Student Loan Scheme Amendment Act (No 2) 2000

1: Title
1: This Act is the Student Loan Scheme Amendment Act (No 2) 2000.
2: In this Act, the Student Loan Scheme Act 1992 the principal Act
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
1: Amendments to principal Act
3: Sections 4 to 12 and 15 apply on and from 2000/01 income year
Sections 4 to 12 15
4: Interpretation
1: Section 2 collection
2: Section 2 administration collection
5: Repayment obligation for borrowers who are non-resident for part of income year
Section 35(2)
b: interest may be written off under sections 38A to 40
c: for the purpose of calculating an interest write-off under section 38B section 38B(1)(b) $24,596 × d/365 where d is the number of days in the period that the borrower is or was a resident.
6: New headings and sections 38A to 41 substituted
The principal Act is amended by repealing sections 39 to 41 section 39 Full interest write-off
38A: Full interest write-off for full-time, full-year students
1: A borrower is entitled to the full interest write-off in section 38C
a: of at least 32 weeks in duration in any 52-week period that ended during the income year; and
b: at least 80% of equivalent full-time study, as determined in accordance with the formula used for the purposes of the Education Act 1989
2: The conditions in section 38D
3: This section is subject to section 13 of the Student Loan Scheme Amendment Act (No 2) 2000
38B: Full interest write-off for part-time or part-year students
1: A borrower is entitled to the full interest write-off in section 38C
a: undertook a course of study approved under section 258 of the Education Act 1989 section 38A
b: had net income of $24,596 or less.
2: The conditions in section 38D
3: This section is subject to section 13 of the Student Loan Scheme Amendment Act (No 2) 2000
38C: Amount of full interest write-off
When section 38A or section 38B
a: the amount of interest calculated on the borrower's IRD loan balance at the total interest rate in respect of the income year; and
b: if the borrower had, under section 4
38D: Conditions for full-interest write-off
1: The full interest write-off in section 38C
a: if the borrower either completed the course, or did not complete the course but did not receive a refund of all or part of his or her tuition fee; and
b: in respect of a period for which the borrower is or was a resident; and
c: in respect of an income year in respect of which the borrower has given to the Commissioner such information as the Commissioner may reasonably require to determine the course of study undertaken by the borrower in that income year.
2: In addition, the full interest write-off applies to part-time or part-year students referred to in section 38B Base interest write-off
39: Base interest write-off where income below repayment threshold
1: This section applies in respect of an income year in which—
a: the net income of a borrower is less than or equal to the repayment threshold; and
b: the borrower is not entitled to an interest write-off under section 38A or section 38B
2: When this section applies, the following amounts of interest must be reduced to zero:
a: the amount of interest calculated on the borrower's IRD loan balance at the base interest rate in respect of the income year; and
b: if the borrower had, under section 4
3: This section is subject to section 41
4: Subsection (2) is subject to section 13 of the Student Loan Scheme Amendment Act (No 2) 2000 Interest reduction
40: Interest reduction where base interest exceeds 50% of repayment obligation
1: This section applies in respect of an income year in which—
a: the interest chargeable on a borrower's IRD loan balance at the base interest rate exceeds the amount that is 50% of the borrower's repayment obligation; and
b: the borrower is not entitled to an interest write-off under any of sections 38A to 39
2: When this section applies,—
a: if the borrower did not have, under section 4
b: if the borrower had, under section 4
i: the amount of interest calculated on the borrower's IRD loan balance at the base interest rate in respect of the income year; and
ii: any amount of interest calculated on that loan balance at the base interest rate in respect of a previous income year.
3: This section is subject to section 41
4: Subsection (2) is subject to section 13 of the Student Loan Scheme Amendment Act (No 2) 2000
41: Conditions for base interest write-off
The base interest write-off in section 39 section 40
a: a period for which the borrower is or was a resident; and
b: an income year in respect of which the borrower has given to the Commissioner a return of taxable income, or has responded to an income statement or other return prescribed by the Commissioner for the purpose of this section.
7: New section 50 substituted
The principal Act is amended by repealing section 50
50: Priority of payments
1: Fifty percent of any payment in respect of a repayment obligation must be off-set—
a: first, against any interest adjustment interest charged; and
b: secondly, against any principal outstanding.
2: The other 50% of the payment must be off-set—
a: first, against any base interest charged; and
b: secondly, against any interest adjustment interest charged; and
c: thirdly, against any principal outstanding.
8: New section 55 substituted
The principal Act is amended by repealing section 55
55: Power of Commissioner to write off base interest payable by non-resident
1: The Commissioner may write off, in whole or in part, the interest chargeable on a borrower's IRD loan balance at the base interest rate if, for an income year, the Commissioner—
a: has, in accordance with section 54
b: is satisfied that—
i: the borrower is a non-resident who, in that income year, is or has been engaged in full-time study outside New Zealand; and
ii: payment of the base interest chargeable for any period during which the borrower was, in the income year, engaged in full-time study outside New Zealand has caused or would cause serious hardship to the borrower.
2: This section applies—
a: despite section 41
b: only for an income year in which the borrower has not, under section 4
9: New section 59 substituted
The principal Act is amended by repealing section 59
59: Appropriation of refunds
A refund of repayment obligation or interest that has been paid in excess of the amount required under this Act may be made without further appropriation than this section.
10: Changes in balance dates producing income year other than 12 months
Section 61 ; and
c: for the purpose of calculating an interest write-off under section 38B section 38B(1)(b) $24,596 × b/365
11: Disclosure of information
1: Section 62
1A: For the purposes of subsection (2)(ab) and section 81(4)(g) of the Tax Administration Act 1994 authorised person
2: Section 62(2)
ab: an authorised person from disclosing to another authorised person the information specified in subsection (2AA) for the purpose of enabling the Commissioner to determine a borrower's entitlement to a full interest write-off under section 38A or section 38B
3: Section 62
2AA: For the purposes of subsection (2)(ab), the information that may be disclosed is—
a: the borrower's name, date of birth, and student identification number:
b: the duration of the course or courses of study undertaken by the borrower, and the percentage of equivalent full-time study of the course or courses (as determined in accordance with the formula used for the purposes of the Education Act 1989
c: whether the borrower completed the course or courses of study and, if not, whether the borrower received a refund of all or part of his or her tuition fee:
d: the identification number of the provider of the course or courses of study undertaken by the borrower:
e: the tax file number of the borrower:
f: any other particulars that the Commissioner considers relevant to the purposes of subsection (2)(ab).
12: Regulations
1: Section 87(1)
ba: amending the income amount used in sections 35(2), 38B(1)(b), and 61(c) .
2: Section 87(4) or subsection (1)(b) or subsection (1)(ba)
13: Transitional provision relating to interest write-offs for 2000/01 income year
Sections 38A to 41 section 6
a: 1 January 2000 on money advanced to a borrower under a student loan contract entered into on or after that date; and
b: 1 April 2000 on money advanced to a borrower under a student loan contract entered into before 1 January 2000.
2: Amendments to other Acts
Amendments to Tax Administration Act 1994
14: Tax Administration Act 1994 called principal Act in sections 15 to 17
In sections 15 to 17 Tax Administration Act 1994 the principal Act
15: Annual income tax returns not required
Section 33A(1)
g: is a person who, in an income year, has a nil IRD loan balance on the last day of the year; and
h: is not eligible to receive a full interest write-off under section 38B of the Student Loan Scheme Act 1992
i: is not eligible to receive a base interest write-off or reduction under section 39 or section 40 of the Student Loan Scheme Act 1992
16: Officers to maintain secrecy
Section 81(4)(g) subsection (2) , (2AA),
17: New section 85D inserted
The principal Act is amended by inserting, before section 86
85D: Ministry of Education to provide information as to study status of student loan borrowers
1: The purpose of this section is to facilitate the exchange of information between the Ministry and the Department for the purpose of verifying borrowers' entitlements to a full interest write-off under sections 38A and 38B of the Student Loan Scheme Act 1992
2: For the purpose of this section, the Secretary of Education, or any authorised officer of the Ministry, must,—
a: No later than the seventh working day in April in each year, provide the Commissioner with such of the information specified in subsection (3) that is requested by the Commissioner in respect of each borrower who has undertaken a course of study during a period that ended during the immediately preceding income year; and
b: within 7 working days of a request by the Commissioner, provide the Commissioner with such of the information specified in subsection (3) that is requested by the Commissioner in respect of any particular borrower who has undertaken a course of study.
3: For the purposes of subsection (2), the information that may be provided is—
a: the name, student identification number, and date of birth of the borrower:
b: the duration of the course or courses of study undertaken by the borrower, and the percentage of equivalent full-time study of the course or courses (as determined in accordance with the formula used for the purposes of the Education Act 1989
c: whether the borrower completed the course or courses of study and, if not, whether the borrower received a refund of all or part of his or her tuition fee:
d: the identification number of the provider of the course or courses of study undertaken by the borrower:
e: the tax file number of the borrower (if known):
f: any other particulars that the Commissioner considers relevant to the purpose of this section.
4: On receiving information from the Ministry under this section, the Commissioner may cause a comparison of the information to be made with the information held by the Commissioner that relates to that borrower in order to determine whether he or she is entitled to a full interest write-off under section 38A or section 38B of the Student Loan Scheme Act 1992
5: Despite section 81 Privacy Act 1993
6: In this section,— authorised officer of the Ministry borrower section 2 of the Student Loan Scheme Act 1992 Ministry Amendment to Privacy Act 1993
18: Schedule 3 of Privacy Act 1993 amended
Schedule 3 Privacy Act 1993 Tax Administration Act 1994 , and 85D