106QCompulsory payments in respect of accumulated HEC debt

#### 106Q Compulsory payments in respect of accumulated HEC debt (1) Subject to subsections (7) and (8), If: (a) the HEC repayment income of a person in respect of a year of income exceeds the minimum prescribed amount for the year of income (see subsection (4)); and (b) on 1 June immediately preceding the making of an assessment in respect of the person’s income of that year of income, the person: (i) had an accumulated HEC debt; or (ii) if the 1 June occurs in the year 2006 or a later year—had an accumulated HELP debt; the person is liable to pay in accordance with this Chapter to the Commonwealth in reduction of his or her relevant debt (see subsection (2)) an amount equal to so much of that relevant debt as does not exceed the percentage of the person’s HEC repayment income that is applicable in accordance with the following table: ```html <table cellspacing="0" cellpadding="0" style="width:312.3pt; margin-left:56.7pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:301.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>TABLE</span></p></td></tr><tr><td style="width:31.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-weight:bold">Item No.</span></p></td><td style="width:194.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-weight:bold">Person’s HEC repayment</span><br><span style="font-weight:bold">income in respect of year of income</span></p></td><td style="width:53.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-weight:bold">Percentage applicable</span></p></td></tr></thead><tbody><tr><td style="width:31.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1.</span></p></td><td style="width:194.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Not exceeding the first intermediate prescribed amount for the year of income (see subsection</span><span> </span><span>(4))</span></p></td><td style="width:53.4pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3%</span></p></td></tr><tr><td style="width:31.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2.</span></p></td><td style="width:194.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Exceeding the first intermediate prescribed amount for the year of income but not exceeding the second intermediate prescribed amount for the year of income (see subsection</span><span> </span><span>(4))</span></p></td><td style="width:53.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3.5%</span></p></td></tr><tr><td style="width:31.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3.</span></p></td><td style="width:194.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Exceeding the second intermediate prescribed amount for the year of income but not exceeding the third intermediate prescribed amount for the year of income (see subsection</span><span> </span><span>(4))</span></p></td><td style="width:53.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4%</span></p></td></tr><tr><td style="width:31.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4.</span></p></td><td style="width:194.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Exceeding the third intermediate prescribed amount for the year of income but not exceeding the fourth intermediate prescribed amount for the year of income (see subsection</span><span> </span><span>(4))</span></p></td><td style="width:53.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4.5%</span></p></td></tr><tr><td style="width:31.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5.</span></p></td><td style="width:194.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Exceeding the fourth intermediate prescribed amount for the year of income but not exceeding the fifth intermediate prescribed amount for the year of income (see subsection</span><span> </span><span>(4))</span></p></td><td style="width:53.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>5%</span></p></td></tr><tr><td style="width:31.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6.</span></p></td><td style="width:194.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Exceeding the fifth intermediate prescribed amount for the year of income but not exceeding the maximum prescribed amount (see subsection</span><span> </span><span>(4))</span></p></td><td style="width:53.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5.5%</span></p></td></tr><tr><td style="width:31.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>7.</span></p></td><td style="width:194.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Exceeding the maximum prescribed amount for the year of income</span></p></td><td style="width:53.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6%</span></p></td></tr></tbody></table> ``` (2) In subsection (1), relevant debt, in relation to a person, means: (a) subject to paragraph (b) of this subsection, the person’s accumulated HEC debt referred to in paragraph (1)(b); or (b) if an amount or amounts have been paid in reduction of that debt, or an amount or amounts have been assessed under section 106T to be payable in respect of that debt—the amount (if any) remaining after deducting from that debt the amount, or the sum of the amounts, so paid or assessed to be payable. (3) A reference in paragraph (2)(b) to an amount assessed under section 106T to be payable in respect of a person’s accumulated HEC debt is, if the amount has been increased or reduced by an amendment of the relevant assessment, a reference to the increased or reduced amount (as the case may be). (4) For the purposes of this section: (a) the minimum prescribed amount or MPA for a year of income is: (i) for the 1997‑98 year of income—$20,700; or (ii) for a later year of income (other than the 2004‑05 year of income)—the amount worked out using the formula:  ; or (iii) for the 2004‑05 year of income—$35,000; (b) the first intermediate prescribed amount for a year of income is: (i) for the 1997‑98 year of income—$21,830; or (ii) for a later year of income—the amount worked out using the formula:  (c) the second intermediate prescribed amount for a year of income is: (i) for the 1997‑98 year of income—$23,524; or (ii) for a later year of income—the amount worked out using the formula:  (d) the third intermediate prescribed amount for a year of income is: (i) for the 1997‑98 year of income—$27,288; or (ii) for a later year of income—the amount worked out using the formula:  (e) the fourth intermediate prescribed amount for a year of income is: (i) for the 1997‑98 year of income—$32,934; or (ii) for a later year of income—the amount worked out using the formula:  (f) the fifth intermediate prescribed amount for a year of income is: (i) for the 1997‑98 year of income—$34,665; or (ii) for a later year of income—the amount worked out using the formula:  (g) the maximum prescribed amount for a year of income is: (i) for the 1997‑98 year of income—$37,262; or (ii) for a later year of income—the amount worked out using the formula:  (4A) For the purposes of paragraph (4)(a), AWE for a year of income is the number of dollars in the sum of: (a) the average weekly earnings for all employees for the reference period in the December quarter immediately before the year of income, as published by the Australian Statistician; and (b) the average weekly earnings for all employees for the reference period in each of the 4 quarters immediately before that December quarter, as published by the Australian Statistician. (4B) If an amount worked out for the purposes of subsection (4) includes any cents, the cents must be disregarded. (5) For the purposes of subsection (4A), the reference period in a particular quarter in a year is the period described by the Australian Statistician as the pay period ending on or before a specified day that is the third Friday of the middle month of that quarter. (6) The Minister must cause to be published in the Gazette: (a) as soon as possible after the commencement of this section, the minimum prescribed amount, the intermediate prescribed amounts and the maximum prescribed amount, in respect of the year of income ending on 30 June 1997; and (b) before the start of the 1998‑99 year of income or a later year of income, the minimum prescribed amount, the intermediate prescribed amounts and the maximum prescribed amount in respect of that year of income. (7) Subsection (1) does not require a person to pay an amount for a year of income 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 year of income; or (b) the amount of Medicare levy payable by the person on the person’s taxable income for the year of income is reduced. (8) This section applies in relation to the 2004‑05 year of income as if the table in subsection (1) were omitted and the following table were substituted: ```html <table cellspacing="0" cellpadding="0" style="width:357.5pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:346.7pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>HEC repayment thresholds for the 2004</span><span>‑</span><span>05 year of income</span></p></td></tr><tr><td style="width:22.2pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-weight:bold">Item</span></p></td><td style="width:236.7pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-weight:bold">Person’s HEC repayment income in respect of year of income</span></p></td><td style="width:66.2pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="text-align:center"><span style="font-weight:bold">Percentage applicable</span></p></td></tr></thead><tbody><tr><td style="width:22.3pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:236.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>More than $35,000, but less than $38,988</span></p></td><td style="width:66.3pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="margin-left:25.3pt"><span>4%</span></p></td></tr><tr><td style="width:22.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:236.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tablea"><span>$38,988 or more, but less than $42,973</span></p></td><td style="width:66.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="margin-left:25.3pt"><span>4.5%</span></p></td></tr><tr><td style="width:22.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:236.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tablea"><span>$42,973 or more, but less than $45,233</span></p></td><td style="width:66.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="margin-left:25.3pt"><span>5%</span></p></td></tr><tr><td style="width:22.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:236.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tablea"><span>$45,233 or more, but less than $48,622</span></p></td><td style="width:66.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="margin-left:25.3pt"><span>5.5%</span></p></td></tr><tr><td style="width:22.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:236.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tablea"><span>$48,622 or more, but less than $52,658</span></p></td><td style="width:66.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="margin-left:25.3pt"><span>6%</span></p></td></tr><tr><td style="width:22.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:236.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tablea"><span>$52,658 or more, but less than $55,430</span></p></td><td style="width:66.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="margin-left:25.3pt"><span>6.5%</span></p></td></tr><tr><td style="width:22.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>7</span></p></td><td style="width:236.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tablea"><span>$55,430 or more, but less than $60,972</span></p></td><td style="width:66.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="margin-left:25.3pt"><span>7%</span></p></td></tr><tr><td style="width:22.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>8</span></p></td><td style="width:236.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tablea"><span>$60,972 or more, but less than $65,000</span></p></td><td style="width:66.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="margin-left:25.3pt"><span>7.5%</span></p></td></tr><tr><td style="width:22.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>9</span></p></td><td style="width:236.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tablea" style="margin-left:0pt; text-indent:0pt"><span>$65,000 or more</span></p></td><td style="width:66.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="margin-left:25.3pt"><span>8%</span></p></td></tr></tbody></table> ```