12ZEExplanation of Division

#### 12ZE Explanation of Division This Division provides for the recovery through the taxation system of a student’s outstanding indebtedness in respect of financial supplement paid to the student and not repaid before the end of 4 years beginning on 1 June in the year next following the year in which the relevant financial supplement contract was entered into. The Division uses certain technical expressions to define: (a) a student’s indebtedness in respect of a contract under which the student received financial supplement for a year or a part of a year, which is called an FS debt; and (b) a student’s total indebtedness under such contracts, which is called accumulated FS debt; and (c) the amount that a student is assessed by the Commissioner of Taxation to be liable to pay in a particular year of income in respect of that total indebtedness, which is called an FS assessment debt.