Hon Peter Dunne
Government Bill
56—1
Explanatory note
1 Title
2 Commencement
Part 1Amendments to principal Act
3 Principal Act
4 Application of provisions deemed to have come into force on 1 April 2012
5 Section 2 amended (Commencement)
6 Section 4 amended (Interpretation)
7 Section 5 amended (Meaning of unpaid amount)
8 Section 15 amended (Right to cancel loan contract)
9 Section 28 amended (Borrower to notify Commissioner of absence from New Zealand of 184 or more days)
10 Section 31 amended (Repayment obligations that apply to New Zealand-based borrowers and overseas-based borrowers)
11 Section 32 amended (Interrelationship between subparts 1 to 3)
12 Section 67 amended (Procedure if significant over-deduction made)
13 Subparts 2 and 3 of Part 2 replaced
Subpart 2—Repayment obligations for New Zealand-based borrowers with income other than, or as well as, salary or wages
72 Application of this subpart
73 Meaning of adjusted net income
74 Declaration of adjusted net income
75 Extension of time for making declaration of adjusted net income
76 Commissioner to assess borrower's end-of-year repayment obligation
77 Calculation of borrower's end-of-year repayment obligation if salary or wages less than annual repayment threshold
78 Calculation of borrower's end-of-year repayment obligation where salary or wages equal to or more than annual repayment threshold
79 Payment of end-of-year repayment obligation
80 Calculation of terminal payment for tax year
81 Due date for terminal payment
82 Calculation of interim payments for next tax year
83 Commissioner may assess interim payments if information for preceding year not provided
84 Due dates for payment of interim payments
85 Commissioner's powers in relation to due dates
86 Interim payments to be paid in same manner as provisional tax
87 Consequence of failure to meet repayment obligations
14 Section 110 amended (Repayment obligations of overseas-based borrowers)
15 Section 111 amended (Exceptions to repayment obligations of overseas-based borrowers)
16 Section 112 amended (Repayment to be made by instalments)
17 Section 114 amended (Notification of worldwide income by New Zealand-based non-resident borrowers)
18 Section 115 amended (Repayment obligations of borrowers who are overseas-based for part of tax year)
19 New section 115A inserted (Reassessment of overseas-based borrower's repayment obligation in year of return to New Zealand)
115A Reassessment of borrower's overseas-based repayment obligations in year of return to New Zealand
20 Section 120 amended (Commissioner must notify borrower of excess repayment)
21 Section 132 amended (Borrower may receive refund or apply excess repayment to future repayment obligations)
22 Section 144 amended (Power of Commissioner in relation to small amounts)
23 Section 154 amended (Application for instalment arrangement)
24 Section 155 amended (Late filing penalty for certain declarations)
25 Section 156 amended (Due dates for payment of late filing penalty)
26 Section 161 amended (Student loan shortfall penalty reduced or removed to reflect change to shortfall penalty)
27 Cross-heading above section 174 replaced
28 New section 174A inserted (Part 8A of Tax Administration Act 1994 applies to challenges under this Act)
174A Part 8A of Tax Administration Act 1994 applies to challenges under this Act
29 New section 182A inserted (Challenge to decision concerning repayment holiday)
182A Challenge to decision concerning repayment holiday
30 Section 188 repealed (Commissioner's decision on challenges)
31 Section 191 amended (Limit on repayment obligation for pay period or tax year)
32 New section 193C inserted (Changes relating to contact details of borrower)
193C Changes relating to contact details of borrower
33 Section 204 amended (Commissioner may exercise rights in loan contracts to recall loans)
34 Section 208 amended (Disclosure of information between Inland Revenue Department and New Zealand Customs Service for information-matching purposes)
35 Section 215 amended (Regulations)
36 Section 221 repealed (Amendments to this Act)
37 Schedule 3 repealed
38 Schedule 4 replaced
39 Schedule 6 amended
40 Schedule 7 repealed
41 Consequential amendments to principal Act
Amendments to other Acts
42 Accident Compensation Act 2001 amended
43 Customs and Excise Act 1996 amended
44 Section 280G amended (Defined terms for sections 280H and 280I)
45 Section 280H amended (Disclosure of arrival and departure information for purposes of Student Loan Scheme Act 2011)
46 Section 280I amended (Direct access to arrival and departure information for purposes of Student Loan Scheme Act 2011)
47 Privacy Act 1993 amended
48 Student Loan Scheme Amendment Act 2012 amended
49 Tax Administration Act 1994 amended
Part 2Amendments to principal Act that apply for 2013–2014 and later tax years
50 Section 4 amended (Interpretation)
51 Section 5 amended (Meaning of unpaid amount)
52 Section 117 repealed (Overseas-based borrower's standard and Commissioner deductions satisfy overseas-based repayment obligation)
53 Section 119 amended (meaning of excess repayment)
54 Sections 134 to 137 and cross-heading replaced
Loan interest charged for borrowers who are overseas-based
134 Loan interest charged for borrowers who are overseas-based
135 Loan interest calculated daily and charged and compounded monthly
136 Notification that loan interest has compounded
137 Loan interest written off for quick repayment of consolidated loan balance
55 Section 139 amended (Late payment interest charged on unpaid amount)
56 Section 141 replaced (Monthly late payment interest written off if instalment arrangement complied with)
141 Late payment interest reduced if instalment arrangement complied with
57 Section 146 replaced (Commissioner may grant relief from late payment interest)
146 Commissioner may grant relief from late payment interest
58 New section 161A and cross-heading inserted
Underestimation penalty
161A Underestimation penalty where interim payments underestimated as at terminal payment date
59 Section 194 replaced (Order in which salary or wage deductions and payments offset against borrower's consolidated loan balance)
194 Definition used in sections 194A to 194D
194A Order in which salary or wage deduction offset against borrower's consolidated loan balance
194B Order in which payments offset against borrower's consolidated loan balance
194C Exception to sections 194A and 194B if instalment arrangement entered into
194D Manner in which salary or wage deductions and payments are offset
60 Section 197 replaced (Write-off of consolidated loan balance)
197 Write-off of consolidated loan balance
61 Section 219 repealed (Early applications and issues of certificates for transition to this Act)
62 Schedule 6 amended
Part 3Amendments to principal Act that apply for 2014–2015 and later tax years
63 Section 4 amended (Interpretation)
64 Section 73 replaced (Meaning of adjusted net income)
65 Amendments consequential on repeal of definitions of annual gross income and annual total deduction
66 New Schedule 3 inserted
Schedule 1Consequential amendments to principal Act
Schedule 2Schedule 4 replaced
Schedule 3New Schedule 3 inserted
The Parliament of New Zealand enacts as follows: