Document ID: chunk:federal_register_of_legislation:C2023C00380:clause:5_1061zy
Version: federal_register_of_legislation:C2023C00380
Segment Type: clause
Provision Reference: sch 5 cl 1061ZY
Character Range: 254379–256502

1061ZY  Essential provisions of the scheme
 (1) The scheme must provide for the reduction of the rate of youth allowance, austudy payment or pensioner education supplement payable to a student who obtains financial supplement. It must also contain provisions under which the amount of supplement that the student is eligible to obtain depends on the total rate of youth allowance, austudy payment or pensioner education supplement that the student chooses to receive. The provisions must allow the student to choose to repay some or all of the youth allowance, austudy payment or pensioner education supplement, or to receive a lower rate of payment of such allowance, payment or supplement, in order to receive a higher amount of financial supplement.
 (2) The scheme must provide that the student is not liable to pay interest to the financial corporation in respect of financial supplement received by the student, but must provide for payment by the Commonwealth, without cost to the student, of a subsidy to the financial corporation that includes an amount in lieu of interest.
 (3) The scheme must provide for the amount of the financial supplement that has to be repaid under a contract to be indexed on 1 June in the year next following the year in which the contract is entered into, and on 1 June in each subsequent year. The amount by which the supplement is increased by indexation is to be owed by the student to the Commonwealth and not to the financial corporation. Under the scheme, the student is to be entitled, but not required, to make early repayments in respect of the supplement during the period of the contract. The scheme is to provide for a discount for any repayments before the end of that period.
 (4) The scheme must provide that if financial supplement paid to a student is not repaid in full before the end of the period of the contract, the obligation to repay the outstanding amount of the supplement is assigned to the Commonwealth, and the indexed amount is repayable by the student to the Commonwealth through the taxation system when the student's income reaches a specified level.