Title
1 Short Title and application
2 Interpretation
2A Application of Act to bonded scholarships
3 Act to bind the Crown
Part 1
Transfer of loan balances to Commissioner for collection
Transfer of loan balances
4 Transfer of loan balances to Commissioner for collection
5 Notice to borrower
Objections before transfer of loan balance to Commissioner
6 Right to object to amount of loan balance being transferred
7 Loan manager to consider objections
8 Power to require objection to be determined by chief executive
9 Chief executive to consider objections
10 Extension of time for objection
11 Right to apply to Disputes Tribunal or District Court
12 Prohibition on transfers
13 Notice of total amount outstanding
Part 2
Collection of repayments from New Zealand based borrowers
14 Repayment obligation for New Zealand based borrowers
Returns and assessments
14A Declaration of worldwide income by certain borrowers
15 Commissioner to assess borrower's repayment obligation
16 Sections of Tax Administration Act 1994 and Income Tax Act 2007 relating to returns and assessments to apply
Repayment deductions from salary and wages
17 Borrowers to whom repayment deduction provisions of this Part apply
17B Repayment codes for application of PAYE rules
18 Borrower's notice to employer of requirement for repayment deductions
19 Employer or PAYE intermediary to make repayment deductions
20 Standard deduction rate
20A Standard deduction rate may be increased in certain circumstances
21 Special deduction rates
22 Commissioner may assess amount of repayment deductions
23 Deductions from income-tested benefits
24 Information to show repayment deductions made
25 PAYE rules of Income Tax Act 2007 to apply to repayment deductions
Interim repayments
26 Borrowers to whom interim repayment provisions of this Part apply
27 Amount of interim repayments
28 Interim repayments to be paid in same manner as provisional tax
Terminal repayments
29 Borrowers to whom terminal repayment provisions of this Part apply
30 Payment of terminal repayment obligation
Part 3
Collection of repayments from overseas based borrowers
31 Definitions used in this Part
32 Overseas based borrowers are entitled to 3-year repayment holiday
32A Repayment obligations of non-resident borrowers [Repealed]
32B Interest chargeable [Repealed]
33 Borrowers may choose not to have repayment holiday
34 Repayment obligations of overseas based borrowers
35 Repayment obligations of overseas based borrowers subject to penalties
36 Repayment to be made by instalments
36A Repayment obligation for borrowers who are overseas based for part of tax year
36B Assessments in year borrower is overseas based
Part 4
Miscellaneous provisions applying to student loan scheme
Notification requirements
37 Borrower to advise Commissioner of absence from New Zealand
38 Borrower to advise Commissioner of return to New Zealand
Full interest write-off for borrowers present in New Zealand or granted an exemption
38AA Full interest write-off for certain borrowers
38AB 183-day requirement
38AC Full interest write-off ceases if borrower is personally absent from New Zealand for 184 days
38AD Treatment of partial days
38AE Power of Commissioner to grant exemptions to borrowers who do not satisfy 183-day requirement
38AEA Conditions to charitable organisation exemption
38AF Conditions to unexpected delay exemption
38AG Conditions to unplanned personal absence exemption
38AH Conditions to employment or occupation absence exemption
38AI Conditions to marriage, civil union, or de facto exemption
38AIA Conditions to Niue, Cook Islands, Tokelau, and Ross Dependency exemption
38AJ Power of Commissioner to grant exemption to borrowers undertaking study at post-graduate or under-graduate level overseas
38AJA Power of Commissioner to grant exemption to borrowers undertaking full-time overseas study
38AK Terms of full interest write-off
38AL Commissioner's discretion for initial 183-day period for new borrowers
38AM Full interest write-off for quick repayment of loan balance
Full interest write-off for certain students
[Repealed]
38A Full interest write-off for full-time, full-year students [Repealed]
38B Full interest write-off for part-time or part-year students [Repealed]
38C Amount of full interest write-off [Repealed]
38D Conditions for full-interest write-off [Repealed]
Base interest write-off
[Repealed]
39 Base interest write-off where income below repayment threshold [Repealed]
Interest reduction
[Repealed]
40 Interest reduction where base interest exceeds 50% of repayment obligation [Repealed]
41 Conditions for base interest write-off [Repealed]
Other provisions relating to interest
42 Interest adjustment in respect of credit balances
43 Interest statement
Penalties for late payment
44 Late payment penalties
44A Underestimation penalty where interim repayments underestimated as at final instalment date
44B No interest on portion of loan balance subject to penalty
45 Notification of penalties
Ten percent bonus for excess repayments
45A Interpretation
45B Meaning of excess repayment
45C Borrower's entitlement to 10% bonus for total excess repayments of $500 or more
45D Borrower's entitlement to bonus if IRD loan balance is less than $550
45E Borrower may be entitled to 10% bonus if under-deduction is due to PAYE system
45F Manner in which 10% bonus is to be provided and restriction on amount of 10% bonus
45G Consequences of refund
45H Commissioner must advise borrowers to seek financial advice
45I Application of sections 45A to 45H
Enforcement
46 Recovery of repayment obligation
Date on which payments due
47 Payment date not otherwise specified
Dates on which payments deemed to be received and credited
48 Date on which payments deemed to have been made
49 Date on which payments deemed to have been credited
50 Priority of payments
Relief
51 Power of Commissioner in respect of small amounts
51A Commissioner may refrain from collecting amounts between $5 and $333 [Expired]
52 No liability in respect of small amounts of penalty
53 Relief from penalty
54 Borrowers may apply for hardship relief
55 Hardship relief for any tax year prior to current tax year
55A Hardship relief for tax year immediately prior to current tax year may include refund
55B Hardship relief for current tax year or next tax year
55C Effect of Commissioner's decision under section 55, 55A, or 55B
55D Borrowers must inform Commissioner of change of circumstances and Commissioner may review
Refunds
56 Excess repayments made by borrowers
57 Election by overseas based borrower to receive refund or to apply overpayment to loan balance
57A Application of sections 57B to 57D
57B No refunds for deductions or payments made prior to 31 March 2006
57C Certain refunds not entitled to full interest write-off under section 38AK
57D Commissioner's discretion in cases of significant financial hardship
58 Repayment obligation paid in excess may be set off against increased repayment obligation when assessments reopened
58A Repayment obligation paid in excess may be refunded when assessments reopened
59 Appropriation of refunds
Miscellaneous provisions
60 Write-off of loan balance
60A Cancellation of interest if IRD loan balance repaid early
61 Tax year other than 12 months due to change in balance date
62 Disclosure of information
62A Disclosure of information for information matching purposes
62B Power of Commissioner to access arrival or departure information
63 Act to supplement loan contract
63A Loan contract enforceable against minor
63B Initial disclosure
63C Certain information must be disclosed in loan contract
63D Method of informing borrowers
63E Continuing disclosure of information
63F Content of information disclosed
63G Disclosure of changes to obligations under student loan contract
63H Direct disclosure of information and changes
63I Public disclosure of changes
63J Satisfaction of requirements to disclose
63K Cap on student loan establishment fees
63L Annual administration fee
63M Student loan contracts are not credit contracts
63N Commissioner may exercise rights in loan contracts to recall loans
Part 5
Challenges after transfer of loan balance to Commissioner
64 Challenge to assessment of repayment obligation
65 Challenge to amount of interest charged
65A Objection to decision concerning grant of exemption
66 Challenge to penalty
66A Objection to decisions concerning penalty amnesty [Repealed]
66B Objection to decision concerning significant financial hardship
67 Challenge to assessment of repayment deduction
68 Challenge to penal repayment obligation
69 Objector
69A Application of Parts 4A and 8A of Tax Administration Act 1994
69B No right of challenge to interest payable under loan contract
70 Manner in which objection to be made [Repealed]
71 Time for objection [Repealed]
72 Objection to amended assessment or notice [Repealed]
73 Extension of time for objection [Repealed]
74 Commissioner to consider objections [Repealed]
75 Objector may refer disallowed objections to Taxation Review Authority [Repealed]
76 Objections to which this Part does not apply [Repealed]
Part 6
Offences and penalties
77 Offences in respect of repayment deductions
78 Penalties for offences in respect of repayment deductions
79 Other offences
80 Officers and employees of corporate bodies [Repealed]
81 Offence to prejudice employees because of student loan repayment liability
82 Proceedings to be taken summarily
83 Information may charge several offences
84 Information may be laid within 10 years
85 Penal repayment obligation in case of evasion
86 Penal charge for default in paying repayment deduction [Repealed]
Part 7
Regulations and miscellaneous matters
87 Regulations
88 Full interest write-offs, base interest write-offs, and interest reductions validated
Part 8
2007/08 transitional provisions for fresh start for certain borrowers
89 Interpretation
Fresh start for certain non-resident borrowers
90 No need to issue non-resident repayment obligations for period before 1 April 2007
91 Penalties cancelled, and interest imposed, for certain non-resident borrowers
New amnesty
92 Application of sections 93 to 105
93 Borrowers whose loan balance is not increased under section 103
94 Amnesty condition for borrowers who apply for amnesty after 31 March 2007
95 Payment arrangements if amnesty application date is between 1 April 2007 and 31 August 2007
96 Payment arrangements if amnesty application date is between 1 September 2007 and 29 February 2008
97 Payment arrangements if amnesty application date is in March 2008
98 Commissioner may reduce instalments if significant financial hardship
98A No repayment deductions to be made from income-tested benefits before 1 April 1994 [Repealed]
99 Relationship with New Zealand based repayment obligations
100 Amnesty condition for people who applied for old amnesty before 1 April 2007
101 What happens if amnesty condition breached
102 One time opportunity to correct amnesty condition breach
103 Increase to loan balance if borrower does not come under amnesty or if amnesty condition breached
104 Objection to decisions concerning penalty amnesty
105 Commissioner must apply rest of Act accordingly
Part 9
Other transitional provisions
Repayment holiday entitlements for borrowers who are overseas based on 1 April 2007
106 Full repayment holiday entitlement for borrowers who are overseas based on 1 April 2007 and compliant
107 Restricted repayment holiday entitlements for borrowers who are overseas based on 1 April 2007 and non-compliant
108 Restricted repayment holiday entitlements for borrowers who are overseas based on 1 April 2007 and do not comply with amnesty conditions
109 Interrelationship of sections 31 to 36B, Part 8, and sections 107 and 108
110 Full repayment holiday entitlement for borrowers who meet amnesty conditions
111 Full repayment holiday entitlement for borrowers who meet amnesty conditions and do not apply under section 110
Application of Tax Administration Act 1994
112 Application of repealed provisions of Tax Administration Act 1994
Student Loan Scheme Amendment Act 1996
Student Loan Scheme Amendment Act 2000
Student Loan Scheme Amendment Act 2005
Education Amendment Act 2006
Student Loan Scheme Amendment Act 2007
Reprint notes