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 - Further means of recovering amounts that remain unpaid

51: Assessment of standard deductions that ought to have been made

You could also call this:

“Checking if the right amount was taken from your pay for your student loan”

If you have a student loan, the government can check if the right amount of money has been taken from your pay. They might do this if:

You or your employer did something on purpose that meant not enough money was taken out of your pay.

You stopped the right amount of money from being taken out of your pay.

The government hasn’t been able to get money from your pay to put towards your loan.

The government thinks they won’t be able to get money from your future pay within a reasonable time.

If any of these things happen, the government can work out how much should have been taken from your pay over a certain time. They can use any information they think is important to do this.

When they work this out, they have to follow the rules in this part of the law and your loan agreement. If there’s a difference between the rules and your loan agreement, they will follow what it says in Section 203 of the law.

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 It might be out of date or be missing some parts.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=DLM3180134.

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

50: Procedures for issue of additional deduction rate notice, or

"How the government tells you and your employer about taking more money from your pay for your student loan"

Next

52: Recovery of assessed amounts, or

"How the government checks and tells you about your student loan payments"

Part 2 Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Further means of recovering amounts that remain unpaid

51Assessment of standard deductions that ought to have been made

  1. This section applies if, in relation to a borrower,—

  2. there is a significant under-deduction in the current tax year or in any prior tax year that the Commissioner reasonably believes has occurred because—
    1. of a deliberate action or omission by the borrower or by the borrower's employer or PAYE intermediary; or
      1. the borrower has prevented a standard deduction from being made; or
      2. the Commissioner has been unable to obtain Commissioner deductions for the purposes set out in section 49(1)(a); or
        1. the Commissioner is satisfied that he or she will be unable to obtain Commissioner deductions within a reasonable period of time from the borrower's future salary or wages for the purposes set out in section 49(1)(a).

          1. Repealed

          2. The Commissioner may make an assessment in relation to the borrower to determine the standard deductions that ought to have been made for any period.

          3. In making an assessment under this section, the Commissioner may have regard to any information that the Commissioner considers to be relevant.

          4. The assessment must be made in accordance with this subpart and the loan contract.

          5. Section 203 applies if there is an inconsistency between this subpart and the loan contract.

          Compare
          Notes
          • Section 51(1)(a)(i): amended (with effect on 1 April 2012), on , by section 21(1) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
          • Section 51(2): repealed (with effect on 1 April 2012), on , by section 21(2) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).