Student Loan Scheme Amendment Act 2013

1: Title
This Act is the Student Loan Scheme Amendment Act 2013.
2: Commencement
1: Sections 6 7(1) and (3) 11 12 14 16(1) to (3) 17 18 24 26 27 34(2) 41 42 43(5) 44 45 52
2: The rest of Part 1
a: the day after the date that this Act receives the Royal assent; and
b: 1 April 2013.
3: Part 2 1 April 2013
4: Part 3 1 April 2014
1: Amendments to principal Act
3: Principal Act
This Act amends the Student Loan Scheme Act 2011 principal Act 2013-03-30 Student Loan Scheme Act 2011 Sections 6, 7(1) and (3), 11, 12, 14, 16(1) to (3), 17, 18, 24, 26, 27, 34(2), 41, 42, 43(5), 44, 45, and 52 are deemed to have come into force on 1 April 2012. The rest of Part 1 comes into force on the earlier of—the day after the date that this Act receives the Royal assent 2013-04-01 Student Loan Scheme Act 2011 Part 2 comes into force on 1 April 2013 2014-04-01 Student Loan Scheme Act 2011 Part 3 comes into force on 1 April 2014
4: Application of provisions deemed to have come into force on 1 April 2012
The provisions of this Act that are deemed to have come into force on 1 April 2012 apply for the 2012–2013 and later tax years.
5: Section 2 amended (Commencement)
Repeal section 2(5)
6: Section 4 amended (Interpretation)
1: In section 4(1) adjusted net income section 88A section 73
2: In section 4(1) end-of-year repayment obligation sections 76 and 76A section 77 or 78 .
3: In section 4(1) declaration of pre-taxed income pre-taxed income adjusted net income
4: In section 4(1) interim payment interim payment section 82 or 83 section 84 or 85 .
5: In section 4(1) net pre-taxed income other income other income repayment obligation pre-taxed repayment obligation remaining repayment
6: In section 4(1) repayment obligation
c: an end-of-year repayment obligation: .
7: In section 4(1) 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 terminal payment section 80 and section 81 or 85 .
8: Replace section 4(2)
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 of the Income Tax Act 2007, as applied by section 86 Schedule 4
7: Section 5 amended (Meaning of unpaid amount)
1: Replace section 5(1)﻿(a)
a: a terminal payment: .
2: In section 5(2) due date
ii: if the Commissioner has determined the instalments that must be paid under section 112(3) 115A .
3: In section 5(2) interim payment default pre-taxed repayment obligation or other income repayment obligation end-of-year repayment obligation
4: In section 5(2) overseas-based instalment default overseas-based instalment default
8: New section 8A inserted (Application of provisions of Act)
After section 8
8A: Application of provisions of Act
Schedule 6 contains application, savings, and transitional provisions that affect this Act's other provisions as from time to time amended, repealed, and replaced ( see section 220
9: Section 15 amended (Right to cancel loan contract)
1: In section 15(1)﻿(b) ; and
2: Repeal section 15(1)﻿(c)
10: Section 28 amended (Borrower to notify Commissioner of absence from New Zealand of 184 or more days)
After section 28(2)
3: See section 193C
11: Section 31 amended (Repayment obligations that apply to New Zealand-based borrowers and overseas-based borrowers)
In section 31(1)﻿(a) subparts 1 to 3 subparts 1 and 2
12: Section 32 amended (Interrelationship between subparts 1 to 3)
1: In the heading to section 32 1 to 3 1 and 2
2: Replace section 32(3) to (8)
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 and 2
13: Section 67 amended (Procedure if significant over-deduction made)
In section 67(2) in writing
14: Subparts 2 and 3 of Part 2 replaced
Replace subparts 2 3
2: Repayment obligations for New Zealand-based borrowers with income other than, or as well as, salary or wages
72: Application of this subpart
This subpart applies to the following New Zealand-based borrowers, other than new borrowers:
a: borrowers who derive $1,500 or more of adjusted net income for a tax year and who have income from adjusted net income and salary or wages (if any) for that tax year of $1,500 or more above the annual repayment threshold:
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 of the Tax Administration Act 1994 for that tax year.
73: Meaning of adjusted net income
1: In this Act, adjusted net income a = b − c where— a is the borrower's adjusted net income b is the borrower's annual gross income other than from salary or wages c is the borrower's annual total deductions.
2: However, the income and deductions for any investment activity, or for any business, for a tax year are ignored when calculating a borrower's adjusted net income for that tax year if, treating the borrower as having only the income and deductions of that investment activity or of that business, the borrower would have a net loss for that year.
3: For the purposes of applying subsection (2)
4: For the purposes of applying subsection (2) subsection (3)
5: Subsections (2) to (4)
6: In this section,— business investment activity
74: Declaration of adjusted net income
1: If this subpart applies to a borrower and the borrower is not required to file a return of his or her income for the tax year or provide details of his or her annual gross income and annual total deductions under section 114, the borrower must make a declaration of the borrower's adjusted net income.
2: The declaration of adjusted net income must be made—
a: by notifying the Commissioner in a manner acceptable to the Commissioner; and
b: on or before—
i: 7 July in the tax year following the tax year in which the adjusted net income was derived; or
ii: if the borrower has received an extension of time to make the declaration in accordance with section 75
iii: if the Commissioner has granted the borrower an extension of time to make the declaration (other than in accordance with section 75
75: Extension of time for making declaration of adjusted net income
A borrower may apply to the Commissioner for an extension of time for the making of a declaration of adjusted net income in accordance with section 37(3) to (5) of the Tax Administration Act 1994, and those subsections apply, as far as applicable and with all necessary modifications, as if—
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 declaration of adjusted net income.
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: his or her return of income for that tax year; or
b: details of his or her annual gross income and annual total deductions under section 114; or
c: his or her declaration 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 applies if there is an inconsistency between this subpart and the loan contract.
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, and 85
c: the amounts, if any, that must be paid on or before those due dates. 1992 No 141 s 15
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)
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.
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.
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 made a declaration of adjusted net income for a tax year, provided a return of income, or provided details of his or her annual gross income and annual gross deductions under section 114 for a tax year, and the amount of 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 or 83
b: on or before the due dates determined in accordance with section 84 or 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.
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 or 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.
81: Due date for terminal payment
A borrower must pay his or her terminal payment on or before the borrower's terminal tax date
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 or 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 make a declaration 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
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) of the Income Tax Act 2007 if, for the immediately preceding tax year, the borrower did not provide—
a: his or her return of income; or
b: details of his or her annual gross income and annual total deductions under section 114; or
c: his or her declaration of adjusted net income under section 74
2: Section 82 subsection (1)
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 to determine his or her provisional tax for a tax year and that year is not a transitional year for the borrower, 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:
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
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, 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.
3: In this section, GST ratio transitional year
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 or 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 and 84 1992 No 141 s 30(2)
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
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)
15: Section 110 amended (Repayment obligations of overseas-based borrowers)
1: Replace section 110(1)
1: This section applies to an overseas-based borrower who—
a: is not or is no longer entitled to a repayment holiday under section 107B or 108A(2); and
b: has not had his or her overseas-based repayment obligation reassessed under section 115A
2: Replace section 110(6)﻿(a) and (b)
a: if a borrower was not overseas-based at the start of the tax year, the borrower's consolidated loan balance on the date on which the borrower became overseas-based; 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 consolidated 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 for the previous year; and
iii: subtracting any 10% bonus the borrower is entitled to under Part 3 for an excess repayment for the previous year.
16: Section 111 amended (Exceptions to repayment obligations of overseas-based borrowers)
1: Replace section 111(5)﻿(a)
a: for the first tax year during a period when section 110 applies to a borrower, the sum determined by—
i: including the borrower's loan balance on the day on which that section first applies to the borrower in that period; 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 .
2: In section 111(5)﻿(b)﻿(iii) previous year ; and
3: In section 111(5)﻿(b)
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.
4: Replace section 111(4)
4: This section overrides section 110.
5: Replace section 111(5)
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 for the previous year; and
iii: subtracting any 10% bonus the borrower is entitled to under Part 3 for an excess repayment for the previous year; and
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.
17: Section 112 amended (Repayment to be made by instalments)
Replace section 112(3)
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.
18: Section 114 amended (Notification of worldwide income by New Zealand-based non-resident borrowers)
Replace section 114(3)﻿(a)
a: a declaration of adjusted net income; or .
19: Section 115 amended (Repayment obligations of borrowers who are overseas-based for part of tax year)
In section 115(2) despite anything to the contrary in this Act , except as provided in section 115A
20: New section 115A inserted (Reassessment of overseas-based borrower's repayment obligations in year of return to New Zealand)
After section 115
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, as if the borrower were New Zealand-based from the date notified by the borrower under subsection (1)﻿(c)
b: section 109(6) and (7) apply to the reassessment as if it were an assessment under that section.
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)
21: Section 120 amended (Commissioner must notify borrower of excess repayment)
Replace section 120(1)
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.
22: Section 132 amended (Borrower may receive refund or apply excess repayment to future repayment obligations)
Replace section 132(2)
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.
23: Section 134 amended (Loan interest charged for all borrowers)
1: In section 134(2 the formula (except as provided in subsection (3)
2: After section 134(2)
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.
24: Section 144 amended (Power of Commissioner in relation to small amounts)
1: In section 144(1)﻿(c) collecting a repayment obligation (or part of a repayment obligation)
2: In section 144(2)﻿(a) is more than $20 is $20 or more
3: Replace section 144(3)﻿(a)
a: under subsection (1)﻿(c) is written off: .
25: Section 154 amended (Application for instalment arrangement)
In section 154(1)﻿(a) an unpaid amount; and an unpaid amount or an amount that is not yet due; and
26: Section 155 amended (Late filing penalty for certain declarations)
Replace section 155(5)
5: In this section, declaration
27: Section 156 amended (Due dates for payment of late filing penalty)
In section 156(b) and (c) or 114A
28: Section 160 replaced (Notification of student loan shortfall penalty)
Replace section 160
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)
29: Section 161 amended (Student loan shortfall penalty reduced or removed to reflect change to shortfall penalty)
In section 161(1)﻿(a) a borrower disputes or
30: Cross-heading above section 174 replaced
Replace the cross-heading above section 174 Rights to challenge and challenge procedures .
31: New section 174A inserted (Part 8A of Tax Administration Act 1994 applies to challenges under this Act)
After section 174
174A: Part 8A of Tax Administration Act 1994 applies to challenges under this Act
The procedures under Part 8A of the Tax Administration Act 1994 apply, with all necessary modifications, to a challenge of a matter under this Act.
32: New section 182A inserted (Challenge to decision concerning repayment holiday)
After section 182
182A: Challenge to decision concerning repayment holiday
A borrower may challenge a decision by the Commissioner under section 107B not to grant the borrower a repayment holiday, on the ground that the decision is not fair and reasonable.
33: Section 188 repealed (Commissioner's decision on challenges)
Repeal section 188
34: Section 191 amended (Limit on repayment obligation for pay period or tax year)
1: In section 191(1) derives only derives
2: After section 191(3)
3A: For the purposes of subsections (1) and (2), the amount of the borrower's loan balance on the day referred to in each of those provisions must be determined by 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.
35: New section 193C inserted (Changes relating to contact details of borrower)
After section 193B
193C: Changes relating to contact details of borrower
If there is a change in any of the borrower's contact details, the borrower must promptly notify the Commissioner of the changed details.
36: Section 204 amended (Commissioner may exercise rights in loan contracts to recall loans)
In section 204(3)﻿(c) before or after before, on, or after
37: Section 208 amended (Disclosure of information between Inland Revenue Department and New Zealand Customs Service for information-matching purposes)
Replace section 208(1)
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
38: Section 215 amended (Regulations)
Replace section 215(d)
d: specifying further information requirements in accordance with sections 10(2)﻿(d), 13(i), 16(2)﻿(a)﻿(viii), 16A(1)﻿(e), or 107A(2)﻿(e): .
39: New section 220 replaced (Savings and transitional provisions)
Replace section 220
220: Application, savings, and transitional provisions
1: The application, savings, and transitional provisions set out in Schedule 6 have effect for the purposes of this Act.
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 specified in the second column of the table: 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
40: Section 221 repealed (Amendments to this Act)
Repeal section 221
41: Schedule 3 repealed
Repeal Schedule 3
42: Schedule 4 replaced
Replace Schedule 4 Schedule 2
43: Schedule 6 amended
1: This section amends Schedule 6
2: Replace the Schedule 6
6: ss 8A, 220 Application, savings, and transitional provisions
1: Provisions relating to principal Act as enacted
Savings provisions .
3: After clause 2
2A: Commissioner must not collect amount assessed as repayment obligation of certain borrowers for 2011–2012 tax year
1: The purpose of this clause is to ensure that the substantive effect of the provisions of the Student Loan Scheme Act 2011 (Transitional Provisions) Regulations 2012 continues, including beyond 1 April 2015, in respect of borrowers to whom those regulations applied before they were revoked by section 53
2: This clause applies if—
a: a person became a borrower under the student loan scheme for the first time in the period starting on 1 January 2012 and ending on the close of 31 March 2012; or
b: a person is a person to whom all of the following apply:
i: the person had been a borrower under the student loan scheme before the 2011–2012 tax year; and
ii: the person fully repaid his or her loan before the start of the 2011–2012 tax year; and
iii: the person again became a borrower under the student loan scheme in the period starting on 1 January 2012 and ending on the close of 31 March 2012.
3: Despite clause 2, any other provision of this Act, and anything in the Student Loan Scheme Act 1992,—
a: the Commissioner must refrain from collecting the amount that the Commissioner assesses, under section 15 of the Student Loan Scheme Act 1992, as the borrower's repayment obligation for the 2011–2012 tax year; and
b: the amount that the Commissioner refrains from collecting under paragraph (a)
4: Replace clause 6(1)
1: Any amount that the Commissioner has refrained from collecting from the borrower in accordance with section 51(3) of the Student Loan Scheme Act 1992 and that remains unpaid on the close of 31 March 2012 is added to a borrower's loan balance under this Act.
5: Replace clause 12(1)
1: This clause applies if—
a: a borrower—
i: has entered into an instalment arrangement with the Commissioner on or before 31 March 2012 in relation to an amount (the instalment amount
ii: some of the payments that are required under the instalment arrangement must be paid on or after 1 April 2012; or
b: a borrower—
i: has entered into an instalment arrangement with the Commissioner under this Act between 1 April 2012 and 31 March 2013 (inclusive) in relation to an amount (the instalment amount
ii: some of the payments that are required under the instalment arrangement must be paid on or after 1 April 2013.
6: After clause 15
Part 2: Transitional provision relating to Student Loan Scheme Amendment Act 2013
.
7: After the new Part 2 heading, insert:
16: Interpretation
In this Part amendment Act principal Act
17: Regulations for transitional purposes
1: In this clause, transition
2: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations prescribing transitional provisions for the purpose of facilitating or ensuring an orderly transition.
3: Regulations made under this clause may—
a: provide that, subject to such conditions as may be specified in the regulations, 1 or more provisions (including definitions) of the amendment Act do not apply, or apply with modifications or additions:
b: provide that, subject to such conditions as may be specified in the regulations, 1 or more provisions repealed, amended, or revoked by the amendment Act are to continue to apply, or apply with modifications or additions, as if they had not been repealed, amended, or revoked:
c: provide for any other matter necessary to facilitate or ensure an orderly transition.
4: The Minister must not recommend the making of regulations unless the Minister is satisfied that the regulations—
a: are reasonably necessary for the purpose of facilitating or ensuring an orderly transition; and
b: are consistent with the purposes of the principal Act.
5: Regulations made under this clause must include a date on which the regulations are revoked, and that date must be the earlier of—
a: 3 years after the date on which they are made; and
b: the close of 31 March 2018.
6: This clause is repealed on 1 April 2018.
44: Consequential amendments to principal Act
Amend the principal Act as set out in Schedule 1 Amendments to other Acts
45: Accident Compensation Act 2001 amended
1: This section amends the Accident Compensation Act 2001
2: In section 123(2)﻿(i) subparts 1 to 3 subparts 1, 2, 2013-03-30 Accident Compensation Act 2001 deemed to have come into force on 1 April 2012
46: Customs and Excise Act 1996 amended
Sections 47 to 49 2013-03-30 Customs and Excise Act 1996
47: Section 280G amended (Defined terms for sections 280H and 280I)
In section 280G serious default unpaid amount
48: Section 280H amended (Disclosure of arrival and departure information for purposes of Student Loan Scheme Act 2011)
1: Replace section 280H(1)
1: The purpose of this section is to facilitate the exchange of information between the Customs and the Department for the purposes of assisting the Commissioner to—
a: verify whether borrowers are New Zealand-based or overseas-based for the purposes of the Student Loan Scheme Act 2011:
b: verify whether borrowers are New Zealand residents for the purposes of that Act:
c: locate, when they enter or leave New Zealand, borrowers who are in serious default in relation to a student loan.
2: After section 280H(4)﻿(d)
e: information provided by the borrower when arriving in or, as the case may be, departing from New Zealand.
49: Section 280I amended (Direct access to arrival and departure information for purposes of Student Loan Scheme Act 2011)
Replace section 280I(1)
1: The purpose of this section is to facilitate the Department's access to information stored in a database for the purpose of assisting the Commissioner to—
a: verify whether borrowers are New Zealand-based or overseas-based for the purposes of the Student Loan Scheme Act 2011:
b: verify whether borrowers are New Zealand residents for the purposes of that Act:
c: verify whether borrowers are in New Zealand for the purposes of that Act:
d: locate, when they enter or leave New Zealand, borrowers who are in serious default in relation to a student loan.
50: Privacy Act 1993 amended
1: This section amends the Privacy Act 1993
2: Replace section 103(1C)
1C: Nothing in subsection (1) prevents the Commissioner of Inland Revenue from immediately taking action to recover amounts relating to—
a: unpaid amounts owed to the Commissioner by an individual who is in serious default identified in information supplied to the Commissioner under section 280H of the Customs and Excise Act 1996; or
b: financial support under the Child Support Act 1991 owed to the Commissioner by an individual who is identified in information supplied to the Commissioner under section 280K or 280L of the Customs and Excise Act 1996. 2013-03-30 Privacy Act 1993
51: Student Loan Scheme Amendment Act 2012 amended
1: This section amends the Student Loan Scheme Amendment Act 2012
2: Repeal sections 2(3) 57 2013-03-30 Student Loan Scheme Amendment Act 2012
52: Tax Administration Act 1994 amended
1: This section amends the Tax Administration Act 1994
2: In section 3(1) tax a pre-taxed repayment obligation, an other income repayment obligation, an end-of-year repayment obligation
3: In the Schedule Stamp Duty Abolition Act 1999 Student Loan Scheme Act 1992 2013-03-30 Tax Administration Act 1994 deemed to have come into force on 1 April 2012 Revocation
53: Revocation
The Student Loan Scheme Act 2011 (Transitional Provisions) Regulations 2012 2013-03-30 Student Loan Scheme Act 2011 (Transitional Provisions) Regulations 2012
2: Amendments to principal Act that apply for 2013–2014 and later tax years
54: Section 4 amended (Interpretation)
1: In section 4(1) loan balance
iva: an underestimation penalty; and .
2: In section 4(1) repayment obligation
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: .
3: In section 4(1) underestimation penalty section 161A .
55: Section 5 amended (Meaning of unpaid amount)
1: In section 5(1)﻿(e) 1992 1992:
2: After section 5(1)﻿(e)
f: an amount that must be paid by a borrower in accordance with a written notification under section 52:
g: a late filing penalty:
h: a student loan shortfall penalty:
i: an underestimation penalty.
56: Section 117 repealed (Overseas-based borrower's standard and Commissioner deductions satisfy overseas-based repayment obligation)
Repeal section 117
57: Section 119 replaced (Meaning of excess repayment)
Replace section 119
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); and
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 had not been granted; and
d: disregard any fee refunded by an education provider to the loan manager or the Commissioner.
58: Section 139 amended (Late payment interest charged on unpaid amount)
1: In section 139(2)﻿(a) 0.843% of the late payment interest rate multiplied by
2: After section 139(2)
3: In this section, late payment interest rate
59: Section 141 replaced (Monthly late payment interest written off if instalment arrangement complied with)
Replace section 141
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)
60: Section 145 amended (Application of different types of relief for borrower)
After section 145(1)﻿(a)
ab: relief from a penalty ( see section 146A .
61: Section 146 replaced (Commissioner may grant relief from late payment interest)
Replace section 146
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) for relief from late payment interest.
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 (whether calculated at the full late payment interest rate in accordance with section 139(2) or the reduced late payment interest rate in accordance with 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 1992 No 141 s 53 .
62: New section 146A and cross-heading inserted
After section 146 Relief from penalties
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 filing penalty:
ii: an underestimation penalty:
iii: a student loan shortfall penalty; but
b: despite paragraph (a)﻿(iii)
63: Section 147 amended (Hardship relief for any tax year)
Replace section 147(2
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 in relation to the tax year that the repayment obligation relates to; and
ii: for the purposes of the application of section 159 (as set out in section 158), the shortfall penalty for which the borrower was liable was imposed under section 141D or 141E of the Tax Administration Act 1994.
64: Section 159 amended (Commissioner may impose loan shortfall penalties)
In section 159(2) b is the amount of the repayment obligation shortfall (treating any relief granted under section 147 as if it had not been granted) .
65: New section 161A and cross-heading inserted
After section 161 Underestimation penalty
161A: Underestimation penalty where interim payments underestimated as at last interim payment date
1: A borrower is liable to pay an underestimation penalty if the borrower has estimated his or her end-of-year repayment obligation in respect of a tax year and, on the due date for the borrower's last interim payment for the tax year,—
a: the estimate applying is less than 80% of the borrower's end-of-year repayment obligation and is less than the borrower's total interim payments would have been had the borrower not estimated; and
b: the amount of the interim payments made on or before the due date for the borrower's last interim payment is less than 80% of the borrower's end-of-year repayment obligation for the year.
2: The amount of the underestimation penalty is calculated in accordance with the formula— a = (b − c) × 10% where— a is the amount of the underestimation penalty b is the borrower's end-of-year repayment obligation for the tax year c is the greater of—
i: the amount of the borrower's estimate, applying at the due date for payment of the last interim payment; and
ii: the amount of the interim payments paid on or before the due date for payment of the last interim payment.
3: A penalty imposed under this section is payable on or before the borrower's due date for payment of his or her terminal payment under section 81 or 85
66: Section 194 amended (Order in which salary or wage deduction offset against borrower's consolidated loan balance)
In section 194
2: The following must not be used to satisfy other repayment obligations, unpaid amounts, or penalties:
a: a standard deduction that is not a significant over-deduction:
b: a Commissioner deduction for the purposes of section 49(1)﻿(a) that does not exceed the total amount specified under section 49(2)﻿(b).
67: Section 196 amended (Cancellation of interest if consolidated loan balance repaid early)
1: In section 196(1)﻿(a) on or before 31 March 2013
2: Repeal section 196(4)
68: Section 197 replaced (Write-off of consolidated loan balance)
Replace section 197
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 less 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 .
69: Section 219 repealed (Early applications and issues of certificates for transition to this Act)
Repeal section 219
70: Schedule 7 repealed
Repeal Schedule 7
3: Amendments to principal Act that apply for 2014–2015 and later tax years
Amendments relating to meaning of adjusted net income
71: Section 4 amended (Interpretation)
In section 4(1) annual gross income annual total deduction pre-taxed income
72: Section 73 replaced (Meaning of adjusted net income)
Replace section 73
73: Meaning of adjusted net income
In this Act, adjusted net income net income Schedule 3 clause 15
73: Amendments consequential on repeal of definitions of annual gross income and annual total deduction
In the following provisions, replace annual gross income and annual total deductions adjusted net income sections 74(1) 76(1)﻿(b) 79(2)﻿(b) 83(1)﻿(b) 114(2) and (4) 114A(2) 202(d) Schedule 1 clause 11(2)
74: New Schedule 3 inserted
After Schedule 2 Schedule 3 Schedule 3 Amendments relating to repeal of provisions on 10% bonus
75: Section 111 amended (Exceptions to repayment obligations of overseas-based borrowers)
In section 111(5)﻿(b) subparagraph (iii)
76: Student Loan Scheme (Budget Measures) Amendment Act 2012 consequentially amended
1: This section amends the Student Loan Scheme (Budget Measures) Amendment Act 2012
2: In section 2(2) 8, 9 and 10(2) 8 and 10(2)
3: Repeal section 9 2014-04-01 Student Loan Scheme (Budget Measures) Amendment Act 2012