Document ID: chunk:federal_register_of_legislation:C2024C00637:section:51
Version: federal_register_of_legislation:C2024C00637
Segment Type: section
Provision Reference: s 51
Character Range: 71045–72533

51  Monthly subsidy—loan capital

Loan capital
 (1) The loan capital in respect of which subsidy is payable to a subsidised borrower in relation to a subsidised loan during an entitlement period is the lesser of the following amounts:
 (a) the capital amount owing by the subsidised borrower on the subsidised loan on the first authorisation day for that period;
 (b) the amount of the subsidised borrower's loan limit (see subsection (2)), as applicable from time to time during the entitlement period.
Note: Special rules may apply for working out the amount of loan capital if a subsidised borrower and another person are liable in respect of the same subsidised loan (see sections 51A, 51B and 51C).

Loan limit—general rule
 (2) The loan limit at a particular time (the loan limit time) for a subsidised borrower who meets a description in an item in the following table at the loan limit time is as set out in the item according to the years of effective service completed (whether before or after the commencing day) by the borrower as at the loan limit time.

Loan limits
Item         Subsidised borrower                                                                                                           Effective service for less than 4 years  Effective service for 4 years or more, and less than 8 years  Effective service for 8 years or more, and less than 12 years  Effective service for 12 years or more, and less than 20 years  Effective service for 20 years or more