1Short title
This Act may be cited as the Australian Apprenticeship Support Loans Act 2014.
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Bill homepage (APH)This Act may be cited as the Australian Apprenticeship Support Loans Act 2014.
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: (a) the day after this Act receives the Royal Assent; and (b) 1 July 2014. | 18 July 2014 (paragraph (a) applies) |
This table relates only to the provisions of this Act as originally enacted.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.
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.
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.
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.
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:
resides in Australia; and
is one of the following:
an Australian citizen;
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:
is required to be paid in respect of an accumulated AASL debt under section 46 or 47A; and
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.
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:
an Agency (within the meaning of the Public Service Act 1999);
another authority of the Commonwealth;
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).
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.
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.
Qualification for Australian apprenticeship support loan
A person is qualified for Australian apprenticeship support loan if:
the person is an Australian resident; and
the person is undertaking a qualifying apprenticeship; and
the person has notified the Secretary of the person’s tax file number; and
the person meets any other conditions prescribed by the rules.
When a person is undertaking a qualifying apprenticeship
A qualifying apprenticeship is an apprenticeship:
through which a person is undertaking a qualification:
at a level prescribed by the rules; and
leading to an occupation or a qualification specified on the Australian Apprenticeships Priority List; and
which meets any other requirements prescribed by the rules.
The rules may prescribe circumstances in which a person is, or is not, taken to be undertaking a qualifying apprenticeship.
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:
the time a person successfully completes a qualifying apprenticeship; and
the time a designated State/Territory training authority notifies the Secretary that the person has done so.
If, on a day, the sum of the instalments of Australian apprenticeship support loan:
that have been paid to the person; and
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:
the person ceases to be qualified for Australian apprenticeship support loan immediately after that day; and
the person cannot again qualify for Australian apprenticeship support loan (even if the lifetime limit is increased after that day).
Australian apprenticeship support loan is payable to a person, in relation to an instalment period of the person, if:
the person is qualified for Australian apprenticeship support loan on the final day of the instalment period; and
the person was undertaking a qualifying apprenticeship for the whole of the instalment period; and
the person made an application for Australian apprenticeship support loan:
on or before that final day; or
if the Secretary allows a later day for the person—on or before that later day.
The Secretary may allow a later day under subparagraph (1)(c)(ii) only in the circumstances prescribed by the rules.
An instalment period of a person is a period:
starting or ending on a day determined for the person in accordance with the rules; and
of the duration prescribed by the rules.
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 |
1 | a week | 52 |
2 | a fortnight | 26 |
3 | a month | 12 |
4 | 3 months | 4 |
5 | 6 months | 2 |
6 | a year | 1 |
If:
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
apart from this section, some or all of the amount is not payable to the person in relation to the instalment period; and
the Secretary determines that this subsection is to apply to the person;
then:
the amount that was paid to the person is taken to have been an instalment of Australian apprenticeship support loan; and
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.
The rules may prescribe circumstances in which the Secretary is to determine that subsection (1) is, or is not, to apply to a person.
If:
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
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.
The rules may prescribe circumstances in which the Secretary is to determine under subsection (3) that amounts of later instalments are to be reduced.
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.
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