UNCLASSIFIED / CA2018-026 New Liability Code for VET Student Loans (VSL) / Change
advice
business / SOFTWARE DEVELOPERS / advice / UNCLASSIFIED
Segment / audience / Format / Classification
CHANGE Advice
Reference No: / 2018-026
Title: / New Liability Code for VET Student Loans (VSL)
Version No: / 1.0
Document Date: / 18/08/2017
CHANGE IMPLEMENTATION DATE / 1/01/2018
TAX MEASURE COMMENCEMENT DATE / 1/01/2017
CURRENT STAGE / CONCEPTUAL
HIGH LEVEL DESIGN
REQUIREMENTS ANALYSIS
DETAILED DESIGN
LIKELIHOOD / DRAFT
LIKELY
DEFINITE
Channels affected External Tax Software products affected
ELS Fringe Benefits Tax (FBT)
SBR Resource Rent Tax (RRT)
ECI Income tax
eSAT Business Accounting systems
Portal Superannuation Systems
Prefill data Payroll systems
Calculators Corporate enterprise systems ( e.g. finance/ HR)
Paper Forms
Outbound Correspondence
IMPORTANT. Information in this advice is draft only and subject to change. It is provided under the terms and conditions of the ATO Software Developers Homepage(http://softwaredevelopers.ato.gov.au/ ) and noted in the footer below
DEPENDANT LEGISLATION
VET Student Loans (Charges) Act 2016
VET Student Loans (Consequential Amendments and Transitional Provisions) Act 2016
VET Student Loans Act 2016
BACKGROUND INFORMATION/POLICY INTENT
The Department of Education and Training (Education) established a new loan under the VET Student Loans Act 2016 and the Higher Education Support Act 2003 (HESA). Vocational Education and Training (VET) student loans will be treated as FEE-HELP debts in line with the existing Higher Education Loan Program (HELP) under the HESA. Students will be required to repay their loan debts through the taxation system when their income reaches a set HELP threshold.
The new loan commenced 1 January 2017.
BUSINESS REQUIREMENTS SUMMARY
There will be a short grandfathering period of 12 months where both VSL and VET FEE-HELP liabilities will be sent to the ATO. Education has advised that they will hold onto all VSL and VET FEE-HELP debts incurred from 1 January 2017 until changes are made to both the ATO and Education systems to allow for the differentiation of debts. Will continue to display as a HELP loan on client’s account.
CONCEPTUAL VIEW (High Level Design)
N/A
DETAILED DESIGN
N/A
Names of Forms impacted:
UNCLASSIFIED / This A controlled information resource WHICH is information that is not yet available to the general public, IT is made available to software developers for the sole purpose of assisting in the development of tax-related software (both commercial and in-house).
In some cases the information is in draft form or has been made available for the purposes of consultation, proof of concept work and or pilots.
HOLDERS OF THIS DOCUMENT should not on-forward controlled information to persons or organisations outside THEIR own organisation OR FOR OTHER PURPOSES. See HTTP://SOFTWAREDEVELOPERS.ATO.GOV.AU / PAGE
2 OF 2