: Benefit 3.10.1, Benefit 3.10.5, Benefit 3.10.10 and Benefit 3.10.15
3.10.20.1 If 3.10.20 applies, then, with reference to paragraphs (a), (b), (c) and (d) of the definition of the term entitlement weeks in subsection 1.5.5 above, the ‘number of weeks in respect of which the Commissioner has determined a HECS-HELP benefit’ under subsections 3.10.1, 3.10.5, 3.10.10 and 3.10.15 respectively for the income year is taken to be the result of the following calculation rounded to the nearest whole number of weeks with 0.5 to be rounded down:
For paragraph (a):
Value of B in 3.10.1.1
x
Reduction Factor(as calculated in subsection 3.10.20)
For paragraph (b):
Value of B in 3.10.5.1
x
Reduction Factor(as calculated in subsection 3.10.20)
For paragraph (c):
Value of B in 3.10.10.1
x
Reduction Factor(as calculated in subsection 3.10.20)
For paragraph (d):
Value of B in 3.10.15.1
x
Reduction Factor(as calculated in subsection 3.10.20)
3.15 EXAMPLES OF CALCULATING THE HECS-HELP BENEFIT
3.15.1 The following examples are provided to illustrate the calculation of the HECS-HELP benefit.
Example 1
Anna completed an eligible undergraduate science degree in November 2008 and worked as a chemistry technician from January 2009 to June 2009 for a period of 26 employed weeks in the 2008-09 income year.
Anna had incurred a HELP debt of $12,000 upon completion of her science degree.
Anna lodges her 2008-09 income tax return in August 2009 and applies for the HECS‑HELP benefit at the same time.
Her repayment income is $60,000 and her compulsory repayment amount is $3,600.
Anna’s HECS-HELP benefit amount is calculated as follows:
Maximum HECS‑HELP benefit amount for the income year for a mathematics or science graduate
÷
52
x
Number of employed weeks for the person in the income year
=
HECS‑HELP benefit for income year
$1,500
÷
52
x
26
=
$750
Note: The Commissioner determines that Anna’s HECS-HELP benefit is $750. Anna is required to make a HELP repayment of $2,850 ($3,600 - $750) (section 154-3 of the Act).
Note: Anna’s accumulated HELP debt is reduced by her compulsory repayment amount (ie $3,600) (Step 4 of the Method Statement under subsection 140-5(1) of the Act).
Note: Example 2
Note: Max completed an early childhood education teaching course of study in 2007.
Note: He was employed as a preschool teacher in an eligible remote area for the entire 2008‑09 income year.
Note: Max lodges his 2008-09 income tax return in July 2009 and applies for the HECS-HELP benefit at the same time.
Note: His repayment income is $28,000 and his accumulated HELP debt is $10,000.
Note: Max’s repayment income is below the minimum repayment threshold and no compulsory HELP repayment is required.
Note: Max is eligible for the maximum HECS-HELP benefit as an early childhood education teacher, which is $1,600.
Note: The Commissioner determines that Max’s HECS-HELP benefit is $1,600. Max’s accumulated HELP debt is reduced by $1,600 to $8,400 (Step 4A of the Method Statement under subsection 140-5(1) of the Act).
Note: Example 3
Note: Sharon completed an undergraduate science degree course of study at the end of 2008.
Note: She has worked as a laboratory assistant since January 2009 and received a HECS‑HELP benefit in each income year prior to 2013–14. The Commissioner had determined a HECS‑HELP benefit as a mathematics or science graduate for all income years for a total of 228 employed weeks.
Note: Sharon lodges her 2013–14 income tax return and applies for the HECS-HELP benefit at the same time. Sharon was employed for 40 employed weeks in 2013–14.
Note: Her accumulated HELP debt is $2,000 and her repayment income in 2013–14 is $70,000
Note: The number of entitlement weeks for Sharon as a mathematics or science graduate is:
260 weeks
–
The number of weeks in respect of which the Commissioner has determined a HECS-HELP benefit for all previous income years as a mathematics or science graduate.
Note: That is: 260 – 228 = 32 weeks
Note: Although Sharon was employed for 40 employed weeks she will only be entitled to receive the HECS-HELP benefit for 32 weeks as this is all that remains in relation to her entitlement weeks.
Note: Sharon will then have received her full entitlement to a HECS-HELP benefit in respect to her eligible undergraduate science degree.
Note: Example 4
Note: Ben completed an undergraduate science degree at the end of 2008. He paid for some of his course of study up front and his accumulated HELP debt when he completed this course was $13,000. Ben had also previously completed an early childhood education teaching course in 2001. His HECS debt when he completed this course of study was $11,040.
Note: Ben was employed for 15 hours per week as a preschool teacher in an eligible remote area for the 50 weeks in the 2008–09 income year. He also worked for 15 hours per week for 40 weeks as a teacher in a primary school over the same period.
Note: Ben is eligible for the HECS-HELP benefit as both a mathematics or science graduate and an early childhood education teacher.
Note: Ben’s repayment income is $50,000 and his compulsory repayment amount is $2,250.
Note: Ben’s HECS-HELP benefit that would have been worked out under each of those subsections ("Benefit 3.10.1" and "Benefit 3.10.5", respectively) is:
For subsection 3.10.1 (Mathematics and science graduate):
$1500
÷
52
x
40
= $1153.85
For subsection 3.10.5 (Early childhood education teacher):
$1600
÷
52
x
50
Note: = $1538.46
Note: As the sum of these amounts ($2692.31) is greater than Ben’s compulsory repayment amount ($2250), for the purposes of their respective subsections, each of the two benefit amounts is reduced by the “Reduction Factor”.
The Reduction Factor is:
CR
÷
Combined Benefits
where
“Combined Benefits”
=
Benefit 3.10.1
+
Benefit 3.10.5
$2250
÷
$2692.31
= 0.835713
For the purposes of subsection 3.10.1, the amount of Benefit (3.10.1) is reduced to:
Reduction Factor
x
Preliminary Benefit (3.10.1)
0.835713
x
$1153.85
Note: = $964.29
For the purposes of subsection 3.10.5, the amount of Benefit (3.10.5) is reduced to:
Reduction Factor
x
Benefit (3.10.5)
0.835713
x
$1538.46
Note: = $1285.71
Note: Entitlement weeks
Note: In addition, with reference to paragraphs (a) and (b) of the definition of the term entitlement weeks in subsection 1.5.5, the ‘number of weeks in respect of which the Commissioner has determined a HECS-HELP benefit’ for Ben under subsections 3.10.1 and 3.10.5, respectively for the 2008–09 income year is taken to be the result of the following calculation rounded to the nearest whole number of weeks with 0.5 to be rounded down:
For paragraph (a) of the definition of entitlement weeks, the number of weeks is:
Value of Bin 3.10.1.1
x
Reduction Factor(as calculated in subsection 3.10.20)
40
x
0.835713
Note: = 33.43 weeks rounded to 33 weeks.
For paragraph (b) of the definition of entitlement weeks, the number of weeks is:
Value of Bin 3.10.5.1
x
Reduction Factor(as calculated in subsection 3.10.20)
50
x
0.835713
Note: = 41.79 weeks rounded to 42 weeks
Note: Ben will have 33 weeks deducted from his entitlement weeks as a mathematics or science graduate and 42 weeks deducted from his entitlement weeks an early childhood education teacher.
Noting the amount of the HECS-HELP benefit:
- for a mathematics or science graduate specified in subsection 3.10.1:
Ben’s total lifetime benefit in relation to an eligible occupation (specified in subsection 2.10.1 of these guidelines) as a mathematics or science graduate cannot exceed $13,000 indexed as specified in subsection 3.5.1.
- for an early childhood education teacher specified in subsection 3.10.5:
Ben’s total lifetime benefit in relation to his occupation (specified in paragraph (b) of the definition of the term eligible occupation in subsection 1.5.5 of these guidelines) as an early childhood education teacher cannot exceed $11,040 indexed as specified in subsection 3.5.10.
Example 5
Michelle completed a Bachelor of Education (Early Childhood and Primary) at the end of 2009.
She worked as an early childhood education teacher in an eligible remote area for the 20 weeks in the 2009–10 income year.
Michelle’s accumulated HELP debt is $28,000.
Michelle’s repayment income for 2009–10 is $50,000 and her compulsory repayment amount is $2250.
Michelle is eligible for the HECS-HELP benefit for the 2009–10 income year as both early childhood education teacher and an education graduate.
Michelle elects to apply for both benefits for the same employment period with the same employer.
Michelle’s benefit:
For subsection 3.10.5 (Early childhood education teacher):
| $1662.401 | ÷ | 52 | x | 20 |
= $639.39
For subsection 3.10.10 (Education graduates):
Note: = $599.42
Note: Michelle’s compulsory HELP repayment would be reduced by $1238.81. In addition, Michelle’s eligible employment weeks would be reduced by 20 weeks for each of;
Note: - an early childhood education teacher; and
Note: - an education graduate.
Note: 1. 2009–10 indexed amounts
Example 6
Kimberley completed a Bachelor of Science/Bachelor of Education at the end of 2009.
She worked as a teacher for 20 weeks in the 2009–10 income year.
Kimberley’s accumulated HELP debt is $28,000.
Kimberley’s repayment income for 2009–10 is $60,000 and her compulsory repayment amount is $3600.
Kimberley is eligible for the HECS-HELP benefit for the 2009–10 income year as an education graduate and as a science graduate.
Kimberley elects to apply for both benefits for the same employment period with the same employer.
Kimberley’s benefit:
For subsection 3.10.1 (Mathematics and science graduate):
= $599.42
For subsection 3.10.10 (Education graduate):
Note: = $599.42
Note: Kimberley’s compulsory HELP repayment would be reduced by $1198.84. In addition, Kimberley’s eligible employment weeks would be reduced by 20 weeks for each of;