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:  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 > E is any amount, or the sum of any amounts, by which (whether as a result of a reduction in the person’s taxable income of a year of income or otherwise) any HEC assessment debt of the person is reduced by an amendment of the relevant assessment made on or after the earlier date and before the relevant date. (4) For the purposes of subsection (3), an assessment or an amendment of an assessment is taken to have been made on the day specified in the notice of assessment or notice of amended assessment (as the case may be) as the date of that notice. (5) The factor to be used for the purposes of paragraph (2)(c) in calculating the accumulated HEC debt of a person at 1 June in a year is the number (calculated to 3 decimal places) worked out, as at the date on which the index number in respect of the March quarter immediately preceding that 1 June was first published, by dividing the sum of: (a) the index number in respect of that March quarter; and (b) the index numbers in respect of the 3 quarters that immediately preceded that quarter; by the sum of: (c) the index number in respect of the March quarter immediately preceding 1 June in the year that next preceded that year; and (d) the index numbers in respect of the 3 quarters that immediately preceded that last‑mentioned quarter. (6) Subject to subsection (7), if at any time, whether before or after the commencement of this section, the Australian Statistician has published or publishes an index number in respect of a quarter in substitution for an index number previously published by the Australian Statistician in respect of that quarter, the publication of the later index number is to be disregarded for the purposes of this section. (7) If, at any time, whether before or after the commencement of this section, the Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this section after the change took place or takes place, regard is to be had only to index numbers published in terms of the new reference base. (8) If the factor worked out in accordance with subsection (5) in calculating the accumulated HEC debt of a person at 1 June in a year would, if it were calculated to 4 decimal places, end with a number greater than 4, the factor worked out in accordance with that subsection in making that calculation is taken to be the factor calculated to 3 decimal places in accordance with that subsection and increased by 0.001. (9) The Commissioner must cause to be published before 1 June in each year the factor worked out in accordance with subsection (5) (as affected by subsection (8)) in relation to the calculation of the accumulated HEC debt of a person at that date. (10) If, apart from this subsection, the accumulated HEC debt of a person at 1 June in a year would be an amount consisting of a number of whole dollars and a number of cents, the number of cents must be disregarded. (11) In this section: > index number, in relation to a quarter, means 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.