Bill
Higher Education Support Legislation Amendment (Student Loan Sustainability) Bill 2018
passed, as at 2018-08-24. Education and Training portfolio.
- Sponsor
- Not recorded
- Portfolio
- Education and Training
Recorded stages
- introduced — 2018-02-14
- second reading — 2018-02-14
- second reading — 2018-03-26
- second reading — 2018-03-27
- second reading — 2018-03-27
- committee — 2018-03-27
- third reading — 2018-03-27
- introduced — 2018-03-28
- second reading — 2018-03-28
- second reading — 2018-06-25
- second reading — 2018-06-26
- second reading — 2018-08-13
- second reading — 2018-08-13
- committee — 2018-08-13
- third reading — 2018-08-13
- other — 2018-08-14
- passed — 2018-08-14
- royal assent — 2018-08-24
Divisions
- Higher Education Support Legislation Amendment (Student Loan Sustainability) Bill 2018 - Second Reading - Agree with the bill's main idea — 2018-03-27, House of Representatives: affirmative, ayes 75, noes 70
- Higher Education Support Legislation Amendment (Student Loan Sustainability) Bill 2018 - Consideration in Detail - Agree with bill as amended — 2018-03-27, House of Representatives: affirmative, ayes 76, noes 69
- The majority voted against a [motion](https://www.openaustralia.org.au/senate/?id=2018-06-26.4.2) to adjourn the debate, which means the consideration of the bill will continue. The motion was introduced by Labor Senator [Murray Watt](https://theyvoteforyou.org.au/people/senate/queensland/murray_watt) (Qld). — 2018-06-26, Senate: negative, ayes 29, noes 37
- Higher Education Support Legislation Amendment (Student Loan Sustainability) Bill 2018 - Second Reading - Agree with the bill's main idea — 2018-08-13, Senate: affirmative, ayes 38, noes 32
- The majority voted in favour of a [motion](https://www.openaustralia.org.au/senate/?gid=2018-08-13.38.3) to keep [schedule 1](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;db=LEGISLATION;id=legislation%2Fbills%2Fr6051_aspassed%2F0001;query=Id%3A%22legislation%2Fbills%2Fr6051_aspassed%2F0000%22;rec=0) unchanged. In parliamentary jargon, they voted "*that schedule 1 stand as printed.*" ### What is schedule 1? Schedule 1 lowers repayment thresholds, which are the income levels that people with Higher Education Loan Program (HELP) debts have to reach before compulsory repayments begin. — 2018-08-13, Senate: affirmative, ayes 33, noes 30
- The majority voted against an [amendment](https://www.openaustralia.org.au/senate/?id=2018-08-13.161.2) introduced by Victorian Senator [Derryn Hinch](https://theyvoteforyou.org.au/people/senate/victoria/derryn_hinch) (Derryn Hinch's Justice Party), which means it failed. The amendment would have raised the repaying point, meaning that people with Higher Education Loan Program (HELP) debts would have to earn a higher amount before compulsory repayments begin. ### Motion text > *(1) Schedule 1, item 1, page 3 (line 6), omit "$44,999", substitute "$50,000".* — 2018-08-13, Senate: negative, ayes 10, noes 43
- Higher Education Support Legislation Amendment (Student Loan Sustainability) Bill 2018 - in Committee - Agree with amended bill — 2018-08-13, Senate: affirmative, ayes 36, noes 32
- Higher Education Support Legislation Amendment (Student Loan Sustainability) Bill 2018 - Third Reading - Pass the bill — 2018-08-13, Senate: affirmative, ayes 36, noes 33
- The majority voted in favour of a [motion](https://www.openaustralia.org.au/debates/?id=2018-08-14.94.2): > *That the [amendments](https://theyvoteforyou.org.au/divisions/representatives/2018-08-14/2) be considered immediately.* — 2018-08-14, House of Representatives: affirmative, ayes 76, noes 65
- The majority voted in favour of a [motion](https://www.openaustralia.org.au/debates/?id=2018-08-14.94.2) to agree with the Senate [amendments](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/display.w3p;query=Id%3A%22legislation%2Fsched%2Fr6051_sched_cf0fe1cc-71b9-4ac3-99d5-c2e884faafe7%22;rec=0). According to Griffith MP [Terri Butler](https://theyvoteforyou.org.au/people/representatives/griffith/terri_butler) (Labor), the [amendments have two tranches](https://www.openaustralia.org.au/debate/?id=2018-08-14.99.1): > *the first tranche by the government is to change some of the timing in relation to the implementation of these measures, and the second tranche that had come from the crossbench relates to loans fees in respect of the HECS arrangements and the FEE-HELP arrangements for certain table 2 institutions.* For more, see the [discussion during the debate](https://www.openaustralia.org.au/debates/?id=2018-08-14.94.2). — 2018-08-14, House of Representatives: affirmative, ayes 76, noes 66
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2018-02-14.
This bill would change how student loan debts are repaid and indexed to make the Higher Education Loan Program more sustainable.
It would set new repayment thresholds and rates for HELP loans from 1 July 2018, with a minimum threshold of $45,000 and a one per cent repayment rate, rising to a top threshold of $131,989 at ten per cent.
From 1 July 2019, HELP repayment thresholds would be indexed using the Consumer Price Index instead of Average Weekly Earnings, and from 2019–20, SFSS repayment thresholds would align with HELP thresholds.
- Sets new HELP repayment thresholds and rates from 1 July 2018.
- Aligns indexation of HELP repayment thresholds to the Consumer Price Index from 1 July 2019.
- Brings SFSS repayment thresholds in line with HELP thresholds from 2019–20.
- Retains the current three-tier SFSS repayment threshold for 2018–19.
- Sets FEE-HELP loan limits for 2019.
- Introduces combined HELP loan limits from 1 January 2020 and allows renewable HELP balances from 2020.
People with Higher Education Loan Program debts and Student Financial Supplement Scheme debts.
Sources
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