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Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based borrowers' repayment obligations for salary or wages - Salary or wage deductions

36: Employer or PAYE intermediary must make standard deductions from salary or wages

You could also call this:

“Bosses take out student loan money from your pay”

If you have a student loan, your employer needs to make deductions from your pay. This happens in three situations:

  1. You’ve told your employer about your student loan.
  2. The tax department (called the Commissioner) has told your employer or the person who does your payroll that they should use the code ‘SL’ for your pay.
  3. Your employer has been told in writing that a ‘TTC’ code applies to you.

Every time you get paid, your employer or the person who does your payroll must take some money out of your pay for your student loan. They do this following specific rules about how much to take out.

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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=DLM3180104.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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35: Borrowers with SL repayment code must notify employers, or

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

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37: Deduction rates that apply to standard deductions from salary or wages, or

"How much money your work takes from your pay to help pay back your student loan"

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

36Employer or PAYE intermediary must make standard deductions from salary or wages

  1. This section applies if—

  2. a borrower has notified his or her employer under section 35; or
    1. the Commissioner has notified a borrower's employer or PAYE intermediary that the repayment code that should be applied to the borrower's salary or wages is SL; or
      1. a borrower's employer has been notified in writing that an TTC repayment code applies to the borrower.

        1. Each time the employer or PAYE intermediary pays an amount to the borrower that is salary or wages for a pay period, the employer or PAYE intermediary must make a deduction from that amount in accordance with section 37(1) or (2).

        Compare
        Notes
        • Section 36(1)(c): amended, on , by section 330 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
        • Section 36(1)(c): amended (with effect on 1 April 2012), on , by section 11 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).