Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based borrowers' repayment obligations for salary or wages - Standard deductions resulting in significant under-deductions or over-deductions

64: Standard deductions are full and final unless significant error

You could also call this:

“Money taken from your pay for student loans is final unless there's a big mistake”

When money is taken out of your pay for your student loan, it’s called a standard deduction. Sometimes, these deductions might not be exactly right. If the mistake is small, the Commissioner won’t fix it. The wrong amount will be treated as if it was the right amount. This rule applies even if other parts of the law seem to say something different.

An incorrect deduction means either no money was taken out when it should have been, or the amount taken out was too little or too much compared to what should have been deducted according to section 37. However, if the mistake is a big one (called a significant under-deduction or over-deduction), different rules apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180151.


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63: Commissioner determines what is significant under-deduction or significant over-deduction, or

"The Student Loan Boss decides when mistakes in repayments are big enough to worry about"


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65: Significant over-deduction identified by borrower, or

"What to do if you think too much money was taken for your student loan"

Part 2 Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Standard deductions resulting in significant under-deductions or over-deductions

64Standard deductions are full and final unless significant error

  1. Subsection (2) applies if—

  2. there is an incorrect deduction; and
    1. the incorrect deduction is not a significant under-deduction or a significant over-deduction.
      1. If this subsection applies,—

      2. the Commissioner must not take corrective action in relation to the incorrect deduction; and
        1. the incorrect deduction must be treated as if it was the amount that was required to be deducted from a borrower's salary or wages in accordance with this subpart; and
          1. this Act must be interpreted and applied with all necessary modifications in order to give effect to paragraph (b).
            1. Subsection (2) applies despite anything to the contrary.

            2. In this section, incorrect deduction means a standard deduction that—

            3. is required to be made but is not; or
              1. is less than or more than the amount that is required to be deducted in accordance with section 37.