The order in which deductions and payments are offset against the consolidated loan balance

Section 117(3) and schedule 7, clause 2

Two corrections to the Student Loan Scheme Act 2011 deal with the order in which payments are to be offset against a borrower's consolidated loan balance.

The first correction relates to a legislative oversight whereby the section that deals with overseas-based borrower deductions satisfying their repayment obligations (section 117) incorrectly overrides the general ordering rules (section 194) from 1 April 2012.

The second correction relates to an error whereby from 1 April 2013 section 117 incorrectly overrides sections 194 to 194D instead of only overriding section 194A(1) and (2).

Application date

The first amendment applies from 1 April 2012 and the second amendment applies from 1 April 2013.