12XCalculation of amount outstanding under financial supplement contract

12X Calculation of amount outstanding under financial supplement contract

(1) Subject to this section, the amount outstanding under the contract at any time after the contract was entered into and before 1 June in the year next following the year in respect of which the contract was entered into is the amount worked out in relation to the contract, as at that time, using the formula: Start formula principal sum minus open bracket actual repayments plus discounts close bracket end formula (2) In subsection (1):

discounts means the sum of the discounts under subsection 12ZA(7) to which the student became entitled in respect of the financial supplement before the time mentioned in subsection (1).

(3) Subject to the following provisions of this section, at any time during: (a) the period of 12 months beginning on 1 June in the year next following the year in respect of which a financial supplement contract was entered into; or (b) any of the following 3 periods of 12 months;

the amount outstanding under the contract is taken to be the amount worked out in relation to the period concerned using the formula:

Start formula open bracket previous amount outstanding times indexation factor close bracket minus open bracket actual repayments plus discounts close bracket end formula

(4) For the purposes of the application of the formula in subsection (3) in relation to a time (the relevant time) within a period of 12 months beginning on 1 June (the relevant 12 months):

previous amount outstanding means the amount that was outstanding under the contract immediately before the beginning of the relevant 12 months.

actual repayments means the sum of the amounts actually repaid in respect of the financial supplement during the relevant 12 months but before the relevant time.

discounts means the sum of the discounts under subsection 12ZA(7) to which the student became entitled in respect of the financial supplement during the relevant 12 months but before the relevant time.

indexation factor means the lower of the WPI indexation factor and the number worked out to 3 decimal places in relation to the relevant 12 months using the formula:

Start formula start fraction The sum of the index number for the December quarter in the later reference period and the index numbers for the 3 immediately preceding quarters over The sum of the index number for the December quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters end fraction end formula