126.96.36.199 Repayment of the financial supplement - after the contract ends
No new financial supplement loans are available from 1 January 2004.
For existing loans, a person's loan repayment arrangements will continue unchanged. Remaining loans will be collected via the taxation system.
The following SFSS guideline referenced remain for historical purposes.
Debt to the Commonwealth
At the end of the financial supplement contract period, the Commonwealth pays the CBA the outstanding amount of the financial supplement that has not been repaid by the student. From that date, the student has a debt owed to the Commonwealth rather than the CBA.
In some circumstances the Commonwealth may have bought back a financial supplement before the end of the contract period.
Example: A student died, or false or misleading information had been provided about the student.
Notice to student
As soon as possible after the contract period the student must be informed:
- of the amount of the financial supplement debt or debts
- that the debt or debts are now owed to the Commonwealth and not the CBA
- that repayments will no longer attract a bonus
- that repayment of the debt or debts can be made at any time directly to the ATO, and
- that amounts not voluntarily repaid will be recovered through the taxation system.
Repayment through the taxation system
The student begins repaying the financial supplement debt from the tax return for the financial year in which the contract period ends, PROVIDED their income is above the specified level.
If the student is required to make a repayment for a financial year, the amount is included in the ATO assessment notice provided to the student.
Level of taxable income
The amount of financial supplement debt a student is required to repay for a financial year depends on the level of their taxable income. These taxable income levels are adjusted each year and are published by the ATO (HELP, SSL, ABSTUDY SSL, TSL and SFSS repayment thresholds and rates).