Student Loan Scheme Act 2011

1: Title
This Act is the Student Loan Scheme Act 2011.
2: Commencement
1: Sections 63 215 to 217 222 226(1) Schedule 8
2: Section 219
3: Subpart 2 of Part 1 subpart 4 of Part 4 sections 173 to 175 187 188 201 210 to 214 218 Schedule 5
4: Sections 51 52
5:
6: The rest of this Act comes into force on 1 April 2012. Section 2(5) repealed 30 March 2013 section 5 Student Loan Scheme Amendment Act 2013
1: Preliminary matters, loan advances, and New Zealand-based and overseas-based borrowers
1: Preliminary provisions
3: Purposes
The purposes of this Act are to—
a: provide for the effective administration of student loans; and
b: provide for the collection of student loan repayments; and
c: provide transparency about student loans so that borrowers understand their obligations for those loans; and
d: encourage borrowers to repay their student loans at the earliest possible time.
4: Interpretation
1: In this Act, unless the context otherwise requires,— adjusted net income section 73 annual repayment threshold
a: $19,084 for the tax year commencing on 1 April 2012 and for each subsequent tax year to which regulations referred to in paragraph (b) do not apply; or
b: the amount prescribed by regulations for a tax year and subsequent tax years base interest rate a% = b% + 0.74% where— a% rounded to the nearest 1 decimal place is the interest rate for the relevant tax year b% is the average, rounded to the nearest 2 decimal places, of the monthly average 10-year government bond yield rates published by the Reserve Bank of New Zealand for the 5 years ending in December in the year that precedes the relevant tax year borrower borrower deduction
a: a deduction from a borrower's salary or wages in accordance with section 39
b: the amount of a standard deduction that exceeds the borrower's loan balance challenge subpart 5 of Part 4 section 3(1) charity
a: means, for the purposes of section 25(1)﻿(b)
b: includes that entity’s international, national, and regional branches, offices, sections, organisations, affiliates, members, associations, and programmes at that relevant time chief executive Social Security Act 2018 Commissioner section 3(1) Commissioner deduction section 38 consolidated loan balance
a: the loan balance; and
b: any unpaid amount ; and
c: any interest calculated and accrued under section 135(1) employer employer section YA 1 employer or PAYE intermediary end-of-year repayment obligation sections 76 76A section 77 78 entity excess repayment section 119 extra pay section RD 7 formally notify section 213 income tax section YA 1 inform section 210 interim payment section 82 83 section 84 85 late notification penalty section 155 late payment interest section 139(1) lender Social Security Act 2018 list section 27A loan advance
a: money that is advanced by the loan manager to a borrower under the student loan scheme; and
b: student loan establishment fees charged by the loan manager to the borrower under section 14
c: student loan establishment fees and any other type of fee charged by the loan manager to the borrower in accordance with a loan contract loan advance debt loan balance
a: means the following to the extent that they have not been repaid or paid:
i: loan advances; and
ii: loan interest that has been added to a borrower's loan balance under section 135(2)
iii: late filing penalties; and
iv: student loan shortfall penalties; and
iva:
v: annual administration fees charged under section 63L section 189
vi: an amount that is added to the loan balance in accordance with clause 6
b: does not include an unpaid amount loan contract loan interest section 134(1) loan manager main income equalisation account section EH 36 main income equalisation deposit section EH 4 section DQ 1 main income equalisation refund sections EH 8 to EH 26
a: relates to a deposit made on or after 1 April 2014; and
b: is not interest payable under section EH 6 new borrower
a: a person who becomes a borrower for the first time under the student loan scheme in the period starting on 1 January of the tax year and ending on the close of the last day of the tax year; or
b: a person to whom all of the following apply:
i: the person had been a borrower under the student loan scheme before the tax year; and
ii: the person fully repaid his or her loan before the start of the tax year; and
iii: in the period starting on 1 January of the tax year and ending on the close of the last day of the tax year, the person again became a borrower under the student loan scheme New Zealand-based section 22 New Zealand resident section YA 1 non-resident notify section 211 notify a person in writing section 212 overseas-based section 23 overseas-based repayment obligation subpart 4 of Part 2 pay period PAYE intermediary section YA 1 PAYE rules section YA 1 primary employment earnings section 3(1)
a: includes an extra pay paid to the borrower in the pay period; but
b: does not include—
i: salary or wages from employment as a casual agricultural employee, as defined in section YA 1
ii: salary or wages from employment as an election day worker, as defined in section YA 1 provisional tax section YA 1 provisional tax rules section YA 1 regulations repayment obligation
a: standard deductions:
b: Commissioner deductions for the purposes set out in section 49(1)﻿(a)
c: any amount that must be paid by a borrower in accordance with a written notification under section 52
d: end-of-year repayment obligation:
e: overseas-based repayment obligation repayment percentage 12% return of income section 33 salary or wage deduction
a: a standard deduction:
b: a Commissioner deduction:
c: a borrower deduction salary or wages section RD 5
a: includes an extra pay; but
b: does not include salary or wages from employment as—
i: a casual agricultural employee, as defined in section YA 1
ii: an election day worker, as defined in section YA 1 Schedule 3 adjustments section 73 secondary employment earnings section 3(1)
a: includes an extra pay; but
b: does not include—
i: salary or wages from employment as a casual agricultural employee, as defined in section YA 1
ii: salary or wages from employment as an election day worker, as defined in section YA 1 significant over-deduction
a: is more than the amount that is required to be deducted in accordance with section 37
b: exceeds the threshold determined by the Commissioner in accordance with section 63(1) significant under-deduction
a: either—
i: is required to be made but is not; or
ii: is less than the amount that is required to be deducted in accordance with section 37
b: exceeds the threshold determined by the Commissioner in accordance with section 63(1) special deduction rate
a: section 45
b:
c: section 148 standard deduction section 36(2) statement of adjusted net income provides a statement of adjusted net income section 73 student loan student loan scheme student loan shortfall penalty section 159 tax file number section YA 1 tax year section YA 1 terminal payment section 80 section 81 85 unpaid amount section 5
2: A reference to a borrower estimating his or her end-of-year repayment obligation is a reference to a borrower making a fair and reasonable estimate of his or her end-of-year repayment obligation in accordance with section RC 7 section 86 Schedule 4 1992 No 141 ss 2 38AE(1)﻿(b) Section 4(1) adjusted net income inserted 12 April 2012 section 5(7) Student Loan Scheme Amendment Act 2012 Section 4(1) adjusted net income amended 29 March 2013 section 6(1) Student Loan Scheme Amendment Act 2013 Section 4(1) annual gross income repealed 1 April 2014 section 71 Student Loan Scheme Amendment Act 2013 Section 4(1) annual total deduction repealed 1 April 2014 section 71 Student Loan Scheme Amendment Act 2013 Section 4(1) borrower deduction replaced 8 March 2014 section 4 Student Loan Scheme Amendment Act 2014 Section 4(1) charity replaced 14 May 2016 section 4(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) chief executive amended 26 November 2018 section 459 Social Security Act 2018 Section 4(1) consolidated loan balance amended 12 April 2012 section 5(1) Student Loan Scheme Amendment Act 2012 Section 4(1) consolidated loan balance inserted 12 April 2012 section 5(1) Student Loan Scheme Amendment Act 2012 Section 4(1) declaration of adjusted net income repealed 14 May 2016 section 4(4) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) end-of-year repayment obligation inserted 29 March 2013 section 6(2) Student Loan Scheme Amendment Act 2013 Section 4(1) entity inserted 14 May 2016 section 4(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) interim payment replaced 29 March 2013 section 6(4) Student Loan Scheme Amendment Act 2013 Section 4(1) late filing penalty repealed 14 May 2016 section 4(3) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) late notification penalty inserted 14 May 2016 section 4(3) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) lender amended 26 November 2018 section 459 Social Security Act 2018 Section 4(1) list inserted 14 May 2016 section 4(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) loan balance repealed 1 April 2020 section 52(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 4(1) main income equalisation account inserted 14 May 2016 section 4(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) main income equalisation deposit inserted 14 May 2016 section 4(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) main income equalisation refund inserted 14 May 2016 section 4(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) net income repealed 12 April 2012 section 5(2) Student Loan Scheme Amendment Act 2012 Section 4(1) net pre-taxed income repealed 29 March 2013 section 6(5) Student Loan Scheme Amendment Act 2013 Section 4(1) new borrower inserted 29 March 2013 section 6(7) Student Loan Scheme Amendment Act 2013 Section 4(1) other income repealed 29 March 2013 section 6(5) Student Loan Scheme Amendment Act 2013 Section 4(1) other income repayment obligation repealed 29 March 2013 section 6(5) Student Loan Scheme Amendment Act 2013 Section 4(1) pre-taxed income repealed 1 April 2014 section 71 Student Loan Scheme Amendment Act 2013 Section 4(1) pre-taxed repayment obligation repealed 29 March 2013 section 6(5) Student Loan Scheme Amendment Act 2013 Section 4(1) remaining repayment repealed 29 March 2013 section 6(5) Student Loan Scheme Amendment Act 2013 Section 4(1) repayment obligation replaced 1 April 2013 section 54(2) Student Loan Scheme Amendment Act 2013 Section 4(1) repayment obligation replaced 1 April 2013 section 54(2) Student Loan Scheme Amendment Act 2013 Section 4(1) repayment percentage 12% prescribed as the rate for the purposes of this Act 1 April 2013 regulation 3 Student Loan Scheme (Repayment Percentage) Regulations 2012 Section 4(1) Schedule 3 adjustments inserted 14 May 2016 section 4(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) significant over-deduction amended 12 April 2012 section 5(5) Student Loan Scheme Amendment Act 2012 Section 4(1) special deduction rate repealed 12 April 2012 section 5(6) Student Loan Scheme Amendment Act 2012 Section 4(1) statement of adjusted net income provides a statement of adjusted net income inserted 14 May 2016 section 4(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 4(1) terminal payment inserted 29 March 2013 section 6(7) Student Loan Scheme Amendment Act 2013 Section 4(1) underestimation penalty repealed 1 April 2020 section 52(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 4(2) replaced 29 March 2013 section 6(8) Student Loan Scheme Amendment Act 2013
5: Meaning of unpaid amount
1: In this Act, unpaid amount section 139(2)
a: a terminal payment:
b: an interim payment default:
c: an overseas-based instalment default:
d: a consolidated loan balance that is payable as a result of a demand made under a loan contract:
e: any part of a loan advance or a loan balance that the Commissioner has recalled or demanded repayment of under section 204 section 63N 1992:
f: an amount that must be paid by a borrower in accordance with a written notification under section 52
g: a late notification penalty:
h: a student loan shortfall penalty.
i:
2: In this section,— due date
a: in relation to interim payment defaults, means,—
i: for any instalment of an interim payment due on or before the third instalment date, the date specified in Schedule 3
ii: for any instalment of an interim payment due after the third instalment date, the date specified by the Commissioner as the due date; and
b: in relation to an overseas-based instalment default, means—
i: the last day of the tax year; or
ii: if the Commissioner has determined the instalments that must be paid under section 112(3) 115(1)﻿(d) 115A
c: in all other cases, has its ordinary meaning interim payment default
a: the lesser of—
i: the difference between 105% of a borrower's end-of-year repayment obligation
ii: the difference between a borrower's end-of-year repayment obligation
iii: the difference between the amount of a borrower's interim payments last notified by the Commissioner as due by the third instalment date for a tax year and the amount of the interim payments made for that tax year:
b: the amount of any instalment of an interim payment due after the third instalment date that is not paid on or before the due date overseas-based instalment default subparts 4 5 Section 5(1)﻿(a) replaced 29 March 2013 section 7(1) Student Loan Scheme Amendment Act 2013 Section 5(1)﻿(e) amended 1 April 2013 section 55(1) Student Loan Scheme Amendment Act 2013 Section 5(1)﻿(f) inserted 1 April 2013 section 55(2) Student Loan Scheme Amendment Act 2013 Section 5(1)﻿(g) replaced 14 May 2016 section 5 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 5(1)﻿(h) inserted 1 April 2013 section 55(2) Student Loan Scheme Amendment Act 2013 Section 5(1)﻿(i) repealed 1 April 2020 section 53 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 5(2) due date replaced 30 March 2013 section 7(2) Student Loan Scheme Amendment Act 2013 Section 5(2) interim payment default amended 29 March 2013 section 7(3) Student Loan Scheme Amendment Act 2013 Section 5(2) interim payment default amended 29 March 2013 section 7(3) Student Loan Scheme Amendment Act 2013 Section 5(2) overseas-based instalment default replaced 30 March 2013 section 7(4) Student Loan Scheme Amendment Act 2013
6: Application of Act
1: This Act applies—
a: to all persons who—
i: are borrowers under the Student Loan Scheme Act 1992
ii: apply for a student loan on or after 1 April 2012; or
iii: are borrowers under this Act; and
b: to all student loans (regardless of when they were entered into) on 1 April 2012 in relation to the tax year starting on 1 April 2012 and every subsequent year; and
c: to liabilities to repay student loans for the tax year starting on 1 April 2012 and every subsequent year; and
d: to income derived by a borrower on or after 1 April 2012; and
e: to actions or omissions that occur on or after 1 April 2012 in relation to a matter under this Act.
2: However, regulations made under section 216 sections 218 to 220 Schedules 5 6 1992 No 141 s 1(3)
7: Application of Act to bonded scholarships
1: An amount repayable under a bonded scholarship (the default amount
a: the default amount were a loan advance; and
b: the recipient of the scholarship were a borrower; and
c: the scholarship agreement were a loan contract.
2: Despite any enactment or rule of law, if a provision in an agreement for a bonded scholarship conflicts with this section, this section prevails.
3: In this section, bonded scholarship clause 11 1992 No 141 s 2A Section 7(3) amended 1 August 2020 section 668 Education and Training Act 2020
8: Act binds the Crown
This Act binds the Crown. 1992 No 141 s 3
8A: Application of provisions of Act
Schedule 6 see section 220 Section 8A inserted 30 March 2013 section 8 Student Loan Scheme Amendment Act 2013
2: Establishment of student loan
9: Purposes of sections 10, 11, 16, and 17
The purposes of sections 10 11 16 17
a: enable the loan manager to confirm the identity of a person who applies for a student loan; and
b: enable the Commissioner to inform borrowers about their consolidated loan balance; and
c: facilitate the transfer of loan advance debts from the loan manager to the Commissioner; and
d: enable the collection of borrowers' consolidated loan balances.
10: Loan manager must notify Commissioner of persons who apply for student loan
1: The loan manager must notify the Commissioner of all persons who apply for a student loan.
2: That notification must include the following information:
a: the applicant's full name; and
b: the applicant's tax file number; and
c: the applicant's date of birth; and
d: any further information specified in regulations.
3: The Commissioner and the loan manager may, for the purpose of this section, determine by written agreement between them—
a: the frequency with which that notification must be supplied; and
b: the form in which that notification must be supplied; and
c: the method by which that notification must be supplied.
4: Subsection (3)﻿(b) and (c) apply despite section 211
11: Commissioner must confirm information provided by loan manager
1: The Commissioner must notify the loan manager—
a: whether the information that is provided in accordance with section 10
b: if the information differs from that held by the Commissioner, of the matter in relation to which the information differs.
2: The Commissioner and the loan manager may, for the purpose of this section, determine by written agreement between them—
a: the frequency with which that notification must be supplied; and
b: the form in which that notification must be supplied; and
c: the method by which that notification must be supplied.
3: Subsection (2)﻿(b) and (c) apply despite section 211
12: Loan manager must provide copy of loan contract
The loan manager must provide a person who applies for a student loan with a copy of the loan contract before the day that is 6 working days after the day on which the person enters into the contract. SR 2010/341 r 5
13: Certain information must be disclosed in loan contract
Every loan contract entered into after 31 March 2012 must specify the following information that applies at the date the loan contract is entered into:
a: the annual repayment threshold:
b: the base interest rate:
c: the repayment percentage:
d: the amount of the student loan establishment fee charged under section 14
e: the amount of the annual administration fee charged under section 189
f: the borrower's right, under section 15
g: the borrower’s right to object to the details of loan advances set out in a notification given to the borrower in accordance with section 18
h: the timeframe within which an objection by a borrower under section 167 see section 18(2)﻿(e)
i: any further information specified in regulations. Section 13(g) replaced 12 April 2012 section 6 Student Loan Scheme Amendment Act 2012 Section 13(h) replaced 12 April 2012 section 6 Student Loan Scheme Amendment Act 2012
14: Student loan establishment fee
A student loan establishment fee of $60 (or any other amount prescribed by regulations) must be charged by the loan manager to a borrower each time the borrower enters into a loan contract after 31 March 2012.
15: Right to cancel loan contract
1: A borrower may cancel his or her loan contract by—
a: notifying the loan manager in writing
b: returning any loan advance received by the borrower under the loan contract to the loan manager within a time frame set by the loan manager
c:
2: If a borrower cancels his or her loan contract in accordance with subsection (1), the loan manager must waive the student loan establishment fee charged under section 14 Section 15(1)﻿(a) amended 13 May 2016 section 6 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 15(1)﻿(b) amended 30 March 2013 section 9(1) Student Loan Scheme Amendment Act 2013 Section 15(1)﻿(c) repealed 30 March 2013 section 9(2) Student Loan Scheme Amendment Act 2013
16: Loan manager must notify Commissioner of borrower's details
1: The loan manager must notify the Commissioner—
a: of every person who becomes a borrower; and
b: if the loan manager becomes aware that any of the information provided by the loan manager is incorrect or has changed.
2: That notification must—
a: include the following information:
i: the date on which the borrower's loan entitlement letter was issued; and
ii: the borrower's full name; and
iii: the borrower's tax file number; and
iv: the borrower's date of birth; and
v: all current postal addresses for the borrower; and
vi: all current electronic addresses for the borrower (if the borrower has any); and
vii: all current telephone numbers for the borrower (if the borrower has any); and
viii: any further information specified in regulations; and
b: if applicable, indicate which information has been corrected or changed.
3: The Commissioner and the loan manager may, for the purpose of this section, determine by written agreement between them—
a: the frequency with which that notification must be supplied; and
b: the form in which that notification must be supplied; and
c: the method by which that notification must be supplied.
4: Subsection (3)﻿(b) and (c) apply despite section 211
16A: Loan manager must notify Commissioner of any details held about borrower’s contact person
1: In any case where a borrower has advised the loan manager of the details of the borrower's contact person, the loan manager must notify the Commissioner of the following details, to the extent that they are available:
a: the name of the individual:
b: a postal address for the individual:
c: a telephone number for the individual:
d: an electronic address for the individual:
e: any further information specified in regulations.
2: The Commissioner and the loan manager may, for the purpose of this section, determine by written agreement between them—
a: the frequency with which that notification must be supplied; and
b: the form in which that notification must be supplied; and
c: the method by which that notification must be supplied.
3: Subsection (2)﻿(b) and (c) section 211 Section 16A inserted 1 January 2013 section 7 Student Loan Scheme Amendment Act 2012
17: Loan manager must transfer loan advance debts to Commissioner for collection
1: After a loan advance is made or charged to a borrower, the loan manager must—
a: transfer the loan advance debt to the Commissioner for collection; and
b: notify the Commissioner of the borrower to whom that debt belongs.
2: The Commissioner and the loan manager may, for the purpose of this section, determine by written agreement between them—
a: the frequency with which transfers must occur; and
b: the form in which transfers and notification must occur; and
c: the method by which transfers and notification must occur.
3: Subsection (2)﻿(b) and (c) apply despite section 211 1992 No 141 s 4
18: Commissioner must notify borrowers of loan advances
1: The Commissioner must notify a borrower in writing if a loan advance debt that belongs to that borrower is transferred to the Commissioner in accordance with section 17(1)
2: The notification must—
a: specify the period to which it applies, which must not be greater than 6 months; and
b: set out the details of all loan advances that have been made or charged to the borrower (and that the Commissioner has been notified of in accordance with section 17(1)
c: specify the borrower's consolidated loan balance on the first and last days of the period to which it applies; and
d: set out the borrower's right, under sections 167 to 171
e: state the date on or before which an objection by the borrower under section 167
f: provide any other information that the Commissioner considers appropriate.
19: Commissioner must inform borrowers about consolidated loan balance
1: The Commissioner—
a: must inform borrowers about their consolidated loan balances; and
b: must keep that information up to date.
2: For the purposes of subsection (1), the Commissioner must provide the following information for each borrower:
a: details of all loan advances that have been made or charged to the borrower (and that the Commissioner has been notified of in accordance with section 17(1)
b: details of the date and amount of any interest added to the borrower's loan balance in accordance with a loan contract or this Act; and
c: details of the date and amount of any penalties charged to the borrower in accordance with a loan contract or this Act; and
d: details of the date and amount of all fees charged to the borrower in accordance with a loan contract or this Act; and
e: details of all repayments that have been made; and
f: the current base interest rate; and
g: any other information that the Commissioner considers appropriate.
3: The Commissioner must correct that information if the Commissioner becomes aware that any of the information is incorrect or has changed. 1992 No 141 ss 5 13(1) 43(1)
20: Borrower must be notified of certain changes to obligations
1: The Commissioner must notify a borrower if—
a: a change is made to the borrower's obligations in relation to his or her student loan; and
b: that change increases the borrower's obligations in a more than minor way, including a change to—
i: the borrower's repayment obligation; or
ii: the repayment percentage; or
iii: the base interest rate; and
c: that change is made—
i: without the borrower's prior agreement; or
ii: by, or as a consequence of, an enactment.
2: Details of the change must be notified to the borrower within 7 months after the day on which the change is made.
3: However, subsections (1) and (2) do not apply if the Commissioner is aware that he or she has incorrect contact details for the borrower or cannot reasonably locate the borrower. SR 2010/341 r 8
3: Determining whether borrowers are New Zealand-based or overseas-based
21: Overview of being New Zealand-based or overseas-based
1: This subpart specifies when a borrower is treated as being New Zealand-based and when a borrower is treated as being overseas-based.
2: Under Part 2
3: Under subpart 1 of Part 4
4: This section is intended as a guide only.
22: Meaning of New Zealand-based
1: A borrower is New Zealand-based
a: the borrower is physically in New Zealand for a period of 183 consecutive days; or
b: the borrower is treated as being physically in New Zealand for a period of 183 consecutive days because—
i: the borrower is physically absent from New Zealand for a period, or aggregated periods, of no more than 31 days during a period of 183 consecutive days; and
ii: the borrower is physically in New Zealand for the first day of that 183-day period.
1A: A day on which a borrower is treated as being physically in New Zealand under section 24 25
2: A period of 183 consecutive days may include any days before the day on which a person becomes a borrower.
3: For the purposes of subsection (1), a borrower is treated as being New Zealand-based—
a: from the later of—
i: the day on which he or she became a borrower; and
ii: the first day of the 183-day period; and
b: for each subsequent day.
4: A borrower ceases to be New Zealand-based if that borrower becomes overseas-based. 1992 No 141 s 38AB(1), (2) Section 22(1) replaced 26 June 2019 section 116 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 22(1A) inserted 26 June 2019 section 116 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
23: Meaning of overseas-based
1: The following persons are overseas-based
a: a borrower who is not New Zealand-based under section 22
b: a New Zealand-based borrower who is physically absent from New Zealand for a period of 184 consecutive days:
c: a New Zealand-based borrower who is treated as physically absent from New Zealand for a period of 184 consecutive days because—
i: the borrower is physically in New Zealand for a period, or aggregated periods, of 31 days or less during a period of 184 consecutive days; and
ii: the borrower is physically absent from New Zealand for the first day of that 184-day period.
1A: A borrower must not be treated as being physically absent from New Zealand for any day on which that borrower is treated as being physically in New Zealand under section 22(1)﻿(b)
1B: A day on which a borrower is treated as being physically in New Zealand under section 24 25
2: A period of 184 consecutive days may include any days before the day on which a person becomes a borrower.
3: For the purposes of subsection (1), a borrower is treated as being overseas-based—
a: from the later of—
i: the day on which he or she became a borrower; and
ii: the first day of the 184-day period; and
b: for each subsequent day.
4: A borrower ceases to be overseas-based if that borrower becomes New Zealand-based. 1992 No 141 s 38AC(1)–(3) Section 23(1) replaced 26 June 2019 section 117 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 23(1A) inserted 26 June 2019 section 117 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 23(1B) inserted 26 June 2019 section 117 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
24: Treatment of partial days
For the purposes of sections 22 23
a: being physically in New Zealand for the whole of that day; and
b: not being physically absent from New Zealand for any part of that day. 1992 No 141 s 38AD Certain borrowers may be treated as being physically in New Zealand
25: Commissioner may treat certain borrowers as being physically in New Zealand
1: On the application of a borrower, the Commissioner may, for the purposes of sections 22 to 24
a: the borrower is in the service in any capacity of the Government of New Zealand; or
b: the borrower is working as a volunteer or for token payment for a charity; or
c: of an unexpected delay; or
d: of an unplanned personal absence; or
e: the borrower is required to be overseas because of the borrower's employment or occupation; or
f: the borrower is accompanying his or her spouse, civil union partner, or de facto partner overseas; or
g: the borrower is undertaking study that meets the requirements of clause 7 of Schedule 1
h: the borrower is undertaking study that meets the requirements of clause 8 of Schedule 1
i: the borrower is undertaking study that meets the requirements of clause 9 of Schedule 1
ia: the borrower is undertaking study that meets the requirements of clause 9A
ib: the borrower is undertaking an internship that meets the requirements of clause 9B
j: the borrower is in 1 or more of Niue, the Cook Islands, Tokelau, or the Ross Dependency.
2: Subsection (1)﻿(b) to (j) and subsection (3) are subject to the conditions set out in, as applicable, clauses 2 to 11
3: On application, the Commissioner may, for the purposes of sections 22 to 24
a: has a serious illness for the period to which the application relates; and
b: is unable to meet their overseas-based repayment obligation for that period as a result of that serious illness.
4: In subsection (3), serious illness
a: results in the borrower being unable to engage in paid work (other than work for which the person is paid a token payment or a very low wage); or
b: poses a serious and imminent risk of death. 1992 No 141 ss 38AE(1) 38AJ(1) 38AJA(1)–(3), (7) Section 25(1)﻿(ia) inserted 21 February 2017 section 131 Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 Section 25(1)﻿(ib) inserted 21 February 2017 section 131 Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 Section 25(2) replaced 1 April 2020 section 54 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 25(3) inserted 1 April 2020 section 54 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 25(4) inserted 1 April 2020 section 54 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
26: Method of making application and provision of evidence and information
A borrower who applies to the Commissioner to be treated as being physically in New Zealand under section 25
a: make that application by notifying the Commissioner; and
b: provide the evidence or information that is required by clauses 2 to 10 of Schedule 1 or section 25(3)
c: provide any other evidence or information that the Commissioner may reasonably require in order to establish whether one of the grounds for the grant of that application applies by notifying the Commissioner in a manner acceptable to the Commissioner. 1992 No 141 ss 38AE(8) 38AJ(2)﻿(c) 38AJA(4)﻿(b) Section 26 amended 1 April 2020 section 55(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 26(b) amended 1 April 2020 section 55(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
27: Commissioner must notify borrower and specify period or conditions when granting application
If the Commissioner treats a borrower as being physically in New Zealand under section 25
a: notify the borrower in writing; and
b: specify either—
i: the start and end dates for the period for which the borrower is treated as being physically in New Zealand; or
ii: any conditions that must apply or be met in order for the borrower to be treated as being physically in New Zealand. 1992 No 141 ss 38AE(2) 38AIA(2) 38AJ(3) 38AJA(5) Section 27 amended 1 April 2020 section 56 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
27A: Commissioner must keep and publish list of charities
1: The Commissioner must keep a list of entities that are charities for the purposes of section 25(1)﻿(b)
2: The list must specify—
a: the date on and from which each entity’s listing as a charity applies; and
b: if applicable, the date on which each entity’s listing as a charity ceases to apply.
3: The Commissioner must publish the list in a manner chosen by the Commissioner. Section 27A inserted 14 May 2016 section 7 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
27B: When entity qualifies to be listed as charity
1: An entity qualifies to be listed as a charity under section 27A
a: the entity is a tax charity under section CW 41(5)
b: the entity meets the requirements of section 13(1)﻿(a) or (b) section 25(1)﻿(b)
2: In determining whether it is appropriate for the entity to be listed as a charity under subsection (1)﻿(b), the Commissioner may have regard to—
a: the standing of the entity as a charitable organisation; and
b: the entity’s systems and processes in monitoring and evaluating its charitable work; and
c: any other matters the Commissioner considers relevant. Section 27B inserted 14 May 2016 section 7 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
27C: Application by entity to be listed as charity
1: An entity may apply to be listed as a charity by—
a: notifying the Commissioner in writing with a completed application in the form approved by the Commissioner; and
b: notifying the Commissioner in writing with any other information required by the Commissioner.
2: The Commissioner may request further information from the applicant and obtain information relating to the applicant from other persons before deciding whether or not to list the applicant.
3: The Commissioner must list an applicant as a charity (by adding the applicant’s name to the list and a date on and from which the listing applies) if the entity qualifies for listing under section 27B
4: The date on and from which the listing applies must not be earlier than the date of the entity’s application under this section.
5: If the Commissioner proposes to refuse to list an applicant as a charity, the Commissioner must—
a: notify the applicant in writing of—
i: the Commissioner’s reasons for the proposed decision; and
ii: the period within which arguments against the proposed decision may be provided (which must be a period of at least 30 days after the date of the notice); and
b: consider any arguments against the proposed decision that the applicant provides within that period.
6: The Commissioner must notify the applicant in writing of the final decision under this section. Section 27C inserted 14 May 2016 section 7 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
27D: Commissioner may list tax charities even if no application made
1: The Commissioner may list an entity as a charity, even if there is no application under section 27C section 27B(1)﻿(a)
2: The date on and from which the listing applies must not be earlier than the date of the Commissioner’s decision under this section. Section 27D inserted 14 May 2016 section 7 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
27E: Commissioner may remove entity’s listing as charity
1: The Commissioner may remove an entity’s listing as a charity (by adding to the list a date on which the entity’s listing as a charity ceases to apply) if the Commissioner determines that the entity no longer qualifies under section 27B
2: The date on which the listing ceases to apply must not be earlier than the Commissioner’s final decision under this section.
3: If the Commissioner proposes to remove an entity’s listing as a charity, the Commissioner must—
a: notify the entity in writing of—
i: the Commissioner’s reasons for the proposed decision; and
ii: the period within which arguments against the proposed decision may be provided (which must be a period of at least 30 days after the date of the notice); and
b: consider any arguments against the proposed decision that the entity
4: The Commissioner must notify the entity in writing of the final decision under this section. Section 27E inserted 14 May 2016 section 7 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 27E(3)﻿(b) amended 21 February 2017 section 132 Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 Borrowers must notify Commissioner of absence from and return to New Zealand
28: Borrower to notify Commissioner of absence from New Zealand of 184 or more days
1: A borrower who intends to be, or will be, physically absent from New Zealand for a period of 184 or more consecutive days must, before leaving New Zealand, notify the Commissioner of the following matters:
a: 1 of the following ways for the Commissioner to notify the borrower:
i: a permanent overseas postal address; or
ii: a New Zealand postal address; or
iii: the name and New Zealand postal address of a person empowered to act for the borrower; and
b: an electronic means of communication prescribed by the Commissioner by which the Commissioner may notify the borrower; and
c: any information that the Commissioner reasonably requires in order to determine—
i: the borrower's repayment obligation (if any); and
ii: whether the borrower is liable to pay loan interest.
2: A borrower who is physically absent from New Zealand must notify the Commissioner of the matters required by subsection (1), as well as the date on which the borrower left New Zealand, as soon as practicable after the earlier of the following:
a: the borrower becomes overseas-based:
b: the borrower becomes aware that he or she will be overseas-based.
3: See section 193C 1992 No 141 s 37 Section 28(3) inserted 30 March 2013 section 10 Student Loan Scheme Amendment Act 2013
29: Borrower to notify Commissioner of return to New Zealand of more than 183 days
1: An overseas-based borrower who is physically in New Zealand must comply with subsection (2) as soon as practicable after the earlier of the following:
a: the borrower becomes New Zealand-based:
b: the borrower becomes aware that he or she will be New Zealand-based.
2: The borrower must notify the Commissioner of—
a: the date on which the borrower returned to New Zealand; and
b: any other information that the Commissioner may reasonably require in order to establish whether the borrower is New Zealand-based. 1992 No 141 s 38
2: Repayment obligations of borrowers
30: Borrower's liability to repay consolidated loan balance
1: Each borrower must repay his or her consolidated loan balance in accordance with this Act and the loan contract.
2: Section 203 1992 No 141 ss 13(2) 63
31: Repayment obligations that apply to New Zealand-based borrowers and overseas-based borrowers
1: If a borrower—
a: is New Zealand-based, the repayment obligations in subparts 1 2
b: is overseas-based, the repayment obligations in subpart 4
2: Subpart 5
a: is New Zealand-based but is a non-resident; or
b: is both New Zealand-based and overseas-based during a tax year; or
c: is overseas-based but derives salary or wages from New Zealand. Section 31(1)﻿(a) amended 29 March 2013 section 11 Student Loan Scheme Amendment Act 2013
32: Interrelationship between subparts
1 and 2
1: This section applies to New Zealand-based borrowers.
2: If a borrower derives only salary or wages, subpart 1
3: If a borrower derives only income other than salary or wages, subpart 2
4: If a borrower derives income from salary or wages and income other than from salary or wages, subparts 1 2
5:
6:
7:
8:
9: This section is intended as a guide only. Section 32 heading amended 29 March 2013 section 12(1) Student Loan Scheme Amendment Act 2013 Section 32(3) replaced 29 March 2013 section 12(2) Student Loan Scheme Amendment Act 2013 Section 32(4) replaced 29 March 2013 section 12(2) Student Loan Scheme Amendment Act 2013 Section 32(5) repealed 29 March 2013 section 12(2) Student Loan Scheme Amendment Act 2013 Section 32(6) repealed 29 March 2013 section 12(2) Student Loan Scheme Amendment Act 2013 Section 32(7) repealed 29 March 2013 section 12(2) Student Loan Scheme Amendment Act 2013 Section 32(8) repealed 29 March 2013 section 12(2) Student Loan Scheme Amendment Act 2013
1: New Zealand-based borrowers' repayment obligations for salary or wages
33: Application of this subpart
This subpart applies to New Zealand-based borrowers who derive salary or wages. Repayment codes
34: Repayment codes for New Zealand-based borrowers who derive salary or wages
1: For the purpose of the application of the PAYE rules under section 70
a: SL
b: TTC
2: The repayment code TTC
a: the employer is issued with a tailored tax code section 24D(a) schedule 5, part B, clause 1
b: the Commissioner requires or permits its use in any other case.
3: If another Act requires an employer to withhold an amount of tax for a PAYE income payment to a borrower and pay the amount to the Commissioner,—
a: the repayment code SL
b: the repayment code TTC 1992 No 141 s 17B s 24B(4) Section 34(1)﻿(b) amended 1 April 2019 section 328(1) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 34(2) replaced 12 April 2012 section 9 Student Loan Scheme Amendment Act 2012 Section 34(2) amended 30 March 2021 section 189 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 34(2)﻿(a) amended 1 April 2019 section 328(2) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 34(2)﻿(a) amended 1 April 2019 section 391 Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 Section 34(3) replaced 12 April 2012 section 9 Student Loan Scheme Amendment Act 2012 Section 34(3)﻿(b) amended 1 April 2019 section 328(3) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
35: Borrowers with
SL
1: A borrower whose repayment code is SL
2: The borrower must notify his or her employer as soon as practicable—
a: after the later of—
i: the time at which the borrower becomes an employee of the employer; and
ii: the time at which the borrower becomes a borrower; and
b: if an TTC
c: 1992 No 141 s 18 Section 35(2)﻿(b) replaced 12 April 2012 section 10 Student Loan Scheme Amendment Act 2012 Section 35(2)﻿(b) amended 1 April 2019 section 329 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 35(2)﻿(c) repealed 12 April 2012 section 10 Student Loan Scheme Amendment Act 2012 Salary or wage deductions
36: Employer or PAYE intermediary must make standard deductions from salary or wages
1: This section applies if—
a: a borrower has notified his or her employer under section 35
b: the Commissioner has notified a borrower's employer or PAYE intermediary that the repayment code that should be applied to the borrower's salary or wages is SL
c: a borrower's employer has been notified in writing that an TTC
2: Each time the employer or PAYE intermediary pays an amount to the borrower that is salary or wages for a pay period, the employer or PAYE intermediary must make a deduction from that amount in accordance with section 37(1) 1992 No 141 s 19(1) Section 36(1)﻿(c) amended 1 April 2019 section 330 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 36(1)﻿(c) amended 12 April 2012 section 11 Student Loan Scheme Amendment Act 2012
37: Deduction rates that apply to standard deductions from salary or wages
1: If the employer of a borrower has not been notified that a special deduction rate applies to the borrower 12 cents in each complete dollar
a: so much of the primary employment earnings paid to the borrower as exceeds the pay period repayment threshold; and
b: any secondary employment earnings paid to the borrower.
2: If the employer has been notified that a special deduction rate applies to the borrower
a: the primary employment earnings paid to the borrower; and
b: any secondary employment earnings paid to the borrower.
3: If the repayment percentage is changed by regulations, the deduction rate in subsection (1) is changed accordingly.
3B: When a change occurs to a rate in this Act, or in regulations made under this Act, affecting the deduction from primary employment earnings paid to the borrower or secondary employment earnings paid to the borrower, the calculation of the amount of the deduction must be made at the rate applying on the day on which the employment earnings are paid to the borrower.
4: In this section, pay period repayment threshold
a: if the salary or wages are paid weekly, an amount equal to one fifty-second of the annual repayment threshold; and
b: if the salary or wages are paid fortnightly, twice the amount specified in paragraph (a); and
c: if the salary or wages are paid three-weekly, 3 times the amount specified in paragraph (a); and
d: if the salary or wages are paid four-weekly, 4 times the amount specified in paragraph (a); and
e: if the salary or wages are paid monthly, an amount equal to one-twelfth of the annual repayment threshold; and
f: if the salary or wages are paid other than as set out in paragraphs (a) to (e), an amount determined by the Commissioner to reflect the pay period. 1992 No 141 ss 19(2) 20 Section 37(1) 12 cents in each complete dollar set as the deduction rate 1 April 2013 regulation 3 Student Loan Scheme (Repayment Percentage) Regulations 2012 Section 37(1) amended 12 April 2012 section 12(1) Student Loan Scheme Amendment Act 2012 Section 37(2) amended 12 April 2012 section 12(2) Student Loan Scheme Amendment Act 2012 Section 37(3B) inserted 1 April 2018 section 392 Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018
38: Employer or PAYE intermediary must make Commissioner deductions from salary or wages
1: This section applies if a borrower's employer or PAYE intermediary has received an additional deduction rate notice that has been issued in relation to the borrower under section 49(2)
2: Each time the employer or PAYE intermediary pays an amount to the borrower that is salary or wages for a pay period, the employer or PAYE intermediary must make a deduction from that amount at the additional deduction rate specified in the notice.
3: Deductions made in accordance with this section must—
a: be made in addition to standard deductions and, if applicable, borrower deductions; and
b: have the repayment SLCIR
c: continue to be made until the earlier of the date on which—
i: the Commissioner notifies the employer or PAYE intermediary otherwise; or
ii: the deductions equal the amount specified in the additional deduction rate notice in accordance with section 49(2)﻿(b)
4: Nothing in this section limits section 36 37 39 1992 No 141 ss 19(1), (2) 20A(4) Section 38(3)﻿(b) amended 12 April 2012 section 13 Student Loan Scheme Amendment Act 2012
39: Employer or PAYE intermediary must make borrower deductions from salary or wages
1: This section applies if a borrower requests his or her employer or PAYE intermediary to make deductions at an additional deduction rate or of a specified amount.
2: Each time the employer or PAYE intermediary pays an amount to the borrower that is salary or wages for a pay period, the employer or PAYE intermediary must make a deduction from that amount at the additional deduction rate, or of the amount, requested by the borrower.
3: Deductions made in accordance with this section must—
a: be made in addition to standard deductions and, if applicable, Commissioner deductions; and
b: have the repayment SLBOR
c: continue to be made until the borrower notifies his or her employer or PAYE intermediary otherwise.
4: Nothing in this section limits section 36 37 38 1992 No 141 s 19(1), (2) Section 39(3)﻿(b) amended 12 April 2012 section 14 Student Loan Scheme Amendment Act 2012
40: Deductions from
main benefits
1: This section applies if—
a: a borrower receives a main benefit
b: the equivalent gross amount of that main benefit section 37(4)
2: The chief executive—
a: must not make a salary or wage deduction from the main benefit
b: must make a deduction from the main benefit
2A: If the amount of the deduction determined under subsection (2)﻿(b) is zero, then sections 34 35
3: This section overrides sections 36(2) 38 39
4: In this section,— equivalent gross amount
a: the amount of a main benefit
b: any amount that was paid to the Commissioner in accordance with sections 349 350 351 352 main benefit main benefit section YA 1 1992 No 141 s 23 Section 40 heading amended 30 March 2021 section 142 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 40(1)﻿(a) amended 30 March 2021 section 142 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 40(1)﻿(b) amended 30 March 2021 section 142 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 40(2)﻿(a) amended 30 March 2021 section 142 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 40(2)﻿(b) amended 30 March 2021 section 142 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 40(2A) inserted 12 April 2012 section 15 Student Loan Scheme Amendment Act 2012 Section 40(4) equivalent gross amount amended 30 March 2021 section 142 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 40(4) equivalent gross amount amended 30 March 2021 section 142 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 40(4) equivalent gross amount amended 26 November 2018 section 459 Social Security Act 2018 Section 40(4) income-tested benefit repealed 30 March 2021 section 142 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 40(4) main benefit inserted 30 March 2021 section 142 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Unused repayment threshold may be allocated to secondary employment earnings
41: Definitions relating to repayment thresholds
In sections 42 estimated salary or wages section 43 quarter unused repayment threshold for a pay period section 44
42: Application for unused repayment threshold to be allocated to secondary employment earnings
1: Subsection (2) applies to a New Zealand-based borrower who, for a quarter,—
a: has 1 or more sources of secondary employment earnings; and
b: has an unused repayment threshold for a pay period that is greater than zero
c:
2: The borrower may apply to the Commissioner for the borrower's unused repayment threshold for a pay period to be allocated to the borrower's secondary employment earnings.
3: The borrower must apply by notifying the Commissioner, in a manner acceptable to the Commissioner, of—
a: the borrower's estimated salary or wages; and
b: any other information requested by the Commissioner. Section 42(1)﻿(b) amended 12 April 2012 section 16 Student Loan Scheme Amendment Act 2012 Section 42(1)﻿(c) repealed 12 April 2012 section 16 Student Loan Scheme Amendment Act 2012
43: Determining estimated salary or wages
1: A borrower must determine his or her estimated salary or wages by making a fair and reasonable estimate of the total income the borrower will derive for the relevant quarter from each of the following:
a: the borrower's primary employment earnings:
b: the borrower's secondary employment earnings.
2: The borrower must—
a: take reasonable care in making the estimate; and
b: revise the estimate if, at some time in the quarter, the amount estimated is no longer fair and reasonable. 2007 No 97 s RC 7(2), (4)
44: Calculating borrower's unused repayment threshold for pay period
A borrower's unused repayment threshold for a pay period a = (b − c) ÷ d where— a is the unused repayment threshold for a pay period b is the annual repayment threshold for the relevant tax year divided by 4 c is the borrower's estimated primary employment earnings in the relevant quarter, as notified to the Commissioner in accordance with section 42(3) 47(2)﻿(a) d is the number of the borrower's pay periods in the quarter for his or her primary employment earnings.
45: Special deduction rate certificate for unused repayment threshold
Upon receiving an application in accordance with section 42
a: specifies a special deduction rate and the repayment code to be used
b: specifies the period for which the special deduction rate is to apply to the borrower; and
c: requires the borrower's employer or PAYE intermediary to make deductions from the borrower's salary or wages at the special deduction rate. 1992 No 141 s 20A(2) Section 45(a) amended 12 April 2012 section 17 Student Loan Scheme Amendment Act 2012
46: Issue and application of special deduction rate certificate
1: If the Commissioner issues a special deduction rate certificate under section 45
2: The special deduction rate certificate—
a: revokes all other special deduction rate certificates previously issued in relation to the borrower under section 45
b: does not limit the application of sections 147 to 153 1992 No 141 s 20A(5)–(7) Section 46(2)﻿(a) amended 12 April 2012 section 18 Student Loan Scheme Amendment Act 2012
47: Ongoing obligations of borrower to review and notify
1: The borrower—
a: must review an estimate he or she made under section 43
b: may revise an estimate he or she made under section 43
2: The borrower must notify the Commissioner in a manner acceptable to the Commissioner, and provide details, if—
a: the borrower revises an estimate he or she made under section 43
b: any of the circumstances set out in section 42(1)
c: the borrower ends any employment or starts any new employment. 2007 No 97 s RC 7(3)
48: Time when special deduction rate ceases to apply
The special deduction rate applies until the earlier of—
a: the end of the period specified in the special deduction rate certificate; or
b: the date on which the Commissioner notifies the employer in writing otherwise; or
c: the date on which the borrower notifies the employer otherwise. 1992 No 141 s 20A(4) Commissioner deductions may be used to recover amounts that remain unpaid
49: Commissioner must issue additional deduction rate notice to obtain Commissioner deductions
1: The Commissioner may obtain Commissioner deductions from a borrower's salary or wages if—
a: there is a significant under-deduction in relation to the borrower in the current tax year or in any prior tax year that the Commissioner reasonably believes has occurred because of—
i: an error or omission by the borrower's employer or PAYE intermediary; or
ii: an error or omission by the borrower; or
b: the borrower has an unpaid amount.
2: To obtain Commissioner deductions from a borrower's salary or wages, the Commissioner must issue an additional deduction rate notice that—
a: specifies the additional deduction rate that is to apply to the borrower (in addition to standard deductions and, if applicable, borrower deductions); and
b: specifies the total amount payable by the borrower at the additional deduction rate; and
c: requires some or all of the borrower's employers or PAYE intermediaries to make Commissioner deductions at the additional deduction rate until those deductions equal the amount specified in accordance with paragraph (b).
3: The additional deduction rate specified under subsection (2)﻿(a) must be 5% or less. 1992 No 141 s 20A(1), (2) Section 49(1)﻿(a)﻿(i) replaced 12 April 2012 section 19 Student Loan Scheme Amendment Act 2012
50: Procedures for issue of additional deduction rate notice
1: If the Commissioner issues an additional deduction rate notice under section 49(2)
a: give that notice to the employers or PAYE intermediaries of the borrower to whom the notice applies; and
b: notify the borrower in writing—
i: that an additional deduction rate notice has been issued in relation to the borrower under section 49(2)
ii: that Commissioner deductions will be made from the borrower's salary or wages; and
iii: of all of the information in that notice.
2: An additional deduction rate notice issued to an employer or a PAYE intermediary in relation to a borrower revokes an additional deduction rate notice previously issued to that employer or PAYE intermediary in relation to the borrower.
2B: Despite subsection (1)﻿(b), the Commissioner may dispense with the requirement to send the information described in subsection (1)﻿(b)﻿(i) to (iii) to the borrower if the Commissioner, after making reasonable inquiries, has, or can find, no valid address for the borrower.
3: Nothing in section 49 sections 147 to 153 1992 No 141 s 20A(3), (5)–(7) Section 50(2) replaced 12 April 2012 section 20 Student Loan Scheme Amendment Act 2012 Section 50(2B) inserted 2 June 2016 section 224 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Further means of recovering amounts that remain unpaid
51: Assessment of standard deductions that ought to have been made
1: This section applies if, in relation to a borrower,—
a: there is a significant under-deduction in the current tax year or in any prior tax year that the Commissioner reasonably believes has occurred because—
i: of a deliberate action or omission by the borrower or by the borrower's employer or PAYE intermediary
ii: the borrower has prevented a standard deduction from being made; or
b: the Commissioner has been unable to obtain Commissioner deductions for the purposes set out in section 49(1)﻿(a)
c: the Commissioner is satisfied that he or she will be unable to obtain Commissioner deductions within a reasonable period of time from the borrower's future salary or wages for the purposes set out in section 49(1)﻿(a)
2:
3: The Commissioner may make an assessment in relation to the borrower to determine the standard deductions that ought to have been made for any period.
4: In making an assessment under this section, the Commissioner may have regard to any information that the Commissioner considers to be relevant.
5: The assessment must be made in accordance with this subpart and the loan contract.
6: Section 203 1992 No 141 ss 15 20A(1) Section 51(1)﻿(a)﻿(i) amended 12 April 2012 section 21(1) Student Loan Scheme Amendment Act 2012 Section 51(2) repealed 12 April 2012 section 21(2) Student Loan Scheme Amendment Act 2012
52: Recovery of assessed amounts
1: The Commissioner must, as soon as practicable after making an assessment under section 51
a: that an assessment of the borrower has been carried out; and
b: of the amount, if any, that must be paid by the borrower; and
c: of the date by which that payment must be made, which must be at least 30 days after the date of the assessment; and
d: that if that amount is not paid by the specified date, then it may be subject to late payment interest ( see section 139(1)
2: The amount specified in accordance with subsection (1)﻿(b) must be no greater than the amount the Commissioner considers the borrower should or would have paid under this subpart for the period in question. 1992 No 141 s 15(4) s 44 Exemption from standard deductions for borrowers who are full-time students
53: Definitions relating to exemption for full-time students
In sections 54 to 60 exemption period
a: between the date on which a borrower first has a loan advance made to him or her and the date on which the borrower starts a programme of study; and
b: during which a borrower is undertaking a programme of study; and
c: between semesters of a programme of study, provided that—
i: a borrower has completed 1 or more semesters of a programme of study; and
ii: the borrower intends to continue a programme of study in the next semester; and
iii: the period of time between semesters is no more than—
A: 15 weeks for a holiday that includes Christmas day; or
B: 3 weeks for any other holiday full-time student
a: is undertaking a programme of study; or
b: will start a programme of study in the tax year referred to in section 54(1)﻿(a) programme of study
a: is 32 weeks or longer in duration in any 52-week period and at least 0.8 of equivalent full-time student units, as determined in accordance with the formula used for the purposes of section 10(1)
b: is 12 weeks or longer in duration in any 52-week period and at least 0.3 of equivalent full-time student units, as determined in accordance with the formula used for the purposes of section 10(1) Section 53 programme of study amended 1 August 2020 section 668 Education and Training Act 2020 Section 53 programme of study amended 1 August 2020 section 668 Education and Training Act 2020
54: Borrowers who are eligible for exemption from standard deductions
1: This section applies to a New Zealand-based borrower who—
a: is a full-time student in a tax year ( year A
b: reasonably expects that the annual repayment threshold for year A will not be exceeded by his or her—
i: gross income from salary or wages; and
ii: in the case of a borrower to whom subpart 2
iii:
c:
2: The borrower may obtain an exemption from future standard deductions for an exemption period by making a declaration in accordance with section 55 Section 54(1)﻿(b) replaced 12 April 2012 section 22 Student Loan Scheme Amendment Act 2012 Section 54(1)﻿(b)﻿(ii) replaced 29 March 2013 section 44 Student Loan Scheme Amendment Act 2013 Section 54(1)﻿(b)﻿(iii) repealed 29 March 2013 section 44 Student Loan Scheme Amendment Act 2013 Section 54(1)﻿(c) repealed 12 April 2012 section 22 Student Loan Scheme Amendment Act 2012
55: Declaration by eligible borrowers for exemption from standard deductions
A declaration must—
a: specify the tax year to which it relates; and
b: specify the exemption period to which it relates; and
c: contain all of the information prescribed by the Commissioner; and
d: be made by notifying the Commissioner in a manner acceptable to the Commissioner.
56: Notice from Commissioner
Upon receiving a declaration that complies with section 55
a: grant the borrower an exemption from standard deductions; and
b: issue a notice to the borrower that—
i: states that an exemption from standard deductions has been granted to the borrower; and
ii: specifies the exemption period to which the exemption applies; and
iii: summarises the effect of section 57
57: Consequences of exemption from standard deductions
1: If a borrower's employer is notified in writing that an exemption from standard deductions has been granted to the borrower, then—
a: the repayment codes SL TTC
b: nothing in sections 34 to 37 40
2: Subsection (1)﻿(a) and (b) apply from the later of—
a: the start date of the exemption period specified in the notice issued in accordance with section 56(b)
b: the date on which the borrower's employer is notified in writing that the exemption has been granted to the borrower.
3: The grant of an exemption from standard deductions does not limit section 38 39 Section 57(1)﻿(a) amended 1 April 2019 section 331 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
58: Withdrawal of declaration
A borrower may withdraw a declaration under section 55
a: notifying the Commissioner; and
b: notifying the borrower's employer.
59: Notice of change of circumstances
1: A borrower must notify the Commissioner and the borrower's employer, and provide details, as soon as practicable, if—
a: any of the matters in section 54(1)
b: the borrower becomes aware that any of those matters will cease to apply to him or her.
2: If the Commissioner becomes aware that any of the matters in section 54(1)
a: notify the borrower in writing; and
b: notify the borrower's employer in writing.
3: A notification under subsection (1) or (2) must specify the date on which the matters ceased, or will cease, to apply to the borrower.
60: When exemption from standard deductions ceases to apply
1: Section 57
a: the end of the exemption period specified in the notice issued in accordance with section 56(b)
b: the date on which the borrower withdraws his or her declaration in accordance with section 58
c: the date of a change of circumstances as notified to the Commissioner by the borrower under section 59(1)
d: the date of a change of circumstances as notified to the borrower by the Commissioner under section 59(2)
2: From the date on which section 57
a: the repayment code SL TTC
b: sections 34 to 37 40 Section 60(2)﻿(a) amended 1 April 2019 section 332 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Information and determinations
61: Information to show salary or wage deductions made
1: The Commissioner may—
a: require an employer or PAYE intermediary who is required to make a salary or wage deduction to provide the Commissioner with any information the Commissioner may reasonably require in order to establish the amount of that deduction; and
b: specify the date on or before which that information must be provided.
2: The Commissioner must notify the employer or PAYE intermediary in writing of a requirement under subsection (1)
3: An employer or PAYE intermediary must provide the Commissioner with any information required under subsection (1) by notifying the Commissioner, in a manner acceptable to the Commissioner, on or before the date specified by the Commissioner. 1992 No 141 s 24
62: Commissioner must determine question about amount of salary or wage deductions
1: An employer or PAYE intermediary may request the Commissioner to determine any question as to the amount, if any, of salary or wage deductions that ought to be made.
2: The Commissioner must, as soon as practicable after receiving a request under subsection (1),—
a: determine the amount, if any, of salary or wage deductions that ought to be made; and
b: notify the employer or PAYE intermediary in writing of the Commissioner's determination.
3: A request under subsection (1) must be made by notifying the Commissioner ( see section 211 1992 No 141 s 22
62A: Commissioner may notify employers when loan balance close to zero
1: The purpose of this section is to reduce the likelihood that a deduction under this subpart will result in a borrower’s consolidated loan balance falling below zero.
2: When a borrower’s consolidated loan balance is close to zero, the Commissioner may—
a: notify 1 or more of the borrower’s employers of the loan balance; and
b: require the employer, or those employers, to reduce the standard deduction that would otherwise be made on the relevant payday or paydays to the amount needed to meet the purpose of this section; and
c: require the employer, or those employers, then to stop making deductions under this subpart.
3: The Commissioner must give a copy of the notification to the borrower.
4: However, subsection (3) does not apply if the Commissioner is aware that he or she has incorrect contact details for the borrower or cannot reasonably locate the borrower.
5: The notification revokes, for the payday or paydays, all other deduction rate certificates previously issued to the employer or those employers in relation to the borrower under this subpart. Section 62A inserted 1 April 2020 section 57 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Standard deductions resulting in significant under-deductions or over-deductions Heading replaced 14 May 2016 section 8 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
63: Commissioner determines what is significant under-deduction or significant over-deduction
1: The Commissioner must determine the thresholds (which may differ) for what is to be treated as a significant under-deduction or a significant over-deduction.
2: The Commissioner must exercise his or her discretion under subsection (1)—
a: in order to maintain the integrity of the student loan scheme; and
b: having regard to the resources available to the Commissioner.
3: A determination under subsection (1) may—
a: take into account the cumulative effect of 2 or more under-deductions or over-deductions from a borrower's salary or wages; and
b: be set by reference to 1 or more time periods.
4: The Commissioner must, on or before 31 March each year, inform borrowers of the threshold determined by the Commissioner for significant over-deductions for the next tax year.
64: Standard deductions are full and final unless significant error
1: Subsection (2)
a: there is an incorrect deduction; and
b: the incorrect deduction is not a significant under-deduction or a significant over-deduction.
2: If this subsection applies,—
a: the Commissioner must not take corrective action in relation to the incorrect deduction; and
b: the incorrect deduction must be treated as if it was the amount that was required to be deducted from a borrower's salary or wages in accordance with this subpart; and
c: this Act must be interpreted and applied with all necessary modifications in order to give effect to paragraph (b).
3: Subsection (2) applies despite anything to the contrary.
4: In this section, incorrect deduction
a: is required to be made but is not; or
b: is less than or more than the amount that is required to be deducted in accordance with section 37
65: Significant over-deduction identified by borrower
1: If a borrower reasonably believes that a significant over-deduction was made in relation to him or her, the borrower—
a: may request the Commissioner to determine whether a significant over-deduction was made; and
b: must provide any evidence or information that the Commissioner may reasonably require in order to establish whether a significant over-deduction was made.
2: The borrower must make a request under subsection (1)﻿(a) within 6 months after the date on which the significant over-deduction is believed to have occurred
3: A request under subsection (1)﻿(a) must be made by notifying the Commissioner ( see section 211 Section 65(2) amended 12 April 2012 section 23 Student Loan Scheme Amendment Act 2012
66: Commissioner must determine whether significant over-deduction made
If the Commissioner receives a request in accordance with section 65
a: determine whether a significant over-deduction was made; and
b: notify the borrower in writing if the Commissioner determines that a significant over-deduction was not made.
67: Procedure if significant over-deduction made
1: This section applies if the Commissioner—
a: identifies that a significant over-deduction has been made in relation to a borrower; or
b: determines (in accordance with section 66
2: The Commissioner must, as soon as practicable, notify the borrower
a: that a significant over-deduction has been made in relation to the borrower; and
b: of the amount of the over-deduction; and
c: that the over-deduction has been offset against the borrower's consolidated loan balance; and
d: that the borrower may , subject to subsections (2A) and (3), see sections 199 200
e: of the time frame within which the borrower must notify the Commissioner if the borrower chooses to receive a refund of the over-deduction.
2A: In any case where there is also, in relation to the borrower and any tax year, a significant under-deduction or an unpaid amount that the Commissioner has at any time identified, the significant under-deduction or unpaid amount may be offset against the significant over-deduction before any refund is made.
3: To receive a refund of the over-deduction, the borrower must notify the Commissioner in a manner acceptable to the Commissioner within 6 months after the date on which the borrower was notified in accordance with subsection (2).
4: A choice made by the borrower to receive a refund of the over-deduction is irrevocable. Section 67(2) amended 30 March 2013 section 13 Student Loan Scheme Amendment Act 2013 Section 67(2)﻿(d) amended 12 April 2012 section 24(1) Student Loan Scheme Amendment Act 2012 Section 67(2A) inserted 12 April 2012 section 24(2) Student Loan Scheme Amendment Act 2012
68: Applicable procedures if significant under-deduction
The procedures in section 49 51 Commissioner deductions resulting in over-deductions Heading inserted 14 May 2016 section 9 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
68A: Commissioner over-deduction identified by borrower
1: If a borrower reasonably believes that a Commissioner over-deduction was made in relation to him or her, the borrower may request the Commissioner to determine whether a Commissioner over-deduction was made.
2: A request under subsection (1) must be made by notifying the Commissioner ( see section 211
3: In this section, and in sections 68B 68C Commissioner over-deduction
a: the Commissioner notifies the borrower’s employer or PAYE intermediary to stop making Commissioner deductions; or
b: the Commissioner deductions equal the amount specified in the additional rate notice in accordance with section 49(2)﻿(b) Section 68A inserted 14 May 2016 section 9 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
68B: Commissioner must determine whether Commissioner over-deduction made
If the Commissioner receives a request in accordance with section 68A
a: determine whether a Commissioner over-deduction was made; and
b: notify the borrower in writing if the Commissioner determines that a Commissioner over-deduction was not made. Section 68B inserted 14 May 2016 section 9 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
68C: Procedure if Commissioner over-deduction made
1: This section applies if the Commissioner—
a: identifies that a Commissioner over-deduction was made in relation to a borrower; or
b: determines (in accordance with section 68B
2: The Commissioner must, as soon as practicable, notify the borrower—
a: that a Commissioner over-deduction was made in relation to the borrower; and
b: of the amount of the Commissioner over-deduction; and
c: that the Commissioner over-deduction has been offset against the borrower’s consolidated loan balance; and
d: that the borrower may, subject to subsections (3) and (4), choose to receive a refund of the Commissioner over-deduction ( see sections 199 200
e: of the time frame within which the borrower must notify the Commissioner if the borrower chooses to receive a refund of the Commissioner over-deduction.
3: In any case where there is also, in relation to the borrower and any tax year, a significant under-deduction or an unpaid amount that the Commissioner has at any time identified, the significant under-deduction or unpaid amount may be offset against a Commissioner over-deduction identified or determined under subsection (1) before any refund is made.
4: To receive a refund of the Commissioner over-deduction, the borrower must notify the Commissioner in a manner acceptable to the Commissioner within 6 months after the date on which the borrower was notified in accordance with subsection (2).
5: A choice made by the borrower to receive a refund of the Commissioner over-deduction is irrevocable. Section 68C inserted 14 May 2016 section 9 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Matters of general application to salary or wage deductions
69: Prohibition on applications or declarations to maintain integrity of student loan scheme
The Commissioner may prohibit a borrower from making an application under section 42 section 55
70: PAYE rules apply to salary or wage deductions
Subject to Schedule 2
a: the PAYE rules apply to salary or wage deductions; and
b: every employer, PAYE intermediary, and borrower must comply with the PAYE rules to the extent to which those rules apply under this section. 1992 No 141 s 25
71: Salary or wage deductions in addition to income tax withheld
Salary or wage deductions are in addition to amounts of tax for PAYE income payments that are required to be withheld and paid to the Commissioner under the PAYE rules. 1992 No 141 s 19(3)
2: Repayment obligations for New Zealand-based borrowers with income other than, or as well as, salary or wages
Subpart 2 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
72: Application of this subpart
This subpart applies to the following New Zealand-based borrowers, other than new borrowers:
a: borrowers who derive $500 $500
b: borrowers to whom paragraph (a)
i: have been required to pay interim payments for that tax year; or
ii: have been issued a default assessment for an end-of-year repayment obligation under section 106 Section 72 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Section 72(a) amended 1 April 2020 section 58 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
73: Meaning of adjusted net income, Schedule 3 adjustments, and related terms
1: In this Act,— adjusted net income
a: means net income (as defined in section YA 1
b: excludes salary and wages Schedule 3 adjustments Schedule 3 clause 15 statement of adjusted net income
2: In this Act, a borrower provides a statement of adjusted net income
a: files a return of income only, if there are no Schedule 3 adjustments; or
b: notifies Schedule 3 adjustments under section 74 114 Tax Administration Act 1994
c: both files a return of income and notifies Schedule 3 adjustments under section 74 114 Section 73 replaced 14 May 2016 section 10 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
74: Notification of Schedule 3 adjustments
1: This section applies to a borrower if—
a: this subpart applies to the borrower; and
b: any Schedule 3 adjustments are applicable; and
c: the borrower is not required to notify the Commissioner of the Schedule 3 adjustments under section 114
2: The borrower must notify the Commissioner of the Schedule 3 adjustments on or before—
a: 7 July in the tax year following the tax year in which the relevant adjusted net income was derived; or
b: if the borrower has received an extension of time to notify the Commissioner under section 75
c: if the Commissioner has granted the borrower an extension of time for the notification (other than under section 75
d: the time at which the borrower makes an application under section 25 clause 11 Section 74 replaced 14 May 2016 section 11 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 74(2)﻿(d) inserted 1 April 2020 section 59 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
75: Extension of time for notification of Schedule 3 adjustments
A borrower may apply to the Commissioner for an extension of time for notifying the Commissioner of Schedule 3 adjustments under section 74 section 37(3) to (5)
a: the reference to the due date required under this section the due date required under section 74(2)﻿(b)﻿(i)
b: every reference to a taxpayer were a reference to a borrower; and
c: every reference to a return or a return of income were a reference to a notification of Schedule 3 adjustments Section 75 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Section 75 heading replaced 14 May 2016 section 12(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 75 amended 14 May 2016 section 12(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 75(c) amended 14 May 2016 section 12(3) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
76: Commissioner to assess borrower's end-of-year repayment obligation
1: The Commissioner must assess the amount (if any) of a borrower’s end-of-year repayment obligation for a tax year as soon as practicable after the borrower provides a statement of adjusted net income.
2: In making the assessment, the Commissioner may have regard to—
a: any document provided under subsection (1)
b: any other information that the Commissioner considers to be relevant.
3: The assessment must be made in accordance with this subpart and the loan contract.
4: Section 203
5: The Commissioner must, as soon as practicable after making the assessment, notify the borrower in writing of—
a: the borrower's end-of-year repayment obligation; and
b: the due dates, if any, on or before which the end-of-year repayment obligation must be paid ( see sections 81 84 85
c: the amounts, if any, that must be paid on or before those due dates. 1992 No 141 s 15 Section 76 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Section 76(1) replaced 14 May 2016 section 13 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
76A: Commissioner must assess borrowers to whom section 72(b) applies as having zero repayment obligation
If the Commissioner is satisfied that a borrower meets the criteria in section 72(b) Section 76A inserted 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
77: Calculation of borrower's end-of-year repayment obligation if salary or wages less than annual repayment threshold
1: Subsection (2)
a: this subpart applies to a borrower; and
b: the gross income that the borrower derived from salary or wages is less than the annual repayment threshold.
2: The borrower's end-of-year repayment obligation for the tax year must be calculated in accordance with the formula— a = b × (c − d) where— a is the borrower's end-of-year repayment obligation for the tax year b is the repayment percentage c is the income that the borrower derives from adjusted net income and from salary or wages for the tax year d is the annual repayment threshold.
3: If the borrower's end-of-year repayment obligation for the tax year is zero or less, the borrower has no end-of-year repayment obligation for the tax year. Section 77 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
78: Calculation of borrower's end-of-year repayment obligation where salary or wages equal to or more than annual repayment threshold
1: Subsection (2)
a: this subpart applies to a borrower; and
b: the gross income that the borrower derived from salary or wages is equal to or more than the annual repayment threshold.
2: The borrower’s end-of-year repayment obligation for the tax year must be calculated in accordance with the formula— a = b × c where— a is the borrower’s end-of-year repayment obligation for the tax year b is the repayment percentage c is the income that the borrower derives from adjusted net income for the tax year. Section 78 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
79: Payment of end-of-year repayment obligation
1: A borrower whose end-of-year repayment obligation for a tax year is greater than zero must pay a terminal payment—
a: calculated in accordance with section 80
b: on or before the due date under section 81 section 85
2: Subsection (3)
a: the borrower's end-of-year repayment obligation for a tax year is $1,000 or more; or
b: the borrower has not provided a statement of adjusted net income for a tax year, and the borrower’s end-of-year repayment obligation for the immediately preceding tax year was $1,000 or more.
3: A borrower must also pay interim payments for the next tax year—
a: calculated in accordance with section 82 83
b: on or before the due dates determined in accordance with section 84 85
4: However, a borrower is not liable to make interim payments for a tax year if the borrower's end-of-year repayment obligation for that year is less than $1,000. Section 79 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Section 79(2)﻿(b) replaced 14 May 2016 section 14 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
80: Calculation of terminal payment for tax year
1: The amount of a borrower's terminal payment for the tax year must be calculated in accordance with the formula— a = (b − c) − (d − c) where— a is the amount of the borrower's terminal payment b is the borrower's end-of-year repayment obligation for the tax year c is the amount of the borrower's interim payments for the tax year in accordance with section 82 83 d is the sum of any amounts that satisfy (so far as they extend) the borrower's end-of-year repayment obligation for the tax year.
2: However,—
a: if the sum of (b − c) is less than zero, then it must be treated as if it were zero; and
b: if the sum of (d − c) is less than zero, then it must be treated as if it were zero. Section 80 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
81: Due date for terminal payment
A borrower must pay his or her terminal payment on or before the borrower's terminal tax date section YA 1 Section 81 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
82: Calculation of interim payments for next tax year
1: The amount of each of the borrower's interim payments for the tax year may vary and must be calculated separately in accordance with the formula— a = b × (c ÷ d) − e where— a is the amount of the borrower's interim payment b is, as applicable,—
i: the amount of the borrower's estimated end-of-year repayment obligation for the tax year; or
ii: the amount of the borrower's uplifted end-of-year repayment obligation for the tax year c is a number reflecting which of the interim payments for the tax year is being calculated (for example, 2 if the second interim payment for the tax year is being calculated) d is the total number of interim payment due dates the borrower has for the tax year e is the aggregate amount of all of the borrower's interim payments for the tax year that were due before the interim payment being calculated.
2: For the purposes of this section, the total number of interim payment due dates a borrower has is determined by reference to the number of interim payments the borrower must make as determined in accordance with section 84 85
3: In this section, uplifted end-of-year repayment obligation
a: means—
i: the amount of the borrower's end-of-year repayment obligation for the immediately preceding tax year multiplied by 105%; or
ii: if the borrower did not provide a statement of adjusted net income for the immediately preceding tax year, the amount of the borrower’s end-of-year repayment obligation for the year before the immediately preceding tax year multiplied by 110%; but
b: the amount calculated in accordance with paragraph (a)
4: For the purposes of subsection (3)﻿(b) 1992 No 141 s 27 Section 82 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Section 82(3)﻿(a)﻿(ii) replaced 14 May 2016 section 15 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
83: Commissioner may assess interim payments if information for preceding year not provided
1: The Commissioner may assess a borrower’s interim payments for a tax year in the manner set out in section RC 6(3)
2: Section 82 Section 83 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Section 83(1) replaced 14 May 2016 section 16 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
84: Due dates for payment of interim payments
1: A borrower must pay an interim payment for a tax year on or before each of the dates on which the borrower must pay his or her provisional tax for that tax year in accordance with the provisional tax rules.
2: However,—
a: if a borrower uses a GST ratio, or the AIM method provided in section RC 5(5B) Schedule 3
b: if a borrower uses a GST ratio to determine his or her provisional tax for a tax year and that year is a transitional year for the borrower, the due dates for the payment of the borrower's interim payments are every second date in the table headed GST ratio provisional taxpayers Schedule 3
i: if the borrower has only 1 payment date, the borrower has only 1 due date; and
ii: if the borrower has an odd number of payment dates, then the last payment date does not apply to the borrower:
c: if a borrower does not pay provisional tax for a tax year, the due dates for the payment of the borrower's interim payments are the dates in columns B, D, and F of the table in Part A of Schedule 3 of the Income Tax Act 2007 that correspond to the month of the borrower's balance date:
d: if a borrower pays provisional tax on a 6-monthly basis for the 2012–2013 tax year or any subsequent tax year Schedule 3
3: In this section, GST ratio transitional year section YA 1 Section 84 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Section 84(2)﻿(a) amended 1 April 2018 section 393 Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 Section 84(2)﻿(d) amended 8 March 2014 section 5 Student Loan Scheme Amendment Act 2014
85: Commissioner's powers in relation to due dates
1: The Commissioner may determine the dates on or before which a borrower must pay his or her terminal payment or interim payments for a tax year if—
a: the borrower requests the Commissioner to determine the borrower's terminal payment due date or interim payment due dates; or
b: the Commissioner considers it necessary or appropriate in the circumstances.
2: The dates determined by the Commissioner under subsection (1) section 81 84
3: If the Commissioner determines the dates on or before which a borrower must pay his or her terminal payment or interim payments for a tax year,—
a: the Commissioner must, as soon as practicable, notify the borrower in writing—
i: of that fact; and
ii: of the dates determined by the Commissioner; and
b: the amount of the terminal payment or the interim payments must be calculated by reference to those dates.
4: This section overrides sections 81 84 1992 No 141 s 30(2) Section 85 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
86: Interim payments to be paid in same manner as provisional tax
Subject to Schedule 4
a: interim payments for a borrower's end-of-year repayment obligation for a tax year are payable in the same manner as provisional tax; and
b: a borrower must comply with the requirements of the provisional tax rules. 1992 No 141 s 28 Section 86 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
87: Consequence of failure to meet repayment obligations
A borrower may be liable to pay late payment interest if the borrower does not meet his or her repayment obligations under this subpart ( see section 139(1) Section 87 replaced 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
3: New Zealand-based borrowers' repayment obligations for other income
Subpart 3 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
88: Application of this subpart
Section 88 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
88A: Meaning of adjusted net income
Section 88A repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Assessment of other income repayment obligation Heading repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
89: Commissioner to assess borrower's other income repayment obligation
Section 89 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Calculation of other income repayment obligations Heading repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
90: Calculation of borrower's other income repayment obligation where salary or wages below threshold
Section 90 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
91: Calculation of borrower's other income repayment obligation where salary or wages equal to or above threshold
Section 91 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Payment of other income repayment obligations Heading repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
92: Payment of other income repayment obligations
Section 92 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
93: Calculation of remaining repayments for tax year
Section 93 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
94: Due dates for payment of remaining repayments
Section 94 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
95: Calculation of interim payments for next tax year
Section 95 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
96: Commissioner may assess interim payments if information for preceding year not provided
Section 96 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
97: Due dates for payment of interim payments
Section 97 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
98: Commissioner's powers in relation to due dates
Section 98 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
99: Interim payments to be paid in same manner as provisional tax
Section 99 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013
100: Consequence of failure to meet repayment obligations
Section 100 repealed 29 March 2013 section 14 Student Loan Scheme Amendment Act 2013 Reduction of deduction rate for borrower with lower repayment obligation Heading repealed 12 April 2012 section 29 Student Loan Scheme Amendment Act 2012
101: Borrower may apply for reduction of deduction rate to reflect lower repayment obligation
Section 101 repealed 12 April 2012 section 29 Student Loan Scheme Amendment Act 2012
102: Special deduction rate certificate for lower repayment obligation
Section 102 repealed 12 April 2012 section 29 Student Loan Scheme Amendment Act 2012
103: Issue and application of special deduction rate certificate
Section 103 repealed 12 April 2012 section 29 Student Loan Scheme Amendment Act 2012
104: Time when special deduction rate ceases to apply
Section 104 repealed 12 April 2012 section 29 Student Loan Scheme Amendment Act 2012
4: Overseas-based borrowers' repayment obligations
105: Application of this subpart
This subpart applies to overseas-based borrowers.
106: Meaning of
temporary repayment suspension In this subpart, temporary repayment suspension Section 106 replaced 12 April 2012 section 30 Student Loan Scheme Amendment Act 2012 Section 106 heading amended 1 April 2020 section 60(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 106 amended 1 April 2020 section 60(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Temporary repayment suspension of Heading replaced 12 April 2012 section 30 Student Loan Scheme Amendment Act 2012 Heading amended 1 April 2020 section 61(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
107: Borrowers who intend to be overseas-based may apply for
temporary repayment suspensions
1: A borrower may, by notifying the Commissioner, apply to the Commissioner for a temporary repayment suspension
2: The application may be made from New Zealand or from overseas, but no application may be made by an overseas-based borrower. Section 107 replaced 12 April 2012 section 30 Student Loan Scheme Amendment Act 2012 Section 107 heading amended 1 April 2020 section 61(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 107(1) amended 1 April 2020 section 61(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
107A: Contact person to be nominated
1: At the time of making an application under section 107
2: The borrower nominates a contact person by notifying the Commissioner of an individual who is willing to act as the borrower's contact person and by specifying the following details in that notification:
a: the name of the individual:
b: a New Zealand postal address for the individual:
c: an electronic address for the individual (if the individual has one):
d: a New Zealand telephone number for the individual (if the individual has one):
e: any further information specified in regulations. Section 107A inserted 12 April 2012 section 30 Student Loan Scheme Amendment Act 2012
107B: Grant of
temporary repayment suspension
1: The Commissioner may grant a temporary repayment suspension section 107
a: has not reached the borrower's limit; and
b: has complied with section 107A
2: A borrower who is granted a temporary repayment suspension temporary repayment suspension
3: For the purposes of this subpart, a borrower reaches the borrower's limit if—
a: the borrower has had 1 or more temporary repayment suspensions
b: the borrower has had 1 or more temporary repayment suspensions Part 3
c: the borrower has had—
i: 1 or more temporary repayment suspensions Part 3
ii: 1 or more temporary repayment suspensions
A: 365 days; and
B: the remainder of the period of the temporary repayment suspension Part 3
d: the borrower has had his or her temporary repayment suspension Part 3 section 108A(2) Section 107B inserted 12 April 2012 section 30 Student Loan Scheme Amendment Act 2012 Section 107B heading amended 1 April 2020 section 62(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 107B(1) amended 1 April 2020 section 62(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 107B(2) amended 1 April 2020 section 62(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 107B(3)﻿(a) amended 1 April 2020 section 62(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 107B(3)﻿(b) amended 1 April 2020 section 62(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 107B(3)﻿(c)﻿(i) amended 1 April 2020 section 62(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 107B(3)﻿(c)﻿(ii) amended 1 April 2020 section 62(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 107B(3)﻿(c)﻿(ii)﻿(B) amended 1 April 2020 section 62(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 107B(3)﻿(d) amended 1 April 2020 section 62(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
108: Duration of
temporary repayment suspension
1: Despite section 107B(2) temporary repayment suspension temporary repayment suspension
2: The temporary repayment suspension section 107B(2)
a: the day that the borrower reaches the borrower's limit; and
b: the day on which the borrower ceases to be overseas-based.
3: A borrower's repayment obligation must be calculated in accordance with sections 110 111 temporary repayment suspension Section 108 replaced 12 April 2012 section 30 Student Loan Scheme Amendment Act 2012 Section 108 heading amended 1 April 2020 section 63(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 108(1) amended 1 April 2020 section 63(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 108(2) amended 1 April 2020 section 63(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 108(3) amended 1 April 2020 section 63(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
108A: Borrowers who have had, or are having,
temporary repayment suspensions
1: A New Zealand-based borrower who has had 1 or more temporary repayment suspensions Part 3 section 107B(3) section 107 temporary repayment suspension
2: An overseas-based borrower who, as at 31 March 2012, has a temporary repayment suspension Part 3 temporary repayment suspension
a: 365 days; and
b: the remainder of the period of the temporary repayment suspension Part 3
3: The repayment obligation of a borrower to whom subsection (2) applies must be calculated in accordance with sections 110 111 temporary repayment suspension Section 108A inserted 12 April 2012 section 30 Student Loan Scheme Amendment Act 2012 Section 108A heading amended 1 April 2020 section 64(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 108A(1) amended 1 April 2020 section 64(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 108A(1) amended 1 April 2020 section 64(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 108A(2) amended 1 April 2020 section 64(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 108A(2)﻿(b) amended 1 April 2020 section 64(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 108A(3) amended 1 April 2020 section 64(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Assessment of overseas-based repayment obligation
109: Assessments for years in which borrower is overseas-based
1: The Commissioner must assess the amount (if any) of a borrower's overseas-based repayment obligation for a tax year as soon as practicable after being notified that, or becoming aware that, the borrower is or was overseas-based.
2: The Commissioner must assess the amount of a borrower's overseas-based repayment obligation for each tax year, or part of a tax year, during which the borrower is or was overseas-based.
3: In making an assessment under this section, the Commissioner may have regard to any information that the Commissioner considers to be relevant.
4: The assessment must be made in accordance with this subpart and the loan contract.
5: Section 203
6: The Commissioner must, as soon as practicable after making an assessment, notify the borrower in writing of—
a: the borrower's overseas-based repayment obligation for the tax year; and
b: the due dates on or before which the overseas-based repayment obligation must be paid ( see section 112
c: the amounts that must be paid on or before those due dates.
7: Subsection (6) does not apply if the amount assessed is zero. 1992 No 141 s 36B Calculation and payment of overseas-based repayment obligation
110: Repayment obligations of overseas-based borrowers
1: This section applies to an overseas-based borrower who—
a: is not or is no longer entitled to a temporary repayment suspension section 107B 108A(2)
b: has not had his or her overseas-based repayment obligation reassessed under section 115A
2: The borrower's repayment obligation for every full tax year during which this section applies to the borrower is—
a: $1,000, if the relevant loan balance is less than or equal to $15,000:
b: $2,000, if the relevant loan balance is more than $15,000 but less than or equal to $30,000:
c: $3,000, if the relevant loan balance is more than $30,000 but less than or equal to $45,000:
d: $4,000, if the relevant loan balance is more than $45,000 but less than or equal to $60,000:
e: $5,000, if the relevant loan balance is more than $60,000.
3: The borrower's repayment obligation for any portion of a tax year (being less than a full tax year) during which this section applies to the borrower must be calculated in accordance with the following formula: (x ÷ 365) × y where— x is the number of days in the tax year during which this section applies to the borrower y is the amount that would apply under subsection (2) if this section applied to the borrower for the full tax year.
4: In this section— existing borrower relevant loan balance start date
a: for an existing borrower, 31 March 2014:
b: for any other borrower, the day when the borrower becomes overseas-based. 1992 No 141 s 34 Section 110 replaced 1 April 2014 section 6 Student Loan Scheme Amendment Act 2014 Section 110(1)﻿(a) amended 1 April 2020 section 65 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
111: Exceptions to repayment obligations of overseas-based borrowers
1: For each tax year in which an overseas-based borrower has an unpaid amount but has no loan balance, the borrower's repayment obligation is zero.
2: For each tax year in which an overseas-based borrower's repayment obligation under section 110
3: Nothing in this section affects—
a: a borrower's liability for an unpaid amount or late payment interest; or
b: section 193
4: This section overrides section 110
5: In this section, loan balance
a: if a borrower was not overseas-based at the start of the tax year, the sum determined by—
i: including the borrower's loan balance on the day on which the borrower became overseas-based; and
ii: subtracting the amount of any repayment obligation or other amount that the Commissioner has, on or before that day, required the borrower to pay and that is payable on or after that day; and
b: if a borrower was overseas-based at the start of the tax year ( year A
i: including the amount of the borrower's loan balance on 31 March in the year prior to year A (the previous year
ii: including the amount of any annual administration fee charged under section 189
iii:
iv: subtracting the amount of any repayment obligation or other amount that the Commissioner has, on or before that day, required the borrower to pay and that is payable on or after that day. 1992 No 141 ss 14(3) 35 Section 111(4) replaced 30 March 2013 section 16(4) Student Loan Scheme Amendment Act 2013 Section 111(5) replaced 30 March 2013 section 16(5) Student Loan Scheme Amendment Act 2013 Section 111(5)﻿(b)﻿(iii) repealed 1 April 2014 section 75 Student Loan Scheme Amendment Act 2013
112: Repayment to be made by instalments
1: A borrower's overseas-based repayment obligation for a tax year must be paid by the borrower as follows:
a: half of the total amount must be paid in the tax year on or before 30 September:
b: the other half of the total amount must be paid in the tax year on or before 31 March.
2: If the total amount payable is not divisible into equal amounts, then the final payment carries the difference.
3: However, the Commissioner may determine the dates on or before which a borrower must pay instalments of his or her overseas-based repayment obligations, and the amount of those instalments, if the Commissioner considers it necessary or appropriate in the circumstances.
4: If the Commissioner makes a determination under subsection (3)
a: of that fact; and
b: of the dates and the amounts determined by the Commissioner. 1992 No 141 s 36 Section 112(3) replaced 29 March 2013 section 17 Student Loan Scheme Amendment Act 2013 Section 112(4) inserted 29 March 2013 section 17 Student Loan Scheme Amendment Act 2013
113: Consequence of failure to meet repayment obligations
A borrower may be liable to pay late payment interest if the borrower does not meet his or her repayment obligations under this subpart ( see section 139(1)
5: New Zealand-based non-resident borrowers and borrowers with New Zealand-based and overseas-based repayment obligations
114: Notification of Schedule 3 adjustments by New Zealand-based non-resident borrowers
1: This section applies to a New Zealand-based borrower who is a non-resident and who has Schedule 3 adjustments.
2: For each tax year and each part of a tax year to which this section applies to a borrower, the borrower must notify the Commissioner of the Schedule 3 adjustments.
3: The borrower must notify the Commissioner of the Schedule 3 adjustments under this section—
a: at the time when, if the borrower were a New Zealand resident, he or she would have had to notify the Commissioner of the Schedule 3 adjustments under section 74(2)﻿(a) to (c)
b: no later than the time at which the borrower makes an application under section 25 clause 11
4: The Commissioner may require the borrower to provide evidence of the Schedule 3 adjustments. Section 114 replaced 14 May 2016 section 17 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 114(3) replaced 1 April 2020 section 66 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
114A: Extension of time for notification of Schedule 3 adjustments
1: This section applies if section 114(2)
2: A borrower may apply to the Commissioner for an extension of time for notifying the Commissioner of the Schedule 3 adjustments under section 114 section 37(3) to (5)
a: the reference to the due date required under this section the due date required under section 114(3)
b: every reference to a taxpayer were a reference to a borrower; and
c: every reference to a return or a return of income were a reference to a notification of the borrower's Schedule 3 adjustments Section 114A inserted 12 April 2012 section 34 Student Loan Scheme Amendment Act 2012 Section 114A heading replaced 14 May 2016 section 18(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 114A(2) amended 14 May 2016 section 18(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 114A(2)﻿(c) amended 14 May 2016 section 18(3) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
115: Repayment obligations of borrowers who are overseas-based for part of tax year
1: If a borrower is both New Zealand-based and overseas-based during a tax year,—
a: subparts 1 2 New Zealand-based period subpart 2
b: only the income that the borrower derived during the period that the borrower was New Zealand-based during the year must be taken into account when calculating the borrower’s repayment obligation under subparts 1 2
c: section 110(3) 111 temporary repayment suspension section 106
d: the borrower's overseas-based repayment obligation is payable in instalments as determined by the Commissioner.
2: Subsection (1) applies despite anything to the contrary in this Act , except as provided in section 115A 1992 No 141 ss 14(2) 36A Section 115(1)﻿(a) amended 29 March 2013 section 44 Student Loan Scheme Amendment Act 2013 Section 115(1)﻿(b) amended 29 March 2013 section 44 Student Loan Scheme Amendment Act 2013 Section 115(1)﻿(c) replaced 12 April 2012 section 35 Student Loan Scheme Amendment Act 2012 Section 115(1)﻿(c) amended 1 April 2020 section 67 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 115(2) amended 30 March 2013 section 19 Student Loan Scheme Amendment Act 2013
115A: Reassessment of borrower's overseas-based repayment obligations in year of return to New Zealand
1: The Commissioner may reassess a borrower's overseas-based repayment obligation if the borrower notifies the Commissioner—
a: that the borrower has returned to New Zealand; and
b: that he or she intends to become New Zealand-based; and
c: of the specific date from which he or she expects to become New Zealand-based.
2: The borrower must notify the Commissioner of any other information that the Commissioner may reasonably require for the purposes of either or both of the following:
a: establishing any of the matters in subsection (1)
b: the reassessment.
3: If the Commissioner reassesses a borrower's overseas-based repayment obligation under this section,—
a: the reassessment must be made in accordance with section 115 subsection (1)﻿(c)
b: section 109(6) and (7)
4: Despite the reassessment of a borrower's overseas-based repayment obligation under this section, the borrower continues to be treated as an overseas-based borrower for all other purposes (for example, interest continues to be calculated in accordance with the borrower's overseas-based status) until the borrower becomes New Zealand-based.
5: The Commissioner may review a reassessment of a borrower's overseas-based repayment obligation made under this section if—
a: the borrower does not become New Zealand-based; or
b: the borrower becomes New Zealand-based from a date that is different from the expected date notified to the Commissioner under subsection (1)﻿(c) Section 115A inserted 30 March 2013 section 20 Student Loan Scheme Amendment Act 2013
116: Overseas-based borrowers who derive salary or wages from New Zealand
1: Subpart 1
2: Subsection (1) applies despite anything to the contrary in this Act.
117: Overseas-based borrower's standard and Commissioner deductions satisfy overseas-based repayment obligation
Section 117 repealed 1 April 2013 section 56 Student Loan Scheme Amendment Act 2013
3: Excess repayments
118: Interpretation
Section 118 repealed 1 April 2013 section 5(1) Student Loan Scheme (Budget Measures) Amendment Act 2012
119: Meaning of excess repayment
1: An excess repayment
a: all repayment obligations of the borrower for the tax year; and
b: all penalties charged to the borrower for the tax year; and
c: the borrower's unpaid amounts.
2: In determining whether an excess repayment has been made, the Commissioner must—
a: disregard any standard deduction (other than a significant over-deduction) or Commissioner deductions for the purposes set out in section 49(1)﻿(a)
b: disregard a salary or wage deduction or a payment made to the Commissioner that is subsequently refunded; and
c: treat a borrower's repayment obligation as if any relief granted under section 147
d: disregard any fee refunded by an education provider to the loan manager or the Commissioner. Section 119 replaced 1 April 2013 section 57 Student Loan Scheme Amendment Act 2013
120: Commissioner must notify borrower of excess repayment
1: Subsection (2) applies if subpart 2
a: an excess repayment is made for the borrower; or
b: upon investigation by the Commissioner of the borrower's repayment obligation for a prior tax year, the Commissioner is satisfied that—
i: the repayment obligation assessed by the Commissioner is incorrect; and
ii: as a result, an excess repayment has been made.
2: The Commissioner must, as soon as practicable, notify the borrower in writing—
a: that an excess repayment has been made for the borrower; and
b: of the amount of the excess repayment; and
c: that the excess repayment has been offset against the borrower's consolidated loan balance; and
d: of the borrower's options in relation to the excess repayment ( see section 121
e: of the time frames within which the borrower must notify the Commissioner if the borrower wishes to exercise 1 or more of those options.
3: Subsection (2) 1992 No 141 s 58A Section 120(1) replaced 30 March 2013 section 21 Student Loan Scheme Amendment Act 2013
121: Options that apply to excess repayments
1: If an excess repayment is made for a borrower, the borrower may—
a:
b: choose to receive a refund of the excess repayment in accordance with subpart 2
c: choose to use the excess repayment to satisfy a future repayment obligation of the borrower in accordance with subpart 2
2: However, any part of an excess repayment that exceeds a borrower's consolidated loan balance—
a:
b: must be refunded by the Commissioner ( see sections 199 200
3: Subsection (2) overrides section 131(1)﻿(a) Section 121(1)﻿(a) repealed 1 April 2013 section 6(1) Student Loan Scheme (Budget Measures) Amendment Act 2012 Section 121(2)﻿(a) repealed 1 April 2013 section 6(1) Student Loan Scheme (Budget Measures) Amendment Act 2012
122: Exception to general rule if repayment obligations for prior tax years reassessed
1: Subsection (2) applies if, upon investigation by the Commissioner of a borrower's repayment obligations for 2 or more prior tax years (the investigated years
a: the Commissioner assesses the borrower as having a repayment obligation for an investigated year for which no assessment has been made previously, or alters an assessment for an investigated year so as to increase the repayment obligation; and
b: the Commissioner also identifies that an excess repayment has been made for an investigated year.
2: If this subsection applies,—
a: the Commissioner may, to the extent that he or she considers equitable, offset the excess repayment against any repayment obligation due for any of the investigated years; and
b: sections 120 121
3: Subsection (2) applies despite anything to the contrary in this Act. 1992 No 141 s 58
1: Excess repayment bonus
Subpart 1 repealed 1 April 2013 section 7(1) Student Loan Scheme (Budget Measures) Amendment Act 2012
123: Borrower's entitlement to 10% bonus for excess repayment of $500 or more
Section 123 repealed 1 April 2013 section 7(1) Student Loan Scheme (Budget Measures) Amendment Act 2012
124: Borrower's entitlement to bonus if loan balance is less than $550
Section 124 repealed 1 April 2013 section 7(1) Student Loan Scheme (Budget Measures) Amendment Act 2012
125: Borrower may be entitled to 10% bonus if under-deduction is due to PAYE system
Section 125 repealed 12 April 2012 section 39 Student Loan Scheme Amendment Act 2012
126: Time at which 10% bonus is credited
Section 126 repealed 1 April 2013 section 7(1) Student Loan Scheme (Budget Measures) Amendment Act 2012
127: Restriction on amount of 10% bonus
Section 127 repealed 1 April 2013 section 7(1) Student Loan Scheme (Budget Measures) Amendment Act 2012
128: Application of sections 118 to 122 and this subpart to part years
Section 128 repealed 1 April 2013 section 7(1) Student Loan Scheme (Budget Measures) Amendment Act 2012
129: Consequences of refund or credit to next tax year
Section 129 repealed 1 April 2013 section 7(1) Student Loan Scheme (Budget Measures) Amendment Act 2012
130: Commissioner must advise borrowers to seek financial advice
Section 130 repealed 1 April 2013 section 7(1) Student Loan Scheme (Budget Measures) Amendment Act 2012
2: Refund of excess repayments and satisfaction of future repayment obligation
131: Limit on use of excess repayments
1: If an excess repayment is $5 or less, the Commissioner may refrain from—
a: refunding the excess repayment to a borrower; or
b: using the excess repayment to satisfy a future repayment obligation of the borrower.
2: This section overrides section 132 1992 No 141 s 51(1)
132: Borrower may receive refund or apply excess repayment to future repayment obligations
1: A borrower may choose for the whole or part of an excess repayment to be—
a: refunded ( see sections 199 200
b: used to satisfy a future repayment obligation of the borrower.
2: To exercise a choice under subsection (1), the borrower must notify the Commissioner in a manner acceptable to the Commissioner within 6 months after whichever is the latest of the following:
a: the date on which the borrower was notified of the excess repayment in accordance with section 120
b: the day after the end of the tax year to which the excess repayment relates:
c: the day after the due date of the final instalment of the borrower's overseas-based repayment obligation.
3: A choice made by the borrower to receive a refund of an excess repayment is irrevocable. 1992 No 141 ss 56 57 Section 132(2) replaced 30 March 2013 section 22 Student Loan Scheme Amendment Act 2013
4: Interest, relief, penalties and offences, rights of objection, and rights to challenge
1: Interest
133: No interest applied to student loans except as specified in this Part
Except as provided in this Part, no interest is payable on a consolidated loan balance. Loan interest charged for all overseas-based borrowers Heading replaced 1 April 2020 section 119 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
134: Loan interest charged for all overseas-based borrowers
1: A borrower is liable to pay loan interest on his or her loan balance for each day—
a: that the borrower has a loan balance; and
b: that the borrower is overseas-based.
2: Loan interest must be calculated in accordance with the formula (except as provided in subsection (3)) a = b × c ÷ 365 where— a is the loan interest b is the borrower's loan balance on the relevant day c is the base interest rate.
3: If a tax year includes an extra day because of a leap year, the reference to 365 in the formula in subsection (2) must be treated as if it were a reference to 366. Section 134 heading replaced 1 April 2020 section 120(1) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 134(1) replaced 1 April 2020 section 120(2) Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 134(2) amended 30 March 2013 section 23(1) Student Loan Scheme Amendment Act 2013 Section 134(3) inserted 30 March 2013 section 23(2) Student Loan Scheme Amendment Act 2013
135: Loan interest calculated daily and charged and compounded annually
1: Loan interest is calculated and accrues each day—
a: that a borrower has a loan balance; and
b: that a borrower is overseas-based.
2: Loan interest is charged and added to a borrower's loan balance on the last day of each year or an earlier date determined by the Commissioner, at his or her discretion, that is within the relevant tax year Section 135(1) replaced 1 April 2020 section 121 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 Section 135(2) amended 12 April 2012 section 41(2) Student Loan Scheme Amendment Act 2012
136: Notification that loan interest has compounded
1: The Commissioner must, as soon as practicable after loan interest has been added to a borrower's loan balance in accordance with section 135(2)
a: that loan interest has been added to the borrower's loan balance; and
b: of the new total of the borrower's loan balance; and
c: that the new total of the borrower's loan balance is itself subject to loan interest.
2: The Commissioner may notify a borrower in writing of the borrower's loan balance and loan interest at any other time the Commissioner chooses. 1992 No 141 s 43(1)
137: Full interest write-off for New Zealand-based borrowers
Section 137 repealed 1 April 2020 section 122 Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
138: Loan interest written off for quick repayment of consolidated loan balance
1: This section applies to a person who—
a: was an overseas-based borrower; and
b: would subsequently have been treated as being New Zealand-based except that he or she ceased to be a borrower because of paragraph (c)
c: fully repaid his or her consolidated loan balance before the end of the period of 183 consecutive days under which the borrower would have been treated as being New Zealand-based.
2: Loan interest that is charged on the person's loan balance is reduced to zero for the period—
a: starting on the first day of the 183-day period; and
b: ending on the day on which the person's consolidated loan balance was fully repaid. 1992 No 141 s 38AM Late payment interest
139: Late payment interest charged on unpaid amount
1: A borrower is liable to pay late payment interest on each unpaid amount if that unpaid amount is $334 or more (or any other level prescribed by regulations).
2: Late payment interest is calculated, charged, and added to a borrower's unpaid amount as follows:
a: the late payment interest rate multiplied by
b: the late payment interest rate multiplied by
3: In this section, late payment interest rate 1992 No 141 s 44 Section 139(2)﻿(a) amended 1 April 2013 section 58(1) Student Loan Scheme Amendment Act 2013 Section 139(2)﻿(b) amended 1 April 2013 section 58(1) Student Loan Scheme Amendment Act 2013 Section 139(3) inserted 1 April 2013 section 58(2) Student Loan Scheme Amendment Act 2013
140: Notification of late payment interest
The Commissioner must, as soon as practicable after charging late payment interest, give the borrower charged with that interest written notice of the amount of that interest. 1992 No 141 s 45
141: Late payment interest reduced if instalment arrangement complied with
1: This section applies if—
a: a borrower is liable to pay late payment interest on an unpaid amount under section 139
b: the borrower has entered into an instalment arrangement in relation to the unpaid amount in accordance with section 154
2: For each month that the borrower meets his or her obligations under the instalment arrangement, any late payment interest that the borrower is liable to pay on the unpaid amount for that month must be calculated as if, in the definition of late payment interest rate in section 139(3)
3: However, subsection (2) Section 141 replaced 1 April 2013 section 59 Student Loan Scheme Amendment Act 2013
141A: Late payment interest reduced if deduction or extraction notice applies
1: This section applies if—
a: a borrower is liable to pay late payment interest on an unpaid amount under section 139
b: the Commissioner has exercised powers available under section 157
2: For a month during which any unpaid amount remains unpaid and the Commissioner has received tax withheld or deducted in accordance with the requirements of a notice issued under section 157 deduction or extraction notice section 139(3)
3: However, subsection (2) applies only to the days in a month during which a deduction or extraction notice is in effect. Section 141A inserted 8 March 2014 section 7 Student Loan Scheme Amendment Act 2014 Matters of general application to interest
142: No interest on consolidated loan balance in credit
No interest is payable on—
a: a consolidated loan balance that is in credit:
b: an excess repayment:
c: a payment that is made under this Act before its due date. 1992 No 141 s 42
143: Commissioner's power to correct interest when charged in error
1: All amounts of interest charged must be taken to be correct unless a borrower establishes by proceedings under Part 8A
2: However, the Commissioner may amend an amount of interest charged if this is necessary to correct an error.
3: If an amount of interest charged is corrected, the Commissioner must notify the relevant borrower in writing as soon as practicable after the amendment. 1992 No 141 s 43(2)–(4)
2: Relief
Different types of relief
144: Power of Commissioner in relation to small amounts
1: The Commissioner may refrain from—
a: issuing a notice of assessment in relation to a repayment obligation that is payable by a borrower for a tax year if the amount payable is not more than $20
b:
c: collecting a repayment obligation (or part of a repayment obligation) not more than $20
d:
e: collecting, and may write-off, any amount that is payable by an employer or PAYE intermediary for any period under this Act if the amount payable is not more than $20
2: The Commissioner may refrain from collecting payment of a repayment obligation (or part of a repayment obligation) if that repayment obligation (or part of a repayment obligation)—
a: is more than $20
b: has not been paid by the due date (as that term is defined in section 5(2)
3: Any amount that the Commissioner refrains from collecting—
a: under subsection (1)﻿(c) is written off:
b: under subsection (2) is not written off, and is added to the borrower's loan balance.
4: This section applies despite anything to the contrary in this Act. 1992 No 141 ss 51(2)–(5) 51A Section 144(1)﻿(a) amended 1 April 2020 section 68(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 144(1)﻿(b) repealed 29 March 2013 section 44 Student Loan Scheme Amendment Act 2013 Section 144(1)﻿(c) amended 1 April 2020 section 68(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 144(1)﻿(c) amended 29 March 2013 section 24(1) Student Loan Scheme Amendment Act 2013 Section 144(1)﻿(d) repealed 29 March 2013 section 44 Student Loan Scheme Amendment Act 2013 Section 144(1)﻿(e) amended 1 April 2020 section 68(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 144(2)﻿(a) amended 1 April 2020 section 68(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 144(2)﻿(a) amended 29 March 2013 section 24(2) Student Loan Scheme Amendment Act 2013 Section 144(3)﻿(a) replaced 29 March 2013 section 24(3) Student Loan Scheme Amendment Act 2013
145: Application for different types of relief for borrower
1: A borrower, or a person on a borrower's behalf, may apply for 1 or more of the following:
a: relief from late payment interest ( see section 146
ab: relief from a penalty ( see section 146A
b: hardship relief for the current tax year, any prior tax year, or the next tax year ( see section 147
c: financial relief by entry into an instalment arrangement ( see section 154
2: An application under subsection (1)﻿(a) must be made by notifying the Commissioner in a manner acceptable to the Commissioner.
3: An application under subsection (1)﻿(b)—
a: must be made by notifying the Commissioner in a manner acceptable to the Commissioner:
b: that relates to hardship relief for the next tax year must be made on or before 31 March in the tax year that immediately precedes the tax year for which relief is sought.
4: An application under subsection (1)﻿(c) must be made in accordance with section 154(1) 1992 No 141 s 54 Section 145(1)﻿(ab) inserted 1 April 2013 section 60 Student Loan Scheme Amendment Act 2013 Relief from late payment interest
146: Commissioner may grant relief from late payment interest
1: Subsection (2)
a: if a borrower has been charged with late payment interest; and
b: regardless of whether that late payment interest has been paid, either in whole or in part; and
c: if an application is made under section 145(1)﻿(a)
2: The Commissioner may, having regard to the circumstances of the case and if the Commissioner considers it equitable to do so, grant relief to the borrower by cancelling as much of the late payment interest as the Commissioner considers equitable.
3: If late payment interest is cancelled,—
a: the borrower's consolidated loan balance is decreased by the amount of the cancelled late payment interest; and
b: if the late payment interest has been added to the borrower's unpaid amount under section 139 section 141
c: any payment made in excess of the remaining amount of late payment interest payable (if any) by the borrower (an excess payment
i: first, against any unpaid amount; and
ii: secondly, against the loan balance; and
d: the Commissioner must refund any remaining excess payment to the borrower ( see sections 199 200 1992 No 141 s 53 Section 146 replaced 1 April 2013 section 61 Student Loan Scheme Amendment Act 2013 Relief from penalties Heading inserted 1 April 2013 section 62 Student Loan Scheme Amendment Act 2013
146A: Commissioner may grant relief from penalties
1: Subsection (2) applies—
a: if a borrower has been charged with a penalty; and
b: regardless of whether that penalty has been paid, either in whole or in part; and
c: if an application is made under section 145(1)﻿(ab)
2: The Commissioner may, having regard to the circumstances of the case and if the Commissioner considers it equitable to do so, grant relief to the borrower by cancelling as much of the penalty as the Commissioner considers equitable.
3: For the purposes of this section, penalty
a: means—
i: a late notification penalty:
ii:
iii: a student loan shortfall penalty; but
b: despite paragraph (a)﻿(iii) section 159 section 158 section 141D 141E Section 146A inserted 1 April 2013 section 62 Student Loan Scheme Amendment Act 2013 Section 146A(3)﻿(a)﻿(i) replaced 14 May 2016 section 19 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 146A(3)﻿(a)﻿(ii) repealed 1 April 2020 section 69 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Hardship relief
147: Hardship relief for any tax year
1: If an application is made under section 145(1)﻿(b)
a: is satisfied that payment of that repayment obligation is causing, or would cause, serious hardship to the borrower; or
b: considers that there are other special reasons that make it fair and reasonable to do so.
2: However, the Commissioner must not—
a: refund any amount that was deducted or paid to meet a repayment obligation for a tax year prior to the current tax year other than the tax year that immediately precedes the current tax year; or
b: decrease a repayment obligation if—
i: a student loan shortfall penalty has been imposed on a borrower under section 159
ii: for the purposes of the application of section 159 section 158 section 141D 141E 1992 No 141 ss 55 55A 55B Section 147(2) replaced 1 April 2013 section 63 Student Loan Scheme Amendment Act 2013
148: Special deduction rate certificate for hardship relief
1: Subsection (2) applies if—
a: the Commissioner decreases the repayment obligation of a borrower under section 147
b: the borrower derives salary or wages.
2: The Commissioner may issue a special deduction rate certificate that—
a: specifies a special deduction rate and the repayment code to be used section 147
b: specifies the period for which the special deduction rate is to apply to the borrower; and
c: requires the borrower's employer or PAYE intermediary to make deductions from the borrower's salary or wages at the special deduction rate.
3: The issue of a special deduction rate certificate may form part of or all of the means by which a borrower's repayment obligation is decreased under section 147 1992 No 141 ss 20A(2) 55B Section 148(2)﻿(a) amended 12 April 2012 section 43 Student Loan Scheme Amendment Act 2012
149: Issue and application of special deduction rate certificate
1: If the Commissioner issues a special deduction rate certificate under section 148
2: The special deduction rate certificate revokes all other special deduction rate certificates previously issued in relation to the borrower under section 45 148 1992 No 141 s 20A(5), (6) Section 149(2) amended 12 April 2012 section 44 Student Loan Scheme Amendment Act 2012
150: Time when special deduction rate ceases to apply
The special deduction rate applies until the earlier of—
a: the end of the period specified in the special deduction rate certificate; or
b: the date on which the Commissioner notifies the employer in writing otherwise; or
c: the date on which the borrower notifies the employer otherwise. 1992 No 141 s 20A(4)
151: Effect of Commissioner's decision under section 147
An amount that, as a result of a decision under section 147
a: is not written off; and
b: remains part of the borrower's loan balance; and
c: is not an unpaid amount. 1992 No 141 s 55C
152: Borrowers must notify Commissioner of change of circumstances
A borrower who applies for hardship relief under section 145(1)﻿(b)
a: means that any information supplied to the Commissioner under section 145
b: may affect whether or not a borrower would have been, or will continue to be, granted hardship relief under section 147 1992 No 141 s 55D(1)
153: Commissioner may review grant of hardship relief
1: The Commissioner may review any decision he or she made to grant hardship relief to a borrower.
2: If for any reason the Commissioner considers that the circumstances for the grant of that hardship relief have changed, the Commissioner may do either or both of the following:
a: require the borrower to take any action that is required to reverse the effects of the hardship relief that was granted to the borrower:
b: reinstate all or part of the repayment obligation that would have applied to the borrower if hardship relief had not been granted to the borrower, and require payment of any amount that would have been due during the relevant tax year. 1992 No 141 s 55D(2), (3) Instalment arrangements
154: Application for instalment arrangement
1: An application for entry into an instalment arrangement—
a: may be made at any time in relation to an unpaid amount or an amount that is not yet due; and
b: must be made in accordance with section 177(1)﻿(b)
2: Sections 177(1)﻿(b) 177A 177B 177CA
a: every reference to a taxpayer included a borrower; and
b: every reference to tax included an unpaid amount. Section 154(1)﻿(a) amended 30 March 2013 section 25 Student Loan Scheme Amendment Act 2013
3: Penalties and offences
Late filing penalties
155: Late notification penalty for Schedule 3 adjustments under section 74
1: If a borrower does not notify the Commissioner of Schedule 3 adjustments under section 74
a: notify the borrower in writing that a late notification penalty will be imposed if the borrower does not notify the Commissioner of the Schedule 3 adjustments within 30 days after the date of the Commissioner’s notification; or
b: give public notice that a late notification penalty will be imposed on borrowers who do not notify the Commissioner of Schedule 3 adjustments within 30 days after the date of the Commissioner’s public notice.
2: A borrower is liable to pay a penalty under this section if—
a: the Commissioner notified the borrower or gave public notice in accordance with subsection (1); and
b: the borrower did not notify the Commissioner of the Schedule 3 adjustments within 30 days of the date of the Commissioner’s notification or public notice.
3: The penalty for a borrower with adjusted net income—
a: below $100,000 is $50:
b: between $100,000 and $1,000,000 (both figures inclusive) is $250:
c: above $1,000,000 is $500. Section 155 replaced 14 May 2016 section 20 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
156: Due dates for payment of late notification penalty
A borrower who is liable to pay a penalty under section 155
a: the date that is 60 days after the date of the notification to the borrower or public notice given under section 155(1)
b: the date that is—
i: in column B of the table in Part A section 75
ii: in column F of the table in Part A section 75 Section 156 replaced 14 May 2016 section 21 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Student loan shortfall penalties
157: Definitions relating to student loan shortfall penalties
In this section and sections 158 to 161 incorrect tax position section 158(b) repayment obligation shortfall
a: a borrower's income tax position on his or her end-of-year repayment obligation
b: the correct tax position on that repayment obligation for the tax year shortfall penalty sections 141A to 141E Section 157 repayment obligation shortfall amended 29 March 2013 section 44 Student Loan Scheme Amendment Act 2013
158: Student loan shortfall penalties may be imposed on certain borrowers
Section 159
a: the borrower is liable to pay a shortfall penalty; and
b: the incorrect tax position, action, or omission that resulted in the shortfall penalty (the incorrect tax position
i: created a shortfall in the income tax paid or payable by the borrower; and
ii: resulted in the borrower having a repayment obligation shortfall.
159: Commissioner may impose student loan shortfall penalties
1: If this section applies to a borrower, the Commissioner may, at his or her discretion, impose a student loan shortfall penalty on the borrower.
2: The amount of a student loan shortfall penalty is calculated in accordance with the formula— a = b × c where— a is the amount of the student loan shortfall penalty b is the amount of the repayment obligation shortfall (treating any relief granted under section 147 c is the final percentage imposed under the Tax Administration Act 1994 section 141FB 141G 141H 141I 141J 141K 1992 No 141 s 85 Section 159(2) replaced 1 April 2013 section 64 Student Loan Scheme Amendment Act 2013
160: Notification and payment obligations if Commissioner imposes student loan shortfall penalty
1: This section applies if the Commissioner imposes a student loan shortfall penalty on a borrower.
2: The Commissioner must notify the borrower in writing of—
a: the amount of the student loan shortfall penalty and the reasons for its imposition; and
b: the date on or before which the student loan shortfall penalty must be paid (which must be at least 30 days after the date of the notification).
3: The Commissioner must also notify the borrower in writing of the amount of the repayment obligation shortfall that remains due and payable and that that amount is subject to late payment interest.
4: The Commissioner may notify the borrower of the information required under subsection (2) subsection (3)
5: The borrower must pay the student loan shortfall penalty on or before the date specified in the notice given under subsection (2) Section 160 replaced 30 March 2013 section 28 Student Loan Scheme Amendment Act 2013
161: Student loan shortfall penalty reduced or removed to reflect change to shortfall penalty
1: Subsection (2)
a: a borrower disputes or
b: as a result, the shortfall penalty is reduced or removed; and
c: the shortfall penalty was the basis for the Commissioner imposing a student loan shortfall penalty on the borrower under section 159
2: The Commissioner must, as appropriate, reduce or remove the borrower's student loan shortfall penalty to reflect the decision that was made in relation to the shortfall penalty. Section 161(1)﻿(a) amended 30 March 2013 section 29 Student Loan Scheme Amendment Act 2013 Underestimation penalty Heading repealed 1 April 2020 section 70 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
161A: Underestimation penalty where interim payments underestimated as at last interim payment date
Section 161A repealed 1 April 2020 section 70 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Offences
162: Certain offence provisions in Tax Administration Act 1994 apply to borrowers
1: The sections of the Tax Administration Act 1994
a: section 143
b: section 143A
c: section 143B
d: section 148
2: Sections 149 to 150A
a: every reference to a taxpayer were a reference to a borrower; and
b: every reference to income tax were a reference to a repayment obligation.
162A: Offence for default of overseas-based repayment obligation
1: Every person commits an offence who is in default of his or her overseas-based repayment obligation and who, having been notified by the Commissioner that he or she is in default, knowingly fails, or refuses, by the due date specified in the notification to make reasonable efforts to pay the amount in default or to make arrangements with the Inland Revenue Department to pay the amount in default.
2: Every person who commits an offence against subsection (1) is liable on conviction to a fine not exceeding $2,000. 1994 No 166 ss 143A 143B Section 162A inserted 8 March 2014 section 8 Student Loan Scheme Amendment Act 2014
162B: Arrest of liable person
1: A District Court Judge or, if a District Court Judge is not available and the case appears to be urgent, a Registrar may, on an application in writing by the Commissioner, issue a warrant for the arrest of a person (the liable person section 162A
2: The liable person must be brought as soon as possible before the District Court
a: pay the amount in default:
b: make arrangements with the Inland Revenue Department to pay the amount in default:
c: give such security (including the provision of sureties) for the payment of that liability as the court specifies:
d: not leave New Zealand without the written permission of the court:
e: surrender to the court, for such period as the court specifies, any travel documents or tickets in the person's possession:
f: provide the court, within such period as the court specifies, with any information the court thinks appropriate.
3: To avoid doubt, the court may make an order under subsection (2) even if the Commissioner is able to recover the debt by other means.
4: On making an order under subsection (2)﻿(d) or (e), the court may direct the Registrar to give notice of the order to such departments of State, offices, or persons as the court or the Registrar thinks appropriate.
5: Every person commits an offence and is liable on conviction to imprisonment for a term not exceeding 3 months or to a fine not exceeding $2,000 who—
a: is a person against whom an order is in force under subsection (2)﻿(d) or (e); and
b: is in default of his or her overseas-based repayment obligation; and
c: either—
i: leaves New Zealand; or
ii: attempts, or does any act with the intent, to leave New Zealand.
6: A person against whom an order under subsection (2) is in force may apply to the court for the discharge of the order, and the court may, if it considers it just or appropriate, discharge the order accordingly.
7: If the court discharges an order made under subsection (2)﻿(e), it must direct the return of any travel documents or tickets surrendered pursuant to the order (unless the court grants a new order under subsection (2)﻿(e) in relation to the same documents). 1991 No 142 s 199 Section 162B inserted 8 March 2014 section 8 Student Loan Scheme Amendment Act 2014 Section 162B(2) amended 1 March 2017 section 261 District Court Act 2016
163: Offence to prejudice employees because of student loan repayment liability
1: An employer commits an offence against this Act if the employer—
a: refuses to employ, or to pay salary or wages to, another person because that person is a borrower; or
b: dismisses, or threatens to dismiss, another person from his or her employment because that person is a borrower; or
c: terminates, or threatens to terminate, the payment of salary or wages to another person because that person is a borrower; or
d: prejudices, or threatens to prejudice, another person in his or her employment or otherwise in the receipt of salary or wages because that person is a borrower; or
e: intimidates or coerces, imposes any pecuniary or other penalty on, or takes any other disciplinary action in relation to another person because that person is a borrower.
2: A person who commits an offence against subsection (1)
3: If an employer is convicted of an offence against subsection (1), the Court may order the payment of compensation to the borrower for loss or damage suffered as a result of the offence. 1992 No 141 s 81
164: Proceedings to be commenced by Commissioner
A proceeding for an offence against section 162A 163 Section 164 replaced 1 July 2013 section 413 Criminal Procedure Act 2011 Section 164 amended 8 March 2014 section 9 Student Loan Scheme Amendment Act 2014
165: Charging document
1: A charging document section 162A 163
2: If a charging document
a: particulars of each offence charged must be set out separately in the charging document
b: all of those charges must be heard together, unless the court, either before or at any time during the hearing, considers it just that any charge should be heard separately and makes an order to that effect. 1992 No 141 s 83 Section 165 heading amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013 Section 165(1) amended 8 March 2014 section 9 Student Loan Scheme Amendment Act 2014 Section 165(1) amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013 Section 165(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 165(2)﻿(a) amended 1 July 2013 section 413 Criminal Procedure Act 2011
166: Time for filing charging document
Despite anything to the contrary in section 25 section 162A 163 Section 166 replaced 1 July 2013 section 413 Criminal Procedure Act 2011 Section 166 amended 8 March 2014 section 9 Student Loan Scheme Amendment Act 2014
4: Borrower's right to object to loan manager about details of loan advances
167: Borrowers may object to details of loan advances
1: A borrower may object to the details of a loan advance made or charged to the borrower set out in a notification given to the borrower in accordance with section 18
2: However, a borrower may object only if the borrower reasonably believes that those details are incorrect.
3: An objection under subsection (1) must—
a: state the reasons for the objection; and
b: be made by notifying the loan manager in writing ( see section 212
c: include a copy of the notification given to the borrower; and
d: be received by the loan manager on or before the date stated in the notification in accordance with section 18(2)﻿(e)
4: However, the loan manager may extend the time allowed under subsection (3)﻿(d). 1992 No 141 ss 6 10
168: Loan manager must consider objections
1: The loan manager must consider all objections made in accordance with section 167
2: The loan manager must, as soon as practicable,—
a: notify the objector in writing of the loan manager's decision in respect of the objection, and of the reasons for that decision; and
b: notify the Commissioner (in the manner determined by the Commissioner and the loan manager) of the loan manager's decision in respect of the objection. 1992 No 141 s 7
169: Power to require objection to be determined by chief executive
1: If an objection under section 167 notifying the chief executive in writing
2: A notification under subsection (1) must be given within 21 days after the date on which the loan manager notifies the objector of the decision under section 168(2)﻿(a)
3: However, the chief executive may extend the time allowed under subsection (2). 1992 No 141 ss 8 10 Section 169(1) amended 14 May 2016 section 22 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
170: Chief executive must consider objections required to be determined by chief executive
1: The chief executive must consider all objections that the chief executive is required to determine under section 169
2: The chief executive must, as soon as practicable,—
a: notify the objector in writing of the chief executive's decision in respect of the objection, and of the reasons for that decision; and
b: notify the loan manager in writing of the chief executive's decision in respect of the objection, and of the reasons for that decision.
3: The loan manager must, as soon as practicable, notify the Commissioner (in the manner determined by the Commissioner and the loan manager) of the chief executive's decision in respect of the objection. 1992 No 141 s 9
171: Right to apply to Disputes Tribunal or District Court
1: Subsection (2) applies if an objection under section 167 section 169
2: The objector may, within 30 days after the date on which the chief executive notifies the objector of the decision under section 170(2)﻿(a)
a: apply to the Disputes Tribunal
b: apply to the District Court
3: A Referee of the Disputes Tribunal the Disputes Tribunal
4: No objection to which section 167 169 the Disputes Tribunal or the District Court
5: Subsection (4) applies—
a: despite anything in the Disputes Tribunal Act 1988 District Court Act 2016
b: subject to subsections (1) and (2). 1992 No 141 s 11 Section 171(2)﻿(a) amended 1 March 2017 section 261 District Court Act 2016 Section 171(2)﻿(b) amended 1 March 2017 section 261 District Court Act 2016 Section 171(3) amended 1 March 2017 section 261 District Court Act 2016 Section 171(4) amended 1 March 2017 section 261 District Court Act 2016 Section 171(5)﻿(a) amended 1 March 2017 section 261 District Court Act 2016
172: Notification of Disputes Tribunal's or District Court's decision about objection
The loan manager must, as soon as practicable, notify the Commissioner (in the manner determined by the Commissioner and the loan manager) of the Disputes Tribunal's or the section 171 Section 172 amended 1 March 2017 section 261 District Court Act 2016
5: Dispute procedures and rights to challenge
Dispute procedures
173: Part 4A of Tax Administration Act 1994 applies to disputes under this Act
1: The procedures in Part 4A
2: However, subsection (1) does not apply to an objection to—
a: the details of a loan advance made or charged to a borrower ( see section 167
b: a decision of the Commissioner under sections 27C to 27E 1992 No 141 s 69A Section 173(2) replaced 14 May 2016 section 23 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Rights to challenge and challenge procedures Heading replaced 30 March 2013 section 30 Student Loan Scheme Amendment Act 2013
174: Dispute process must be completed before challenge is made
A person may challenge a matter under this subpart only after the dispute process applied by section 173 1992 No 141 s 69A
174A: Part 8A of Tax Administration Act 1994 applies to challenges under this Act
The procedures under Part 8A Section 174A inserted 30 March 2013 section 31 Student Loan Scheme Amendment Act 2013
175: Challenge to details of consolidated loan balance
A borrower may challenge any information (other than the details of a loan advance made or charged to the borrower) provided to the borrower under section 19
176: Challenge to decision concerning treating borrowers as being physically in New Zealand
A borrower may challenge a decision by the Commissioner—
a: not to treat the borrower as being physically in New Zealand under section 25
b: that a condition in any of clauses 2 to 10
c: concerning the start and end dates for the period for which the borrower is treated as being physically in New Zealand under section 27(b)﻿(i)
i: not fair and reasonable; or
ii: erroneous:
d: concerning the conditions that must apply or be met in order for the borrower to be treated as being physically in New Zealand under section 27(b)﻿(ii)
i: not fair and reasonable; or
ii: erroneous. 1992 No 141 s 65A Section 176(a) amended 1 April 2020 section 71 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
176A: Challenge to decision relating to listing of entity as charity
An entity may challenge a decision by the Commissioner under sections 27C to 27E
a: is not fair and reasonable; or
b: is erroneous. Section 176A inserted 14 May 2016 section 24 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
177: Challenge to special deduction rate certificate for unused repayment threshold
1: A borrower may challenge a decision by the Commissioner not to issue a special deduction rate certificate in relation to the borrower under section 45
2: A borrower who has been issued with a special deduction rate certificate under section 45
178: Challenge to additional deduction rate notice
A borrower who has been issued with an additional deduction rate notice under section 49(2)
179: Challenge to determination of salary or wage deduction
An employer or PAYE intermediary who is required to make a salary or wage deduction may, on the ground that the determination is erroneous, challenge a determination made under section 62(2) 1992 No 141 s 67
180: Challenge to decision regarding significant over-deduction
A borrower may challenge—
a: a determination by the Commissioner under section 66
b: the amount of a significant over-deduction stated in a notice in accordance with section 67(2)﻿(b)
181: Challenge to prohibition on applications or declarations
A borrower who is prohibited under section 69 section 42 section 55
182: Challenge to assessments
A borrower whose repayment obligation has been assessed under section 51 76 89 109 1992 No 141 s 64
182A: Challenge to decision concerning
temporary repayment suspension A borrower may challenge a decision by the Commissioner under section 107B temporary repayment suspension Section 182A inserted 30 March 2013 section 32 Student Loan Scheme Amendment Act 2013 Section 182A heading amended 1 April 2020 section 72(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 182A amended 1 April 2020 section 72(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
183: Challenge to interest charged
1: A borrower who is charged with loan interest may, on the ground that he or she should not have been charged with the amount of interest charged, challenge that interest.
2: A borrower who is charged with late payment interest may, on the ground that he or she should not have been charged with the amount of interest charged, challenge that interest.
3: Except as set out in subsections (1) and (2), a right to challenge interest charged under this Act is not conferred by anything in—
a: this Act; or
b: Parts 4A 8A
c: a loan contract. 1992 No 141 ss 65 65A(e) 69B
184: Challenge to decision concerning relief
1: A borrower may challenge a decision by the Commissioner, on the ground that the decision is not fair and reasonable, not to grant the borrower—
a: relief from late payment interest under section 146
b: hardship relief under section 147
c: entry into an instalment arrangement under section 154
2: A borrower may challenge the relief provided to the borrower under section 146 147 154 1992 No 141 s 66B
185: Challenge to late notification penalty
A borrower who is charged with a late notification penalty may challenge the penalty on the ground that it was imposed on the borrower in error. Section 185 replaced 14 May 2016 section 25 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
186: Challenge to student loan shortfall penalty
A borrower who has a student loan shortfall penalty imposed on him or her may challenge the student loan shortfall penalty on the ground that it was imposed on the borrower in error. 1992 No 141 s 68
187: Person who may make challenge
A challenge under this subpart may be made only by or on behalf of the person to whom the information, assessment, notice, decision, or matter relates. 1992 No 141 s 69
188: Commissioner's decision on challenges
Section 188 repealed 30 March 2013 section 33 Student Loan Scheme Amendment Act 2013
5: Matters of general application and miscellaneous matters
1: Matters of general application
189: Annual administration fee
1: If a borrower has a consolidated loan balance more than $20
a: an annual administration fee of $40 (or any other amount prescribed by regulations) must be charged by the Commissioner to that borrower for that tax year; and
b: that borrower's loan balance is increased by the amount of that fee on 1 April in the next tax year.
2: However, no annual administration fee may be charged to a borrower for a tax year if that borrower is charged with a student loan establishment fee under section 14 Section 189(1) amended 1 April 2020 section 73 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 189(1) amended 12 April 2012 section 47 Student Loan Scheme Amendment Act 2012
190: Tax year other than 12 months due to change in balance date
1: This section applies if a borrower—
a: derives adjusted net income; and
b: that income is for a period other than 12 months as a result of the borrower changing his or her balance date for the purposes of income tax.
2: For the purposes of calculating the borrower's repayment obligations under subpart 2 a = b × c ÷ 365 where— a is the annual repayment threshold calculated in accordance with this section: b is the amount of the annual repayment threshold: c is the number of days in the period. 1992 No 141 s 61 Section 190(1)﻿(a) replaced 29 March 2013 section 44 Student Loan Scheme Amendment Act 2013 Section 190(2) amended 29 March 2013 section 44 Student Loan Scheme Amendment Act 2013
191: Limit on repayment obligation for pay period or tax year
1: If a borrower derives consolidated of the pay period
2: If a borrower derives adjusted net income for a tax year, the borrower’s end-of-year repayment obligation for that tax year must not exceed the amount of the borrower’s loan balance,—
a: if the borrower files their return of income or provides a statement of adjusted net income before the end of that tax year, on the day on which the borrower files the return or provides the statement; and
b: in any other case, on the last day of that tax year.
3: Section 111(2)
3A: For the purposes of subsections (1) and (2), the amount of the borrower's consolidated
4: This section applies despite anything to the contrary in this Act. 1992 No 141 s 14(3) Section 191(1) amended 1 April 2020 section 74(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 191(1) amended 1 April 2020 section 74(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 191(1) amended 30 March 2013 section 34(1) Student Loan Scheme Amendment Act 2013 Section 191(2) replaced 1 April 2020 section 74(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 191(3A) inserted 29 March 2013 section 34(2) Student Loan Scheme Amendment Act 2013 Section 191(3A) amended 1 April 2020 section 74(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
192: Payment date not otherwise specified
If this Act does not specify a date by which an amount payable under this Act is payable, the amount is due and payable 30 days after the date on which the borrower is notified in writing that the amount is due and payable. 1992 No 141 s 47
193: Recovery of unpaid amount
1: An unpaid amount is recoverable as a debt due to the Crown.
2: Sections 156 to 165
a: every reference in those provisions to income tax or tax were a reference to an unpaid amount; and
b: every reference in those provisions to a taxpayer or a person were a reference to a borrower; and
c: the reference to an assessment in section 162 Part 2
d: every reference to this Act sections 164 165 1992 No 141 s 46
193A: Contact person may be requested to assist
1: The Commissioner may at any time advise a person that the person has been nominated as the contact person of a borrower.
2: If, in any case where a borrower has an unpaid amount, the Commissioner does not have the current address details for the borrower or is uncertain as to the accuracy of the address details for the borrower, the Commissioner may request the borrower's contact person—
a: to notify the Commissioner of the borrower's current address details; or
b: to ask the borrower to notify the Commissioner of the borrower's current address details.
3: In this section and section 193C address details
a: all postal addresses for the borrower; and
b: all electronic addresses for the borrower (if the borrower has any); and
c: all telephone numbers for the borrower (if the borrower has any).
4: The Commissioner may not make a request under subsection (2) unless the contact person confirms that he or she is willing to act as the borrower's contact person.
5: The Commissioner—
a: may not disclose any matters about the borrower other than those required to be disclosed for the purposes of this section; and
b: may use any information obtained from a request under this section only for the purposes of this Act.
6: In this section and section 193B contact person
a: an individual whose name has been notified under section 16A
b: an individual nominated by the borrower under section 107A 193B Section 193A inserted 12 April 2012 section 48 Student Loan Scheme Amendment Act 2012 Section 193A(3) amended 8 March 2014 section 10 Student Loan Scheme Amendment Act 2014
193B: Changes relating to identity and details of contact person
1: Whenever the contact person of a borrower dies or becomes incapacitated or is for any other reason ineligible, unable, or unwilling to act as the borrower's contact person, the borrower must nominate another contact person who resides in New Zealand in the manner provided by section 107A(2)
2: If there is a change in any of the details of a borrower's contact person, the borrower must promptly notify the Commissioner of the changed details. Section 193B inserted 12 April 2012 section 48 Student Loan Scheme Amendment Act 2012
193C: Changes relating to contact details of borrower
1: If there is a change in any of the borrower's contact details, the borrower must promptly notify the Commissioner of the changed details.
2: For the purpose of verifying the borrower's address details, the Commissioner may receive the borrower's address details from any other person if the information is shared in accordance with any other provision of this Act or any other enactment. Section 193C inserted 30 March 2013 section 35 Student Loan Scheme Amendment Act 2013 Section 193C(2) inserted 8 March 2014 section 11 Student Loan Scheme Amendment Act 2014
194: Order in which
certain
1: A borrower deduction or payment received by the Commissioner in respect of a borrower’s consolidated loan balance must be offset as follows:
a: first, against the borrower’s oldest assessments, unpaid amounts, and repayment obligations; and
b: within each of those things, first, against any interest charged and secondly, any remainder must be offset against any principal outstanding.
2: The following must not be used to satisfy other repayment obligations, unpaid amounts, or penalties (unless the borrower’s consolidated loan balance consists only of 1 or more of those things)
a: a standard deduction that is not a significant over-deduction:
b: a Commissioner deduction for the purposes of section 49(1)﻿(a) 1992 No 141 s 50 Section 194 heading amended 1 April 2020 section 75(1) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 194(1) replaced 1 April 2020 section 75(2) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 194(2) inserted 1 April 2013 section 66 Student Loan Scheme Amendment Act 2013 Section 194(2) amended 1 April 2020 section 75(3) Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
195: Date on which salary or wage deductions and payments treated as being made and credited
1: A salary or wage deduction is made on the date the deduction is made.
2: A payment is made to the Commissioner on the date it is received by the Commissioner.
3: For the purposes of calculating loan interest and late payment interest, determining whether an annual administration fee is payable, and determining whether a borrower’s consolidated loan balance is not more than $20 for the purposes of section 197
a: a salary or wage deduction is credited on the day after the date on which the deduction is made; and
b: all other payments are credited on the day after the date on which they are received by the Commissioner.
3A:
4: Other than for the purposes set out in subsection (3),—
a: a salary or wage deduction is credited on the last day of the month in which the deduction is made; and
b: a payment made by a New Zealand-based borrower (excluding a salary or wage deduction) for a tax year is credited at the time when the Commissioner assesses the borrower's end-of-year repayment obligation for that tax year
c: a payment made by an overseas-based borrower (excluding a salary or wage deduction) is credited on the date it is received by the Commissioner. 1992 No 141 ss 48 49 Section 195(3) replaced 1 April 2020 section 76 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 195(3A) repealed 1 April 2020 section 76 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 195(4)﻿(b) amended 29 March 2013 section 44 Student Loan Scheme Amendment Act 2013
196: Cancellation of interest if consolidated loan balance repaid early
1: Subsection (2) applies if—
a: the Commissioner informs or notifies a borrower of the borrower's consolidated loan balance (the notification
b: the borrower pays the consolidated loan balance stated in the notification in full within 30 days after the date of the notification.
2: The Commissioner must cancel any loan interest that is calculated and accrued between the date of the notification and the date on which the payment is received.
3: A notification provided on or after 2 March 2012 under section 60A(1)
4: 1992 No 141 s 60A 2013-05-02 Student Loan Scheme Act 2011 see 196(4) above Section 196(1)﻿(a) amended 1 April 2013 section 67(1) Student Loan Scheme Amendment Act 2013 Section 196(2) replaced 12 April 2012 section 50 Student Loan Scheme Amendment Act 2012 Section 196(4) repealed 1 April 2013 section 67(2) Student Loan Scheme Amendment Act 2013
197: Write-off of consolidated loan balance
1: A borrower's consolidated loan balance must be reduced to zero if—
a: the borrower dies; or
b: the Commissioner has reasonable grounds for believing that the borrower has died.
2: The Commissioner may reduce a borrower's consolidated loan balance to zero if that balance is not more than $20
3: Subsection (1)﻿(a)
4: Subsection (1)﻿(b)
5: Subsection (2)
6: If a borrower's consolidated loan balance is reduced to zero under subsection (1)﻿(a) or (2)
7: Subsection (6) 1992 No 141 s 60 Section 197 replaced 1 April 2013 section 68 Student Loan Scheme Amendment Act 2013 Section 197(2) amended 1 April 2020 section 77 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
198: Commissioner may remedy incorrect application of Act
1: The Commissioner may take whatever steps are necessary to reflect the manner in which this Act should have been applied to a borrower if—
a: this Act was incorrectly applied to the borrower; or
b: a change in the borrower's circumstances requires a change in the manner in which this Act should have applied to the borrower.
2: The power in subsection (1) includes the power to reverse an action that was taken in relation to a borrower and take other actions, or require other actions to be taken, in its place.
199: Manner of making refunds
A refund that is made under this Act must be made in the manner required under section 184A 1992 No 141 ss 55A(3) 56(2B) 57(2A) 58A(3)
200: Appropriation of refunds
A refund that is made under this Act may be made without further appropriation than this section. 1992 No 141 s 59
201: Loan advances and other information may be altered
The Commissioner must, as soon as practicable,—
a: alter the details of a loan advance provided or made available to a borrower under section 19
i: the loan manager under section 168
ii: the chief executive under section 170
iii: a Referee of the Disputes Tribunal section 171
b: alter any information (other than the details of a loan advance made or charged to the borrower) provided or made available to a borrower under section 19 subpart 5 of Part 4 1992 No 141 s 7(1) Section 201(a)﻿(iii) amended 1 March 2017 section 261 District Court Act 2016
202: Provisions of Tax Administration Act 1994 and Income Tax Act 2007 to apply to this Act
Sections 15B 21 24B section 24D(a) 33 34 35 36 to 39 42 to 44 79 80 92 92A 106 to 108 108B to 111 113 114 sections LC 10 RM 2 RM 4 section YA 1
a: every reference to a taxpayer or a person were a reference to a borrower; and
b: every reference to the assessment and levy of income tax or tax were a reference to the assessment and levy of a repayment obligation; and
c: every reference to income tax were a reference to a repayment obligation; and
d: every reference to a return were a reference to a statement of adjusted net income. 1992 No 141 s 16 Section 202 amended 1 April 2019 section 394(a) Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 Section 202 amended 1 April 2019 section 394(b) Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 Section 202 amended 14 May 2016 section 26(1) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 202 amended 17 July 2013 section 148 Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 Section 202(d) replaced 14 May 2016 section 26(2) Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
2: Miscellaneous matters
Interaction with loan contracts and other enactments
203: This Act overrides loan contracts
1: This Act applies despite anything to the contrary in any loan contract.
2: All loan contracts must be interpreted in a manner that is consistent with this Act.
3: If a loan contract cannot be interpreted in a manner that is consistent with this Act, then this Act prevails over the terms of the loan contract. 1992 No 141 s 63
204: Commissioner may exercise rights in loan contracts to recall loans
1: The Commissioner may exercise any right or power in a loan contract to recall or demand repayment of all or any part of a loan advance or a loan balance.
2: To avoid doubt, the right or power may be exercised in the name of the Commissioner without any assignment by the lender.
3: This section applies—
a: whether or not the Commissioner is the lender under the loan contract or a person on whom the loan contract confers the right or power; and
b: despite section 203
c: whether the loan contract was signed before, on, or after Section 204(3)﻿(c) amended 30 March 2013 section 36 Student Loan Scheme Amendment Act 2013
205: Loan contract enforceable against minor
A loan contract entered into by a borrower (whether before or after the commencement of this section) who is under 18 years of age must be treated, for the purposes of subpart 6 1992 No 141 s 63A Section 205 amended 1 September 2017 section 347 Contract and Commercial Law Act 2017
206: Student loan contracts are not credit contracts
1: A loan contract is not—
a: a credit contract for the purposes of the Credit Contracts Act 1981:
b: a credit contract or a consumer credit contract for the purposes of the Credit Contracts and Consumer Finance Act 2003
2: No cause of action exists under the Credit Contracts Act 1981 or the Credit Contracts and Consumer Finance Act 2003
3: This section applies—
a: to all loan contracts regardless of when they were entered into; and
b: despite anything to the contrary. Disclosure of information
207: Disclosure of information between authorised persons
1: No obligation as to secrecy or other restriction imposed by an enactment or otherwise on the disclosure of information prevents an authorised person from disclosing to another authorised person any information for the purpose of verifying any declaration made by an applicant for a student loan as to any unpaid amounts owed by the applicant where the declaration is a condition of obtaining the loan.
2:
3:
4: No
5: In this section,— authorised person
a: the Commissioner or an officer of the Inland Revenue Department who is authorised by the Commissioner to disclose and receive information under this section; or
b: an employee of a tertiary institution who is authorised by the chief executive to disclose and receive information under this section; or
c: the chief executive, or an officer of the specified department who is authorised by the chief executive to disclose and receive information under this section; or
d: the Secretary of Education, or an officer of the Ministry of Education who is authorised by the Secretary of Education to disclose and receive information under this section; or
e: the loan manager, or an employee of the loan manager who is authorised by the chief executive to disclose and receive information under this section specified department Social Security Act 2018 1992 No 141 s 62 Section 207(1) replaced 31 August 2017 section 379(1) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 207(2) repealed 31 August 2017 section 379(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 207(3) repealed 31 August 2017 section 379(2) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 207(4) amended 31 August 2017 section 379(3) Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 Section 207(5) specified department amended 26 November 2018 section 459 Social Security Act 2018
208: Disclosure of information between Inland Revenue Department and New Zealand Customs Service for information-matching purposes
1: The purpose of this section is to facilitate the exchange of information between the Inland Revenue Department and the New Zealand Customs Service for the purpose of establishing an information-matching programme to assist the Commissioner to—
a: verify whether borrowers are New Zealand-based or overseas-based; and
b: verify whether borrowers are New Zealand residents; and
c: locate, when they enter or leave New Zealand, borrowers who are in serious default section 306
2: For the purpose of this section, the Commissioner may provide to the chief executive of the New Zealand Customs Service any of the following information that is held by the Inland Revenue Department:
a: a borrower's name or any other name by which a borrower is known:
b: a borrower's date of birth:
c: a borrower's tax file number:
d: a borrower’s passport number.
3: The Commissioner and the chief executive of the New Zealand Customs Service may, for the purpose of this section, determine by written agreement between them—
a: the frequency with which information may be supplied; and
b: the form in which information may be supplied; and
c: the method by which information may be supplied.
4: Subsection (2) applies despite any obligation as to secrecy or other restriction imposed by any enactment or otherwise on the disclosure of information.
5: On or after 1 December 2020
a: an information matching agreement entered into under Part 10 clause 11
b: an approved information sharing agreement entered into under subpart 1 1992 No 141 s 62A Section 208(1) replaced 30 March 2013 section 37 Student Loan Scheme Amendment Act 2013 Section 208(1)﻿(c) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 208(2)﻿(d) inserted 1 October 2021 section 190 Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 Section 208(5) inserted 1 December 2020 section 190 Privacy Act 2020
209: Power of Commissioner to access arrival or departure information
In accordance with, and for the purpose set out in, section 312 1992 No 141 s 62B Section 209 amended 1 October 2018 section 443(3) Customs and Excise Act 2018
209A: Disclosure of information to Australian Taxation Office in relation to borrowers who are, or may be, overseas-based
1: The purpose of this section is to facilitate the exchange of information between the Inland Revenue Department and the Australian Taxation Office for the purposes of assisting the Commissioner to—
a: obtain or verify contact details of borrowers who are, or may be, overseas-based; and
b: administer the student loan scheme in relation to those borrowers.
2: For those purposes, the Commissioner may provide the information set out in subsection (3) to a person who is—
a: an officer, employee, or agent of the Australian Taxation Office; and
b: authorised to receive the information by the chief executive officer of the Australian Taxation Office.
3: The information is—
a: a borrower’s name or any other name by which a borrower is known:
b: a borrower’s date of birth:
c: a borrower’s tax file number:
d: a borrower’s last known address and contact details:
e: any other information that the Commissioner considers relevant for the purposes referred to in subsection (1)﻿(a) and (b).
4: This section applies despite any obligation as to secrecy or other restriction imposed by any enactment or otherwise on the disclosure of information. Section 209A inserted 14 May 2016 section 27 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Informing and notifying under this Act
210: Meaning of inform
1: A requirement in this Act for a person to inform person B
a: by—
i: providing the information free of charge on an Internet site that allows person B to access the information at all reasonable times; and
ii: making the information available for inspection free of charge, and for purchase at a reasonable price, at each office of the Inland Revenue Department during the period from 8 am to 4.30 pm each working day; or
b: by giving public notice.
2: Despite subsection (1)﻿(b), public notice must not be given for the purposes of section 19
211: Meaning of notify
1: A requirement in this Act for a person to notify
a: that is printed, typewritten, or otherwise visibly represented, copied, or reproduced on paper and is given by personal delivery, post; or
b: by telephone; or
c: made orally in person in a manner acceptable to the Commissioner; or
d: by an electronic means, if Part 4
e: in any other manner acceptable to the Commissioner.
2: However, it does not include a communication on the Internet, or by other means, if the person for whom the communication is intended is not directly alerted to it in some manner.
3: A notification that is given by post is treated as having been given at the time the notification would have been delivered in the ordinary course of the post.
4: Despite subsection (1)﻿(d) of this section, section 6 sections 220 224 Section 211(1)﻿(a) amended 30 March 2022 section 265(a) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 211(1)﻿(d) amended 30 March 2022 section 265(b) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 211(1)﻿(d) amended 1 September 2017 section 347 Contract and Commercial Law Act 2017 Section 211(4) amended 1 September 2017 section 347 Contract and Commercial Law Act 2017
212: Meaning of notify a person in writing
1: A requirement in this Act for a person to notify a person in writing
a: that is printed, typewritten, or otherwise visibly represented, copied, or reproduced on paper and is given by personal delivery, post; or
b: by an electronic means, if Part 4
c: in any other manner acceptable to the Commissioner.
2: However, it does not include a communication on the Internet, or by other means, if the person for whom the communication is intended is not directly alerted to it in some manner.
3: A notification in writing that is given by post is treated as having been given at the time the notification would have been delivered in the ordinary course of the post.
4: Despite subsection (1)﻿(b) section 6 sections 220 224 Section 212(1)﻿(a) amended 30 March 2022 section 266(a) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 212(1)﻿(b) amended 30 March 2022 section 266(b) Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 212(1)﻿(b) amended 1 September 2017 section 347 Contract and Commercial Law Act 2017 Section 212(4) amended 1 September 2017 section 347 Contract and Commercial Law Act 2017
213: Meaning of formally notify
Section 213 repealed 14 May 2016 section 28 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
214: Notice requirements of Tax Administration Act 1994 do not apply
Sections 210 to 212 sections 14 to 14G Section 214 amended 2 June 2016 section 225 Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 Section 214 amended 14 May 2016 section 29 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Regulations
215: Regulations
1: The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:
a: prescribing the amount of the annual repayment threshold, or a means by which it may be calculated or ascertained:
b:
c: prescribing the repayment percentage, or a means by which it may be calculated or ascertained:
d: specifying further information requirements in accordance with sections 10(2)﻿(d) 13(i) 16(2)﻿(a)﻿(viii) 16A(1)﻿(e) 107A(2)﻿(e)
e: prescribing the amount of a student loan establishment fee charged under section 14
f: prescribing the amount of a threshold or the amount of a repayment obligation that is to apply in place of those set out in section 110(2) to (4)
g: prescribing the level of unpaid amount on which a borrower is liable to pay late payment interest under section 139(1)
h: prescribing the amount of an annual administration fee charged under section 189
i: providing for any other matters contemplated by this Act, necessary for its administration, or necessary for giving it full effect.
2: Regulations under this section are secondary legislation ( see Part 3 1992 No 141 s 87 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 215(1)﻿(b) repealed 14 May 2016 section 30 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Section 215(1)﻿(d) replaced 30 March 2013 section 38 Student Loan Scheme Amendment Act 2013 Section 215(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
216: Transitional regulations
2015-04-02 Student Loan Scheme Act 2011 see 216(3) above Section 216 repealed 2 April 2015
217: Application of Legislation Act 2012
Section 217 repealed 28 October 2021 section 3 Secondary Legislation Act 2021 Savings and transitional provisions
218: Transitional provisions concerning loan manager and loan advances
2012-04-01 Student Loan Scheme Act 2011 see 218(2) above Section 218 repealed 1 April 2012
219: Early applications and issue of certificates for transition to this Act
Section 219 repealed 1 April 2013 section 69 Student Loan Scheme Amendment Act 2013
220: Application, savings, and transitional provisions
1: The application, savings, and transitional provisions set out in Schedule 6
2: The application, savings, and transitional provisions relating to this Act and the amendment Acts specified in the first column of the following table are set out in the Parts of Schedule 6 The following table is small in size and has two columns. Column 1 is headed Principal Act and Amendment Acts. Column 2 is headed Part of Schedule 6. Principal Act and Amendment Acts Part of Schedule 6 Principal Act Principal Act as enacted Part 1 Amendment Acts Provisions relating to Student Loan Scheme Amendment Act 2013 Part 2 Provisions relating to Student Loan Scheme Amendment Act 2014 Part 3 Provisions relating to Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Part 4 Provisions relating to Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Part 5 Section 220 replaced 30 March 2013 section 39 Student Loan Scheme Amendment Act 2013 Section 220(2) table amended 1 April 2020 section 78 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Section 220(2) table amended 14 May 2016 section 31 Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 Consequential amendments and repeals
221: Amendments to this Act
2013-04-01 Student Loan Scheme Act 2011 Commencement date for Schedule 7 (unless brought into force earlier by OIC). Section 221 repealed 30 March 2013 section 40 Student Loan Scheme Amendment Act 2013
222: Amendments to Student Loan Scheme Act 1992 and Credit Contracts and Consumer Finance Act 2003
The Acts specified in Schedule 8 2011-08-30 Student Loan Scheme Act 1992 Credit Contracts and Consumer Finance Act 2003
223: Amendments to other Acts
The Acts specified in Schedule 9 2012-04-01 Accident Compensation Act 2001 Companies Act 1993 Corrections Act 2004 Credit Contracts and Consumer Finance Act 2003 Customs and Excise Act 1996 District Courts Act 1947 Education Act 1989 Electoral Act 1993 Income Tax Act 2007 Insolvency Act 2006 Judicature Act 1908 KiwiSaver Act 2006 Prisoners' and Victims' Claims Act 2005 Privacy Act 1993 Social Security Act 1964 Tax Administration Act 1994
224: Amendments to other enactments
The enactments specified in Schedule 10 2012-04-01 District Courts Rules 2009 Education (Early Childhood Services) Regulations 2008 Inland Revenue Department (Drafting) Order 1995 Sentencing (Orders of Reparation) Order 2006 Student Allowances Regulations 1998
225: Student Loan Scheme Act 1992 repealed
The Student Loan Scheme Act 1992 2012-04-01 Student Loan Scheme Act 1992
226: Regulations revoked
1: The Credit Contracts and Consumer Finance (Student Loan Contract Exemption) Regulations 2010
2: The Student Loan Scheme (Charitable Organisations) Regulations 2006
3: The Student Loan Scheme (Repayment Threshold) Regulations 2008 2011-08-30 Credit Contracts and Consumer Finance (Student Loan Contract Exemption) Regulations 2010 2012-04-01 Student Loan Scheme (Charitable Organisations) Regulations 2006 Student Loan Scheme (Repayment Threshold) Regulations 2008