106NCalculation of accumulated HEC debt

106N Calculation of accumulated HEC debt

(1) If a person incurred a semester debt or debts before 1 June in a year (the relevant date) but after 1 June in the immediately preceding year, the person incurs on the relevant date an accumulated HEC debt to the Commonwealth of an amount equal to: (a) that debt; or (b) the total of those debts; less any amounts paid before the relevant date in reduction of that debt or those debts. (2) If on 1 June in a year (relevant date) a person owes to the Commonwealth: (a) a semester debt or debts incurred before 1 June in the immediately preceding year (the earlier date); and (b) a semester debt or debts incurred after the earlier date; the person incurs on the relevant date an accumulated HEC debt that is made up of: (c) the adjusted accumulated HEC debt of the person at the earlier date (see subsection (3)) multiplied by the factor worked out under subsection (5); and (d) the debt or debts referred to in paragraph (b). (2A) A person cannot incur an accumulated HEC debt on 1 June 2006 or on 1 June in any later year.

Note: A person’s accumulated HELP debt, worked out under section 140‑25 of the Higher Education Support Act 2003, for the financial year starting on 1 July 2005 can include an amount for the person’s accumulated HEC debt incurred on 1 June 2005: see Part 3 of Schedule 1 to the Higher Education Support (Transitional Provisions and Consequential Amendments) Act 2003.

(3) For the purposes of paragraph (2)(c), the adjusted accumulated HEC debt of the person at the earlier date is the amount worked out by using the formula: Start formula A minus open bracket B plus C plus D minus E close bracket end formula where:

A is the accumulated HEC debt of the person as at the earlier date;

B is the sum of:

(a) any HEC assessment debt or HEC assessment debts of the person assessed on or after the earlier date and before the relevant date, excluding any such HEC assessment debt of the person assessed as a result of a return given before the earlier date; and
(b) any HEC assessment debt or HEC assessment debts of the person assessed on or after the relevant date as a result of a return given before the relevant date;

C is any amount, or the sum of any amounts, by which the person’s accumulated HEC debt at the earlier date is to be reduced because of any payment or payments made (otherwise than in discharge of an HEC assessment debt) on or after the earlier date and before the relevant date.

D is any amount, or the sum of any amounts, by which (whether as a result of an increase in the person’s taxable income of a year of income or otherwise) any HEC assessment debt of the person is increased by an amendment of the relevant assessment made on or after the earlier date and before the relevant date; and