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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 - Matters of general application to salary or wage deductions

71: Salary or wage deductions in addition to income tax withheld

You could also call this:

“Extra money taken from your pay to repay your student loan”

When you have a student loan, your employer takes extra money from your pay to help repay the loan. This is called a salary or wage deduction. This deduction is separate from the income tax that your employer already takes out of your pay. Your employer sends both the income tax and the student loan deduction to the government. This way, you’re paying off your student loan bit by bit with each pay.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180160.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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70: PAYE rules apply to salary or wage deductions, or

"Rules for taking money from your pay for student loans"

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72: Application of this subpart, or

"This part explains who needs to repay student loans"

Part 2 Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Matters of general application to salary or wage deductions

71Salary or wage deductions in addition to income tax withheld

  1. Salary or wage deductions are in addition to amounts of tax for PAYE income payments that are required to be withheld and paid to the Commissioner under the PAYE rules.

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