Student Loan Scheme Act 2011
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Version as at 1 April 2025
Student Loan Scheme Act 2011
Public Act |
2011 No 62 |
|
Date of assent |
29 August 2011 |
|
Commencement |
see section 2 |
Note
The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.
Note 4 at the end of this version provides a list of the amendments included in it.
This Act is administered by the Inland Revenue Department.
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Student Loan Scheme Act 2011.
2 Commencement
(1)
Sections 63, 215 to 217, 222, and 226(1) and Schedule 8 come into force on the day after the date on which this Act receives the Royal assent.
(2)
Section 219 comes into force on 1 March 2012.
(3)
Subpart 2 of Part 1, subpart 4 of Part 4, sections 173 to 175, 187, 188, 201, 210 to 214, and 218, and Schedule 5 come into force on 1 January 2012.
(4)
Sections 51 and 52 come into force on 1 April 2013.
(5)
[Repealed](6)
The rest of this Act comes into force on 1 April 2012.
Section 2(5): repealed, on 30 March 2013, by section 5 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Part 1 Preliminary matters, loan advances, and New Zealand-based and overseas-based borrowers
Subpart 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 has the meaning given to it in section 73
annual repayment threshold means—
(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 means the interest rate that applies for a tax year, calculated in accordance with the formula—
a% = b% + 1.74%
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 means a person who has received or been charged with a loan advance and who has not fully repaid his or her consolidated loan balance
borrower deduction means—
(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, for the purposes of subpart 5 of Part 4, has the same meaning as in section 3(1) of the Tax Administration Act 1994
charity—
(a)
means, for the purposes of section 25(1)(b), an entity that is listed as a charity at the relevant time; and
(b)
includes that entity’s international, national, and regional branches, offices, sections, organisations, affiliates, members, associations, and programmes at that relevant time
chief executive means the chief executive of the department that is, with the authority of the Prime Minister, for the time being responsible for the administration of the Social Security Act 2018
Commissioner means the Commissioner of Inland Revenue as defined in section 3(1) of the Tax Administration Act 1994
Commissioner deduction means a deduction from a borrower’s salary or wages in accordance with section 38
consolidated loan balance means the total amount incurred by a borrower and outstanding under the student loan scheme and this Act, consisting of—
(a)
the loan balance; and
(b)
any unpaid amount; and
(c)
any interest calculated and accrued under section 135(1)
employer has the same meaning as in paragraphs (a) and (b) of the definition of employer in section YA 1 of the Income Tax Act 2007
employer or PAYE intermediary means an employer or a person acting as a PAYE intermediary for the employer
end-of-year repayment obligation means the repayment obligation of a New Zealand-based borrower for the adjusted net income the borrower derives for a tax year, assessed in accordance with sections 76 and 76A and calculated in accordance with section 77 or 78
entity means the trustees of a trust, a society, or an institution
excess repayment has the meaning given to it in section 119
extra pay has the same meaning as in section RD 7 of the Income Tax Act 2007
final-year fees-free scheme has the same meaning as in section 3(1) of the Tax Administration Act 1994
formally notify has the meaning given to it in section 213
income tax has the same meaning as in section YA 1 of the Income Tax Act 2007
inform has the meaning given to it in section 210
interim payment means the amount that a borrower is obliged to pay towards the next tax year’s end-of-year repayment obligation in accordance with section 82 or 83 and section 84 or 85
late notification penalty means a penalty imposed under section 155
late payment interest means interest that a borrower is liable to pay under section 139(1)
lender means the Crown acting by and through the Minister who is, with the authority of the Prime Minister, for the time being responsible for the administration of the Social Security Act 2018
list means, in relation to an entity, to include the entity as a charity in the list kept under section 27A
loan advance means all—
(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; and
(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 means the debt created by the loan manager making or charging a loan advance to a borrower
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); and
(iii)
late filing penalties; and
(iv)
student loan shortfall penalties; and
(iva)
[Repealed](v)
annual administration fees charged under section 63L of the Student Loan Scheme Act 1992 or section 189 of this Act; and
(vi)
an amount that is added to the loan balance in accordance with clause 6 of Schedule 6; but
(b)
does not include an unpaid amount
loan contract means any loan agreement or contract entered into by the lender and the borrower under the student loan scheme
loan interest means interest that a borrower is liable to pay under section 134(1)
loan manager means any person who is appointed by the lender to make, charge, and administer loan advances under the student loan scheme
main income equalisation account has the same meaning as in section EH 36 of the Income Tax Act 2007
main income equalisation deposit means a payment made to the Commissioner on or after 1 April 2014 under section EH 4 of the Income Tax Act 2007, for which a deduction is allowed under section DQ 1 of that Act
main income equalisation refund means a refund under sections EH 8 to EH 26 of the Income Tax Act 2007, to the extent to which the refund—
(a)
relates to a deposit made on or after 1 April 2014; and
(b)
is not interest payable under section EH 6 of the Income Tax Act 2007
new borrower, in relation to a tax year, means—
(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 has the meaning given to it in section 22
New Zealand resident has the same meaning as in section YA 1 of the Income Tax Act 2007
non-resident means a person who is not a New Zealand resident
notify has the meaning given to it in section 211
notify a person in writing has the meaning given to it in section 212
overseas-based has the meaning given to it in section 23
overseas-based repayment obligation means the repayment obligation of an overseas-based borrower under subpart 4 of Part 2
pay period, for a borrower who receives a payment of salary or wages, means the period for which that payment is payable
PAYE intermediary has the same meaning as in section YA 1 of the Income Tax Act 2007
PAYE rules has the same meaning as in section YA 1 of the Income Tax Act 2007
primary employment earnings has the same meaning as in section 3(1) of the Tax Administration Act 1994, except that it—
(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 of the Income Tax Act 2007:
(ii)
salary or wages from employment as an election day worker, as defined in section YA 1 of the Income Tax Act 2007
provisional tax has the same meaning as in section YA 1 of the Income Tax Act 2007
provisional tax rules has the same meaning as in section YA 1 of the Income Tax Act 2007
regulations means regulations made under this Act
repayment obligation means the requirements of so much of the following as applies to a borrower for a particular tax year:
(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 means 12% or any other rate prescribed by regulations
return of income means a return of income required under section 33 of the Tax Administration Act 1994
salary or wage deduction means—
(a)
a standard deduction:
(b)
a Commissioner deduction:
(c)
a borrower deduction
salary or wages has the same meaning as in section RD 5 of the Income Tax Act 2007, except that it—
(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 of the Income Tax Act 2007; or
(ii)
an election day worker, as defined in section YA 1 of the Income Tax Act 2007
Schedule 3 adjustments has the meaning given to it in section 73
secondary employment earnings has the same meaning as in section 3(1) of the Tax Administration Act 1994, except that it—
(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 of the Income Tax Act 2007:
(ii)
salary or wages from employment as an election day worker, as defined in section YA 1 of the Income Tax Act 2007
significant over-deduction means a standard deduction that—
(a)
is more than the amount that is required to be deducted in accordance with section 37; and
(b)
exceeds the threshold determined by the Commissioner in accordance with section 63(1)
significant under-deduction means a standard deduction that—
(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; and
(b)
exceeds the threshold determined by the Commissioner in accordance with section 63(1)
special deduction rate means a special deduction rate specified in a special deduction rate certificate that is issued in relation to a borrower under—
(a)
section 45 (special deduction rate certificate for unused repayment threshold); or
(b)
[Repealed](c)
section 148 (special deduction rate certificate for hardship relief)
standard deduction means a deduction from a borrower’s salary or wages in accordance with section 36(2)
statement of adjusted net income and provides a statement of adjusted net income have the meaning given to them in section 73
student loan means any loan assistance provided to a borrower by means of a loan contract
student loan scheme means the scheme established by the Crown on 1 January 1992 to provide loan assistance to tertiary students, as amended from time to time
student loan shortfall penalty means a student loan shortfall penalty imposed on a borrower by the Commissioner under section 159
tax file number has the same meaning as in section YA 1 of the Income Tax Act 2007
tax year has the same meaning as in section YA 1 of the Income Tax Act 2007
terminal payment means the amount that a borrower is obliged to pay in relation to an end-of-year repayment obligation in accordance with section 80 and section 81 or 85
unpaid amount has the meaning given to it in 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 of the Income Tax Act 2007, as applied by section 86 and Schedule 4 of this Act.
Compare: 1992 No 141 ss 2, 38AE(1)(b)
Section 4(1) adjusted net income: inserted (with effect on 1 April 2012), on 12 April 2012, by section 5(7) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 4(1) adjusted net income: amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) annual gross income: repealed, on 1 April 2014 (applying for 2014–2015 and later tax years), by section 71 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) annual total deduction: repealed, on 1 April 2014 (applying for 2014–2015 and later tax years), by section 71 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) base interest rate formula: amended, on 1 April 2025, by section 44(2) of the Taxation (Budget Measures) Act 2024 (2024 No 19).
Section 4(1) borrower deduction: replaced (with effect on 1 April 2012), on 8 March 2014, by section 4 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
Section 4(1) charity: replaced, on 14 May 2016, by section 4(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) chief executive: amended, on 26 November 2018, by section 459 of the Social Security Act 2018 (2018 No 32).
Section 4(1) consolidated loan balance paragraph (b): amended (with effect on 1 April 2012), on 12 April 2012, by section 5(1) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 4(1) consolidated loan balance paragraph (c): inserted (with effect on 1 April 2012), on 12 April 2012, by section 5(1) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 4(1) declaration of adjusted net income: repealed, on 14 May 2016, by section 4(4) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) end-of-year repayment obligation: inserted (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) entity: inserted, on 14 May 2016, by section 4(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) final-year fees-free scheme: inserted (with effect on 1 January 2025), on 29 March 2025, by section 258(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 4(1) interim payment: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(4) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) late filing penalty: repealed, on 14 May 2016, by section 4(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) late notification penalty: inserted, on 14 May 2016, by section 4(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) lender: amended, on 26 November 2018, by section 459 of the Social Security Act 2018 (2018 No 32).
Section 4(1) list: inserted, on 14 May 2016, by section 4(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) loan balance paragraph (a)(iva): repealed, on 1 April 2020, by section 52(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 4(1) main income equalisation account: inserted, on 14 May 2016, by section 4(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) main income equalisation deposit: inserted, on 14 May 2016, by section 4(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) main income equalisation refund: inserted, on 14 May 2016, by section 4(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) net income: repealed (with effect on 1 April 2012), on 12 April 2012, by section 5(2) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 4(1) net pre-taxed income: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(5) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) new borrower: inserted (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(7) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) other income: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(5) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) other income repayment obligation: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(5) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) pre-taxed income: repealed, on 1 April 2014 (applying for 2014–2015 and later tax years), by section 71 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) pre-taxed repayment obligation: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(5) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) remaining repayment: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(5) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) repayment obligation paragraph (c): replaced, on 1 April 2013 (applying for 2013–14 and later tax years), by section 54(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) repayment obligation paragraph (d): replaced, on 1 April 2013 (applying for 2013–14 and later tax years), by section 54(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) repayment percentage: 12% prescribed as the rate for the purposes of this Act, on 1 April 2013, by regulation 3 of the Student Loan Scheme (Repayment Percentage) Regulations 2012 (SR 2012/192).
Section 4(1) Schedule 3 adjustments: inserted, on 14 May 2016, by section 4(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) significant over-deduction: amended (with effect on 1 April 2012), on 12 April 2012, by section 5(5) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 4(1) special deduction rate paragraph (b): repealed (with effect on 1 April 2012), on 12 April 2012, by section 5(6) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 4(1) statement of adjusted net income and provides a statement of adjusted net income: inserted, on 14 May 2016, by section 4(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 4(1) terminal payment: inserted (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(7) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 4(1) underestimation penalty: repealed, on 1 April 2020, by section 52(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 4(2): replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 6(8) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
5 Meaning of unpaid amount
(1)
In this Act, unpaid amount, in relation to a borrower, means each of the following to the extent that it, and any late payment interest that has been added to it under section 139(2), has not been paid on or before its due date and has not been decreased, reduced, or written off by the Commissioner:
(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 of this Act or section 63N of the Student Loan Scheme Act 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)
[Repealed](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 of the Income Tax Act 2007 as the date for payment of the third instalment:
(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), or 115A, the final date determined by the Commissioner; and
(c)
in all other cases, has its ordinary meaning
interim payment default means, as applicable,—
(a)
the lesser of—
(i)
the difference between 105% of a borrower’s end-of-year repayment obligation for an immediately preceding tax year and the amount of interim payments made for a tax year; and
(ii)
the difference between a borrower’s end-of-year repayment obligation for a tax year and the amount of interim payments made for that tax year; and
(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 means the sum of the instalments of an overseas-based borrower’s repayment obligations for a tax year that must be paid in accordance with subparts 4 and 5 of Part 2.
Section 5(1)(a): replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 7(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 5(1)(e): amended, on 1 April 2013, by section 55(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 5(1)(f): inserted, on 1 April 2013 (applying for 2013–14 and later tax years), by section 55(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 5(1)(g): replaced, on 14 May 2016, by section 5 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 5(1)(h): inserted, on 1 April 2013 (applying for 2013–14 and later tax years), by section 55(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 5(1)(i): repealed, on 1 April 2020, by section 53 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 5(2) due date paragraph (b)(ii): replaced, on 30 March 2013, by section 7(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 5(2) interim payment default paragraph (a)(i): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 7(3) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 5(2) interim payment default paragraph (a)(ii): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 7(3) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 5(2) overseas-based instalment default: replaced, on 30 March 2013, by section 7(4) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
6 Application of Act
(1)
This Act applies—
(a)
to all persons who—
(i)
are borrowers under the Student Loan Scheme Act 1992 on the close of 31 March 2012; or
(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, and Schedules 5 and 6 override subsection (1).
Compare: 1992 No 141 s 1(3)
7 Application of Act to bonded scholarships
(1)
An amount repayable under a bonded scholarship (the default amount), along with interest payable in accordance with the scholarship agreement, may be recovered under this Act as if—
(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 means an allowance or agreement that is declared under clause 11 of Schedule 9 of the Education and Training Act 2020 to be a bonded scholarship.
Compare: 1992 No 141 s 2A
Section 7(3): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
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).
Section 8A: inserted, on 30 March 2013, by section 8 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Subpart 2—Establishment of student loan
9 Purposes of sections 10, 11, 16, and 17
The purposes of sections 10, 11, 16, and 17 are to authorise the transfer of information between the loan manager and the Commissioner so as to—
(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 about an applicant for a student loan is consistent with the information held by the Commissioner; and
(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.
Compare: 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, to cancel the loan contract:
(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 must be received by the loan manager (see section 18(2)(e)):
(i)
any further information specified in regulations.
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 of the cancellation within 7 working days of the date on which the borrower’s loan entitlement letter was issued; and
(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)
[Repealed](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 (with effect on 1 January 2012), on 13 May 2016, by section 6 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 15(1)(b): amended, on 30 March 2013, by section 9(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 15(1)(c): repealed, on 30 March 2013, by section 9(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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) apply despite section 211.
Section 16A: inserted, on 1 January 2013, by section 7 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
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.
Compare: 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)) during that period; and
(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, to object to the details of a loan advance set out in the notification; and
(e)
state the date on or before which an objection by the borrower under section 167 must be received by the loan manager, which must be at least 31 days after the date on which the borrower is notified in accordance with this section; and
(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)); and
(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.
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.
Compare: SR 2010/341 r 8
Subpart 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, different repayment obligations apply to a borrower depending upon whether that borrower is New Zealand-based or overseas-based.
(3)
Under subpart 1 of Part 4, a borrower is liable to pay loan interest for each day that that borrower is overseas-based.
(4)
This section is intended as a guide only.
22 Meaning of New Zealand-based
(1)
A borrower is New Zealand-based if—
(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 or 25 counts in the same way as a day on which the borrower is actually physically in New Zealand.
(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.
Compare: 1992 No 141 s 38AB(1), (2)
Section 22(1): replaced (with effect on 1 April 2012), on 26 June 2019, by section 116 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 22(1A): inserted (with effect on 1 April 2012), on 26 June 2019, by section 116 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
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 or 25 counts in the same way as a day on which the borrower is actually physically in New Zealand.
(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.
Compare: 1992 No 141 s 38AC(1)–(3)
Section 23(1): replaced (with effect on 1 April 2012), on 26 June 2019, by section 117 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 23(1A): inserted (with effect on 1 April 2012), on 26 June 2019, by section 117 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 23(1B): inserted (with effect on 1 April 2012), on 26 June 2019, by section 117 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
24 Treatment of partial days
For the purposes of sections 22 and 23, if a borrower is physically in New Zealand for part of a day, that borrower is treated as—
(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.
Compare: 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 and if the Commissioner considers that it is fair and reasonable to do so, treat a borrower as being physically in New Zealand if the principal reason that the borrower is not, was not, or will not be physically in New Zealand is because—
(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; or
(h)
the borrower is undertaking study that meets the requirements of clause 8 of Schedule 1; or
(i)
the borrower is undertaking study that meets the requirements of clause 9 of Schedule 1; or
(ia)
the borrower is undertaking study that meets the requirements of clause 9A of Schedule 1; or
(ib)
the borrower is undertaking an internship that meets the requirements of clause 9B of Schedule 1; or
(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 of Schedule 1.
(3)
On application, the Commissioner may, for the purposes of sections 22 to 24 and if the Commissioner considers that it is fair and reasonable to do so, treat a borrower as being physically in New Zealand if the Commissioner is satisfied that the borrower—
(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 means an injury, illness, or disability that—
(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.
Compare: 1992 No 141 ss 38AE(1), (3A)–(7A), (9), 38AJ(1), 38AJA(1)–(3), (7)
Section 25(1)(ia): inserted, on 21 February 2017, by section 131 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 25(1)(ib): inserted, on 21 February 2017, by section 131 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 25(2): replaced, on 1 April 2020, by section 54 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 25(3): inserted, on 1 April 2020, by section 54 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 25(4): inserted, on 1 April 2020, by section 54 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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 must—
(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), as applicable, by notifying the Commissioner in a manner acceptable to the Commissioner; and
(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.
Compare: 1992 No 141 ss 38AE(8), 38AJ(2)(c), 38AJA(4)(b)
Section 26: amended, on 1 April 2020, by section 55(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 26(b): amended, on 1 April 2020, by section 55(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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, the Commissioner must—
(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.
Compare: 1992 No 141 ss 38AE(2), 38AIA(2), 38AJ(3), 38AJA(5)
Section 27: amended, on 1 April 2020, by section 56 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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, on 14 May 2016, by section 7 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
27B When entity qualifies to be listed as charity
(1)
An entity qualifies to be listed as a charity under section 27A if the Commissioner is satisfied that—
(a)
the entity is a tax charity under section CW 41(5) of the Income Tax Act 2007; or
(b)
the entity meets the requirements of section 13(1)(a) or (b) of the Charities Act 2005 and it is otherwise appropriate for the entity to be listed as a charity for the purposes of 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, on 14 May 2016, by section 7 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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, on 14 May 2016, by section 7 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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, if the entity is qualified under section 27B(1)(a) (by adding the entity’s name to the list and a date on and from which the listing applies).
(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, on 14 May 2016, by section 7 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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 to be listed.
(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 provides within that period.
(4)
The Commissioner must notify the entity in writing of the final decision under this section.
Section 27E: inserted, on 14 May 2016, by section 7 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 27E(3)(b): amended (with effect on 14 May 2016), on 21 February 2017, by section 132 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
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 concerning the obligation on a borrower if there is a change in any of the contact details provided to the Commissioner under this section.
Compare: 1992 No 141 s 37
Section 28(3): inserted, on 30 March 2013, by section 10 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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.
Compare: 1992 No 141 s 38
Part 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 applies if there is an inconsistency between this Act and the loan contract.
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 and 2 apply to that borrower:
(b)
is overseas-based, the repayment obligations in subpart 4 apply to that borrower.
(2)
Subpart 5 applies to a borrower who—
(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 (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 11 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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 applies to that borrower.
(3)
If a borrower derives only income other than salary or wages, subpart 2 applies to that borrower.
(4)
If a borrower derives income from salary or wages and income other than from salary or wages, subparts 1 and 2 both apply to that borrower.
(5)
[Repealed](6)
[Repealed](7)
[Repealed](8)
[Repealed](9)
This section is intended as a guide only.
Section 32 heading: amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 12(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 32(3): replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 12(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 32(4): replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 12(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 32(5): repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 12(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 32(6): repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 12(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 32(7): repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 12(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 32(8): repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 12(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Subpart 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, the repayment code of all New Zealand-based borrowers who derive salary or wages is either—
(a)
“SL”
; or
(b)
“TTC”
.
(2)
The repayment code “TTC”
applies to a borrower if—
(a)
the employer is issued with a tailored tax code certificate under section 24D(a) and schedule 5, part B, clause 1 of the Tax Administration Act 1994; or
(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”
may be combined with another code under that Act; and
(b)
the repayment code “TTC”
may be combined into another code under that Act.
Compare: 1992 No 141 s 17B; 1994 No 166 s 24B(4)
Section 34(1)(b): amended, on 1 April 2019, by section 328(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 34(2): replaced (with effect on 1 April 2012), on 12 April 2012, by section 9 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 34(2): amended (with effect on 1 April 2012), on 30 March 2021, by section 189 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 34(2)(a): amended, on 1 April 2019, by section 328(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 34(2)(a): amended, on 1 April 2019, by section 391 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 34(3): replaced (with effect on 1 April 2012), on 12 April 2012, by section 9 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 34(3)(b): amended, on 1 April 2019, by section 328(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
35 Borrowers with “SL”
repayment code must notify employers
(1)
A borrower whose repayment code is “SL”
must notify his or her employer in a manner acceptable to the Commissioner.
(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”
repayment code ceases to apply to the borrower.
(c)
[Repealed]Compare: 1992 No 141 s 18
Section 35(2)(b): replaced (with effect on 1 April 2012), on 12 April 2012, by section 10 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 35(2)(b): amended, on 1 April 2019, by section 329 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 35(2)(c): repealed (with effect on 1 April 2012), on 12 April 2012, by section 10 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
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; or
(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”
; or
(c)
a borrower’s employer has been notified in writing that an “TTC”
repayment code applies to the borrower.
(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) or (2).
Compare: 1992 No 141 s 19(1)
Section 36(1)(c): amended, on 1 April 2019, by section 330 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 36(1)(c): amended (with effect on 1 April 2012), on 12 April 2012, by section 11 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
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, deductions must be made at the rate of 12 cents in each complete dollar from—
(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, deductions must be made at the special deduction rate specified in the applicable special deduction rate certificate from—
(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 means,—
(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.
Compare: 1992 No 141 ss 19(2), 20
Section 37(1): 12 cents in each complete dollar set as the deduction rate, pursuant to the repayment percentage set on 1 April 2013, by regulation 3 of the Student Loan Scheme (Repayment Percentage) Regulations 2012 (SR 2012/192)
Section 37(1): amended (with effect on 1 April 2012), on 12 April 2012, by section 12(1) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 37(2): amended (with effect on 1 April 2012), on 12 April 2012, by section 12(2) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 37(3B): inserted, on 1 April 2018, by section 392 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
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 code “SLCIR”
applied to them; and
(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, or 39.
Compare: 1992 No 141 ss 19(1), (2), 20A(4)
Section 38(3)(b): amended (with effect on 1 April 2012), on 12 April 2012, by section 13 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
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 code “SLBOR”
applied to them; and
(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, or 38.
Compare: 1992 No 141 s 19(1), (2)
Section 39(3)(b): amended (with effect on 1 April 2012), on 12 April 2012, by section 14 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
40 Deductions from main benefits
(1)
This section applies if—
(a)
a borrower receives a main benefit for a pay period; and
(b)
the equivalent gross amount of that main benefit exceeds the pay period repayment threshold (calculated in accordance with section 37(4)) for that pay period.
(2)
The chief executive—
(a)
must not make a salary or wage deduction from the main benefit; and
(b)
must make a deduction from the main benefit of an amount determined by the Commissioner in consultation with the chief executive.
(2A)
If the amount of the deduction determined under subsection (2)(b) is zero, then sections 34 and 35 do not apply.
(3)
This section overrides sections 36(2), 38, and 39.
(4)
In this section,—
equivalent gross amount means the sum of—
(a)
the amount of a main benefit; and
(b)
any amount that was paid to the Commissioner in accordance with sections 349, 350, 351, and 352 of the Social Security Act 2018 for income tax payable on that main benefit
main benefit has the same meaning as in section YA 1 of the Income Tax Act 2007.
Compare: 1992 No 141 s 23
Section 40 heading: amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 40(1)(a): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 40(1)(b): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 40(2)(a): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 40(2)(b): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 40(2A): inserted (with effect on 1 April 2012), on 12 April 2012, by section 15 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 40(4) equivalent gross amount paragraph (a): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 40(4) equivalent gross amount paragraph (b): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 40(4) equivalent gross amount paragraph (b): amended, on 26 November 2018, by section 459 of the Social Security Act 2018 (2018 No 32).
Section 40(4) income-tested benefit: repealed, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 40(4) main benefit: inserted, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Unused repayment threshold may be allocated to secondary employment earnings
41 Definitions relating to repayment thresholds
In sections 42 to 48,—
estimated salary or wages, in relation to a quarter, means the amount determined in accordance with section 43
quarter means a period of 3 consecutive calendar months that ends with the last day of March, June, September, or December
unused repayment threshold for a pay period means the amount determined in accordance with 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)
[Repealed](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 (with effect on 1 April 2012), on 12 April 2012, by section 16 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 42(1)(c): repealed (with effect on 1 April 2012), on 12 April 2012, by section 16 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
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.
Compare: 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 is calculated in accordance with the formula—
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) or 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, the Commissioner may issue a special deduction rate certificate that, in relation to the borrower’s secondary employment earnings,—
(a)
specifies a special deduction rate and the repayment code to be used that reflects the borrower’s unused repayment threshold for a pay period; and
(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.
Compare: 1992 No 141 s 20A(2)
Section 45(a): amended (with effect on 1 April 2012), on 12 April 2012, by section 17 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
46 Issue and application of special deduction rate certificate
(1)
If the Commissioner issues a special deduction rate certificate under section 45, the Commissioner must give a copy of the certificate to the borrower.
(2)
The special deduction rate certificate—
(a)
revokes all other special deduction rate certificates previously issued in relation to the borrower under section 45; and
(b)
does not limit the application of sections 147 to 153 (concerning hardship relief).
Compare: 1992 No 141 s 20A(5)–(7)
Section 46(2)(a): amended (with effect on 1 April 2012), on 12 April 2012, by section 18 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
47 Ongoing obligations of borrower to review and notify
(1)
The borrower—
(a)
must review an estimate he or she made under section 43 before the end of each quarter; and
(b)
may revise an estimate he or she made under section 43 at any time.
(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; or
(b)
any of the circumstances set out in section 42(1) change; or
(c)
the borrower ends any employment or starts any new employment.
Compare: 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.
Compare: 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.
Compare: 1992 No 141 s 20A(1), (2)
Section 49(1)(a)(i): replaced (with effect on 1 April 2012), on 12 April 2012, by section 19 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
50 Procedures for issue of additional deduction rate notice
(1)
If the Commissioner issues an additional deduction rate notice under section 49(2), the Commissioner must—
(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); and
(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 or this section limits the application of sections 147 to 153 (concerning hardship relief).
Compare: 1992 No 141 s 20A(3), (5)–(7)
Section 50(2): replaced (with effect on 1 April 2012), on 12 April 2012, by section 20 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 50(2B): inserted, on 2 June 2016, by section 224 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
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; or
(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); or
(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)
[Repealed](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 applies if there is an inconsistency between this subpart and the loan contract.
Compare: 1992 No 141 ss 15, 20A(1)
Section 51(1)(a)(i): amended (with effect on 1 April 2012), on 12 April 2012, by section 21(1) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 51(2): repealed (with effect on 1 April 2012), on 12 April 2012, by section 21(2) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
52 Recovery of assessed amounts
(1)
The Commissioner must, as soon as practicable after making an assessment under section 51, notify the borrower in writing—
(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.
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 means a period of time—
(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 means a borrower who—
(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 means a programme of study that—
(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) of the Education and Training Act 2020; or
(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) of the Education and Training Act 2020 or the equivalent on a pro-rata basis (as set out in the loan entry threshold table that is used for student loan entitlement purposes).
Section 53 programme of study paragraph (a): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
Section 53 programme of study paragraph (b): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
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); and
(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 applies, adjusted net income.
(iii)
[Repealed](c)
[Repealed](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 (with effect on 1 April 2012), on 12 April 2012, by section 22 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 54(1)(b)(ii): replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 54(1)(b)(iii): repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 54(1)(c): repealed (with effect on 1 April 2012), on 12 April 2012, by section 22 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
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 from a borrower, the Commissioner must—
(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”
or “TTC”
, as applicable, cease to apply to the borrower; and
(b)
nothing in sections 34 to 37 or 40 applies in relation to the borrower.
(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); and
(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 or 39.
Section 57(1)(a): amended, on 1 April 2019, by section 331 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
58 Withdrawal of declaration
A borrower may withdraw a declaration under section 55 by—
(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) cease to apply to that borrower; or
(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) have ceased, or will cease, to apply to a borrower, the Commissioner may—
(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 ceases to apply in relation to a borrower from the earliest of the following:
(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) and (3):
(d)
the date of a change of circumstances as notified to the borrower by the Commissioner under section 59(2) and (3).
(2)
From the date on which section 57 ceases to apply in relation to a borrower,—
(a)
the repayment code “SL”
or “TTC”
, as applicable, applies to the borrower; and
(b)
sections 34 to 37 and 40 apply in relation to the borrower.
Section 60(2)(a): amended, on 1 April 2019, by section 332 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
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.
Compare: 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).
Compare: 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, on 1 April 2020, by section 57 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Standard deductions resulting in significant under-deductions or over-deductions
Heading: replaced, on 14 May 2016, by section 8 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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) applies if—
(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 means a standard deduction that—
(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 (with effect on 1 April 2012), on 12 April 2012, by section 23 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
66 Commissioner must determine whether significant over-deduction made
If the Commissioner receives a request in accordance with section 65, the Commissioner must, as soon as practicable,—
(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) that a significant over-deduction has been made in relation to a borrower.
(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), choose to receive a refund of the over-deduction (see sections 199 and 200); and
(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, on 30 March 2013, by section 13 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 67(2)(d): amended (with effect on 1 April 2012), on 12 April 2012, by section 24(1) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 67(2A): inserted (with effect on 1 April 2012), on 12 April 2012, by section 24(2) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
68 Applicable procedures if significant under-deduction
The procedures in section 49 or 51 may be applied to a borrower if there is a significant under-deduction in relation to him or her.
Commissioner deductions resulting in over-deductions
Heading: inserted, on 14 May 2016, by section 9 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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 and 68C, Commissioner over-deduction means a Commissioner deduction that is made on or after the date on which—
(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, on 14 May 2016, by section 9 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
68B Commissioner must determine whether Commissioner over-deduction made
If the Commissioner receives a request in accordance with section 68A, the Commissioner must, as soon as practicable,—
(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, on 14 May 2016, by section 9 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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) that a Commissioner over-deduction was made in relation to a borrower.
(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 and 200); and
(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, on 14 May 2016, by section 9 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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 (application for unused repayment threshold to be allocated to secondary employment earnings) or a declaration under section 55 (declaration by eligible borrowers for exemption from standard deductions) if the Commissioner is satisfied that that borrower is using, or has used, either of those procedures in a manner that damages the integrity of the student loan scheme.
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.
Compare: 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.
Compare: 1992 No 141 s 19(3)
Subpart 2—Repayment obligations for New Zealand-based borrowers with income other than, or as well as, salary or wages
Subpart 2: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
72 Application of this subpart
This subpart applies to the following New Zealand-based borrowers, other than new borrowers:
(a)
borrowers who derive $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 $500 or more above the annual repayment threshold:
(b)
borrowers to whom paragraph (a) does not apply in relation to a tax year and who—
(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.
Section 72: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 72(a): amended, on 1 April 2020, by section 58 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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 of the Income Tax Act 2007) with any Schedule 3 adjustments; but
(b)
excludes salary and wages
Schedule 3 adjustments means the adjustments set out in Schedule 3 (including any adjustment determined by the Commissioner under clause 15 of that schedule)
statement of adjusted net income means the return of income or notification of Schedule 3 adjustments (or both) referred to in subsection (2).
(2)
In this Act, a borrower provides a statement of adjusted net income if the borrower—
(a)
files a return of income only, if there are no Schedule 3 adjustments; or
(b)
notifies Schedule 3 adjustments under section 74 or 114 only, if the borrower is not required to file a return of income under the Tax Administration Act 1994; or
(c)
both files a return of income and notifies Schedule 3 adjustments under section 74 or 114, in any other case.
Section 73: replaced, on 14 May 2016, by section 10 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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, the date on which the borrower is required to notify the Commissioner; or
(c)
if the Commissioner has granted the borrower an extension of time for the notification (other than under section 75), the date specified by the Commissioner; or
(d)
the time at which the borrower makes an application under section 25 to be treated as being physically in New Zealand, if the borrower is subject to clause 11 of Schedule 1 and the Schedule 3 adjustments relate to the current tax year or any past tax year.
Section 74: replaced, on 14 May 2016, by section 11 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 74(2)(d): inserted, on 1 April 2020, by section 59 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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 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”
were a reference to “the due date required under section 74(2)(b)(i) of the Student Loan Scheme Act 2011”
; and
(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 (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 75 heading: replaced, on 14 May 2016, by section 12(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 75: amended, on 14 May 2016, by section 12(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 75(c): amended, on 14 May 2016, by section 12(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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 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); and
(c)
the amounts, if any, that must be paid on or before those due dates.
Compare: 1992 No 141 s 15
Section 76: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 76(1): replaced, on 14 May 2016, by section 13 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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), the Commissioner must assess the borrower as having a zero end-of-year repayment obligation for that tax year.
Section 76A: inserted (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
77 Calculation of borrower’s end-of-year repayment obligation if salary or wages less than annual repayment threshold
(1)
Subsection (2) applies if, in relation to a tax year,—
(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 (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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) applies if, in relation to a tax year,—
(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 (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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 or a due date determined by the Commissioner under section 85.
(2)
Subsection (3) applies to a borrower if—
(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 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.
Section 79: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 79(2)(b): replaced, on 14 May 2016, by section 14 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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.
Section 80: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
81 Due date for terminal payment
A borrower must pay his or her terminal payment on or before the borrower’s terminal tax date, as defined in section YA 1 of the Income Tax Act 2007, for the tax year.
Section 81: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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 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) must not exceed the sum of the borrower’s loan balance on 1 April of the relevant tax year plus any loan advances made or charged to the borrower for that tax year after that date.
(4)
For the purposes of subsection (3)(b), the borrower’s loan balance on 1 April of the relevant tax year 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.
Compare: 1992 No 141 s 27
Section 82: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 82(3)(a)(ii): replaced, on 14 May 2016, by section 15 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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 statement of adjusted net income.
(2)
Section 82 does not apply if the Commissioner makes an assessment in accordance with subsection (1).
Section 83: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 83(1): replaced, on 14 May 2016, by section 16 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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) of the Income Tax Act 2007, 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”
in Part B of Schedule 3 of the Income Tax Act 2007 that correspond to the month of the borrower’s balance date, except that—
(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, 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 and transitional year have the same meanings as in section YA 1 of the Income Tax Act 2007.
Section 84: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 84(2)(a): amended, on 1 April 2018, by section 393 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 84(2)(d): amended, on 8 March 2014, by section 5 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
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) may differ from the dates specified in 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.
Compare: 1992 No 141 s 30(2)
Section 85: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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.
Compare: 1992 No 141 s 28
Section 86: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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 (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Subpart 3—New Zealand-based borrowers’ repayment obligations for other income
[Repealed]Subpart 3: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, pursuant to section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
88 Application of this subpart
[Repealed]Section 88: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
88A Meaning of adjusted net income
[Repealed]Section 88A: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Assessment of other income repayment obligation[Repealed]
Heading: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
89 Commissioner to assess borrower’s other income repayment obligation
[Repealed]Section 89: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Calculation of other income repayment obligations[Repealed]
Heading: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
90 Calculation of borrower’s other income repayment obligation where salary or wages below threshold
[Repealed]Section 90: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
91 Calculation of borrower’s other income repayment obligation where salary or wages equal to or above threshold
[Repealed]Section 91: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Payment of other income repayment obligations[Repealed]
Heading: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
92 Payment of other income repayment obligations
[Repealed]Section 92: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
93 Calculation of remaining repayments for tax year
[Repealed]Section 93: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
94 Due dates for payment of remaining repayments
[Repealed]Section 94: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
95 Calculation of interim payments for next tax year
[Repealed]Section 95: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
96 Commissioner may assess interim payments if information for preceding year not provided
[Repealed]Section 96: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
97 Due dates for payment of interim payments
[Repealed]Section 97: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
98 Commissioner’s powers in relation to due dates
[Repealed]Section 98: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
99 Interim payments to be paid in same manner as provisional tax
[Repealed]Section 99: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
100 Consequence of failure to meet repayment obligations
[Repealed]Section 100: repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Reduction of deduction rate for borrower with lower repayment obligation[Repealed]
Heading: repealed (with effect on 1 April 2012), on 12 April 2012, by section 29 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
101 Borrower may apply for reduction of deduction rate to reflect lower repayment obligation
[Repealed]Section 101: repealed (with effect on 1 April 2012), on 12 April 2012, by section 29 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
102 Special deduction rate certificate for lower repayment obligation
[Repealed]Section 102: repealed (with effect on 1 April 2012), on 12 April 2012, by section 29 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
103 Issue and application of special deduction rate certificate
[Repealed]Section 103: repealed (with effect on 1 April 2012), on 12 April 2012, by section 29 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
104 Time when special deduction rate ceases to apply
[Repealed]Section 104: repealed (with effect on 1 April 2012), on 12 April 2012, by section 29 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Subpart 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 means a period during which a borrower’s overseas-based repayment obligation is reduced to zero.
Section 106: replaced (with effect on 1 April 2012), on 12 April 2012, by section 30 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 106 heading: amended, on 1 April 2020, by section 60(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 106: amended, on 1 April 2020, by section 60(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Temporary repayment suspension of overseas-based repayment obligations
Heading: replaced (with effect on 1 April 2012), on 12 April 2012, by section 30 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Heading: amended, on 1 April 2020, by section 61(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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 if he or she intends to be overseas-based.
(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 (with effect on 1 April 2012), on 12 April 2012, by section 30 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 107 heading: amended, on 1 April 2020, by section 61(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 107(1): amended, on 1 April 2020, by section 61(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
107A Contact person to be nominated
(1)
At the time of making an application under section 107, the borrower must nominate, as the borrower’s contact person, an individual who resides in New Zealand.
(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 (with effect on 1 April 2012), on 12 April 2012, by section 30 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
107B Grant of temporary repayment suspension
(1)
The Commissioner may grant a temporary repayment suspension to a borrower who applies under section 107 if satisfied that the borrower—
(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 becomes entitled to that temporary repayment suspension on the day on which the borrower becomes overseas-based.
(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, granted under this Act, for a period of 365 days or for periods that total 365 days; or
(b)
the borrower has had 1 or more temporary repayment suspensions under Part 3 of the Student Loan Scheme Act 1992 for a period of 3 years or for periods that total 3 years; or
(c)
the borrower has had—
(i)
1 or more temporary repayment suspensions under Part 3 of the Student Loan Scheme Act 1992 for a period of less than 3 years or for periods that total less than 3 years; and
(ii)
1 or more temporary repayment suspensions, granted under this Act, for a period that equals, or for periods that in total equal, the lesser of—
(A)
365 days; and
(B)
the remainder of the period of the temporary repayment suspension to which the borrower would have been entitled under Part 3 of the Student Loan Scheme Act 1992 if that Act had not been repealed; or
(d)
the borrower has had his or her temporary repayment suspension under Part 3 of the Student Loan Scheme Act 1992 continued under section 108A(2) for the maximum period prescribed for that continuation.
Section 107B: inserted (with effect on 1 April 2012), on 12 April 2012, by section 30 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 107B heading: amended, on 1 April 2020, by section 62(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 107B(1): amended, on 1 April 2020, by section 62(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 107B(2): amended, on 1 April 2020, by section 62(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 107B(3)(a): amended, on 1 April 2020, by section 62(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 107B(3)(b): amended, on 1 April 2020, by section 62(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 107B(3)(c)(i): amended, on 1 April 2020, by section 62(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 107B(3)(c)(ii): amended, on 1 April 2020, by section 62(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 107B(3)(c)(ii)(B): amended, on 1 April 2020, by section 62(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 107B(3)(d): amended, on 1 April 2020, by section 62(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
108 Duration of temporary repayment suspension
(1)
Despite section 107B(2), for the purpose of determining the duration of a temporary repayment suspension, the temporary repayment suspension of a borrower who has become entitled to it under that subsection is deemed to have commenced on the first day of the period of the borrower’s physical absence from New Zealand, being the period that resulted in the borrower becoming overseas-based.
(2)
The temporary repayment suspension of a borrower who has become entitled to it under section 107B(2) ends on the earlier of—
(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 and 111 if the borrower is, at any time, overseas-based after his or her temporary repayment suspension has ended.
Section 108: replaced (with effect on 1 April 2012), on 12 April 2012, by section 30 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 108 heading: amended, on 1 April 2020, by section 63(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 108(1): amended, on 1 April 2020, by section 63(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 108(2): amended, on 1 April 2020, by section 63(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 108(3): amended, on 1 April 2020, by section 63(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
108A Borrowers who have had, or are having, temporary repayment suspensions under Student Loan Scheme Act 1992
(1)
A New Zealand-based borrower who has had 1 or more temporary repayment suspensions under Part 3 of the Student Loan Scheme Act 1992, but who has not reached the borrower’s limit (within the meaning of section 107B(3)), must apply under section 107 if he or she wishes to have a temporary repayment suspension under this Act.
(2)
An overseas-based borrower who, as at 31 March 2012, has a temporary repayment suspension under Part 3 of the Student Loan Scheme Act 1992 that, but for the repeal of that Act, would have continued under that Act continues to have a temporary repayment suspension under this Act, but for no longer than the lesser of—
(a)
365 days; and
(b)
the remainder of the period of the temporary repayment suspension to which the borrower would have been entitled under Part 3 of the Student Loan Scheme Act 1992 if that Act had not been repealed.
(3)
The repayment obligation of a borrower to whom subsection (2) applies must be calculated in accordance with sections 110 and 111 if the borrower is, at any time, overseas-based after his or her temporary repayment suspension has ended in accordance with that subsection.
Section 108A: inserted (with effect on 1 April 2012), on 12 April 2012, by section 30 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 108A heading: amended, on 1 April 2020, by section 64(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 108A(1): amended, on 1 April 2020, by section 64(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 108A(1): amended, on 1 April 2020, by section 64(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 108A(2): amended, on 1 April 2020, by section 64(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 108A(2)(b): amended, on 1 April 2020, by section 64(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 108A(3): amended, on 1 April 2020, by section 64(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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 applies if there is an inconsistency between this subpart and the loan contract.
(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); and
(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.
Compare: 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 under section 107B or 108A(2); and
(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 means a borrower who was overseas-based on 31 March 2014 and has been continuously overseas-based since that date
relevant loan balance means the borrower’s consolidated loan balance on the start date or, if the borrower’s consolidated loan balance increases, the greatest balance on any 31 March after the start date but before the last day of the tax year
start date means,—
(a)
for an existing borrower, 31 March 2014:
(b)
for any other borrower, the day when the borrower becomes overseas-based.
Compare: 1992 No 141 s 34
Section 110: replaced, on 1 April 2014, by section 6 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
Section 110(1)(a): amended, on 1 April 2020, by section 65 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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 is equal to or more than the borrower’s loan balance, the borrower’s repayment obligation is equal to the borrower’s loan balance.
(3)
Nothing in this section affects—
(a)
a borrower’s liability for an unpaid amount or late payment interest; or
(b)
(4)
This section overrides section 110.
(5)
In this section, loan balance means,—
(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), the sum determined by—
(i)
including the amount of the borrower’s loan balance on 31 March in the year prior to year A (the previous year); and
(ii)
including the amount of any annual administration fee charged under section 189 for the previous year; and
(iii)
[Repealed](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.
Compare: 1992 No 141 ss 14(3), 35
Section 111(4): replaced, on 30 March 2013, by section 16(4) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 111(5): replaced, on 30 March 2013, by section 16(5) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 111(5)(b)(iii): repealed, on 1 April 2014 (applying for 2014–2015 and later tax years), by section 75 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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), the Commissioner must, as soon as practicable, notify the borrower in writing—
(a)
of that fact; and
(b)
of the dates and the amounts determined by the Commissioner.
Compare: 1992 No 141 s 36
Section 112(3): replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 17 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 112(4): inserted (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 17 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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)).
Subpart 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); or
(b)
no later than the time at which the borrower makes an application under section 25 to be treated as being physically in New Zealand, if the borrower is subject to clause 11 of Schedule 1 and the Schedule 3 adjustments relate to the current tax year or any past tax year.
(4)
The Commissioner may require the borrower to provide evidence of the Schedule 3 adjustments.
Section 114: replaced, on 14 May 2016, by section 17 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 114(3): replaced, on 1 April 2020, by section 66 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
114A Extension of time for notification of Schedule 3 adjustments
(1)
This section applies if section 114(2) applies.
(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 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”
were a reference to “the due date required under section 114(3) of the Student Loan Scheme Act 2011”
; and
(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 (with effect on 1 April 2012), on 12 April 2012, by section 34 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 114A heading: replaced, on 14 May 2016, by section 18(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 114A(2): amended, on 14 May 2016, by section 18(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 114A(2)(c): amended, on 14 May 2016, by section 18(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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 and 2 apply to the borrower for the period in the tax year during which he or she is New Zealand-based (the New Zealand-based period), except that, for the purposes of subpart 2, the amount of the annual repayment threshold for the tax year must be proportionately decreased to the same proportion as the number of days in the New Zealand-based period bears to the number of days in a year; and
(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 and 2; and
(c)
section 110(3) or 111 (as applicable) applies to any portion of the tax year during which the borrower is overseas-based and is not entitled to a temporary repayment suspension (as defined in section 106); and
(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.
Compare: 1992 No 141 ss 14(2), 36A
Section 115(1)(a): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 115(1)(b): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 115(1)(c): replaced (with effect on 1 April 2012), on 12 April 2012, by section 35 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 115(1)(c): amended, on 1 April 2020, by section 67 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 115(2): amended, on 30 March 2013, by section 19 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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); and
(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).
Section 115A: inserted, on 30 March 2013, by section 20 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
116 Overseas-based borrowers who derive salary or wages from New Zealand
(1)
Subpart 1 applies to an overseas-based borrower who derives salary or wages from New Zealand as if the borrower were New Zealand-based.
(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
[Repealed]Section 117: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 56 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Part 3 Excess repayments
118 Interpretation
[Repealed]Section 118: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 5(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
119 Meaning of excess repayment
(1)
An excess repayment, in relation to a borrower and a tax year, is any amount paid or deducted in relation to the borrower’s consolidated loan balance for the tax year that is in excess of the total of—
(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; and
(e)
disregard an entitlement under the final-year fees-free scheme.
Section 119: replaced, on 1 April 2013 (applying for 2013–14 and later tax years), by section 57 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 119(2)(e): inserted (with effect on 1 January 2025), on 29 March 2025, by section 259 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
120 Commissioner must notify borrower of excess repayment
(1)
Subsection (2) applies if subpart 2 of Part 2 applies to a borrower and—
(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); and
(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) does not apply if the excess repayment is $5 or less.
Compare: 1992 No 141 s 58A
Section 120(1): replaced, on 30 March 2013, by section 21 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
121 Options that apply to excess repayments
(1)
(2)
However, any part of an excess repayment that exceeds a borrower’s consolidated loan balance—
(a)
[Repealed](b)
must be refunded by the Commissioner (see sections 199 and 200).
(3)
Subsection (2) overrides section 131(1)(a).
Section 121(1)(a): repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 6(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
Section 121(2)(a): repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 6(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
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 and 121 apply only to so much of the excess repayment (if any) as is not offset against a repayment obligation in accordance with paragraph (a).
(3)
Subsection (2) applies despite anything to the contrary in this Act.
Compare: 1992 No 141 s 58
Subpart 1—Excess repayment bonus
[Repealed]Subpart 1: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 7(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
123 Borrower’s entitlement to 10% bonus for excess repayment of $500 or more
[Repealed]Section 123: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 7(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
124 Borrower’s entitlement to bonus if loan balance is less than $550
[Repealed]Section 124: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 7(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
125 Borrower may be entitled to 10% bonus if under-deduction is due to PAYE system
[Repealed]Section 125: repealed (with effect on 1 April 2012), on 12 April 2012, by section 39 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
126 Time at which 10% bonus is credited
[Repealed]Section 126: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 7(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
127 Restriction on amount of 10% bonus
[Repealed]Section 127: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 7(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
128 Application of sections 118 to 122 and this subpart to part years
[Repealed]Section 128: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 7(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
129 Consequences of refund or credit to next tax year
[Repealed]Section 129: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 7(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
130 Commissioner must advise borrowers to seek financial advice
[Repealed]Section 130: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 7(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
Subpart 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.
Compare: 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 and 200); or
(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.
Compare: 1992 No 141 ss 56, 57
Section 132(2): replaced, on 30 March 2013, by section 22 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Part 4 Interest, relief, penalties and offences, rights of objection, and rights to challenge
Subpart 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, on 1 April 2020, by section 119 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
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, on 1 April 2020, by section 120(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 134(1): replaced, on 1 April 2020, by section 120(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 134(2): amended, on 30 March 2013, by section 23(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 134(3): inserted, on 30 March 2013, by section 23(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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, on 1 April 2020, by section 121 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 135(2): amended (with effect on 1 April 2012), on 12 April 2012, by section 41(2) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
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), notify the borrower in writing—
(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.
Compare: 1992 No 141 s 43(1)
137 Full interest write-off for New Zealand-based borrowers
[Repealed]Section 137: repealed, on 1 April 2020, by section 122 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
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); and
(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.
Compare: 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 the unpaid amount on the day after its due date; and
(b)
the late payment interest rate multiplied by the unpaid amount as at each day that falls 1 month after the day on which late payment interest is imposed under paragraph (a) or under this paragraph.
(3)
In this section, late payment interest rate means the base interest rate plus 4%, calculated as an equivalent monthly rate expressed as a percentage and truncated to 3 decimal places.
Compare: 1992 No 141 s 44
Section 139(2)(a): amended, on 1 April 2013 (applying for 2013–14 and later tax years), by section 58(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 139(2)(b): amended, on 1 April 2013 (applying for 2013–14 and later tax years), by section 58(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 139(3): inserted, on 1 April 2013 (applying for 2013–14 and later tax years), by section 58(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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.
Compare: 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; and
(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), the reference to base interest rate plus 4% were a reference to base interest rate plus 2%.
(3)
However, subsection (2) applies only to the days in a month during which an instalment arrangement applies.
Section 141: replaced, on 1 April 2013 (applying for 2013–14 and later tax years), by section 59 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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; and
(b)
the Commissioner has exercised powers available under section 157 of the Tax Administration Act 1994 to require any person to deduct or extract any amount from any moneys payable by that person to the borrower.
(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 of the Tax Administration Act 1994 (a deduction or extraction notice), any late payment interest that the borrower is liable to pay on the unpaid amount must be calculated as if, in the definition of late payment interest rate in section 139(3), the reference to base interest rate plus 4% were a reference to base interest rate plus 2%.
(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 (with effect on 1 April 2013), on 8 March 2014, by section 7 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
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.
Compare: 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 of the Tax Administration Act 1994 that he or she should not have been charged with the amount of interest that was charged.
(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.
Compare: 1992 No 141 s 43(2)–(4)
Subpart 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; or
(b)
[Repealed](c)
collecting a repayment obligation (or part of a repayment obligation) that is payable by a borrower for a tax year if the amount payable is not more than $20; or
(d)
[Repealed](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 but less than $334; and
(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.
Compare: 1992 No 141 ss 51(2)–(5), 51A
Section 144(1)(a): amended, on 1 April 2020, by section 68(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 144(1)(b): repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 144(1)(c): amended, on 1 April 2020, by section 68(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 144(1)(c): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 24(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 144(1)(d): repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 144(1)(e): amended, on 1 April 2020, by section 68(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 144(2)(a): amended, on 1 April 2020, by section 68(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 144(2)(a): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 24(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 144(3)(a): replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 24(3) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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).
Compare: 1992 No 141 s 54
Section 145(1)(ab): inserted, on 1 April 2013 (applying for 2013–14 and later tax years), by section 60 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Relief from late payment interest
146 Commissioner may grant relief from late payment interest
(1)
Subsection (2) applies—
(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), the borrower’s unpaid amount is decreased by the amount of the cancelled late payment interest; and
(c)
any payment made in excess of the remaining amount of late payment interest payable (if any) by the borrower (an excess payment) must be offset against the borrower’s consolidated loan balance as follows:
(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 and 200).
Compare: 1992 No 141 s 53
Section 146: replaced, on 1 April 2013 (applying for 2013–14 and later tax years), by section 61 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Relief from penalties
Heading: inserted, on 1 April 2013, by section 62 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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)
[Repealed](iii)
a student loan shortfall penalty; but
(b)
despite paragraph (a)(iii), does not include a student loan shortfall penalty where, 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.
Section 146A: inserted, on 1 April 2013 (applying for 2013–14 and later tax years), by section 62 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 146A(3)(a)(i): replaced, on 14 May 2016, by section 19 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 146A(3)(a)(ii): repealed, on 1 April 2020, by section 69 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Hardship relief
147 Hardship relief for any tax year
(1)
If an application is made under section 145(1)(b) for hardship relief, the Commissioner may, for any period the Commissioner considers equitable, decrease a borrower’s repayment obligation if the Commissioner—
(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 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.
Compare: 1992 No 141 ss 55, 55A, 55B
Section 147(2): replaced, on 1 April 2013 (applying for 2013–14 and later tax years), by section 63 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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; and
(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 that reflects the Commissioner’s decision under section 147; and
(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.
Compare: 1992 No 141 ss 20A(2), 55B
Section 148(2)(a): amended (with effect on 1 April 2012), on 12 April 2012, by section 43 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
149 Issue and application of special deduction rate certificate
(1)
If the Commissioner issues a special deduction rate certificate under section 148, the Commissioner must give a copy of the certificate to the borrower.
(2)
The special deduction rate certificate revokes all other special deduction rate certificates previously issued in relation to the borrower under section 45 or 148.
Compare: 1992 No 141 s 20A(5), (6)
Section 149(2): amended (with effect on 1 April 2012), on 12 April 2012, by section 44 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
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.
Compare: 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, the Commissioner refunds to, or does not collect from, a borrower—
(a)
is not written off; and
(b)
remains part of the borrower’s loan balance; and
(c)
is not an unpaid amount.
Compare: 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) must notify the Commissioner, and provide details, as soon as practicable if there is a change in the borrower’s circumstances that—
(a)
means that any information supplied to the Commissioner under section 145 is incorrect or inaccurate; or
(b)
may affect whether or not a borrower would have been, or will continue to be, granted hardship relief under section 147.
Compare: 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.
Compare: 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) of the Tax Administration Act 1994.
(2)
Sections 177(1)(b) and (3) to (5), 177A, 177B, and 177CA of the Tax Administration Act 1994 apply to an application under subsection (1) and to an instalment arrangement granted as a result of that application, as far as applicable and with all necessary modifications, as if—
(a)
every reference to a taxpayer included a borrower; and
(b)
every reference to tax included an unpaid amount.
Section 154(1)(a): amended, on 30 March 2013, by section 25 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Subpart 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 on time, the Commissioner may—
(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, on 14 May 2016, by section 20 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
156 Due dates for payment of late notification penalty
A borrower who is liable to pay a penalty under section 155 must pay the penalty on or before the later of—
(a)
the date that is 60 days after the date of the notification to the borrower or public notice given under section 155(1); and
(b)
the date that is—
(i)
in column B of the table in Part A of Schedule 3 of the Income Tax Act 2007 that corresponds to the month of the borrower’s balance date (if the borrower does not have an extension of time under section 75 to notify the Commissioner of Schedule 3 adjustments); or
(ii)
in column F of the table in Part A of Schedule 3 of the Income Tax Act 2007 that corresponds to the month of the borrower’s balance date (if the borrower does have an extension of time under section 75 to notify the Commissioner of Schedule 3 adjustments).
Section 156: replaced, on 14 May 2016, by section 21 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Student loan shortfall penalties
157 Definitions relating to student loan shortfall penalties
In this section and sections 158 to 161,—
incorrect tax position has the meaning given to it in section 158(b)
repayment obligation shortfall, for a tax year, means the difference between the effect of—
(a)
a borrower’s income tax position on his or her end-of-year repayment obligation for the tax year; and
(b)
the correct tax position on that repayment obligation for the tax year
shortfall penalty means a penalty imposed under any of sections 141A to 141E of the Tax Administration Act 1994 for taking an incorrect tax position or for doing or failing to do anything specified or described in those sections.
Section 157 repayment obligation shortfall paragraph (a): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
158 Student loan shortfall penalties may be imposed on certain borrowers
Section 159 applies to a borrower if—
(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 as if it had not been granted)
- c
is the final percentage imposed under the Tax Administration Act 1994 for the shortfall penalty after adjustment, if any, under section 141FB, 141G, 141H, 141I, 141J, or 141K of the Tax Administration Act 1994, as applicable.
Compare: 1992 No 141 s 85
Section 159(2) formula item b: replaced, on 1 April 2013 (applying for 2013–14 and later tax years), by section 64 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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) and the information required under subsection (3) in 2 separate notices.
(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, on 30 March 2013, by section 28 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
161 Student loan shortfall penalty reduced or removed to reflect change to shortfall penalty
(1)
Subsection (2) applies if—
(a)
a borrower disputes or challenges a shortfall penalty; and
(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, on 30 March 2013, by section 29 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Underestimation penalty[Repealed]
Heading: repealed, on 1 April 2020, by section 70 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
161A Underestimation penalty where interim payments underestimated as at last interim payment date
[Repealed]Section 161A: repealed, on 1 April 2020, by section 70 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Offences
162 Certain offence provisions in Tax Administration Act 1994 apply to borrowers
(1)
The sections of the Tax Administration Act 1994 that apply to borrowers and their consolidated loan balances include—
(a)
section 143 (absolute liability offences):
(b)
section 143A (knowledge offences):
(c)
section 143B (evasion or similar offence):
(d)
section 148 (aiding or abetting).
(2)
Sections 149 to 150A of the Tax Administration Act 1994 apply, as far as applicable and with all necessary modifications, for the purposes of the sections listed in subsection (1), as if—
(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.
Compare: 1994 No 166 ss 143A, 143B
Section 162A: inserted, on 8 March 2014, by section 8 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
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) if the Judge or Registrar (as the case may be) is satisfied that the person has committed the offence in section 162A and is about to leave or attempt to leave New Zealand.
(2)
The liable person must be brought as soon as possible before the District Court, which, if it is satisfied that the person is about to leave or attempt to leave New Zealand without making reasonable efforts to pay the amount in default or without making arrangements with the Inland Revenue Department to pay the amount in default, may order that the liable person—
(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).
Compare: 1991 No 142 s 199
Section 162B: inserted, on 8 March 2014, by section 8 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
Section 162B(2): amended, on 1 March 2017, by section 261 of the District Court Act 2016 (2016 No 49).
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) is liable on conviction to a fine not exceeding $2,000.
(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.
Compare: 1992 No 141 s 81
164 Proceedings to be commenced by Commissioner
A proceeding for an offence against section 162A or 163 must be commenced by the filing of a charging document in the name of the Commissioner.
Section 164: replaced, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
Section 164: amended, on 8 March 2014, by section 9 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
165 Charging document may charge several offences
(1)
A charging document may charge the defendant with any number of offences against section 162A or 163 if those offences are founded on the same set of facts, or form or are part of a series of offences of the same or similar character.
(2)
If a charging document charges more than 1 offence,—
(a)
particulars of each offence charged must be set out separately in the charging document; and
(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.
Compare: 1992 No 141 s 83
Section 165 heading: amended, on 4 October 2013, by regulation 3(1) of the Criminal Procedure (Consequential Amendments) Regulations 2013 (SR 2013/409).
Section 165(1): amended, on 8 March 2014, by section 9 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
Section 165(1): amended, on 4 October 2013, by regulation 3(1) of the Criminal Procedure (Consequential Amendments) Regulations 2013 (SR 2013/409).
Section 165(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
Section 165(2)(a): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
166 Time for filing charging document
Despite anything to the contrary in section 25 of the Criminal Procedure Act 2011, the limitation period in respect of an offence against section 162A or 163 ends on the date that is 10 years after the end of the year in which the offence was committed.
Section 166: replaced, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
Section 166: amended, on 8 March 2014, by section 9 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
Subpart 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); and
(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).
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.
Compare: 1992 No 141 s 7
169 Power to require objection to be determined by chief executive
(1)
If an objection under section 167 is not wholly allowed by the loan manager, the objector may, by notifying the chief executive in writing, require that the objection be determined by the chief executive.
(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).
Section 169(1): amended, on 14 May 2016, by section 22 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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.
Compare: 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 that the chief executive is required to determine under section 169 is not wholly allowed by the chief executive.
(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), either—
(a)
apply to the Disputes Tribunal for determination of the dispute if the amount in dispute is within the financial jurisdiction of the Disputes Tribunal; or
(b)
apply to the District Court for determination of the dispute.
(3)
A Referee of the Disputes Tribunal or a District Court Judge, as applicable, may extend the time allowed under subsection (2) for applying to the Disputes Tribunal or District Court.
(4)
No objection to which section 167 or 169 applies may be heard and determined by the Disputes Tribunal or the District Court.
(5)
Subsection (4) applies—
(a)
despite anything in the Disputes Tribunal Act 1988 or the District Court Act 2016; but
(b)
subject to subsections (1) and (2).
Compare: 1992 No 141 s 11
Section 171(2)(a): amended, on 1 March 2017, by section 261 of the District Court Act 2016 (2016 No 49).
Section 171(2)(b): amended, on 1 March 2017, by section 261 of the District Court Act 2016 (2016 No 49).
Section 171(3): amended, on 1 March 2017, by section 261 of the District Court Act 2016 (2016 No 49).
Section 171(4): amended, on 1 March 2017, by section 261 of the District Court Act 2016 (2016 No 49).
Section 171(5)(a): amended, on 1 March 2017, by section 261 of the District Court Act 2016 (2016 No 49).
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 District Court’s decision in respect of an objection under section 171.
Section 172: amended, on 1 March 2017, by section 261 of the District Court Act 2016 (2016 No 49).
Subpart 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 of the Tax Administration Act 1994 apply, with all necessary modifications, to a dispute between a person and the Commissioner under this Act.
(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); or
(b)
a decision of the Commissioner under sections 27C to 27E (which relate to decisions on the listing of an entity as a charity).
Compare: 1992 No 141 s 69A
Section 173(2): replaced, on 14 May 2016, by section 23 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Rights to challenge and challenge procedures
Heading: replaced, on 30 March 2013, by section 30 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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 has been concluded in relation to that matter.
Compare: 1992 No 141 s 69A
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.
Section 174A: inserted, on 30 March 2013, by section 31 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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 if the borrower reasonably believes that that information is incorrect.
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 on the ground that that decision is not fair and reasonable:
(b)
that a condition in any of clauses 2 to 10 of Schedule 1 is not satisfied by the borrower on the ground that that decision is erroneous:
(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) on the ground that those dates are—
(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) on the ground that those conditions are—
(i)
not fair and reasonable; or
(ii)
erroneous.
Compare: 1992 No 141 s 65A
Section 176(a): amended, on 1 April 2020, by section 71 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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 to refuse to list, or to remove the listing of, the entity as a charity, or the date or dates for which a listing applies or ceases to apply, on the ground that the decision—
(a)
is not fair and reasonable; or
(b)
is erroneous.
Section 176A: inserted, on 14 May 2016, by section 24 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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 on the ground that that decision is not fair and reasonable.
(2)
A borrower who has been issued with a special deduction rate certificate under section 45 may challenge the certificate on the ground that it is erroneous.
178 Challenge to additional deduction rate notice
A borrower who has been issued with an additional deduction rate notice under section 49(2) may, on the ground that the notice is erroneous or excessive or has been issued in error, challenge the notice.
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).
Compare: 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 that a significant over-deduction was not made, on the ground that the determination is erroneous:
(b)
the amount of a significant over-deduction stated in a notice in accordance with section 67(2)(b), on the ground that the amount is erroneous.
181 Challenge to prohibition on applications or declarations
A borrower who is prohibited under section 69 from making an application under section 42 or a declaration under section 55 may challenge the prohibition on the ground that that decision is not fair and reasonable.
182 Challenge to assessments
A borrower whose repayment obligation has been assessed under section 51, 76, 89, or 109 may, on the ground that the assessment is erroneous or excessive or has been issued in error, challenge the assessment.
Compare: 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 not to grant the borrower a temporary repayment suspension, on the ground that the decision is not fair and reasonable.
Section 182A: inserted, on 30 March 2013, by section 32 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 182A heading: amended, on 1 April 2020, by section 72(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 182A: amended, on 1 April 2020, by section 72(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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.
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, or 154 on the ground that the relief is not fair and reasonable.
Compare: 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, on 14 May 2016, by section 25 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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.
Compare: 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.
Compare: 1992 No 141 s 69
188 Commissioner’s decision on challenges
[Repealed]Section 188: repealed, on 30 March 2013, by section 33 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Part 5 Matters of general application and miscellaneous matters
Subpart 1—Matters of general application
189 Annual administration fee
(1)
If a borrower has a consolidated loan balance of more than $20 on the close of 31 March in a tax year,—
(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 in that tax year.
Section 189(1): amended, on 1 April 2020, by section 73 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 189(1): amended (with effect on 1 April 2012), on 12 April 2012, by section 47 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
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 of Part 2, the annual repayment threshold is calculated in accordance with the formula—
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.
Compare: 1992 No 141 s 61
Section 190(1)(a): replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 190(2): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
191 Limit on repayment obligation for pay period or tax year
(1)
If a borrower derives salary or wages for a tax year, the borrower’s repayment obligation for a pay period in that tax year must not exceed the amount of the borrower’s consolidated loan balance on the last day 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) applies to overseas-based borrowers.
(3A)
For the purposes of subsections (1) and (2), the amount of the borrower’s consolidated 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.
(4)
This section applies despite anything to the contrary in this Act.
Compare: 1992 No 141 s 14(3)
Section 191(1): amended, on 1 April 2020, by section 74(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 191(1): amended, on 1 April 2020, by section 74(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 191(1): amended, on 30 March 2013, by section 34(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 191(2): replaced, on 1 April 2020, by section 74(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 191(3A): inserted (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 34(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 191(3A): amended, on 1 April 2020, by section 74(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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.
Compare: 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 of the Tax Administration Act 1994, as far as they are applicable and with all necessary modifications, apply for the purposes of this Act, as if—
(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 of the Tax Administration Act 1994 were a reference to an assessment made under Part 2 of this Act; and
(d)
every reference to “this Act”
in sections 164 and 165 of the Tax Administration Act 1994 were a reference to the Student Loan Scheme Act 2011.
Compare: 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, in relation to a borrower, means—
(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, in relation to a borrower, means—
(a)
an individual whose name has been notified under section 16A in relation to the borrower; or
(b)
an individual nominated by the borrower under section 107A or 193B.
Section 193A: inserted (with effect on 1 April 2012), on 12 April 2012, by section 48 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 193A(3): amended, on 8 March 2014, by section 10 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
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 (with effect on 1 April 2012), on 12 April 2012, by section 48 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
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, on 30 March 2013, by section 35 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 193C(2): inserted, on 8 March 2014, by section 11 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
194 Order in which certain deductions and payments offset against borrower’s consolidated loan balance
(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) that does not exceed the total amount specified under section 49(2)(b):
(c)
an entitlement under the final-year fees-free scheme.
Compare: 1992 No 141 s 50
Section 194 heading: amended, on 1 April 2020, by section 75(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 194(1): replaced, on 1 April 2020, by section 75(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 194(2): inserted, on 1 April 2013 (applying for 2013–14 and later tax years), by section 66 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 194(2): amended, on 1 April 2020, by section 75(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 194(2)(c): inserted (with effect on 1 January 2025), on 29 March 2025, by section 260 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
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)
[Repealed](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; and
(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.
Compare: 1992 No 141 ss 48, 49
Section 195(3): replaced, on 1 April 2020, by section 76 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 195(3A): repealed, on 1 April 2020, by section 76 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 195(4)(b): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
195B Date on which final-year fees-free entitlement treated as being credited
An entitlement under the final-year fees-free scheme is treated as being credited against a borrower’s consolidated loan balance on the date the borrower is awarded their qualification.
Section 195B: inserted (with effect on 1 January 2025), on 29 March 2025, by section 261 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
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); and
(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) of the Student Loan Scheme Act 1992 is treated as being a notification under subsection (1).
(4)
[Repealed]Compare: 1992 No 141 s 60A
Section 196(1)(a): amended, on 1 April 2013 (applying for 2013–14 and later tax years), by section 67(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 196(2): replaced (with effect on 1 April 2012), on 12 April 2012, by section 50 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Section 196(4): repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 67(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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) has effect from the day on which the borrower died.
(4)
Subsection (1)(b) has effect from the day on which the borrower is believed to have died.
(5)
Subsection (2) has effect from the day on which the Commissioner exercises his or her discretion to reduce the consolidated loan balance to zero.
(6)
If a borrower’s consolidated loan balance is reduced to zero under subsection (1)(a) or (2), that action may not be reversed.
(7)
Subsection (6) applies despite anything to the contrary.
Compare: 1992 No 141 s 60
Section 197: replaced, on 1 April 2013 (applying for 2013–14 and later tax years), by section 68 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 197(2): amended, on 1 April 2020, by section 77 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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 of the Tax Administration Act 1994.
200 Appropriation of refunds
A refund that is made under this Act may be made without further appropriation than this section.
Compare: 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 in accordance with the decision of—
(i)
the loan manager under section 168; or
(ii)
the chief executive under section 170; or
(iii)
a Referee of the Disputes Tribunal or a District Court Judge, as applicable, under section 171; or
(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 in accordance with a decision of the Commissioner under subpart 5 of Part 4.
Compare: 1992 No 141 s 7(1)
Section 201(a)(iii): amended, on 1 March 2017, by section 261 of the District Court Act 2016 (2016 No 49).
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, and schedule 5, part A, clause 4 and part B, clause 1 of the Tax Administration Act 1994 and sections LC 10, RM 2, and RM 4, and paragraph (b) of the definition of basic tax rate in section YA 1 of the Income Tax Act 2007 apply, as far as applicable and with all necessary modifications, for the purposes of this Act as if—
(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.
Compare: 1992 No 141 s 16
Section 202: amended, on 1 April 2019, by section 394(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 202: amended, on 1 April 2019, by section 394(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 202: amended, on 14 May 2016, by section 26(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 202: amended (with effect on 1 April 2013), on 17 July 2013, by section 148 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section 202(d): replaced, on 14 May 2016, by section 26(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Subpart 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.
Compare: 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 or anything in the loan contract or any other Act; and
(c)
whether the loan contract was signed before, on, or after the date on which this section comes into force.
Section 204(3)(c): amended, on 30 March 2013, by section 36 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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 of Part 2 of the Contract and Commercial Law Act 2017, as if the borrower were aged 18 years.
Compare: 1992 No 141 s 63A
Section 205: amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
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 in relation to a loan contract.
(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)
[Repealed](3)
[Repealed](4)
No obligation as to secrecy or other restriction imposed by an enactment or otherwise on the disclosure of information prevents the persons specified in paragraphs (a), (c), and (e) of the definition of authorised person in subsection (5) from receiving information disclosed by an authorised person to another authorised person in accordance with subsection (1) for any purpose that relates to the administration of the student loan scheme.
(5)
In this section,—
authorised person means—
(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 means the department that is, with the authority of the Prime Minister, for the time being responsible for the administration of the Social Security Act 2018.
Compare: 1992 No 141 s 62
Section 207(1): replaced, on 31 August 2017, by section 379(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2007 No 14).
Section 207(2): repealed, on 31 August 2017, by section 379(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2007 No 14).
Section 207(3): repealed, on 31 August 2017, by section 379(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2007 No 14).
Section 207(4): amended, on 31 August 2017, by section 379(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2007 No 14).
Section 207(5) specified department: amended, on 26 November 2018, by section 459 of the Social Security Act 2018 (2018 No 32).
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 (within the meaning of section 306 of the Customs and Excise Act 2018) in relation to student loans.
(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, no information may be disclosed under this section except under—
(a)
(b)
an approved information sharing agreement entered into under subpart 1 of Part 7 of the Privacy Act 2020.
Compare: 1992 No 141 s 62A
Section 208(1): replaced, on 30 March 2013, by section 37 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 208(1)(c): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).
Section 208(2)(d): inserted, on 1 October 2021, by section 190 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 208(5): inserted, on 1 December 2020, by section 190 of the Privacy Act 2020 (2020 No 31).
209 Power of Commissioner to access arrival or departure information
In accordance with, and for the purpose set out in, section 312 of the Customs and Excise Act 2018, the Commissioner may access any information-recording system used by the New Zealand Customs Service to store arrival or departure information.
Compare: 1992 No 141 s 62B
Section 209: amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).
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, on 14 May 2016, by section 27 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Informing and notifying under this Act
210 Meaning of inform
(1)
A requirement in this Act for a person to inform another person (person B) is satisfied—
(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 another person or for a matter to be notified is satisfied by a communication—
(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 the person complies with Part 4 of the Contract and Commercial Law Act 2017, including by email or the Internet; or
(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 of the Tax Administration Act 1994, and sections 220 and 224 of the Contract and Commercial Law Act 2017, the consent of a person is not required in order for information to be communicated in an electronic form.
Section 211(1)(a): amended, on 30 March 2022, by section 265(a) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 211(1)(d): amended, on 30 March 2022, by section 265(b) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 211(1)(d): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
Section 211(4): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
212 Meaning of notify a person in writing
(1)
A requirement in this Act for a person to notify a person in writing or for a matter to be notified in writing is satisfied by a communication—
(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 the person complies with Part 4 of the Contract and Commercial Law Act 2017, including by email or the Internet; or
(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) of this section, section 6 of the Tax Administration Act 1994, and sections 220 and 224 of the Contract and Commercial Law Act 2017, the consent of a person is not required in order for information to be communicated in an electronic form.
Section 212(1)(a): amended, on 30 March 2022, by section 266(a) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 212(1)(b): amended, on 30 March 2022, by section 266(b) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 212(1)(b): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
Section 212(4): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
213 Meaning of formally notify
[Repealed]Section 213: repealed, on 14 May 2016, by section 28 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
214 Notice requirements of Tax Administration Act 1994 do not apply
Sections 210 to 212 of this Act override sections 14 to 14G of the Tax Administration Act 1994.
Section 214: amended, on 2 June 2016, by section 225 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 214: amended, on 14 May 2016, by section 29 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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)
[Repealed](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), or 107A(2)(e):
(e)
prescribing the amount of a student loan establishment fee charged under section 14, or a means by which it may be calculated or ascertained:
(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), or a means by which it may be calculated or ascertained:
(h)
prescribing the amount of an annual administration fee charged under section 189, or a means by which it may be calculated or ascertained:
(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 of the Legislation Act 2019 for publication requirements).
Compare: 1992 No 141 s 87
| 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, Sch 1 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, on 14 May 2016, by section 30 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 215(1)(d): replaced, on 30 March 2013, by section 38 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 215(2): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
216 Transitional regulations
[Repealed]Section 216: repealed, on 2 April 2015, by section 216(3)(a).
217 Application of Legislation Act 2012
[Repealed]Section 217: repealed, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Savings and transitional provisions
218 Transitional provisions concerning loan manager and loan advances
[Repealed]Section 218: repealed, on 1 April 2012, by section 218(2).
219 Early applications and issue of certificates for transition to this Act
[Repealed]Section 219: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 69 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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 |
| 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, on 30 March 2013, by section 39 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 220(2) table: amended, on 1 April 2020, by section 78 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 220(2) table: amended, on 14 May 2016, by section 31 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Consequential amendments and repeals
221 Amendments to this Act
[Repealed]Section 221: repealed, on 30 March 2013, by section 40 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
222 Amendments to Student Loan Scheme Act 1992 and Credit Contracts and Consumer Finance Act 2003
The Acts specified in Schedule 8 are amended in the manner set out in that schedule.
223 Amendments to other Acts
The Acts specified in Schedule 9 are amended in the manner set out in that schedule.
224 Amendments to other enactments
The enactments specified in Schedule 10 are amended in the manner set out in that schedule.
225 Student Loan Scheme Act 1992 repealed
The Student Loan Scheme Act 1992 (1992 No 141) is repealed.
226 Regulations revoked
(1)
The Credit Contracts and Consumer Finance (Student Loan Contract Exemption) Regulations 2010 (SR 2010/341) are revoked.
(2)
The Student Loan Scheme (Charitable Organisations) Regulations 2006 (SR 2006/68) are revoked.
(3)
The Student Loan Scheme (Repayment Threshold) Regulations 2008 (SR 2008/450) are revoked.
Schedule 1 Conditions to borrower being treated as being physically in New Zealand
1 Definitions
In this schedule,—
Crown agent means a statutory entity named in Part 1 of Schedule 1 of the Crown Entities Act 2004
ENZ means Education New Zealand continued by section 510 of the Education and Training Act 2020
government department means a public service agency as defined in section 5 of the Public Service Act 2020
NZQA means the New Zealand Qualifications Authority continued by section 430 of the Education and Training Act 2020
qualifying government-funded scholarship means a scholarship, in respect of study or an internship,—
(a)
that is partially or fully funded by a government department or a Crown agent; and
(b)
that is assessed by ENZ as being a qualifying scholarship for the purposes of this Act.
Schedule 1 clause 1: replaced, on 21 February 2017, by section 133(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Schedule 1 clause 1 ENZ: amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
Schedule 1 clause 1 government department: amended, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).
Schedule 1 clause 1 NZQA: amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
2 Conditions to charity application
(1)
A borrower who makes an application under section 25(1)(b) must provide the Commissioner with evidence that the work the borrower is doing as a volunteer or for token payment for a charity is 1 or more of the following:
(a)
work to relieve poverty, hunger, sickness, or the ravages of war or natural disaster; or
(b)
work to improve the economy of a country that is on the Organisation for Economic Co-operation and Development’s list of countries receiving development assistance; or
(c)
work to raise the educational standards of a country that is on the Organisation for Economic Co-operation and Development’s list of countries receiving development assistance.
(2)
The charity must be listed as a charity under section 27A either—
(a)
at the time the Commissioner grants the application; or
(b)
if the work is completed before an application is made, for the period of work to which the application relates.
(3)
The Commissioner may treat a borrower as being physically in New Zealand under section 25(1)(b) for a maximum aggregate period of up to 24 months.
Compare: 1992 No 141 ss 38AE(3)(a), 38AEA
Schedule 1 clause 2(2): replaced, on 14 May 2016, by section 32 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
3 Conditions to unexpected delay application
A borrower who makes an application under section 25(1)(c) must—
(a)
have been a New Zealand resident for the period to which the application applies; and
(b)
provide evidence—
(i)
of the borrower’s intended return to New Zealand; and
(ii)
that, if the borrower had returned to New Zealand as intended, the borrower would have been New Zealand-based; and
(c)
provide evidence of the unexpected delay that resulted in the borrower not being able to return to New Zealand as intended; and
(d)
provide evidence that the unexpected delay was due to an event or to circumstances beyond the reasonable control of the borrower, like (for example)—
(i)
an airline strike, a personal illness, or the death of a family member:
(ii)
a fire, flood, storm, earthquake, landslide, volcanic eruption, or other act of God:
(iii)
an explosion or nuclear, biological, or chemical contamination:
(iv)
sabotage, terrorism, or an act of war (whether declared or not).
Compare: 1992 No 141 s 38AF
4 Conditions to unplanned personal absence application
A borrower who makes an application under section 25(1)(d) must—
(a)
have been a New Zealand resident for the period to which the application applies; and
(b)
provide evidence of the duration of the borrower’s unplanned personal absence from New Zealand; and
(c)
provide evidence that the borrower’s unplanned personal absence was due to an event or to circumstances beyond the reasonable planning and control of the borrower, like (for example)—
(i)
the illness or death of a family member who is overseas:
(ii)
the borrower’s employer requiring the borrower to attend a conference overseas.
Compare: 1992 No 141 s 38AG
5 Conditions to employment or occupation absence application
A borrower who makes an application under section 25(1)(e) must—
(a)
be a New Zealand resident for the period to which the application applies; and
(b)
have a permanent place of abode only in New Zealand; and
(c)
provide evidence that the borrower derives either—
(i)
a PAYE income payment as defined in section RD 3(1) of the Income Tax Act 2007, having a source in New Zealand; or
(ii)
income from a business that has a permanent establishment in New Zealand; and
(d)
provide evidence that the majority of the borrower’s personal absences from New Zealand are because of the borrower’s employment or occupation.
Compare: 1992 No 141 s 38AH
6 Conditions to marriage, civil union, or de facto application
(1)
A borrower who makes an application under section 25(1)(f) must—
(a)
be a New Zealand resident for the period to which the application applies; and
(b)
provide evidence of the borrower’s relationship with his or her spouse, civil union partner, or de facto partner (partner); and
(c)
provide evidence that the borrower’s personal absence from New Zealand is because the borrower is accompanying his or her partner overseas; and
(2)
The Commissioner may treat a borrower whose partner satisfies the conditions in clause 2 (working as a volunteer or for token payment for a charity) as being physically in New Zealand under section 25(1)(f) for a maximum aggregate period of up to 24 months.
Compare: 1992 No 141 ss 38AE(3)(b), 38AI
Schedule 1 clause 6(1)(d)(ii): amended, on 21 February 2017, by section 133(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
7 Condition to study at postgraduate or undergraduate level overseas application
(1)
A borrower who makes an application under section 25(1)(g) must—
(a)
be undertaking study at postgraduate or undergraduate level; and
(b)
provide the Commissioner with the following:
(i)
evidence from the NZQA verifying that the borrower’s course is study at postgraduate or undergraduate level; and
(ii)
evidence from the borrower’s overseas education provider verifying that the borrower is enrolled full-time in the course verified by the NZQA.
(2)
In this clause, study at postgraduate or undergraduate level means study that is assessed by the NZQA as being equivalent to level 7, 8, 9, or 10 on the New Zealand Register of Quality Assured Qualifications developed by the NZQA under section 452(1)(c) of the Education and Training Act 2020.
Compare: 1992 No 141 s 38AJ(2), (4)
Schedule 1 clause 7(2): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
8 Condition to full-time overseas study under formal exchange programme or formal agreement application
(1)
A borrower who makes an application under section 25(1)(h) must—
(a)
be undertaking study that—
(i)
the borrower is enrolled in with a New Zealand tertiary education provider; and
(ii)
if it is completed successfully, will count towards a qualification offered by a New Zealand tertiary education provider; and
(iii)
is assessed by the NZQA as being equivalent to level 7 or above on the New Zealand Register of Quality Assured Qualifications developed by the NZQA under section 452(1)(c) of the Education and Training Act 2020; and
(iv)
is full-time and undertaken overseas as part of either—
(A)
a formal exchange programme approved by the New Zealand Government; or
(B)
a formal agreement between a New Zealand tertiary education provider and an overseas tertiary provider; and
(b)
provide the Commissioner with evidence from the borrower’s New Zealand tertiary education provider verifying that the borrower’s study meets the requirements of paragraph (a).
(2)
In this clause, overseas tertiary provider means an institution or organisation that—
(a)
provides tertiary education or training; and
(b)
is based in a country other than New Zealand; and
(c)
is registered by an appropriate education authority in that country.
Compare: 1992 No 141 s 38AJA(2), (4), (6)
Schedule 1 clause 8(1)(a)(iii): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
9 Condition to full-time overseas study application
A borrower who makes an application under section 25(1)(i) must—
(a)
be undertaking study that—
(i)
the borrower is enrolled in with a New Zealand tertiary education provider; and
(ii)
if it is completed successfully, will count towards a qualification offered by a New Zealand tertiary education provider; and
(iii)
is assessed by the NZQA as being equivalent to level 8 or above on the New Zealand Register of Quality Assured Qualifications developed by the NZQA under section 452(1)(c) of the Education and Training Act 2020; and
(iv)
is full-time and undertaken overseas; and
(v)
cannot be completed in New Zealand; and
(b)
provide the Commissioner with evidence from the borrower’s New Zealand tertiary education provider verifying that the borrower’s study meets the requirements of paragraph (a).
Compare: 1992 No 141 s 38AJA(3), (4)
Schedule 1 clause 9(a)(iii): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
9A Condition to government-funded full-time overseas study application
A borrower who makes an application under section 25(1)(ia) must—
(a)
be undertaking study that—
(i)
the borrower is receiving a qualifying government-funded scholarship in respect of; and
(ii)
is full-time and undertaken overseas; and
(b)
provide the Commissioner with evidence from ENZ verifying that the borrower is receiving a qualifying government-funded scholarship in respect of the study.
Schedule 1 clause 9A: inserted, on 21 February 2017, by section 133(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
9B Condition to government-funded overseas internship application
A borrower who makes an application under section 25(1)(ib) must—
(a)
be undertaking an internship that—
(i)
the borrower is receiving a qualifying government-funded scholarship in respect of; and
(ii)
is—
(A)
full-time; or
(B)
if undertaken with part-time study, part-time; and
(iii)
is undertaken overseas; and
(b)
provide the Commissioner with evidence from ENZ verifying that the borrower is receiving a qualifying government-funded scholarship in respect of the internship.
Schedule 1 clause 9B: inserted, on 21 February 2017, by section 133(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
10 Conditions to Niue, Cook Islands, Tokelau, and Ross Dependency application
A borrower who makes an application under section 25(1)(j) must—
(a)
provide the Commissioner with evidence that he or she is physically in 1 or more of New Zealand, Niue, the Cook Islands, Tokelau, or the Ross Dependency for the period to which the application applies; and
(b)
pay his or her repayment obligation in full when, or before, it falls due during the period he or she is treated as being physically in New Zealand.
Compare: 1992 No 141 s 38AIA
11 Certain exempt borrowers must notify Commissioner of their worldwide income
(1)
This clause applies to a borrower who is treated as being physically in New Zealand under any of paragraphs (b), (g), (h), (i), (ia), (ib), and (j) of section 25(1) or under section 25(3).
(2)
The borrower must notify the Commissioner of the borrower’s adjusted net income in accordance with section 114(2), and sections 114(3) and (4) and 114A apply accordingly.
Schedule 1 clause 11: inserted (with effect on 1 April 2012), on 12 April 2012, by section 53 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Schedule 1 clause 11(1): amended, on 1 April 2020, by section 79 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Schedule 1 clause 11(1): amended, on 21 February 2017, by section 133(4) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Schedule 1 clause 11(2): amended, on 1 April 2014 (applying for 2014–2015 and later tax years), by section 73 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Schedule 2 Application of PAYE rules for purposes of section 70
PAYE rules apply to salary or wage deductions
-
1
The PAYE rules apply for the purposes of section 70, as far as applicable and with all necessary modifications, as if—
-
(a)
every reference to income tax or tax were a reference to a salary or wage deduction; and
-
(b)
every reference to an amount of tax for a PAYE income payment that is withheld and paid to the Commissioner were a reference to a salary or wage deduction; and
-
(c)
every reference to a taxpayer or a person were a reference to a borrower; and
-
(d)
every reference to a tax code were a reference to, as applicable, the repayment codes
“SL”
,“TTC”
,“SLCIR”
, or“SLBOR”
; and -
(e)
every reference to basic tax rates were a reference to the repayment percentage.
Schedule 2 clause 1 paragraph (d): replaced (with effect on 1 April 2012), on 12 April 2012, by section 54 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Schedule 2 clause 1 paragraph (d): amended, on 1 April 2019, by section 333(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
-
(a)
-
2
However,—
-
(a)
the following do not apply to salary or wage deductions:
-
(i)
sections BC 1, LA 6, RC 2(1), RC 6, RC 7, RC 16, RC 17, RD 8 to RD 10B, RD 13, RD 13B, RD 17(2) and (3), and RD 18 to RD 20 of the Income Tax Act 2007:
-
(ii)
sections 24F, 24G, 24H, and 24I, and schedule 5, part C of the Tax Administration Act 1994.
-
(i)
-
(b)
a salary or wage deduction must not be treated as part of, or included in, an amount of tax for a PAYE income payment that is withheld and paid to the Commissioner under the PAYE rules.
Schedule 2 clause 2(a): replaced, on 1 April 2019, by section 395(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Schedule 2 clause 2(a)(i): amended, on 1 April 2019, by section 333(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
-
(a)
| Compare: 1992 No 141 s 25 |
Schedule 3 Adjustments to net income for purposes of section 73, applying from 1 April 2014 for 2014–2015 and later tax years
Schedule 3: replaced, on 1 April 2014 (applying for 2014–2015 and later tax years), by section 74 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Contents
1 Interpretation
In this schedule, unless the context otherwise requires—
(a)
any term or expression that is defined in the Income Tax Act 2007 and used, but not defined, in this schedule has the same meaning as in the Income Tax Act 2007; and
(b)
Act means the Income Tax Act 2007.
2 Adjustments to net income for purpose of determining adjusted net income
For the purposes of section 73 of this Act, the adjustments to net income in clauses 3 to 15 apply for the purposes of determining adjusted net income.
3 Non-resident’s foreign-sourced income
The adjusted net income of a borrower who is non-resident includes the net income of the non-resident’s foreign-sourced income, as if the borrower were a New Zealand resident.
4 Borrowers who carry on business and investment activities
(1)
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.
(2)
For the purposes of applying subclause (1), 2 or more business or investment activities may be treated as a single activity if the Commissioner considers that those business or investment activities are of a kind that are normally carried on in association with each other.
(3)
For the purposes of applying subclause (1), as modified by subclause (2), deductions that relate to an asset used in carrying on 2 or more business or investment activities must be appropriately apportioned between those activities on the basis of the use of that asset in those activities.
Compare: 2007 No 97 s MB 3
5 Exempt income included
An amount derived by the borrower is not treated as exempt income if it is—
(a)
an overseas pension within the meaning of section CW 28(2)(a) of the Act:
(b)
an amount of salary or wages that is exempt from income tax under an Act, or under a regulation or Order in Council made under an Act, that is listed in Schedule 38 of the Act (Acts exempting income from tax: income included in family scheme income).
Compare: 2007 No 97 s MB 1(2)
5A Excluded income
(1)
The following amounts are not included in adjusted net income of the borrower:
Retirement scheme contributions
(a)
an amount of retirement scheme contribution that is not excluded income of the borrower and would be their excluded income in the absence of section CX 50B(2) of the Act (Contributions to retirement savings schemes):
Amounts of depreciation loss on disposal of building
(b)
in relation to a building from the disposal of which the borrower derives assessable income, an amount of depreciation loss allowed in the 2002–03 or earlier income year.
(2)
However, subclause (1)(b) does not apply to an amount of depreciation loss of a business or investment activity that under clause 4 is treated as having no net income for the purposes of calculating adjusted net income.
Compare: 2007 No 97 s MB 1(5B), (5C)
Schedule 3 clause 5A: inserted, on 1 April 2020, by section 125(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
6 Income from portfolio investment entities
(1)
An amount of income attributed by a portfolio investment entity to the borrower for an income year—
(a)
is not included in adjusted net income of the borrower for the income year if the portfolio investment entity is a superannuation fund or retirement savings scheme:
(b)
is included in adjusted net income of the borrower for the income year if paragraph (a) does not apply.
(2)
A distribution from a listed PIE that is derived by the borrower in an income year is included in adjusted net income of the borrower for the income year.
Compare: 2007 No 97 s MB 1(5)
7 Deposits in main income equalisation accounts
The borrower’s adjusted net income is increased by the amount of a main income equalisation deposit the borrower makes for the income year.
Schedule 3 clause 7: replaced, on 14 May 2016, by section 33(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
7A Refunds from main income equalisation accounts
The borrower’s adjusted net income does not include the amount of a main income equalisation refund the borrower receives for the income year.
Schedule 3 clause 7A: inserted, on 14 May 2016, by section 33(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
8 Borrowers who are major shareholders in close companies
(1)
This clause applies for the purpose of determining the amount that is included in the adjusted net income of a borrower for an income year when the borrower is a major shareholder in a close company (the company) on the last day of the company’s income year.
(2)
Section MB 4 of the Act applies as if the references in that section to “family scheme income”
were references to “adjusted net income”
and with all other necessary modifications.
(3)
[Repealed](4)
[Repealed](5)
[Repealed]Schedule 3 clause 8: replaced, on 14 May 2016, by section 33(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Schedule 3 clause 8(2): replaced, on 1 April 2020, by section 125(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Schedule 3 clause 8(3): repealed, on 1 April 2020, by section 125(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Schedule 3 clause 8(4): repealed, on 1 April 2020, by section 125(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Schedule 3 clause 8(5): repealed, on 1 April 2020, by section 125(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
9 Treatment of distributions from superannuation schemes
(1)
Subclause (3) applies if a borrower receives a distribution from a superannuation scheme in an income year and—
(a)
an employer of the borrower has made contributions to the superannuation scheme in the income year in which the distribution was received or in the 2 income years immediately before that income year; and
(b)
the borrower continues to work for the employer for 1 month or more after the date of the distribution.
(2)
Subclause (3) does not apply if a borrower receives a distribution from a superannuation scheme—
(a)
as a result of, and on or after, the person’s retirement from employment with an employer who was a contributor to the scheme; or
(b)
if the superannuation scheme is a KiwiSaver scheme or a complying superannuation fund.
(3)
For the purposes of calculating adjusted net income, the distribution (excluding any amount attributable to a contribution by the borrower as a member of the superannuation scheme) is adjusted net income of the borrower derived in the tax year or tax years that corresponds to the income year or years in which the employer contributions were made.
Compare: 2007 No 97 s MB 5
10 Treatment of distributions from retirement savings schemes
(1)
Subclause (2) applies if—
(a)
a borrower receives a distribution of a retirement scheme contribution from a retirement savings scheme in an income year; and
(b)
RSCT has been withheld from the contribution; and
(c)
at the time of the distribution, the person—
(i)
is not eligible for New Zealand superannuation; and
(ii)
is eligible for a distribution of a retirement scheme contribution from a retirement scheme contributor.
(2)
For the purposes of calculating adjusted net income, the distribution is adjusted net income of the person derived in the income year in which the distribution is made.
Compare: 2007 No 97 s MB 6
11 Borrowers who are settlors of trusts
(1)
This clause applies for the purpose of determining the amount that is included in the adjusted net income of a borrower for an income year when the borrower is the settlor of a trust (the borrower’s trust) at a time in the income year, other than solely as a result of providing personal services for less than market value in the administration of the trust or the maintenance of trust property.
(2)
This clause does not apply if—
(a)
the trustee of the borrower’s trust is registered as a charitable entity under the Charities Act 2005:
(b)
the borrower’s trust is solely for the benefit of a local authority:
(c)
interest and dividends derived by the trustee of the borrower’s trust would be exempt income of the trustee under section CW 45 (Funeral trusts) of the Act:
(d)
the borrower’s trust is a superannuation fund:
(e)
the borrower is not permitted to benefit from the borrower’s trust except under an order of a court.
(3)
The amount included in the borrower’s adjusted net income is the amount calculated using the formulas in subclauses (4) and (5), adjusted, if applicable, by subclauses (6) and (7) for main income equalisation account amounts.
(4)
For the purposes of subclause (3), the relevant amount is calculated using the formula—
(a + b) ÷ c
where—
- a
is the net income of the trustee of the borrower’s trust for the income year reduced, to not less than zero, by the amount of the trustee’s income that vests or is paid by the trustee as beneficiary income for the trustee’s income year
- b
is the greater of zero and the amount given by totalling the amounts calculated by applying the formula in subclause (5) to each company in which the trustee of the borrower’s trust and associated persons hold, on the last day of the company’s income year, voting interests of 50% or more
- c
is the number of settlors of the borrower’s trust who are alive at any time in the income year, including the borrower, for which this clause applies.
(5)
For the purposes of item b in the formula in subclause (4), an amount to be totalled is, for each relevant company, calculated using the formula—
d × (e − f)
where—
- d
is the percentage voting interests for the relevant company held, on the last day of the company’s income year, by the trustee
- e
is the net income of the relevant company for the company’s income year
- f
is the total dividends paid by the relevant company for the company’s income year.
(6)
For the purposes of subclause (3), if the trustee or a company described in the definition of item b in subclause (4) makes a main income equalisation deposit for an income year, the amount of the deposit is added to—
(a)
item a in the formula in subclause (4), if the trustee makes the deposit:
(b)
item e in the formula in subclause (5), if the company makes the deposit.
(7)
For the purposes of subclause (3), if the trustee or a company described in the definition of item b in subclause (4) receives a main income equalisation refund for an income year, the amount of the refund is subtracted from—
(a)
item a in the formula in subclause (4), if the trustee receives the refund:
(b)
item e in the formula in subclause (5), if the company receives the refund.
Schedule 3 clause 11: replaced, on 14 May 2016, by section 33(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
12 Income from fringe benefits
(1)
Subclause (2) applies if—
(a)
a borrower is an employee of a company in which the borrower and associated persons hold voting interests of 50% or more on the last day of the income year; and
(b)
the company provides a fringe benefit that must be attributed to the borrower under section RD 47 of the Act (Attribution of certain fringe benefits).
(2)
The adjusted net income of the borrower for the income year includes an amount equal to the total of the following amounts:
(a)
the taxable value of the fringe benefits that the company must attribute to the borrower under sections RD 47 to RD 49 of the Act for the income year; and
(b)
the company’s FBT liability in relation to the borrower under section RD 50 of the Act (Employer’s liability for attributed benefits) for the income year.
Compare: 2007 No 97 s MB 8
12A Income from employment benefits
(1)
This clause applies to a borrower to whom clause 12 does not apply if the borrower’s employer makes a motor vehicle or a short term charge facility available to the borrower in the income year.
(2)
If the borrower’s employer makes a motor vehicle available for the borrower’s private use (the benefit) and, under the terms of the borrower’s employment, the borrower would be entitled to a greater amount of employment income if the borrower chose not to receive the benefit, the borrower’s adjusted net income for that income year includes an amount equal to the amount by which the borrower’s employment income would be greater without the benefit.
(3)
If the borrower’s employer makes any short term charge facility available to the borrower (the facility), and the total value for the income year of any such facilities (excluding any fringe benefit tax) is more than the lesser of $1,200 or 5% of the borrower’s salary or wages, then the borrower’s adjusted net income for the income year includes the total value of the facilities including any fringe benefit tax.
(4)
In calculating under subclause (3) the amount of fringe benefit tax on a facility, the person may use—
(a)
the rate of fringe benefit tax used by the person’s employer in calculating the fringe benefit tax payable on the facility:
(b)
the maximum basic rate of fringe benefit tax specified in the Income Tax Act 2007, schedule 1, part C, table 1.
Schedule 3 clause 12A(4): inserted (with effect on 1 April 2014), on 30 March 2017, by section 380(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
13 Income from deposits in main income equalisation accounts
[Repealed]Schedule 3 clause 13: repealed, on 14 May 2016, by section 33(4) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
14 Income from certain pensions and annuities
If, in the income year, a borrower derives a pension or an annuity that is exempt income of the borrower under section CW 4 of the Act (Annuities under life insurance policies) or is a pension from a superannuation fund, the adjusted net income of the borrower for the income year—
(a)
includes half the amount of pension or annuity derived in the income year; and
(b)
does not include the other half of the amount of pension or annuity derived in the income year.
Compare: 2007 No 97 s MB 10
14B Remission income of discharged bankrupt excluded
[Repealed]Schedule 3 clause 14B: repealed, on 30 March 2017, by section 381 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Schedule 3 clause 14B: inserted (with effect on 1 April 2014 and applying for discharges from bankruptcy after 1 April 2014), on 30 March 2017, by section 380(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
15 Payments from trusts, not being beneficiary income, and where borrower not settlor
(1)
For the purposes of calculating adjusted net income, a borrower must include all payments from trusts in the adjusted net income of the person derived in the income year in which the distribution is made where—
(a)
the distribution is not beneficiary income in relation to the borrower; and
(b)
the borrower is not the settlor of the trust.
(2)
The Commissioner may, in his or her discretion, determine the circumstances in which payments from a trust should be excluded for the purposes of calculating adjusted net income.
Schedule 4 Application of provisional tax rules for purposes of section 86
Schedule 4: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 42 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Interim payments for adjusted net income to be paid in same manner as provisional tax
-
1
The provisional tax rules apply for the purposes of section 86, as far as applicable and with all necessary modifications, as if—
-
(a)
every reference to provisional tax were a reference to the amount of interim payments payable by a borrower; and
-
(b)
every reference to a person, a person liable to pay provisional tax, or a provisional taxpayer were a reference to a borrower; and
-
(c)
every reference to residual income tax were a reference to the amount of an end-of-year repayment obligation; and
-
(d)
every reference to income tax were a reference to an end-of-year repayment obligation; and
-
(e)
every reference to an instalment were a reference to an interim payment; and
-
(f)
every reference to a return of income were a reference to a statement of adjusted net income; and
-
(g)
every reference to $2,500 or less (being the threshold below which a person is not required to make provisional tax payments during the year) were a reference to the $1,000 threshold in section 79; and
-
(h)
every reference to section RC 10 of the Income Tax Act 2007 or to an amount calculated under section RC 10 of the Income Tax Act 2007 were a reference to section 82 of this Act or to the amount of a borrower’s interim payments calculated in accordance with section 82 of this Act; and
-
(i)
the reference in section RC 9(9) of the Income Tax Act 2007 to interest calculated under section 120KC of the Tax Administration Act 1994 were a reference to late payment interest calculated under section 139 of this Act.
-
(a)
Schedule 4 clause 1(f): replaced, on 14 May 2016, by section 34(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
-
2
However,—
-
(a)
sections LB 2, RC 3, RC 4, RC 5(6) and (8), RC 7(6), RC 8, RC 11, RC 15 to RC 19, RC 24, RC 28 to RC 35, RC 37 to RC 39, RZ 3, and RZ 5B of the Income Tax Act 2007, and the definition of early-payment discount in section RC 40 of that Act, do not apply to an interim payment; and
-
(b)
section RC 5(2) of the Income Tax Act 2007—
-
(i)
applies only if the borrower’s end-of-year repayment obligation for the second preceding tax year is $1,000 or more; and
-
(ii)
applies as if the calculation in that section were a reference to the calculation in section 82 of this Act; and
-
(i)
-
(c)
for a borrower required to provide a statement of adjusted net income, section RC 5(3) of the Income Tax Act 2007—
-
(i)
applies only if the borrower’s end-of-year repayment obligation for the second preceding tax year is $1,000 or more; and
-
(ii)
for a statement of adjusted net income for the immediately preceding tax year, or an estimate of the end-of-year repayment obligation, that is not provided by the due date for payment of the final interim payment, applies as if the borrower has filed a statement showing an estimate of the end-of-year repayment obligation for that tax year equal to the total amount of interim payments paid by the borrower on or before that date.
-
(i)
-
(a)
Schedule 4 clause 2(c): replaced, on 14 May 2016, by section 34(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
| Compare: 1992 No 141 s 28 |
Schedule 5 Transitional provisions concerning loan manager and loan advances
[Repealed]Schedule 5: repealed, on 1 April 2012, by section 218(2).
Schedule 5 clause 2: repealed (with effect on 1 January 2012), on 12 April 2012, by section 55 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Schedule 6 Application, savings, and transitional provisions
Schedule 6 heading: replaced, on 30 March 2013, by section 43(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Part 1 Provisions relating to principal Act as enacted
Schedule 6 Part 1 heading: inserted, on 30 March 2013, by section 43(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Savings provisions
1 Schedule applies despite repeal of Student Loan Scheme Act 1992 and anything to contrary
The provisions of this schedule apply despite—
(a)
(b)
anything to the contrary in this Act.
2 Student Loan Scheme Act 1992 applies to tax years prior to 1 April 2012 in limited circumstances
(1)
The Student Loan Scheme Act 1992 (and all relevant regulations made under that Act) continues in effect only to the extent necessary for the proper administration and completion of the matters referred to in clauses 24 to 28 relating to the tax year ending on 31 March 2012 and all earlier tax years.
(2)
All obligations or requirements in relation to a matter referred to in subclause (1) relating to the tax year ending on 31 March 2012 or an earlier tax year continue to apply, even if that obligation or requirement arises on or after 1 April 2012.
(3)
Any action that is taken in relation to a matter referred to in subclause (1) relating to the tax year ending on 31 March 2012 or an earlier tax year must be taken under the Student Loan Scheme Act 1992, even if that action is taken on or after 1 April 2012.
Schedule 6 clause 2 heading: replaced, on 1 April 2020, by section 80(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Schedule 6 clause 2(1): amended, on 1 April 2020, by section 80(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Schedule 6 clause 2(2): amended, on 1 April 2020, by section 80(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Schedule 6 clause 2(3): amended, on 1 April 2020, by section 80(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
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 of the Student Loan Scheme Amendment Act 2013.
(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) is not written off and remains part of the borrower’s loan balance.
Schedule 6 clause 2A: inserted, on 30 March 2013, by section 43(3) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Transitional provisions
3 Commissioner may request information from loan manager
(1)
The loan manager must provide the Commissioner with any information held by the loan manager about a borrower or a loan advance—
(a)
that the loan manager would have to notify the Commissioner of under sections 10, 16, and 17 if those sections applied to the borrower or the loan advance; and
(b)
if the Commissioner requests that information.
(2)
A request under subclause (1) may relate to particular borrowers or loan advances, or to a class (however defined) of borrowers or loan advances.
4 Commissioner may write-off certain interest
(1)
Subclause (2) applies to any interest imposed in relation to a borrower under the Student Loan Scheme Act 1992 before the borrower’s loan balance is transferred to the Commissioner for collection in accordance with section 4 of that Act.
(2)
The Commissioner may, at his or her discretion, write-off the interest.
5 Transition of loan balances from Student Loan Scheme Act 1992 to this Act
(1)
Subclause (2) applies to any amount (specified amount A) that—
(a)
must be paid or repaid in accordance with the Student Loan Scheme Act 1992 on or before 31 March 2012; and
(b)
has not been paid or repaid on or before the close of 31 March 2012; and
(c)
has not been decreased, reduced, or written off by the Commissioner.
(2)
On 1 April 2012, specified amount A must be treated as being part of a borrower’s unpaid amount for the purposes of this Act.
(3)
Subclause (4) applies to any amount (specified amount B) that,—
(a)
in accordance with this schedule, must be paid or repaid in accordance with the Student Loan Scheme Act 1992 on or after 1 April 2012; and
(b)
is not paid or repaid on or before its due date; and
(c)
is not decreased, reduced, or written off by the Commissioner.
(4)
At the time when this Act applies to it, specified amount B must be treated as being part of a borrower’s unpaid amount for the purposes of this Act.
(5)
At the time when this Act applies to it, any amount owed by a borrower under the Student Loan Scheme Act 1992 to which neither subclause (2) nor (4) applies must be treated as being part of a borrower’s loan balance for the purposes of this Act.
6 Small amounts of unpaid and uncollected repayment obligations
(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.
(2)
This clause overrides clause 5.
Schedule 6 clause 6(1): replaced, on 30 March 2013, by section 43(4) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
7 New Zealand-based and overseas-based borrowers
(1)
Every borrower who, on the close of 31 March 2012, is New Zealand-based under the Student Loan Scheme Act 1992 is treated as being New Zealand-based under this Act on 1 April 2012.
(2)
Every borrower who, on the close of 31 March 2012, is overseas based under the Student Loan Scheme Act 1992 is treated as being overseas-based under this Act on 1 April 2012.
(3)
Every day on which a borrower is personally present in New Zealand under the Student Loan Scheme Act 1992 is treated as a day on which the borrower is physically in New Zealand for the purposes of sections 22 and 24 of this Act.
(4)
Every day on which a borrower is personally absent from New Zealand under the Student Loan Scheme Act 1992 is treated as a day on which the borrower is physically absent from New Zealand for the purposes of section 23 of this Act.
8 Exemptions to the 183-day rule continue
(1)
This clause applies if—
(a)
the Commissioner has granted an exemption to the 183-day requirement to a borrower under section 38AE, 38AJ, or 38AJA of the Student Loan Scheme Act 1992 before 1 April 2012; and
(b)
the end date for the period of that exemption continues past 1 April 2012, or the conditions for the continuation of that exemption continue to apply or to be met on the close of 31 March 2012.
(2)
The exemption continues until, as applicable,—
(a)
the end date for the period of that exemption specified by the Commissioner; or
(b)
the conditions for the continuation of that exemption cease to apply or to be met.
(3)
The borrower is treated as being physically in New Zealand for the purposes of sections 22 to 24 for the period that the exemption continues.
9 Overseas-based borrowers’ repayment holidays
[Repealed]Schedule 6 clause 9: repealed (with effect on 1 April 2012), on 12 April 2012, by section 56(3) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
10 Deduction rates and deduction rate certificates
(1)
If, at the close of 31 March 2012, a borrower has employment for which the repayment code “SL”
applies to the borrower under section 18 of the Student Loan Scheme Act 1992, that repayment code continues to apply to that borrower in relation to that employment for the purposes of section 34 of this Act.
(2)
A borrower who, at the close of 31 March 2012, has complied with section 18 of the Student Loan Scheme Act 1992 in relation to an employer does not have to comply with section 35 of this Act in relation to that employer.
(3)
An increased repayment deduction rate notice that has been issued under section 20A of the Student Loan Scheme Act 1992 and that continues to apply at the close of 31 March 2012—
(a)
continues to apply until the earlier of the date on which—
(i)
the deductions made from the borrower’s salary or wages in accordance with the notice equal the amount specified in the notice in accordance with section 20A(2)(b) of the Student Loan Scheme Act 1992; or
(ii)
the Commissioner notifies the relevant employer otherwise; and
(b)
must be treated as if it were an additional deduction rate notice that has been issued by the Commissioner under section 49(2) of this Act.
(4)
A special repayment deduction rate certificate that has been issued under section 21 of the Student Loan Scheme Act 1992 and that continues to apply at the close of 31 March 2012—
(a)
continues to apply; and
(b)
must be treated as if it were, as applicable in the circumstances,—
(i)
a request by the borrower to make borrower deductions in accordance with section 39 of this Act; or
(ii)
a special deduction rate certificate issued in relation to the borrower under—
(A)
section 45 of this Act (special deduction rate certificate for unused repayment threshold); or
(B)
[Repealed](C)
section 148 of this Act (special deduction rate certificate for hardship relief).
Schedule 6 clause 10(4)(b)(ii)(B): repealed (with effect on 1 April 2012), on 12 April 2012, by section 56(3) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
11 Pay period that spans 1 April 2012
If an employer or PAYE intermediary pays an amount to a borrower by way of salary or wages for a pay period that starts before, and ends after, 1 April 2012,—
(a)
the employer or PAYE intermediary must make a deduction from that amount for the entire pay period in accordance with section 36(2) of this Act; and
(b)
section 19 of the Student Loan Scheme Act 1992 does not apply to the employer or PAYE intermediary in relation to the pay period.
12 Instalment arrangements
(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) that must be paid under the Student Loan Scheme Act 1992; and
(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) that must be paid under this Act; and
(ii)
some of the payments that are required under the instalment arrangement must be paid on or after 1 April 2013.
(2)
If all of the payments that are required under the instalment arrangement are paid on or before their due date,—
(a)
all late payment penalties that apply to the instalment amount under the Student Loan Scheme Act 1992 must be written off by the Commissioner; and
(b)
all late payment interest that applies to the instalment amount under this Act must be written off by the Commissioner.
(3)
If any of the payments that are required under the instalment arrangement are not paid on or before their due date, the following applies:
(a)
unpaid instalment amounts with a due date before 1 April 2012 are subject to the late payment penalties that apply to that amount under the Student Loan Scheme Act 1992 until the close of 31 March 2012; and
(b)
unpaid instalment amounts with a due date before 1 April 2012 that remain unpaid on or after that date are subject to late payment interest under this Act from 31 March 2012; and
(c)
unpaid instalment amounts with a due date on or after 1 April 2012 are subject to late payment interest under this Act.
Schedule 6 clause 12(1): replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 43(5) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
13 No refunds for deductions or payments made before 1 April 2006
(1)
No refund may be made under this Act or the Student Loan Scheme Act 1992 for any amount that was deducted or paid in excess (as set out in section 56(1)(a) to (e) or 57(1) of the Student Loan Scheme Act 1992) before 1 April 2006.
(2)
Subclause (1) applies despite anything to the contrary.
14 Matters from Student Loan Scheme Act 1992 to be used in this Act when required
(1)
This clause applies if—
(a)
this Act requires something to be done (a new Act requirement); and
(b)
the new Act requirement cannot be done without reference to an equivalent thing in, that arises from, or that was required to be done by the Student Loan Scheme Act 1992 (a 1992 Act requirement).
(2)
The new Act requirement must utilise the 1992 Act requirement—
(a)
as if it were the thing that was required by, or referred to in, the new Act requirement; and
(b)
with all necessary modifications; and
(c)
despite any difference in terminology between this Act and the Student Loan Scheme Act 1992.
(3)
For example, the interim payments that are due for the 2012–13 tax year under this Act must be determined—
(a)
by reference to residual repayment obligations for the 2011–12 tax year under the Student Loan Scheme Act 1992; and
(b)
as if references to end-of-year repayment obligations in this Act were references to residual repayment obligations for the 2011–12 tax year under the Student Loan Scheme Act 1992.
Schedule 6 clause 14(3): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Schedule 6 clause 14(3)(b): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
15 Updated references
Unless the context otherwise requires, all references in an enactment or document (including a loan contract) to—
(a)
the Student Loan Scheme Act 1992 must be read as a reference to this Act; and
(b)
the student loan scheme under the Student Loan Scheme Act 1992 must be read as a reference to the student loan scheme under this Act; and
(c)
a student loan under the Student Loan Scheme Act 1992 must be read as a reference to a student loan under this Act; and
(d)
a borrower under the Student Loan Scheme Act 1992 must be read as a reference to a borrower under this Act.
Part 2 Transitional provision relating to Student Loan Scheme Amendment Act 2013
Schedule 6 Part 2 heading: inserted, on 30 March 2013, by section 43(6) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
16 Interpretation
In this Part,—
amendment Act means the Student Loan Scheme Amendment Act 2013
principal Act means the Student Loan Scheme Act 2011.
Schedule 6 clause 16: inserted, on 30 March 2013, by section 43(7) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
17 Regulations for transitional purposes
[Repealed]Schedule 6 clause 17: repealed, on 1 April 2018, by clause 17(6).
Part 3 Transitional provision relating to Student Loan Scheme Amendment Act 2014
Schedule 6 Part 3: inserted (with effect on 1 April 2014), on 13 May 2016, by section 35(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
18 Savings provision for section 110
(1)
Section 110 and any related provisions, as in force immediately before the amendment Act came into force, apply to the repayment obligation of a borrower for any tax year ending on or before 31 March 2014.
(2)
In this section,—
amendment Act means the Student Loan Scheme Amendment Act 2014
related provision means a provision of the Student Loan Scheme Act 2011 that has an effect in relation to section 110 as in force immediately before the amendment Act came into force (for example, a definition).
Part 4 Transitional provisions relating to Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016
Schedule 6 Part 4: inserted, on 14 May 2016, by section 35(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
19 Application of specified amendments
The following provisions of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 apply for the 2016–2017 and later tax years:
(a)
(b)
section 33 (which relates to deposits and refunds for main income equalisation accounts).
20 Existing charities to be listed as charities on commencement
(1)
On commencement,—
(a)
an existing charity is treated as qualifying to be listed as a charity under section 27B; and
(b)
the Commissioner must—
(i)
list each existing charity as a charity; and
(ii)
specify, on the list, the date on which the existing charity was first specified in regulations made under section 215(b) (or any provision that section 215(b), with or without modification, replaced or corresponded to) as the date on and from which the listing applies; and
(c)
the Commissioner may consider any application from an entity to be listed as a charity, even if the application was received before commencement.
(2)
Nothing in subclause (1) prevents the Commissioner from exercising the power under section 27E to remove the person’s listing on the ground that it does not qualify under section 27B to be listed.
(3)
In this section,—
commencement means the date on which section 7 comes into force
existing charity means a person that, immediately before commencement, was specified in the existing regulations
existing regulations means the Student Loan Scheme (Charitable Organisations) Regulations 2011 as in force immediately before commencement.
Part 5 Transitional provisions relating to Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
Schedule 6 Part 5: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Provisions relating to tax year ending on 31 March 2013 and all earlier tax years
Heading: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
21 Outline of clauses 22 to 27
Clauses 22 to 27 prevent the reopening of a borrower’s repayment obligations for closed-off tax years except in limited circumstances.
Schedule 6 clause 21: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
22 Interpretation for clauses 23 to 27
(1)
In clauses 23 to 27, unless the context otherwise requires,—
Act,—
(a)
in relation to the tax year ending on 31 March 2012 and all earlier tax years, means the Student Loan Scheme Act 1992 and all relevant regulations made under that Act:
(b)
in relation to the tax year ending on 31 March 2013, means this Act and all relevant regulations made under this Act
closed-off tax year means the tax year ending on 31 March 2013 and all earlier tax years
interest—
(a)
includes interest imposed under the Student Loan Scheme Act 1992 and loan interest imposed under this Act; but
(b)
excludes late payment interest imposed under this Act
reopen, in relation to a repayment obligation, means all or any of the following:
(a)
the Commissioner taking steps to reflect the manner in which the Act should have been applied to a borrower (for example, if the Act was incorrectly applied to the borrower or in respect of a change in the borrower’s circumstances):
(b)
the Commissioner making an assessment or amending an assessment in order to ensure that a correct assessment is made, whether or not a repayment obligation already assessed has been paid:
(c)
a borrower objecting, disputing, or challenging a decision of the Commissioner or another matter.
(2)
In clauses 23 to 27, a term or an expression used in relation to a tax year (but not defined in subclause (1)) has the same meaning as in the Act that applies in relation to that tax year.
Schedule 6 clause 22: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
23 General rules for closed-off tax years
Neither the Commissioner nor a borrower may, after 1 April 2020, reopen any repayment obligation relating to a closed-off tax year except to the extent to which clauses 24 to 27 provide for the reopening.
Schedule 6 clause 23: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
24 Residency errors: when repayment obligations should have been overseas-based repayment obligations
(1)
This clause applies to a borrower who—
(a)
has been incorrectly treated as New Zealand-based for all or any part of a closed-off tax year; and
(b)
after 1 April 2020, is established to have been overseas-based for all or any part of that closed-off tax year (the relevant period).
(2)
The borrower’s repayment obligations may be reopened as a result of the incorrect treatment by taking 1 or more of the following steps:
(a)
steps to reflect that the borrower must be taken to be, and to always have been, liable to pay interest for the relevant period:
(b)
steps referred to in clauses 25 to 27.
Schedule 6 clause 24: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
25 Residency errors: when repayment obligations should have been New Zealand-based repayment obligations
(1)
This clause applies to a borrower who—
(a)
was incorrectly treated as overseas-based for all or any part of a closed-off tax year; and
(b)
after 1 April 2020, is established to have been New Zealand-based for all or any part of that closed-off tax year (the relevant period).
(2)
The borrower’s obligations in respect of the relevant period may be reopened as a result of the incorrect treatment by taking 1 or more of the following steps:
(a)
steps to reflect that the borrower must be taken to be, and to always have been, not liable to pay interest for the relevant period:
(b)
steps to reflect that the borrower should not have been assessed with an overseas-based repayment obligation for the relevant period:
(c)
steps referred to in clauses 24 to 27.
Schedule 6 clause 25: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
26 Evasion or similar offences
(1)
This clause applies to a borrower for a closed-off tax year—
Evasion or similar act
(a)
if all or any of the following apply to the borrower:
(i)
the borrower committed an offence under section 143B of the Tax Administration Act 1994, as applied by section 162:
(ii)
the borrower is or was liable to pay a student loan shortfall penalty imposed under section 159 relating to a penalty imposed under section 141E of the Tax Administration Act 1994:
(iii)
the borrower committed an offence under section 79(1) of the Student Loan Scheme Act 1992:
(iv)
the borrower is or was chargeable with a penal repayment obligation under section 85 of the Student Loan Scheme Act 1992:
Other failures
(b)
if the Commissioner is satisfied that it is cost-effective for the Commissioner to reopen the borrower’s repayment obligation and that the borrower has not provided information (including tax returns and tax forms) to the Commissioner or any other person when required to do so by a tax law.
(2)
The Commissioner may reopen the borrower’s repayment obligation relating to all or any part of a closed-off tax year by taking 1 or more of the following steps:
(a)
steps to reflect the manner in which the Act should have been applied to the borrower, as if the end-of-year repayment obligation for the relevant tax year were calculated as follows:
10% × (a − b)
where—
- a
is the difference between the income of the borrower that should have been used to calculate the borrower’s end-of-year repayment obligation and the income that was used (if a return was filed) or nil (if a return was not filed)
- b
is the unused part of the borrower’s repayment threshold:
(b)
steps referred to in clauses 24 to 27.
Schedule 6 clause 26: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
27 Persons adversely affected
(1)
This clause applies if—
(a)
a borrower applies to the Commissioner for the reopening of any repayment obligation relating to all or any part of a closed-off tax year; and
(b)
the borrower establishes, and the Commissioner considers, that the borrower would be adversely affected if reopening did not occur.
(2)
The Commissioner may reopen any repayment obligation for all or any part of a closed-off tax year.
Schedule 6 clause 27: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Other application, savings, and transitional provisions
Heading: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
28 Loans resulting from identity theft, etc
(1)
This clause applies to a loan balance that—
(a)
has been transferred to the Commissioner for collection under the Student Loan Scheme Act 1992 before 1 April 2000; and
(b)
is in the name of a person—
(i)
who did not enter into the loan contract under the student loan scheme from which the loan results; and
(ii)
who did not receive the loan.
(2)
The Commissioner must reduce the consolidated loan balance to zero, with effect from the day on which the loan was transferred to the Commissioner for collection, if the Commissioner is satisfied that the person who did receive the loan cannot be identified or located.
Schedule 6 clause 28: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
29 New Zealand-based borrowers and interest in respect of periods on or before 1 April 2020
(1)
This clause applies to New Zealand-based borrowers in respect of interest that, without this clause, would be charged—
(a)
on or after 1 April 2020 in relation to periods before that date; and
(b)
under section 134 and written off under section 137.
(2)
The Commissioner must treat sections 119 to 122 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 as having commenced on 1 April 2012.
Schedule 6 clause 29: inserted, on 1 April 2020, by section 80(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Schedule 7 Amendments to this Act
[Repealed]Schedule 7: repealed, on 1 April 2013 (applying for 2013–14 and later tax years), by section 70 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Schedule 8 Amendments to Student Loan Scheme Act 1992 and Credit Contracts and Consumer Finance Act 2003
Student Loan Scheme Act 1992 (1992 No 141)
Section 45F(2): repeal and substitute:
(2)
If a borrower’s loan balance will not be fully repaid as a result of being reduced by a 10% bonus, that bonus must be credited to the borrower’s loan balance with effect from—
(a)
1 April in the tax year that follows the tax year for which the excess repayments were made; or
(b)
any other date that the Commissioner considers appropriate if the borrower dies or is declared bankrupt.
Heading to section 57B: omit “1 April 2004”
and substitute “31 March 2006”
.
Section 57B: omit “1 April 2004”
and substitute “31 March 2006”
.
New sections 63B to 63N: insert after section 63A:
63B Initial disclosure
The loan manager must provide a borrower with a copy of the borrower’s student loan contract before the day that is 6 working days after the day on which the contract is entered into.
Compare: SR 2010/341 r 5
63C Certain information must be disclosed in loan contract
(1)
Every loan contract entered into on or after the date on which this section comes into force must specify the following information that applies at the date the loan contract is entered into:
(a)
the repayment threshold:
(b)
the total interest rate:
(c)
the repayment percentage:
(d)
the amount of any student loan establishment fee:
(e)
the amount of the annual administration fee charged under section 63L:
(f)
any other matters specified in regulations.
(2)
The Commissioner must inform borrowers in accordance with section 63D if any of the information specified in accordance with subsection (1) changes.
63D Method of informing borrowers
For the purposes of section 63C(2), the Commissioner must inform a borrower—
(a)
by—
(i)
providing the information free of charge on an Internet site that allows the borrower 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.
63E Continuing disclosure of information
(1)
The loan manager or the Commissioner must disclose the information set out in section 63F to the borrower under a student loan contract.
(2)
The information must—
(a)
be disclosed at least once in each 6-month period following the day on which the contract is entered into; and
(b)
relate to the previous 6-month period.
Compare: SR 2010/341 r 6
63F Content of information disclosed
Each disclosure of information in accordance with section 63E must contain as much of the following information as is applicable to the borrower or the student loan contract:
(a)
the opening and closing dates of the period covered by the disclosure; and
(b)
the loan balance on the opening and closing dates; and
(c)
the date and amount, and a description, of each amount advanced to the borrower under the contract during the period covered by the disclosure; and
(d)
the date and amount of any interest charged to the borrower during the period covered by the disclosure; and
(e)
the total interest rate that applies during the period covered by the disclosure; and
(f)
the date and amount, and a description, of each fee charged to the borrower during the period covered by the disclosure; and
(g)
the date and amount, and a description, of each penalty charged to the borrower during the period covered by the disclosure.
Compare: SR 2010/341 r 7
63G Disclosure of changes to obligations under student loan contract
(1)
Subsection (2) applies if—
(a)
a change is made to a borrower’s obligations under a student loan contract; and
(b)
that change increases the borrower’s obligations under that contract in a more than minor way, including a change to—
(i)
the borrower’s repayment obligations; or
(ii)
the repayment percentage; or
(iii)
the total 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 disclosed to the borrower within 7 months after the day on which the change is made.
Compare: SR 2010/341 r 8
63H Direct disclosure of information and changes
(1)
Disclosure under sections 63E to 63G must be made—
(a)
by means of information that is printed, typewritten, or otherwise visibly represented, copied, or reproduced on paper and is given by personal delivery, post, or fax; or
(b)
by an electronic means (except a fax), if the person making the disclosure complies with the Electronic Transactions Act 2002, including by email or the Internet (if the borrower for whom the disclosure is intended is directly alerted to it in some manner).
(2)
Despite subsection (1)(b) of this section and section 16 of the Electronic Transactions Act 2002, the consent of a borrower is not required in order for disclosure to be made in an electronic form.
(3)
However, subsection (1) does not apply if the loan manager or the Commissioner, as applicable, cannot reasonably locate the borrower.
Compare: SR 2010/341 r 9
63I Public disclosure of changes
Disclosure under section 63G must also be made—
(a)
by providing the information free of charge on an Internet site that allows a borrower to access the information at all reasonable times; and
(b)
by giving public notice that the information is available on that Internet site.
Compare: SR 2010/341 r 10
63J Satisfaction of requirements to disclose
If disclosure is made in accordance with sections 63E to 63H, the requirements to disclose under those sections are satisfied regardless of whether the borrower receives the information that was disclosed.
Compare: SR 2010/341 r 11
63K Cap on student loan establishment fees
A student loan establishment fee charged by the loan manager to a borrower under a student loan contract must not exceed $60.
Compare: SR 2010/341 r 12
63L Annual administration fee
(1)
If a borrower has a loan balance of $20 or more on the close of 31 March 2012,—
(a)
an annual administration fee of $40 must be charged by the Commissioner to that borrower for the 1 April 2011 to 31 March 2012 tax year; and
(b)
that borrower’s loan balance is increased on 1 April 2012 by the amount of that fee.
(2)
However, no fee may be charged under subsection (1) to a borrower if that borrower is charged with a student loan establishment fee during the period starting on 1 April 2011 and ending on 31 March 2012.
63M 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 in relation to a loan contract.
(3)
This section applies—
(a)
to all loan contracts regardless of when they were entered into; and
(b)
despite anything to the contrary.
63N 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 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 63 or anything in the loan contract or any other Act; and
(c)
whether the loan contract was signed before or after the date on which this section comes into force.
Section 87(1): insert after paragraph (bb):
(bc)
specifying further information requirements in accordance with section 63C(1)(f):
Credit Contracts and Consumer Finance Act 2003 (2003 No 52)
Section 15(1): insert after paragraph (c):
(ca)
a loan contract (as defined in section 2(1) of the Student Loan Scheme Act 1992):
Schedule 9 Amendments to other Acts
Accident Compensation Act 2001 (2001 No 49)
Section 123(2)(i): repeal and substitute:
(i)
subparts 1 to 3 and 5 of Part 2 or section 193 of the Student Loan Scheme Act 2011; or
Companies Act 1993 (1993 No 105)
Clause 1(2)(d) of Schedule 7: omit “section 25 of the Student Loan Scheme Act 1992”
and substitute “section 70 of the Student Loan Scheme Act 2011”
.
Corrections Act 2004 (2004 No 50)
Definition of student loan in section 180C(2): omit “section 2 of the Student Loan Scheme Act 1992”
and substitute “section 4(1) of the Student Loan Scheme Act 2011”
.
Credit Contracts and Consumer Finance Act 2003 (2003 No 52)
Section 15(1)(ca): omit “section 2(1) of the Student Loan Scheme Act 1992”
and substitute “section 4(1) of the Student Loan Scheme Act 2011”
.
Customs and Excise Act 1996 (1996 No 27)
Definition of borrower in section 280G: omit “section 2 of the Student Loan Scheme Act 1992”
and substitute “section 4(1) of the Student Loan Scheme Act 2011”
.
Definition of identifying information in section 280G: omit “section 62A(2) of the Student Loan Scheme Act 1992”
and substitute “section 208(2) of the Student Loan Scheme Act 2011”
.
Heading to section 280H: omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Section 280H(1)(a) to (c): repeal and substitute:
(a)
whether borrowers are New Zealand-based or overseas-based for the purposes of the Student Loan Scheme Act 2011:
(b)
whether borrowers are New Zealand residents for the purposes of that Act.
Heading to section 280I: omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Section 280I(1)(a) to (d): repeal and substitute:
(a)
whether borrowers are New Zealand-based or overseas-based for the purposes of the Student Loan Scheme Act 2011:
(b)
whether borrowers are New Zealand residents for the purposes of that Act:
(c)
for the purposes of that Act, whether borrowers are in New Zealand.
District Courts Act 1947 (1947 No 16)
Section 84I(2)(c)(iiia): omit “section 46 of the Student Loan Scheme Act 1992”
and substitute “section 193 of the Student Loan Scheme Act 2011”
.
Education Act 1989 (1989 No 80)
Definition of student loan and student loan scheme in section 226A(1): repeal and substitute:
student loan has the same meaning as in section 4(1) of the Student Loan Scheme Act 2011
student loan scheme has the same meaning as in section 4(1) of the Student Loan Scheme Act 2011
Definition of student loan and student loan scheme in section 238B(1): repeal and substitute:
student loan has the same meaning as in section 4(1) of the Student Loan Scheme Act 2011
student loan scheme has the same meaning as in section 4(1) of the Student Loan Scheme Act 2011
Definition of student loan in section 302: repeal and substitute:
student loan has the same meaning as in section 4(1) of the Student Loan Scheme Act 2011
Definition of student loan information in section 302: omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Section 307AC(2): omit “section 2A of the Student Loan Scheme Act 1992, the Student Loan Scheme Act 1992”
and substitute “section 7 of the Student Loan Scheme Act 2011, the Student Loan Scheme Act 2011”
.
Electoral Act 1993 (1993 No 87)
Section 263B(4)(a)(iii): omit “section 2 of the Student Loan Scheme Act 1992”
and substitute “section 4(1) of the Student Loan Scheme Act 2011”
.
Income Tax Act 2007 (2007 No 97)
Section MB 13(2)(g): omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Section MK 2(1)(d)(ii): repeal and substitute:
(ii)
work overseas as a volunteer or for token payment for a charitable organisation named in regulations made under the Student Loan Scheme Act 2011 and the work meets 1 or more of the requirements in clause 2(1) of Schedule 1 of that Act.
Section RH 3(2)(b)(i): omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Paragraph (f) of the definition of employer monthly schedule in section YA 1: omit “and student loan deductions made”
and substitute “deductions made, and salary or wage deductions made under the Student Loan Scheme Act 2011”
.
Paragraph (f) of the definition of PAYE income payment form in section YA 1: omit “student loan payments”
and substitute “salary or wage deductions made under the Student Loan Scheme Act 2011”
.
Insolvency Act 2006 (2006 No 55)
Definition of student loan balance in section 3: repeal and substitute:
student loan balance means a consolidated loan balance, as that term is defined in section 4(1) of the Student Loan Scheme Act 2011
Section 274(2)(d): omit “section 25 of the Student Loan Scheme Act 1992”
and substitute “section 70 of the Student Loan Scheme Act 2011”
.
Judicature Act 1908 (1908 No 89)
Rule 17.35(1)(d) of Schedule 2: omit “section 46 of the Student Loan Scheme Act 1992”
and substitute “section 193 of the Student Loan Scheme Act 2011”
.
KiwiSaver Act 2006 (2006 No 40)
Section 98(3)(c): repeal and substitute:
(c)
the total salary or wage deductions made under the Student Loan Scheme Act 2011; and
Prisoners’ and Victims’ Claims Act 2005 (2005 No 74)
Section 17(5): omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Section 19(3): omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Privacy Act 1993 (1993 No 28)
Item relating to the Student Loan Scheme Act 1992 in Schedule 3: omit and substitute:
| Student Loan Scheme Act 2011 | Section 208 |
Social Security Act 1964 (1964 No 136)
Section 84(1): omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Tax Administration Act 1994 (1994 No 166)
Paragraph (a)(iii)(D) of the definition of tax in section 3(1): repeal and substitute:
(D)
a salary or wage deduction (as defined in section 4(1) of the Student Loan Scheme Act 2011), or an amount recovered in accordance with section 193 of that Act:
Paragraph (a)(x) of the definition of tax in section 3(1): repeal and substitute:
(x)
a pre-taxed repayment obligation, an other income repayment obligation, or an overseas-based repayment obligation (as those terms are defined in section 4(1) of the Student Loan Scheme Act 2011):
Paragraph (c) of the definition of tax in section 3(1): repeal and substitute:
(c)
for the purposes of sections 6, 6A, and 6B, includes—
(i)
revenue collected under, entitlements arising from, or amounts paid or payable under the Inland Revenue Acts; and
(ii)
loan interest charged on a loan balance (as those terms are defined in section 4(1) of the Student Loan Scheme Act 2011); and
(iii)
contributions administered by the Commissioner under the KiwiSaver Act 2006:
Paragraph (ca)(ii) of the definition of tax in section 3(1): omit “section 2 of the Student Loan Scheme Act 1992”
and substitute “section 4(1) of the Student Loan Scheme Act 2011”
.
Paragraph (d)(iii)(D) of the definition of tax in section 3(1): repeal and substitute:
(D)
a salary or wage deduction (as defined in section 4(1) of the Student Loan Scheme Act 2011) or an amount recovered in accordance with section 193 of that Act:
Paragraph (d)(ix) of the definition of tax in section 3(1): repeal and substitute:
(ix)
a pre-taxed repayment obligation, an other income repayment obligation, or an overseas-based repayment obligation (as those terms are defined in section 4(1) of the Student Loan Scheme Act 2011)
Section 4A(3)(c): repeal and substitute:
(c)
salary or wage deductions under the Student Loan Scheme Act 2011,—
Section 33A(1)(b)(ii): repeal.
Section 33A(1)(b)(viii): repeal.
Section 33A(1)(g): repeal.
Section 46(5B): omit “or student loan deductions made”
and substitute “deductions made, or salary or wage deductions made under the Student Loan Scheme Act 2011”
.
Section 81(4)(g) and (gb): repeal and substitute:
(g)
communicating to an authorised person under section 207 of the Student Loan Scheme Act 2011 any information specified in subsection (1) or (2) of that section in accordance with subsection (1) of that section:
(gb)
communicating to the chief executive of the New Zealand Customs Service under section 208 of the Student Loan Scheme Act 2011 any information specified in subsection (2) of that section for the purpose set out in subsection (1) of that section:
(gba)
communicating to a contact person (within the meaning of section 193A of the Student Loan Scheme Act 2011), for the purposes of a request under that section, any information required to be communicated by that section:
Section 81(7): omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Section 120B(c): omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Section 138S(1)(a): omit “Student Loan Scheme Act 1992”
in each place where it appears and substitute in each case “Student Loan Scheme Act 2011”
.
Section 143A(5): insert after paragraph (d):
(e)
a salary or wage deduction made under the Student Loan Scheme Act 2011:
Section 143B: insert after subsection (2):
(3)
In this section, tax includes a repayment obligation as defined in section 4(1) of the Student Loan Scheme Act 2011.
Section 149(5): repeal and substitute:
(5)
If a shortfall penalty, other than under section 141ED, has been imposed on a taxpayer for taking an incorrect tax position, the Commissioner may not subsequently prosecute the taxpayer—
(a)
under this Act for taking the incorrect tax position; or
(b)
under the Student Loan Scheme Act 2011 for taking the incorrect tax position; or
(c)
in relation to an obligation arising under the Student Loan Scheme Act 2011 for taking the incorrect tax position.
Section 157A(1)(a)(iv): repeal and substitute:
(iv)
section 193 of the Student Loan Scheme Act 2011; or
Section 184A(5)(f): repeal and substitute:
(f)
a repayment obligation, as defined in section 4(1) of the Student Loan Scheme Act 2011, if the borrower has chosen to receive a refund under section 132 of that Act.
Item relating to the Student Loan Scheme Act 1992 in the Schedule: omit and substitute: “Student Loan Scheme Act 2011”
.
Schedule 9: amended (with effect on 1 April 2012), on 12 April 2012, by section 58 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
Schedule 10 Amendments to other enactments
District Courts Rules 2009 (SR 2009/257)
Note 2(b) of form 67 in Schedule 1: omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Education (Early Childhood Services) Regulations 2008 (SR 2008/204)
Regulation 7(c): omit “student loan within the meaning of section 2(1) of the Student Loan Scheme Act 1992”
and substitute “student loan, as defined in section 4(1) of the Student Loan Scheme Act 2011”
.
Regulation 8(c): omit “student loan within the meaning of section 2(1) of the Student Loan Scheme Act 1992”
and substitute “student loan, as defined in section 4(1) of the Student Loan Scheme Act 2011”
.
Inland Revenue Department (Drafting) Order 1995 (SR 1995/286)
Clause 2(2)(a): omit “Student Loan Scheme Act 1992”
and substitute “Student Loan Scheme Act 2011”
.
Sentencing (Orders of Reparation) Order 2006 (SR 2006/263)
Item relating to the Student Loan Scheme Act 1992 in the Schedule: omit “Student Loan Scheme Act 1992 (1992 No 141)”
and substitute “Student Loan Scheme Act 2011 (2011 No 62)”
.
Item relating to the Student Loan Scheme Act 1992 in the Schedule: omit “Section 81(4)”
and substitute “Section 163(3)”
.
Student Allowances Regulations 1998 (SR 1998/277)
Paragraph (c)(vii) of the definition of personal income in regulation 2(1): omit “within the meaning of section 2 of the Student Loan Scheme Act 1992”
and substitute “as defined in section 4(1) of the Student Loan Scheme Act 2011”
.
Paragraph (c)(v) of the definition of spousal or partner’s income in regulation 2(1): omit “within the meaning of section 2 of the Student Loan Scheme Act 1992”
and substitute “as defined in section 4(1) of the Student Loan Scheme Act 2011”
.
Notes
1 General
This is a consolidation of the Student Loan Scheme Act 2011 that incorporates the amendments made to the legislation so that it shows the law as at its stated date.
2 Legal status
A consolidation is taken to correctly state, as at its stated date, the law enacted or made by the legislation consolidated and by the amendments. This presumption applies unless the contrary is shown.
Section 78 of the Legislation Act 2019 provides that this consolidation, published as an electronic version, is an official version. A printed version of legislation that is produced directly from this official electronic version is also an official version.
3 Editorial and format changes
The Parliamentary Counsel Office makes editorial and format changes to consolidations using the powers under subpart 2 of Part 3 of the Legislation Act 2019. See also PCO editorial conventions for consolidations.
4 Amendments incorporated in this consolidation
Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9): sections 258–261
Taxation (Budget Measures) Act 2024 (2024 No 19): section 44
Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10): sections 265, 266
Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8): sections 142, 189, 190
Secondary Legislation Act 2021 (2021 No 7): section 3
Public Service Act 2020 (2020 No 40): section 135
Education and Training Act 2020 (2020 No 38): section 668
Privacy Act 2020 (2020 No 31): section 190
Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5): Part 2
Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33): sections 115–125
Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019: (2019 No 5): sections 328–333
Social Security Act 2018 (2018 No 32): section 459
Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5): sections 391–395
Customs and Excise Act 2018 (2018 No 4): section 443(3)
Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14): sections 379–381
Contract and Commercial Law Act 2017 (2017 No 5): section 347
Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3): sections 131–133
District Court Act 2016 (2016 No 49): section 261
Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27): sections 224, 225
Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21): Part 1
Student Loan Scheme Amendment Act 2014 (2014 No 6)
Criminal Procedure (Consequential Amendments) Regulations 2013 (SR 2013/409): regulation 3(1)
Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52): section 148
Student Loan Scheme Amendment Act 2013 (2013 No 10)
Student Loan Scheme (Repayment Percentage) Regulations 2012 (SR 2012/192): regulation 3
Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39)
Student Loan Scheme Amendment Act 2012 (2012 No 32)
Criminal Procedure Act 2011 (2011 No 81): section 413
Student Loan Scheme Act 2011 (2011 No 62): sections 216(3)(a), 218(2), Schedule 6 clause 17(6)
Versions
Student Loan Scheme Act 2011
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