Effect of bankruptcy on Financial Supplement Loan (FSL) after transfer to the Australian Taxation Office (ATO) 102-15010060
Expand allThe Student Financial Supplement Scheme (SFSS) closed from 1 January 2004. Since December 2005 all outstanding Financial Supplement Loans (FSL) have been transferred to the Australian Taxation Office (ATO) for recovery.
This page contains a table of information for Service Officers to use to assist customers with enquiries about the effect of bankruptcy on repayment of the financial supplement loan (FSL).
Effect of bankruptcy on (FSL) after transfer to the ATO
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Step |
Action |
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1 |
Customer declares bankruptcy + Read more ... Customer advises they have been declared bankrupt. |
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2 |
FSL Bankruptcy + Read more ... Advise the customer that their Financial Supplement loan (FSL) is not a provable debt with regards to bankruptcy because it is not immediately repayable. For a definition of provable debt see the link to the Bankruptcy Act 1966 under the Legislation section. |
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3 |
FSL debt, bankruptcy + Read more ... Advise the customer that FSL debt generally cannot be reduced or discharged because of bankruptcy. Note: there is one exception to this rule. Any part of the loan that has been assessed as payable to the Australian Taxation Office (ATO) as part of the customer's Tax Assessment is considered to be due immediately and therefore can be included as a liability in terms of a person's bankruptcy assessment. |
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4 |
Contacting the ATO + Read more ... Refer the customer to the ATO website. Contact details for the ATO. |
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5 |
Recording details + Read more ... Record details of advice given on a DOC. |