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% + 0.74%

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 1964

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

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 1964

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)

an underestimation penalty; and

(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 10% 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

underestimation penalty means a penalty that a borrower is liable to pay under section 161A

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) 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) 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) 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) 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): inserted, on 1 April 2013 (applying for 2013–14 and later tax years), by section 54(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).

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: inserted, on 1 April 2013 (applying for 2013–14 and later tax years), by section 54(3) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).

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).