Commonwealth: Australian Apprenticeship Support Loans Act 2014 (Cth)

Australian Apprenticeship Support Loans Act 2014 No. 81, 2014 Compilation No. 8 Compilation date: 21 February 2025 Includes amendments: Act No. 14, 2025 About this compilation This compilation This is a compilation of the Australian Apprenticeship Support Loans Act 2014 that shows the text of the law as amended and in force on 21 February 2025 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Chapter 1—Introduction Part 1.1—Preliminary 1 Short title 2 Commencement 3 Simplified outline of this Act Part 1.2—Interpretation 4 Simplified outline of this Part 5 Definitions 6 When Australian apprenticeship support loan is being paid to a person Chapter 2—Loan payments Part 2.1—Qualification and payability 7 Simplified outline of this Part 8 Qualification 9 Lifetime limit 10 Payability 11 Special case qualification and payability Part 2.2—Machinery provisions for payments Division 1—Simplified outline of this Part 12 Simplified outline of this Part Division 2—Applications 13 Application 14 Withdrawal of application Division 3—Determinations 15 Determination of application 16 Grant of application 17 Deemed refusal of application 18 Variation of rate 19 Cancellation 20 Date of effect of determinations 21 When determination ceases to be in effect Division 4—Payment 22 Payment by instalments 23 Amount of instalment 24 Yearly rate of Australian apprenticeship support loan 25 Payment into bank account Chapter 3—Loan repayments Part 3.1—Incurring debts Division 1—Simplified outline of this Part 26 Simplified outline of this Part Division 2—AASL debts 27 AASL debts 28 AASL debt discharged by death 29 Notice to Commissioner Division 3—Accumulated AASL debts 30 Simplified outline of this Division 31 Stage 1—working out a former accumulated AASL debt 32 AASL debt indexation factor 33 Meanings of index number and WPI index number 34 Publishing AASL debt indexation factors 35 Stage 2—working out an accumulated AASL debt 36 Rounding of amounts 37 Accumulated AASL debt discharges earlier debts 38 Accumulated AASL debt discharged by death Part 3.2—Discharging debts Division 1—Simplified outline of this Part 39 Simplified outline of this Part Division 2—Completion discount 40 Completion discount 41 Application of completion discount 42 Refunding of payments Division 3—Voluntary discharge 43 Voluntary AASL repayments in respect of debts 44 Application of voluntary AASL repayments 45 Refunding of payments Division 4—Compulsory discharge Subdivision A—Liability to repay amounts 46 Liability to repay amounts 47 Repayable AASL debt for an income year Subdivision AA—Liability of overseas debtors to repay amounts 47A Liability of overseas debtors to repay amounts 47B Assessed worldwide income 47C Notices to be given to the Commissioner Subdivision B—Assessments 48 Commissioner may make assessments 49 Notification of notices of assessment of tax 50 Commissioner may defer making assessments 51 Commissioner may amend assessments Part 3.3—Application of tax legislation 52 Simplified outline of this Part 53 Returns, assessments, collection and recovery 54 Charges and civil penalties for failing to meet obligations 55 Pay as you go (PAYG) withholding 56 Pay as you go (PAYG) instalments 56A Failures to comply with section 47C 57 Extent of Commissioner's general administration of this Act Chapter 4—Administration Part 4.1—Information management Division 1—Simplified outline of this Part 58 Simplified outline of this Part Division 2—General information‑gathering powers 59 General power to obtain information 60 Power to obtain information from a person who owes a debt to the Commonwealth 61 Obtaining information about a person who owes a debt to the Commonwealth 62 Written notice 63 Offence 64 Obligations not affected by State or Territory laws Division 3—Powers in relation to tax file numbers 65 Request for tax file number 66 Verification of tax file numbers 67 When person with tax file number incorrectly notifies number 68 When person without tax file number incorrectly notifies number 69 When tax file numbers are altered 70 When tax file numbers are cancelled Division 4—Obligation to notify change of circumstance etc. 71 Notice requiring information or statements 72 Written notice 73 Offence Division 5—Use etc. of personal information 74 Use etc. of personal information 75 Officer's declaration Part 4.2—Review of decisions Division 1—Introduction 76 Simplified outline of this Part 77 Reviewable decisions 78 Reviewer of decisions 79 Authorised review officers 80 Notice of reasons for decision Division 2—Internal review 81 Internal review 82 Notice to Administrative Review Tribunal and applicant for review 83 Application for review 84 Withdrawal of application 85 Review of decisions following application under section 83 Division 3—Administrative Review Tribunal review of decisions 86 Review by Administrative Review Tribunal 87 Decision changed before Administrative Review Tribunal review completed 88 Settlement of proceedings before the Administrative Review Tribunal Part 4.3—Overpayment debts 89 Simplified outline of this Part 90 Overpayment debt 91 Overseas application 92 Recovery of overpayment debt—payment arrangement 93 Recovery of overpayment debt—legal proceedings 94 Secretary may write off overpayment debt 95 Secretary's power to waive overpayment debt 96 Waiver of overpayment debt arising from error 97 Waiver of small overpayment debt Chapter 5—Miscellaneous Part 5.1—Miscellaneous 98 Simplified outline of this Part 99 Indexation of lifetime limit and yearly rate 100 Application to under‑18s 101 Delegation by Secretary 102 Use of computer program to make decisions 103 Annual report 104 Appropriation 105 Australian Apprenticeships Priority List 106 Rules Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act to provide for Australian apprenticeship support loans for certain apprentices, and for related purposes Chapter 1—Introduction Part 1.1—Preliminary 1 Short title This Act may be cited as the Australian Apprenticeship Support Loans Act 2014. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 17 July 2014 2. Sections 3 to 106 The later of: 18 July 2014 (a) the day after this Act receives the Royal Assent; and (paragraph (a) applies) (b) 1 July 2014. Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act. (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act. 3 Simplified outline of this Act Australian apprenticeship support loan is an income‑contingent loan. A person who receives Australian apprenticeship support loan must repay it, through the tax system, after the person's income reaches a certain threshold. Broadly, Australian apprenticeship support loan is available to apprentices undertaking certain kinds of apprenticeships. If a person makes an application and meets all the requirements, payments will be made regularly to the person. When the person's income reaches the minimum repayment income under the Higher Education Support Act 2003, and the person has finished repaying any debt under that Act and certain other income‑contingent loan schemes, the person must start repaying Australian apprenticeship support loan debt. Part 1.2—Interpretation 4 Simplified outline of this Part All of the defined terms used in this Act are listed in section 5. In many cases the definition itself is also in that section. Sometimes the section refers to another provision of this Act or another Act where the definition can be found. 5 Definitions In this Act: AASL debt means a debt incurred under section 27. AASL debt indexation factor has the meaning given by section 32. accumulated AASL debt has the meaning given by section 35. annual indexation factor has the meaning given by subsection 99(4). approved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953. assessed worldwide income has the meaning given by section 47B. Australian Apprenticeships Priority List means the list determined under subsection 105(1). Australian apprenticeship support loan means Australian apprenticeship support loan for which a person qualifies under Part 2.1. Australian resident means a person who: (a) resides in Australia; and (b) is one of the following: (i) an Australian citizen; (ii) the holder of a permanent visa. authorised review officer means a person authorised under section 79. Commissioner means the Commissioner of Taxation. completion discount has the meaning given by section 40. compulsory AASL repayment amount means an amount that: (a) is required to be paid in respect of an accumulated AASL debt under section 46 or 47A; and (b) is included in a notice of assessment made under section 48. CPI indexation factor has the meaning given by subsection 32(1A). designated State/Territory training authority has the meaning given by subsection 40(3). foreign resident has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. former accumulated AASL debt has the meaning given by section 31. guidance and appeals panel has the same meaning as in the Administrative Review Tribunal Act 2024. guidance and appeals panel application has the same meaning as in the Administrative Review Tribunal Act 2024. holder has the same meaning as in the Migration Act 1958. income tax has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. income tax law has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. income year has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. index number has the meaning given by section 33. instalment period has the meaning given by subsection 10(2). lifetime limit means $20,000. Note: The lifetime limit is indexed on 1 July 2017 and each later 1 July in line with increases in the consumer price index (see section 99). Medicare levy means the Medicare levy imposed by the Medicare Levy Act 1986. minimum repayment income has the same meaning as in the Higher Education Support Act 2003. officer means a person engaged (whether as an employee or otherwise) by any of the following: (a) an Agency (within the meaning of the Public Service Act 1999); (b) another authority of the Commonwealth; (c) a person or organisation that performs services for the Commonwealth. overpayment debt has the meaning given by section 90. permanent visa has the same meaning as in the Migration Act 1958. personal information has the same meaning as in the Privacy Act 1988. qualifying apprenticeship has the meaning given by subsection 8(2). quarter means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December. relevant instalment period has the meaning given by paragraph 16(1)(b). repayable AASL debt has the meaning given by section 47. repayment income has the same meaning as in the Higher Education Support Act 2003. return means an income tax return within the meaning of subsection 995‑1(1) of the Income Tax Assessment Act 1997. reviewable Commissioner decision has the meaning given by subsection 77(1). reviewable decision has the meaning given by subsection 77(3). reviewable Secretary decision has the meaning given by subsection 77(2). reviewer has the meaning given by section 78. rules means rules made under section 106. Secretary means the Secretary of the Department. taxable income has the meaning given by section 4‑15 of the Income Tax Assessment Act 1997. undertaking, in relation to a qualifying apprenticeship, has a meaning affected by subsection 8(3). voluntary AASL repayment means a payment made to the Commissioner in discharge of an accumulated AASL debt or an AASL debt. It does not include a payment made in discharge of a compulsory AASL repayment amount. WPI indexation factor has the meaning given by subsection 32(1B). WPI index number has the meaning given by subsection 33(1A). yearly rate has the meaning given by subsection 24(1). 6 When Australian apprenticeship support loan is being paid to a person A reference in this Act to a person to whom Australian apprenticeship support loan is being paid is a reference to a person for whom there is in effect a determination granting the person's application for Australian apprenticeship support loan. Chapter 2—Loan payments Part 2.1—Qualification and payability 7 Simplified outline of this Part Australian apprenticeship support loan is an income‑contingent loan. A person who receives Australian apprenticeship support loan must repay it, through the tax system, after the person's income reaches a certain threshold. Broadly, the requirements to receive Australian apprenticeship support loan may be met by a person who is undertaking a qualifying apprenticeship. The person must meet the requirements at the end of each instalment period for the person. There is a lifetime limit on the total Australian apprenticeship support loan a person can receive. 8 Qualification Qualification for Australian apprenticeship support loan (1) A person is qualified for Australian apprenticeship support loan if: (a) the person is an Australian resident; and (b) the person is undertaking a qualifying apprenticeship; and (c) the person has notified the Secretary of the person's tax file number; and (d) the person meets any other conditions prescribed by the rules. When a person is undertaking a qualifying apprenticeship (2) A qualifying apprenticeship is an apprenticeship: (a) through which a person is undertaking a qualification: (i) at a level prescribed by the rules; and (ii) leading to an occupation or a qualification specified on the Australian Apprenticeships Priority List; and (b) which meets any other requirements prescribed by the rules. (3) The rules may prescribe circumstances in which a person is, or is not, taken to be undertaking a qualifying apprenticeship. (4) Without limiting the circumstances that may be prescribed for the purposes of subsection (3), the rules may prescribe, as circumstances in which a person is taken to be undertaking a qualifying apprenticeship, the period between: (a) the time a person successfully completes a qualifying apprenticeship; and (b) the time a designated State/Territory training authority notifies the Secretary that the person has done so. 9 Lifetime limit If, on a day, the sum of the instalments of Australian apprenticeship support loan: (a) that have been paid to the person; and (b) that are to be paid to the person in relation to an instalment period of the person in accordance with section 23; totals the lifetime limit, then: (c) the person ceases to be qualified for Australian apprenticeship support loan immediately after that day; and (d) the person cannot again qualify for Australian apprenticeship support loan (even if the lifetime limit is increased after that day). 10 Payability (1) Australian apprenticeship support loan is payable to a person, in relation to an instalment period of the person, if: (a) the person is qualified for Australian apprenticeship support loan on the final day of the instalment period; and (b) the person was undertaking a qualifying apprenticeship for the whole of the instalment period; and (c) the person made an application for Australian apprenticeship support loan: (i) on or before that final day; or (ii) if the Secretary allows a later day for the person—on or before that later day. (1A) The Secretary may allow a later day under subparagraph (1)(c)(ii) only in the circumstances prescribed by the rules. (2) An instalment period of a person is a period: (a) starting or ending on a day determined for the person in accordance with the rules; and (b) of the duration prescribed by the rules. (3) The duration prescribed by the rules for the purposes of paragraph (2)(b) must be a duration specified in column 1 of the table. For the purposes of working out the amount of an instalment of Australian apprenticeship support loan for an instalment period under section 23, the divisor for each duration is specified in column 2. Duration of prescribed instalment periods Item Column 1 Column 2 The duration may be… The divisor for that duration is… 1 a week 52 2 a fortnight 26 3 a month 12 4 3 months 4 5 6 months 2 6 a year 1 11 Special case qualification and payability (1) If: (a) an amount is paid to a person as an instalment of Australian apprenticeship support loan in relation to an instalment period of the person; and (b) apart from this section, some or all of the amount is not payable to the person in relation to the instalment period; and (c) the Secretary determines that this subsection is to apply to the person; then: (d) the amount that was paid to the person is taken to have been an instalment of Australian apprenticeship support loan; and (e) the person is taken to have been qualified for Australian apprenticeship support loan, and Australian apprenticeship support loan is taken to have been payable to the person, in relation to the instalment period. (2) The rules may prescribe circumstances in which the Secretary is to determine that subsection (1) is, or is not, to apply to a person. (3) If: (a) an amount paid to a person is taken under subsection (1) to have been an instalment of Australian apprenticeship support loan in relation to an instalment period; and (b) an instalment of Australian apprenticeship support loan (a later instalment) is payable (or would apart from this subsection be payable) to the person in relation to a later instalment period; the Secretary may determine that the amount of the later instalment is to be reduced (including reduced to nil). However, the sum of all such reductions connected with the amount mentioned in paragraph (a) must not exceed that amount. (4) The rules may prescribe circumstances in which the Secretary is to determine under subsection (3) that amounts of later instalments are to be reduced. Part 2.2—Machinery provisions for payments Division 1—Simplified outline of this Part 12 Simplified outline of this Part A person who wants to be paid Australian apprenticeship support loan must make an application. The Secretary will determine the application and, if satisfied the person meets or will meet all the requirements, will also determine the rate at which Australian apprenticeship support loan is to be paid. A determination granting a person's application for Australian apprenticeship support loan will cease to have effect after a certain period (unless the person's Australian apprenticeship support loan is cancelled before then), and the person must reapply to continue to receive Australian apprenticeship support loan. Australian apprenticeship support loan can be cancelled, or the rate of Australian apprenticeship support loan increased or reduced, if the person's circumstances change. Australian apprenticeship support loan can also be cancelled on the person's request. Australian apprenticeship support loan is paid in regular instalments into the person's bank account. Division 2—Applications 13 Application (1) A person who wants to be paid Australian apprenticeship support loan must make an application for Australian apprenticeship support loan in accordance with this section. (2) The application must be: (a) in a form approved by the Secretary; and (b) lodged in a manner prescribed by the rules. (3) A form approved for the purposes of paragraph (2)(a) must provide for a parent or guardian (if any) of an applicant who is aged under 18 at the time the applicant makes the application to acknowledge that the applicant is fully aware of the commitment into which the applicant is entering. 14 Withdrawal of application (1) A person may withdraw an application for Australian apprenticeship support loan that has not been determined. (2) An application that is withdrawn is taken not to have been made. Division 3—Determinations 15 Determination of application If a person makes an application for Australian apprenticeship support loan, the Secretary must make a determination either granting or refusing the application. 16 Grant of application (1) The Secretary must make a determination granting an application for Australian apprenticeship support loan if the Secretary is satisfied that: (a) the applicant is qualified for Australian apprenticeship support loan; and (b) Australian apprenticeship support loan is expected to be payable to the applicant in relation to one or more instalment periods (a relevant instalment period) ending before the end of the period specified for the purposes of subsection (2). (2) The determination must specify the period at the end of which the determination ceases to have effect. (3) The rules may prescribe the periods that are to be specified in determinations for the purposes of subsection (2). (4) If the Secretary makes a determination granting an application for Australian apprenticeship support loan, the Secretary must also make a determination of the applicant's yearly rate of Australian apprenticeship support loan for each relevant instalment period. 17 Deemed refusal of application If the Secretary does not determine an application before the end of 13 weeks after the day the application was lodged, the Secretary is taken to have made, at the end of that period, a determination refusing the application. 18 Variation of rate If the Secretary is satisfied that the rate at which Australian apprenticeship support loan is being paid to the person in relation to a relevant instalment period of the person is more or less than the rate provided for by this Act, the Secretary must make a determination that the rate is varied accordingly. 19 Cancellation (1) The Secretary must make a determination cancelling Australian apprenticeship support loan that is being paid to a person if the Secretary is satisfied that: (a) the person is not qualified for Australian apprenticeship support loan; or (b) Australian apprenticeship support loan was not or will not be payable to the person in relation to a relevant instalment period of the person; or (c) the person has requested that the person's Australian apprenticeship support loan be cancelled. (2) The Secretary may make a determination cancelling Australian apprenticeship support loan that is being paid to a person if: (a) the person has been given: (i) a notice under section 59; or (ii) a notice under section 71 that requires the person to inform the Secretary of an event or change of circumstance; and (b) the person does not comply with the notice. 20 Date of effect of determinations (1) A determination takes effect from the date of effect specified in the determination, which may be earlier or later than the date the determination is made. (2) A determination that the Secretary is taken to have made because of subsection 102(3) (use of a computer program to make decisions) takes effect from the date the relevant decision was made by operation of the computer program, unless the Secretary subsequently determines otherwise. (3) Without limiting subsection (1) or (2), a determination cancelling Australian apprenticeship support loan that is being paid to a person, or reducing the person's rate of Australian apprenticeship support loan, because of an event or change of circumstance that occurred before the day the determination was made, may be specified to take effect: (a) on the day the event or change of circumstance occurred, if the person was required to inform the Secretary of it and did not do so as required; or (b) on a later day, if: (i) the person was required to inform the Secretary of it and did so as required; or (ii) was not required to inform the Secretary of it. (4) Subsection (3) does not limit when a determination of the kind referred to in that subsection may be specified to take effect. 21 When determination ceases to be in effect (1) A determination granting a person's application for Australian apprenticeship support loan continues in effect until the earliest of: (a) the end of the day immediately before the day a determination under section 19 takes effect cancelling Australian apprenticeship support loan that is being paid to the person; or (b) the end of the period specified in the determination for the purposes of subsection 16(2) (expiry); or (c) the end of the day immediately before the day on which the person dies. (2) A determination of a person's rate of Australian apprenticeship support loan continues in effect until the end of the day immediately before the day a determination under section 18 takes effect varying the person's rate of Australian apprenticeship support loan. Division 4—Payment 22 Payment by instalments (1) Australian apprenticeship support loan is to be paid by instalments. (2) The Secretary must pay an instalment of Australian apprenticeship support loan to a person, in relation to an instalment period of the person, if: (a) a determination is in effect granting the person's application for Australian apprenticeship support loan; and (b) the Secretary is satisfied that Australian apprenticeship support loan is payable to the person in relation to the instalment period. (3) The instalment is to be paid to the person on the day after the end of the instalment period that is determined by the Secretary to be the earliest day on which it is reasonably practicable to make the payment. 23 Amount of instalment (1) The amount of an instalment of Australian apprenticeship support loan that is to be paid in relation to an instalment period of a person is worked out by dividing: (a) the yearly rate determined under subsection 16(4) for the instalment period; by (b) the divisor specified in the table in subsection 10(3) for the instalment period duration. Note: For example, if instalment periods are a month, the divisor is 12. (2) The amount of an instalment worked out under subsection (1) is reduced as necessary to ensure that Australian apprenticeship support loan totalling more than the lifetime limit is not to be paid to a person. (3) If the amount of an instalment would be: (a) one or more whole dollars and a part of a cent; or (b) one or more whole dollars and cents and a part of a cent; the amount is to be increased or decreased (increased, in the case of half a cent) to the nearest whole cent. (4) If, apart from this subsection, the amount of an instalment would be less than $1.00, the amount is to be increased to $1.00. 24 Yearly rate of Australian apprenticeship support loan (1) A person's yearly rate of Australian apprenticeship support loan is: (a) if the person is undertaking the first year of an apprenticeship on the final day of an instalment period—$8,000; and (b) if the person is undertaking the second year of an apprenticeship on the final day of an instalment period—$6,000; and (c) if the person is undertaking the third year of an apprenticeship on the final day of an instalment period—$4,000; and (d) if the person is undertaking the fourth (or later) year of an apprenticeship on the final day of an instalment period—$2,000. Note: The yearly rates are indexed on 1 July 2017 and each later 1 July in line with increases in the consumer price index (see section 99). (2) The rules may prescribe one or more ways of determining, or criteria to be considered in determining, the year of an apprenticeship a person is undertaking on any particular day. 25 Payment into bank account (1) An instalment of Australian apprenticeship support loan that is to be paid to a person is to be paid to the credit of a bank account nominated and maintained by the person. (3) The account may be an account that is maintained by the person either alone or jointly or in common with another person. Chapter 3—Loan repayments Part 3.1—Incurring debts Division 1—Simplified outline of this Part 26 Simplified outline of this Part Australian apprenticeship support loan that is paid to a person must be repaid by the person through the tax system, after the person's income reaches a certain threshold. Each time a person receives an instalment of Australian apprenticeship support loan, the person incurs a debt called an AASL debt (except in certain circumstances when the loan is recoverable as an overpayment debt under Part 4.3 of this Act). Each AASL debt is incorporated into the person's accumulated AASL debt. This accumulated AASL debt forms the basis for working out the amounts the person is obliged to repay. Division 2—AASL debts 27 AASL debts (1) If an instalment of Australian apprenticeship support loan is paid to a person, the person incurs, on the day the instalment is paid, an AASL debt to the Commonwealth of an amount equal to the amount of the instalment. (2) Subsection (1) does not apply to an instalment or part of an instalment if the amount of the instalment or part is an overpayment debt. 28 AASL debt discharged by death Upon the death of a person who owes an AASL debt to the Commonwealth, the debt is taken to have been paid. Note: AASL debts are not provable in bankruptcy: see subsection 82(3AB) of the Bankruptcy Act 1966. 29 Notice to Commissioner (1) If a person incurs an AASL debt, the Secretary must give the Commissioner a notice specifying the amount of the debt incurred by the person. (2) The Secretary may include in the notice any other details the Commissioner requests for the purpose of ensuring the Commissioner has the information needed to exercise powers or perform functions of the Commissioner under this Act. Division 3—Accumulated AASL debts 30 Simplified outline of this Division There are 2 stages to working out a person's accumulated AASL debt for a financial year. In stage 1, the person's former accumulated AASL debt is worked out by adjusting the preceding financial year's accumulated AASL debt to take account of: (a) indexation using the AASL debt indexation factor; and (b) the debts that the person incurs during the last 6 months of the preceding financial year; and (c) any completion discount for the person; and (d) voluntary AASL repayments of the debt; and (e) compulsory AASL repayment amounts in respect of the debt. In stage 2, the person's accumulated AASL debt is worked out from: (a) the person's former accumulated AASL debt; and (b) the AASL debts that the person incurs during the first 6 months of the financial year; and (c) any completion discount for the person; and (d) voluntary AASL repayments of the debt. 31 Stage 1—working out a former accumulated AASL debt (1) A person's former accumulated AASL debt, in relation to the person's accumulated AASL debt for a financial year, is worked out by multiplying: (a) the amount worked out using the following method statement; by (b) the AASL debt indexation factor for 1 June in that financial year. Method statement Step 1. Take the person's accumulated AASL debt for the immediately preceding financial year. (This amount is taken to be zero if the person has no accumulated AASL debt for that financial year.) Step 2. Add the sum of all of the AASL debts (if any) that the person incurred during the last 6 months of the immediately preceding financial year. Step 3. Subtract the amount of the completion discount for the person, if the Secretary notified the Commissioner of a completion discount for the person under section 40 during the period: (a) starting on 1 June in the immediately preceding financial year; and (b) ending immediately before the next 1 June. Step 4. Subtract the sum of the amounts by which the person's debts referred to in steps 1 and 2 are reduced because of any voluntary AASL repayments that have been made during the period: (a) starting on 1 June in the immediately preceding financial year; and (b) ending immediately before the next 1 June. Step 5. Subtract the sum of all of the person's compulsory AASL repayment amounts that: (a) were assessed during that period (excluding any assessed as a result of a return given before that period); or (b) were assessed after the end of that period as a result of a return given before the end of that period. Step 6. Subtract the sum of the amounts by which any compulsory AASL repayment amount of the person is increased (whether as a result of an increase in the person's taxable income of an income year or otherwise) by an amendment of an assessment made during that period. Step 7. Add the sum of the amounts by which any compulsory AASL repayment amount of the person is reduced (whether as a result of a reduction in the person's taxable income of an income year or otherwise) by an amendment of an assessment made during that period. (2) For the purposes of this section, 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 date of issue of that notice. 32 AASL debt indexation factor (1) The AASL debt indexation factor for 1 June in a financial year is the number (rounded to 3 decimal places) that is the lower of the CPI indexation factor for 1 June in the financial year (see subsection (1A)) and the WPI indexation factor for 1 June in the financial year (see subsection (1B)). (1A) The CPI indexation factor for 1 June in a financial year is worked out using the following method statement: Method statement Step 1. Add: (a) the index number for the quarter ending on 31 March in that financial year; and (b) the index numbers for the 3 quarters that immediately preceded that quarter. Step 2. Add: (a) the index number for the quarter ending on 31 March in the immediately preceding financial year; and (b) the index numbers for the 3 quarters that immediately preceded that quarter. Step 3. The CPI indexation factor for 1 June in the financial year is the amount under step 1 divided by the amount under step 2, rounded to 3 decimal places. (1B) The WPI indexation factor for 1 June in a financial year is worked out using the following method statement: Method statement Step 1. Add: (a) the WPI index number for the quarter ending on 31 March in that financial year; and (b) the WPI index numbers for the 3 quarters that immediately preceded that quarter. Step 2. Add: (a) the WPI index number for the quarter ending on 31 March in the immediately preceding financial year; and (b) the WPI index numbers for the 3 quarters that immediately preceded that quarter. Step 3. The *WPI indexation factor for 1 June in the financial year is the amount under step 1 divided by the amount under step 2, rounded to 3 decimal places. (2) For the purposes of rounding an AASL debt indexation factor, the third decimal place is rounded up if, apart from the rounding: (a) the factor would have 4 or more decimal places; and (b) the fourth decimal place would be a number greater than 4. 33 Meanings of index number and WPI index number (1) The index number for a quarter is 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. (1A) The WPI index number for a quarter is the Wage Price Index (quarterly index/total hourly rates of pay excluding bonuses/Australia/private and public/all industries) number published by the Australian Statistician for the quarter. (2) Subject to subsection (3), if, at any time before or after the commencement of this Act: (a) the Australian Statistician has published or publishes an index number or a WPI index number in respect of a quarter; and (b) that index number or WPI index number is in substitution for an index number or WPI index number, as the case requires, previously published by the Australian Statistician in respect of that quarter; disregard the publication of the later index number or WPI index number for the purposes of this section. (3) If, at any time before or after the commencement of this Act, the Australian Statistician has changed or changes the index reference period for the All Groups Consumer Price Index or the Wage Price Index, then, in applying this section after the change took place or takes place, have regard only to index numbers or WPI index numbers, as the case requires, published in terms of the new index reference period. 34 Publishing AASL debt indexation factors The Commissioner must cause to be published before 1 June in each financial year the AASL debt indexation factor for that 1 June. 35 Stage 2—working out an accumulated AASL debt (1) A person's accumulated AASL debt, for a financial year, is worked out as follows: where: AASL debt repayments is the sum of all of the voluntary AASL repayments (if any) paid, on or after 1 July in the financial year and before 1 June in that year, in reduction of the AASL debts incurred in that year. AASL debts incurred is the sum of the amounts of all of the AASL debts (if any) that the person incurred during the first 6 months of the financial year. completion discount means any completion discount for the person notified by the Secretary to the Commissioner under section 40 on or after 1 July in the financial year and before 1 June in that year. former accumulated AASL debt is the person's former accumulated AASL debt in relation to that accumulated AASL debt. (2) The person incurs the accumulated AASL debt on 1 June in the financial year. 36 Rounding of amounts (1) If, apart from this section, a person's accumulated AASL debt would be an amount consisting of a number of whole dollars and a number of cents, disregard the number of cents. (2) If, apart from this section, a person's accumulated AASL debt would be an amount of less than $1.00, the person's accumulated AASL debt is taken to be zero. 37 Accumulated AASL debt discharges earlier debts (1) The accumulated AASL debt that a person incurs on 1 June in a financial year discharges, or discharges the unpaid part of: (a) any AASL debt that the person incurred during the calendar year immediately preceding that day; and (b) any accumulated AASL debt that the person incurred on the immediately preceding 1 June. (2) Nothing in subsection (1) affects the application of Division 2 or sections 31 and 35. 38 Accumulated AASL debt discharged by death (1) Upon the death of a person who has an accumulated AASL debt, the accumulated AASL debt is taken to be discharged. (2) To avoid doubt, this section does not affect any compulsory AASL repayment amounts required to be paid in respect of the accumulated AASL debt, whether or not those amounts were assessed before the person's death. Note: Accumulated AASL debts are not provable in bankruptcy: see subsection 82(3AB) of the Bankruptcy Act 1966. Part 3.2—Discharging debts Division 1—Simplified outline of this Part 39 Simplified outline of this Part Australian apprenticeship support loan that is paid to a person must be repaid. Once the person's income exceeds the minimum repayment income under the Higher Education Support Act 2003 and the person has finished repaying any debt under that Act and certain other income‑contingent loan schemes, the person must start repaying debt in relation to Australian apprenticeship support loan. If the person successfully completes a qualifying apprenticeship, the person's debts will be partially discharged by an amount called the completion discount. The completion discount is 20% of the total amount of instalments of Australian apprenticeship support loan that were paid to the person. As well as the completion discount, the person's debt is discharged by: (a) any repayments the person chooses to make at any time (voluntary repayments); and (b) repayments the person must make after the person's income reaches the minimum repayment income (compulsory repayments). The Commissioner makes assessments of compulsory repayments, which are collected in the same way as amounts of income tax. Division 2—Completion discount 40 Completion discount (1) If a designated State/Territory training authority notifies the Secretary that a person has successfully completed a qualifying apprenticeship, the Secretary must give the Commissioner a notice specifying the discount (the completion discount) determined for the person in accordance with subsection (2). (2) The person's completion discount is the amount equal to 20% of the total amount of instalments of Australian apprenticeship support loan that were paid to the person in relation to instalment periods that ended: (a) before the person ceased to be undertaking the qualifying apprenticeship; and (b) if a notice under subsection (1) has previously been given in respect of an earlier qualifying apprenticeship undertaken by the person—after the person completed the earlier qualifying apprenticeship. (3) The rules may prescribe any of the following as a designated State/Territory training authority: (a) a State; (b) a Territory; (c) an authority of a State or Territory. 41 Application of completion discount If the Secretary notifies the Commissioner of a completion discount for a person under section 40, the amount of the completion discount is to be applied as follows: (a) first, in discharge or reduction of any accumulated AASL debt of the person; (b) second, in discharge or reduction of: (i) any AASL debt of the person; or (ii) if there is more than one such debt, those debts in the order in which they were incurred. 42 Refunding of payments If a person's completion discount exceeds the sum of: (a) the amount required to discharge the total AASL debts and accumulated AASL debt that the person owed to the Commonwealth; and (b) the total amount of the person's primary tax debts (within the meaning of Part IIB of the Taxation Administration Act 1953); the Commonwealth must refund to the person an amount equal to that excess. Division 3—Voluntary discharge 43 Voluntary AASL repayments in respect of debts (1) A person may at any time make a payment in respect of an AASL debt or an accumulated AASL debt that the person owes to the Commonwealth. (2) The payment must be made to the Commissioner. 44 Application of voluntary AASL repayments (1) Any money a person pays under this Division to meet the person's debts is to be applied in payment of those debts as the person directs at the time of the payment. (2) If the person has not given any directions, or the directions given do not adequately deal with the matter, any money available is to be applied as follows: (a) first, in discharge or reduction of any accumulated AASL debt of the person; (b) second, in discharge or reduction of: (i) any AASL debt of the person; or (ii) if there is more than one such debt, those debts in the order in which they were incurred. 45 Refunding of payments If: (a) a person pays an amount to the Commonwealth under this Division; and (b) the amount exceeds the sum of: (i) the amount required to discharge the total AASL debts and accumulated AASL debt that the person owed to the Commonwealth; and (ii) the total amount of the person's primary tax debts (within the meaning of Part IIB of the Taxation Administration Act 1953); the Commonwealth must refund to the person an amount equal to that excess. Division 4—Compulsory discharge Subdivision A—Liability to repay amounts 46 Liability to repay amounts (1) If: (a) a person's repayment income for an income year exceeds the minimum repayment income for the income year; and (b) on 1 June immediately preceding the making of an assessment in respect of the person's income of that income year, the person had an accumulated AASL debt; the person is liable to pay to the Commonwealth, in accordance with this Division, so much of the person's repayable AASL debt for the income year as does not exceed the amount worked out by the formula: where: applicable percentage of repayment income means the amount that is the percentage of the person's repayment income applicable under the table in section 154‑20 of the Higher Education Support Act 2003. relevant income‑contingent loans liability means the amount that is the sum of the following: (a) the sum of any amounts the person is liable to pay under section 154‑1 or 154‑16 of the Higher Education Support Act 2003 in respect of the income year; (aa) the sum of any amounts the person is liable to pay under section 23EA or 23EC of the VET Student Loans Act 2016 in respect of the income year; (b) the sum of any amounts the person is liable to pay under section 1061ZZEZ of the Social Security Act 1991, or section 12ZK of the Student Assistance Act 1973, in respect of the income year; (c) any amount the person is liable to pay under section 1061ZVHA of the Social Security Act 1991 in respect of the income year; (d) any amount the person is liable to pay under section 10F of the Student Assistance Act 1973 in respect of the income year. (2) A person is not liable under this section to pay an amount for an income year if the amount worked out under subsection (1) is zero or less. (3) A person is not liable under this section to pay an amount for an income year 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 income year; or (b) the amount of the Medicare levy payable by the person on the person's taxable income for the income year is reduced. 47 Repayable AASL debt for an income year (1) A person's repayable AASL debt for an income year is: (a) the person's accumulated AASL debt referred to in paragraph 46(1)(b) in relation to that income year; or (b) if any or all of the following apply: (i) that debt has been reduced by the amount of a completion discount for the person; (ii) one or more amounts have been paid in reduction of that debt; (iii) one or more amounts have been assessed under section 48 to be payable in respect of that debt; the amount (if any) remaining after deducting from that debt any amounts referred to in subparagraphs (i), (ii) and (iii). (2) A reference in paragraph (1)(b) of this section to an amount assessed to be payable is, if the amount has been increased or reduced by an amendment of the relevant assessment, a reference to the increased amount or the reduced amount. Subdivision AA—Liability of overseas debtors to repay amounts 47A Liability of overseas debtors to repay amounts (1) If: (a) a person is a foreign resident during an income year; and (b) the person's assessed worldwide income for the income year exceeds the minimum repayment income for the income year; and (c) on 1 June immediately preceding the making of an assessment in respect of the person's income of that income year, the person had an accumulated AASL debt; the person is liable to pay to the Commonwealth, in accordance with this Division, a levy of the amount worked out under subsection (2). Note: An amount a person is liable to pay under this section is imposed as a levy under the Student Loans (Overseas Debtors Repayment Levy) Act 2015. (2) The amount of levy that a person is liable to pay under this section, in respect of an income year, is an amount equal to the difference between: (a) the amount that the person would have been liable to pay under section 46 if: (i) the person had a repayment income for the income year of an amount equal to the person's assessed worldwide income for the income year; and (ii) subsection 46(3) did not apply to the person; and (b) the amount (if any) the person is liable to pay under section 46, in respect of the income year. 47B Assessed worldwide income (1) A person's assessed worldwide income for an income year is an amount equal to the sum of: (a) the person's repayment income for the income year; and (b) the person's foreign‑sourced income for the income year, converted into Australian currency. (2) The rules may provide for how to work out a person's foreign‑sourced income for an income year, including how to convert it into Australian currency. (3) Without limiting subsection (2), the rules may provide for a person's foreign‑sourced income for an income year to be worked out in relation to a period that does not correspond to that income year. 47C Notices to be given to the Commissioner Notice relating to leaving Australia (1) A person who: (a) has an accumulated AASL debt or otherwise has an AASL debt that has not yet been discharged; and (b) leaves Australia (other than in circumstances specified in the rules) with the intention of remaining outside Australia for at least 183 days; must, no later than 7 days after leaving Australia, give a notice to the Commissioner in the approved form. Notice relating to absence from Australia (2) A person who: (a) has an accumulated AASL debt or otherwise has an AASL debt that has not yet been discharged; and (b) has been outside Australia for at least 183 days (other than in circumstances specified in the rules) in any 12 month period; and (c) was not required under subsection (1) to give a notice to the Commissioner in connection with that absence from Australia; must, no later than 7 days after the end of those 183 days, give a notice to the Commissioner in the approved form. Notice relating to income (including foreign‑sourced income) (3) A person who: (a) is a foreign resident; and (b) on 1 June immediately preceding an income year, had an accumulated AASL debt; must (other than in circumstances specified in the rules) give to the Commissioner, in the approved form, a notice relating to the person's income (including foreign‑sourced income) for the income year. The notice must be given within the period specified in the form. Note: The Commissioner may defer the time for giving the return: see section 388‑55 in Schedule 1 to the Taxation Administration Act 1953. Content of notices under this section (4) The rules may provide for the content of notices under this section. Subdivision B—Assessments 48 Commissioner may make assessments The Commissioner may, from any information in the Commissioner's possession, whether from a return or otherwise, make an assessment of: (a) the person's accumulated AASL debt on 1 June immediately before the making of the assessment; and (b) the amount required to be paid in respect of the person's repayable AASL debt under section 46 or 47A. 49 Notification of notices of assessment of tax If: (a) the Commissioner is required to serve on a person a notice of assessment in respect of the person's income of an income year under section 174 of the Income Tax Assessment Act 1936; and (b) the Commissioner has made, in respect of the person, an assessment under paragraph 48(b) of this Act of the amounts referred to in that paragraph; and (c) notice of the assessment under that paragraph has not been served on the person; notice of the assessment under that paragraph may be served by specifying the amounts concerned in the notice referred to in paragraph (a). 50 Commissioner may defer making assessments (1) A person may apply in the approved form to the Commissioner for deferral of the making of an assessment in respect of the person under section 48. (2) The application must specify: (a) the income year for which the deferral is being sought; and (b) the reasons for seeking the deferral. (3) The income year specified in the application must be: (a) the income year in which the person makes the application; or (b) the immediately preceding income year; or (c) the immediately succeeding income year. (4) The Commissioner may, on application by a person under this section, defer making an assessment in respect of the person under section 48 if the Commissioner is of the opinion that: (a) if the assessment were made, payment of the assessed amount would cause serious hardship to the person; or (b) there are other special reasons that make it fair and reasonable to defer making the assessment. (5) The Commissioner may defer making the assessment for any period that he or she thinks appropriate. (6) The Commissioner must, as soon as practicable after an application is made under this section: (a) consider the matter to which the application relates; and (b) notify the applicant of the Commissioner's decision on the application. Note: Deferrals of making assessments, or refusals of applications, are reviewable under Part 4.2. 51 Commissioner may amend assessments (1) A person may apply in the approved form to the Commissioner for an amendment of an assessment made in respect of the person under section 48 so that: (a) the amount payable under the assessment is reduced; or (b) no amount is payable under the assessment. (2) The application: (a) must be made within 2 years after the day on which the Commissioner gives notice of the assessment to the person; or (b) must specify the reasons justifying a later application. (3) The Commissioner may, on application by a person under this section, amend an assessment made in respect of the person under section 48 so that: (a) the amount payable under the assessment is reduced; or (b) no amount is payable under the assessment; if the Commissioner is of the opinion that: (c) payment of the assessed amount has caused or would cause serious hardship to the person; or (d) there are other special reasons that make it fair and reasonable to make the amendment. (4) The Commissioner must, as soon as practicable after an application is made under this section: (a) consider the matter to which the application relates; and (b) notify the applicant of the Commissioner's decision on the application. Note: Amendments of assessments, or refusals of applications, are reviewable under Part 4.2. Part 3.3—Application of tax legislation 52 Simplified outline of this Part The Commissioner is responsible for the recovery of AASL debts and accumulated AASL debts, and for matters relating to tax file numbers. So that the Commissioner has the appropriate powers to fulfil those responsibilities, the relationship between Australian apprenticeship support loan matters and parts of the taxation law is dealt with here. 53 Returns, assessments, collection and recovery Subject to Part 3.2 and this Part: (a) Part IV of the Income Tax Assessment Act 1936; and (b) Division 5 of the Income Tax Assessment Act 1997; and (c) Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953; apply, so far as they are capable of application, in relation to a compulsory AASL repayment amount of a person as if it were income tax assessed to be payable by a taxpayer by an assessment made under Part IV of the Income Tax Assessment Act 1936. 54 Charges and civil penalties for failing to meet obligations (1) Part 4‑25 in Schedule 1 to the Taxation Administration Act 1953 has effect as if: (a) any compulsory AASL repayment amount of a person were income tax payable by the person in respect of the income year in respect of which the assessment of that debt was made; and (b) this Chapter, paragraph 8(1)(c) and Division 3 of Part 4.1, were income tax laws. (2) Subsection (1) does not have the effect of making a person liable to a penalty for any act or omission that happened before the commencement of this subsection. 55 Pay as you go (PAYG) withholding Part 2‑5 (other than section 12‑55 and Subdivisions 12‑E, 12‑F and 12‑G) in Schedule 1 to the Taxation Administration Act 1953 applies, so far as it is capable of application, in relation to the collection of amounts of a compulsory AASL repayment amount of a person as if the compulsory AASL repayment amount were income tax. 56 Pay as you go (PAYG) instalments Division 45 in Schedule 1 to the Taxation Administration Act 1953 applies, so far as it is capable of application, in relation to the collection of a compulsory AASL repayment amount of a person as if the compulsory AASL repayment amount were income tax. 56A Failures to comply with section 47C Part III of the Taxation Administration Act 1953 applies in relation to a failure to comply with section 47C of this Act as if that section were a taxation law (within the meaning of section 2 of that Act). 57 Extent of Commissioner's general administration of this Act The Commissioner has the general administration of this Act to the following extent: (a) this Chapter; (b) paragraph 8(1)(c); (c) Division 3 of Part 4.1; (d) Part 4.2, so far as it relates to reviewable Commissioner decisions. Note: One effect of this is that these provisions are taxation laws for the purposes of the Taxation Administration Act 1953. Chapter 4—Administration Part 4.1—Information management Division 1—Simplified outline of this Part 58 Simplified outline of this Part The Secretary may require a person to give information for the purposes of the Act. The Secretary can require a person who has applied for, or is being paid, Australian apprenticeship support loan, to inform the Secretary of events or changes of circumstance that might affect whether Australian apprenticeship support loan is payable to the person. The Commissioner and the Secretary are permitted to exchange tax file number information for the purposes of administering this Act. Personal information can be obtained, recorded, used and disclosed for the purposes of this Act and in certain other cases. Division 2—General information‑gathering powers 59 General power to obtain information The Secretary may, in accordance with section 62, require a person to give information, or produce a document that is in the person's custody or under the person's control, to the Secretary if the Secretary considers that the information or document may be relevant to one or more of the following matters: (a) whether a person who has applied for Australian apprenticeship support loan is or was qualified for Australian apprenticeship support loan; (b) whether Australian apprenticeship support loan is payable to a person for whom a determination is in effect granting the person's application for Australian apprenticeship support loan; (c) whether Australian apprenticeship support loan was payable to a person to whom Australian apprenticeship support loan has been paid; (d) the rate of Australian apprenticeship support loan that is being or has been paid to a person. 60 Power to obtain information from a person who owes a debt to the Commonwealth The Secretary may, in accordance with section 62, require a person who owes an overpayment debt to the Commonwealth: (a) either to: (i) give to the Secretary information that is relevant to the person's financial situation; or (ii) produce to the Secretary a document that is in the person's custody or under the person's control and is relevant to the person's financial situation; and (b) if the person's address changes—to inform the Secretary of the new address within 14 days, or within such longer period as is specified under paragraph 62(2)(c), after the change. 61 Obtaining information about a person who owes a debt to the Commonwealth If the Secretary believes that a person may have information or a document: (a) that would help the Secretary locate another person (the debtor) who owes an overpayment debt to the Commonwealth; or (b) that is relevant to the debtor's financial situation; the Secretary may, in accordance with section 62, require the person to give the information, or produce the document, to the Secretary. 62 Written notice (1) A requirement under section 59, 60 or 61 must be made by written notice given to the person of whom the requirement is made. (2) The notice: (a) may be given personally or by post or in any other manner approved by the Secretary; and (b) must specify: (i) how the person is to give the information or produce the document to which the requirement relates; and (ii) the period within which the person is to give the information or produce the document to the Secretary; and (iii) the officer or class of officer (if any) to whom the information is to be given or the document is to be produced; and (iv) that the notice is given under this section; and (c) may specify a period, longer than 14 days, for informing the Secretary of a change of the person's address. (3) A notice is not invalid merely because it does not comply with subparagraph (2)(b)(i) or (iv). (4) The period specified under subparagraph (2)(b)(ii) must not end earlier than 14 days after the notice is given. (5) The notice may require the person to give the information by appearing before a specified officer to answer questions. (6) If the notice requires the person to appear before an officer, the notice must specify a time and place at which the person is to appear. The time must be at least 14 days after the notice is given. 63 Offence (1) A person commits an offence if: (a) the person is required under section 59, 60 or 61 to give information or produce a document; and (b) the person refuses or fails to comply with the requirement. Penalty: Imprisonment for 12 months. (2) Subsection (1) does not app