Plain language law

New Zealand law explained for everyone

Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based borrowers' repayment obligations for salary or wages - Repayment codes

34: Repayment codes for New Zealand-based borrowers who derive salary or wages

You could also call this:

“Rules for taking student loan payments from your work pay in New Zealand”

When you earn money from a job in New Zealand and have a student loan, your employer needs to know how much to take out of your pay for your loan. They use special codes to do this. These codes are called repayment codes.

There are two repayment codes that can be used. One is ‘SL’ and the other is ‘TTC’. Most people use the ‘SL’ code. You might use the ‘TTC’ code if you have a special tax situation or if the tax office says you should use it.

Sometimes, these repayment codes can be mixed with other codes that your employer uses to figure out your taxes. This helps your employer take the right amount of money from your pay for both your student loan and your taxes.

Your employer uses these codes to make sure the right amount of money goes towards paying back your student loan. It’s a way to help you pay off your loan bit by bit from each pay you get.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180101.

Topics:
Money and consumer rights > Banking and loans Education and learning > Higher education
Previous

33: Application of this subpart, or

"Rules for repaying student loans if you work in New Zealand"

Next

35: Borrowers with SL repayment code must notify employers, or

"Tell your boss about your student loan when you start work"

Part 2 Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Repayment codes

34Repayment 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—

  2. SL; or
    1. TTC.

      1. The repayment code TTC applies to a borrower if—

      2. 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
        1. the Commissioner requires or permits its use in any other case.

          1. 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,—

          2. the repayment code SL may be combined with another code under that Act; and
            1. the repayment code TTC may be combined into another code under that Act.

              Compare
              Notes
              • Section 34(1)(b): amended, on , 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 , 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 , 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 , 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 , 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 , by section 9 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
              • Section 34(3)(b): amended, on , by section 328(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).