Document ID: chunk:federal_register_of_legislation:C2025C00125:section:106q:p1
Version: federal_register_of_legislation:C2025C00125
Segment Type: section
Provision Reference: s 106Q (pt 1/3)
Character Range: 231880–235014

106Q  Compulsory payments in respect of accumulated HEC debt
 (1) Subject to subsections (7) and (8), If:
 (a) the HEC repayment income of a person in respect of a year of income exceeds the minimum prescribed amount for the year of income (see subsection (4)); and
 (b) on 1 June immediately preceding the making of an assessment in respect of the person's income of that year of income, the person:
 (i) had an accumulated HEC debt; or
 (ii) if the 1 June occurs in the year 2006 or a later year—had an accumulated HELP debt;
the person is liable to pay in accordance with this Chapter to the Commonwealth in reduction of his or her relevant debt (see subsection (2)) an amount equal to so much of that relevant debt as does not exceed the percentage of the person's HEC repayment income that is applicable in accordance with the following table:

TABLE
Item No.   Person's HEC repayment                                                                                                                                                              Percentage applicable
           income in respect of year of income
1.         Not exceeding the first intermediate prescribed amount for the year of income (see subsection (4))                                                                                  3%
2.         Exceeding the first intermediate prescribed amount for the year of income but not exceeding the second intermediate prescribed amount for the year of income (see subsection (4))   3.5%
3.         Exceeding the second intermediate prescribed amount for the year of income but not exceeding the third intermediate prescribed amount for the year of income (see subsection (4))   4%
4.         Exceeding the third intermediate prescribed amount for the year of income but not exceeding the fourth intermediate prescribed amount for the year of income (see subsection (4))   4.5%
5.         Exceeding the fourth intermediate prescribed amount for the year of income but not exceeding the fifth intermediate prescribed amount for the year of income (see subsection (4))   5%
6.         Exceeding the fifth intermediate prescribed amount for the year of income but not exceeding the maximum prescribed amount (see subsection (4))                                      5.5%
7.         Exceeding the maximum prescribed amount for the year of income                                                                                                                      6%

 (2) In subsection (1), relevant debt, in relation to a person, means:
 (a) subject to paragraph (b) of this subsection, the person's accumulated HEC debt referred to in paragraph (1)(b); or
 (b) if an amount or amounts have been paid in reduction of that debt, or an amount or amounts have been assessed under section 106T to be payable in respect of that debt—the amount (if any) remaining after deducting from that debt the amount, or the sum of the amounts, so paid or assessed to be payable.
 (3) A reference in paragraph (2)(b) to an amount assessed under section 106T to be payable in respect of a person's accumulated HEC debt is, if the amount