Key
1 Title
2 Commencement
Part 1
Preliminary matters, loan advances, and New Zealand-based and overseas-based borrowers
Subpart 1—Preliminary provisions
3 Purposes
4 Interpretation
4A Meaning of unpaid amount
5 Application of Act
6 Application of Act to bonded scholarships
7 Act binds Crown
Subpart 2—Establishment of student loan
Student loan establishment fee
8 Student loan establishment fee
Transfer of information and loan advance debts from loan manager to Commissioner
9 Purposes of sections 10, 10A, 11, and 12
10 Loan manager must notify Commissioner of persons who apply for student loan
10A Commissioner must confirm information provided by loan manager
10B Loan manager must provide copy of loan contract
10C Certain information must be disclosed in loan contract
10D Student loan establishment fee
10E Right to cancel loan contract
11 Loan manager must notify Commissioner of borrower's details
12 Loan manager must notify Commissioner of loan advances made or charged to borrowers
12 Loan manager must transfer loan advance debts to Commissioner for collection
12A Commissioner must notify borrowers of loan advances
13 Commissioner must inform borrowers about consolidated loan balance
14 Loan manager must transfer loan advance debts to Commissioner
15 Loan manager must notify borrowers of loan advance debts to be transferred to Commissioner
14 Borrower must be notified of certain changes to obligations
Subpart 3—Determining whether borrowers are New Zealand-based or overseas-based
16 Overview of being New Zealand-based or overseas-based
17 Meaning of New Zealand-based
18 Meaning of overseas-based
19 Treatment of partial days
Certain borrowers may be treated as being physically in New Zealand
20 Commissioner may treat certain borrowers as being physically in New Zealand
21 Method of making application and provision of evidence and information
22 Commissioner must notify borrower and specify period or conditions when granting application
Borrowers must notify Commissioner of absence from and return to New Zealand
23 Borrower to notify Commissioner of absence from New Zealand of 184 or more days
24 Borrower to notify Commissioner of return to New Zealand of more than 183 days
Part 2
Repayment obligations of borrowers
25 Borrower's liability to repay consolidated loan balance
26 Repayment obligations that apply to New Zealand-based borrowers and overseas-based borrowers
27 Interrelationship between subparts 1 to 3
Subpart 1—New Zealand-based borrowers' repayment obligations for salary or wages
28 Application of this subpart
Repayment codes
29 Repayment codes for New Zealand-based borrowers who derive salary or wages
30 Borrowers with “SL”
repayment code must notify employers
Salary or wage deductions
31 Employer or PAYE intermediary must make standard deductions from salary or wages
32 Deduction rates that apply to standard deductions from salary or wages
33 Employer or PAYE intermediary must make further deductions from salary or wages
33 Employer or PAYE intermediary must make Commissioner deductions from salary or wages
33A Employer or PAYE intermediary must make borrower deductions from salary or wages
34 Deductions from income-tested benefits
Unused repayment threshold may be allocated to secondary employment earnings
35 Definitions relating to repayment thresholds
36 Application for unused repayment threshold to be allocated to secondary employment earnings
37 Determining estimated salary or wages
38 Calculating borrower's unused repayment threshold for pay period
39 Special deduction rate certificate for unused repayment threshold
40 Issue and application of special deduction rate certificate
41 Ongoing obligations of borrower to review and notify
42 Time when special deduction rate ceases to apply
Commissioner deductions may be used to recover amounts that remain unpaid
43 Commissioner must issue additional deduction rate notice to obtain Commissioner deductions
44 Procedures for issue of additional deduction rate notice
45 Time when additional deduction rate ceases to apply
Further means of recovering amounts that remain unpaid
46 Assessment of standard deductions that ought to have been made
47 Recovery of assessed amounts
Exemption from standard deductions for borrowers who are full-time students
48 Borrowers who are eligible for exemption from salary or wage deductions
48 Definitions relating to exemption for full-time students
48A Borrowers who are eligible for exemption from standard deductions
49 Declaration by eligible borrowers for exemption from standard deductions
50 Notice from Commissioner
51 Consequences of exemption from standard deductions
52 Withdrawal of declaration
53 Notice of change of circumstances
54 When exemption from standard deductions ceases to apply
Information and determinations
55 Information to show salary or wage deductions made
56 Commissioner must determine question about amount of salary or wage deductions
Significant under-deductions and over-deductions
57 Commissioner determines what is significant under-deduction or significant over-deduction
58 Standard deductions are full and final unless significant error
59 Significant over-deduction identified by borrower
60 Commissioner must determine whether significant over-deduction made
61 Procedure if significant over-deduction made
61 Procedure if significant over-deduction made
62 Applicable procedures if significant under-deduction
Matters of general application to salary or wage deductions
63 Prohibition on applications or declarations to maintain integrity of student loan scheme
64 PAYE rules apply to salary or wage deductions
65 Salary or wage deductions in addition to income tax withheld
Subpart 2—New Zealand-based borrowers' repayment obligations for pre-taxed income
66 Application of this subpart
67 Definitions relating to net pre-taxed income
Declaration of pre-taxed income and assessment of pre-taxed repayment obligation
68 Declaration of pre-taxed income
69 Extension of time for making declaration of pre-taxed income
70 Commissioner to assess borrower's pre-taxed repayment obligation
Calculation of pre-taxed repayment obligation
71 Calculation of borrower's pre-taxed repayment obligation if salary or wages are less than annual repayment threshold
72 Calculation of borrower's pre-taxed repayment obligation if salary or wages are equal to or more than annual repayment threshold
Payment of pre-taxed repayment obligation
73 Payment of pre-taxed repayment obligation
74 Calculation of remaining repayments for tax year
75 Due dates for payment of remaining repayments
76 Calculation of interim payments for next tax year
76 Calculation of interim payments for next tax year
76A Commissioner may assess interim payments if declaration for preceding year not made
77 Due dates for payment of interim payments
78 Commissioner's powers in relation to due dates
79 Interim payments to be paid in same manner as provisional tax
80 Consequence of failure to meet repayment obligations
Subpart 3—New Zealand-based borrowers' repayment obligations for other income
81 Application of this subpart
Assessment of other income repayment obligation
82 Commissioner to assess borrower's other income repayment obligation
Calculation of other income repayment obligations
83 Certain borrowers have no other income repayment obligations
84 Calculating borrower's other income repayment obligation
Payment of other income repayment obligations
85 Payment of other income repayment obligations
86 Calculation of remaining repayments for tax year
87 Due dates for payment of remaining repayments
88 Calculation of interim payments for next tax year
88 Calculation of interim payments for next tax year
88A Commissioner may assess interim payments if information for preceding year not provided
89 Due dates for payment of interim payments
90 Commissioner's powers in relation to due dates
91 Interim payments to be paid in same manner as provisional tax
92 Consequence of failure to meet repayment obligations
Reduction of deduction rate for borrower with lower repayment obligation
93 Borrower may apply for reduction of deduction rate to reflect lower repayment obligation
94 Special deduction rate certificate for lower repayment obligation
95 Issue and application of special deduction rate certificate
96 Time when special deduction rate ceases to apply
Subpart 4—Overseas-based borrowers' repayment obligations
97 Application of this subpart
98 Definitions used in this subpart
Repayment holiday from overseas-based repayment obligations
99 Overseas-based borrowers are entitled to 3-year repayment holiday
100 Borrowers may choose to opt out of repayment holiday
Assessment of overseas-based repayment obligation
101 Assessments for years in which borrower is overseas-based
Calculation and payment of overseas-based repayment obligation
102 Repayment obligations of overseas-based borrowers
103 Exceptions to repayment obligations of overseas-based borrowers
104 Repayment to be made by instalments
105 Consequence of failure to meet repayment obligations
Subpart 5—New Zealand-based non-resident borrowers and borrowers with New Zealand-based and overseas-based repayment obligations
106 Notification of worldwide income by New Zealand-based non-resident borrowers
107 Repayment obligations of borrowers who are overseas-based for part of tax year
108 Overseas-based borrowers who derive salary or wages from New Zealand
109 Overseas-based borrower's standard and Commissioner deductions satisfy overseas-based repayment obligation
Part 3
Excess repayments
110 Interpretation
111 Meaning of excess repayment
111 Meaning of excess repayment
112 Commissioner must notify borrower of excess repayment
113 Options that apply to excess repayments
114 Exception to general rule if repayment obligations for prior tax years reassessed
Subpart 1—Excess repayment bonus
115 Borrower's entitlement to 10% bonus for excess repayment of $500 or more
116 Borrower's entitlement to bonus if loan balance is less than $550
117 Borrower may be entitled to 10% bonus if under-deduction is due to PAYE system
118 Time at which 10% bonus is credited
119 Restriction on amount of 10% bonus
119A Application of sections 110 to 114 and this subpart to part years
120 Consequences of refund or credit to next tax year
121 Commissioner must advise borrowers to seek financial advice
Subpart 2—Refund of excess repayments and satisfaction of future repayment obligation
122 Limit on use of excess repayments
123 Borrower may receive refund or apply excess repayment to future repayment obligations
123 Borrower may receive refund or apply excess repayment to future repayment obligations
Part 4
Interest, relief, penalties and offences, rights of objection, and rights to challenge
Subpart 1—Interest
124 No interest applied to student loans except as specified in this Part
Overseas-based interest charged for borrowers who are overseas-based
125 Overseas-based interest charged for borrowers who are overseas-based
126 Overseas-based interest calculated daily, charged monthly, and compounded annually
127 Notification that overseas-based interest has compounded
128 Overseas-based interest written-off for quick repayment of consolidated loan balance
Late payment interest
129 Late payment interest charged on unpaid amount
130 Late payment interest reduced if instalment arrangement complied with
131 Late payment interest calculated daily, charged monthly, and compounded annually
132 Initial notification that late payment interest is payable
133 Ongoing notification requirements regarding late payment interest
Loan interest charged for all borrowers
125 Loan interest charged for all borrowers
126 Loan interest calculated daily and charged and compounded annually
127 Notification that loan interest has compounded
128 Full interest write-off for New Zealand-based borrowers
129 Loan interest written off for quick repayment of consolidated loan balance
Late payment interest
130 Late payment interest charged on unpaid amount
131 Notification of late payment interest
132 Monthly late payment interest written off if instalment arrangement complied with
Matters of general application to interest
134 No interest on consolidated loan balance in credit
135 Commissioner's power to correct interest when charged in error
Subpart 2—Relief
Different types of relief
136 Power of Commissioner in relation to small amounts
137 Application for different types of relief for borrower
Relief from late payment interest
138 Commissioner may grant relief from late payment interest
Hardship relief
139 Hardship relief for any tax year
140 Special deduction rate certificate for hardship relief
141 Issue and application of special deduction rate certificate
142 Time when special deduction rate ceases to apply
143 Effect of Commissioner's decision under section 139
144 Borrowers must notify Commissioner of change of circumstances
145 Commissioner may review grant of hardship relief
Instalment arrangements
146 Application for instalment arrangement
147 Instalment arrangement cancelled if non-compliance
Subpart 3—Penalties and offences
Late filing penalties
148 Late filing penalty for certain declarations
149 Due dates for payment of late filing penalty
Student loan shortfall penalties
150 Definitions relating to student loan shortfall penalties
151 Student loan shortfall penalties may be imposed on certain borrowers
152 Commissioner may impose student loan shortfall penalties
153 Notification of student loan shortfall penalty
154 Student loan shortfall penalty reduced or removed to reflect change to shortfall penalty
Offences
155 Certain offence provisions in Tax Administration Act 1994 apply to borrowers
156 Offence to prejudice employees because of student loan repayment liability
157 Proceedings to be taken summarily
158 Information may charge several offences
159 Information may be laid within 10 years
Subpart 4—Borrower's right to object to loan manager about details of loan advances
160 Borrowers may object to details of loan advances
161 Loan manager must consider objections
162 Power to require objection to be determined by chief executive
163 Chief executive must consider objections required to be determined by chief executive
164 Extension of time for objection
165 Right to apply to Disputes Tribunal or District Court
166 Notification of Disputes Tribunal's or District Court's decision about objection
Subpart 5—Dispute procedures and rights to challenge
Dispute procedures
167 Part 4A of Tax Administration Act 1994 applies to disputes under this Act
Rights to challenge
168 Dispute process must be completed before challenge is made
169 Challenge to details of consolidated loan balance
170 Challenge to decision concerning treating borrowers as being physically in New Zealand
170A Challenge to special deduction rate certificate for unused repayment threshold
171 Challenge to additional deduction rate notice
172 Challenge to determination of salary or wage deduction
173 Challenge to decision regarding significant over-deduction
173A Challenge to prohibition on applications or declarations
174 Challenge to assessments
175 Challenge to interest charged
176 Challenge to decision concerning relief
177 Challenge to late filing penalty
178 Challenge to student loan shortfall penalty
179 Person who may make challenge
180 Commissioner's decision on challenges
Part 5
Matters of general application and miscellaneous matters
Subpart 1—Matters of general application
181 Annual administration fee
182 Tax year other than 12 months due to change in balance date
183 Limit on repayment obligation for pay period or tax year
184 Payment date not otherwise specified
185 Recovery of unpaid amount
186 Date on which deductions and payments treated as being made and credited
187 Satisfaction of requirements to pay obligations and penalties
188 Order in which deductions and payments offset against borrower's consolidated loan balance
189 Order in which identified payments are offset against borrower's consolidated loan balance
186 Order in which salary or wage deductions and payments offset against borrower's consolidated loan balance
187 Date on which salary or wage deductions and payments treated as being made and credited
190 Cancellation of interest if consolidated loan balance repaid early
191 Write-off of consolidated loan balance
192 Associated matters unwound if position changed
192 Commissioner may remedy incorrect application of Act
193 Manner of making refunds
194 Appropriation of refunds
195 Loan advances and other information may be altered
196 Provisions of Tax Administration Act 1994 and Income Tax Act 2007 to apply to this Act
Subpart 2—Miscellaneous matters
Interaction with loan contracts and other enactments
197 This Act overrides loan contracts
197A Commissioner may exercise rights in loan contracts to recall loans
198 Loan contract enforceable against minor
199 Student loan contracts are not credit contracts
Disclosure of information
200 Disclosure of information between authorised persons
201 Disclosure of information between Inland Revenue Department and New Zealand Customs Service for information-matching purposes
202 Power of Commissioner to access arrival or departure information
Informing and notifying under this Act
203 Meaning of inform
204 Meaning of notify
205 Meaning of notify a person in writing
206 Meaning of formally notify
207 Notice requirements of Tax Administration Act 1994 do not apply
Regulations
208 Regulations
209 Transitional regulations
210 Application of Regulations (Disallowance) Act 1989 and Acts and Regulations Publication Act 1989
Savings and transitional provisions
211 Transitional provisions concerning loan manager and loan advances
212 Early applications and issue of certificates for transition to this Act
213 Savings and transitional provisions
Consequential amendments and repeals
213A Amendments to this Act
214 Amendments to Student Loan Scheme Act 1992 and Credit Contracts and Consumer Finance Act 2003
215 Amendments to other Acts
216 Amendments to other enactments
217 Student Loan Scheme Act 1992 repealed
218 Regulations revoked
Schedule 1
Conditions to borrower being treated as being physically in New Zealand
Schedule 2
Application of PAYE rules for purposes of section 64
Schedule 3
Application of provisional tax rules for purposes of section 79
Schedule 4
Application of provisional tax rules for purposes of section 91
Schedule 5
Transitional provisions concerning loan manager and loan advances
Schedule 6
Savings and transitional provisions
Schedule 6A
Amendments to this Act
Schedule 7
Amendments to Student Loan Scheme Act 1992 and Credit Contracts and Consumer Finance Act 2003
Schedule 8
Amendments to other Acts
Schedule 9
Amendments to other enactments
Legislative history