23CCStage 2—working out an accumulated VETSL debt

23CC Stage 2—working out an accumulated VETSL debt

(1) A person’s accumulated VETSL debt, for a financial year, is worked out as follows: Start formula Former accumulated VETSL debt plus VETSL debts incurred minus VETSL debt repayments end formula where:

former accumulated VETSL debt means the person’s former accumulated VETSL debt in relation to that accumulated VETSL debt.

VETSL debt repayments means the sum of all of the voluntary repayments (if any) paid, on or after 1 July in the financial year and before 1 June in that year, in reduction of the VETSL debts incurred in that year.

VETSL debts incurred means the sum of the amounts of all of the VETSL debts (if any) that the person incurred during the first 6 months of the financial year, with the total rounded down to the nearest whole dollar (and a total of less than one dollar taken to be zero).

Note: The formula in this subsection is modified for the purposes of working out a person’s accumulated VETSL debt for the financial year starting on 1 July 2024: see section 23CCA.

Note: Example: Paula is studying part‑time for a Diploma of Nursing. On 1 June 2021, her former accumulated VETSL debt was worked out using section 23CB to be $20,000. She incurred a VETSL debt of $1,500 on 31 August 2020. No repayments have been made in the 12 months from 1 June 2020.

Note: Paula’s accumulated VETSL debt on 1 June 2021 is worked out by taking her former accumulated VETSL debt of $20,000 and adding the $1,500 VETSL debt incurred on 31 August 2020. That is:

Note: Start formula $20,000 plus $1,500 equals $21,500 end formula

(2) The person incurs the accumulated VETSL debt on 1 June in the financial year. (3) The first financial year for which a person can have an accumulated VETSL debt is the financial year starting on 1 July 2019.