Plain language law

New Zealand law explained for everyone

Student Loan Scheme Act 2011

Repayment obligations of borrowers - Repayment obligations for New Zealand-based borrowers with income other than, or as well as, salary or wages

79: Payment of end-of-year repayment obligation

You could also call this:

"Pay your final student loan bill for the year"

You must pay a final payment if you owe money on your student loan at the end of the tax year. This payment is worked out using a special calculation. You need to pay it by the due date set by the law or by the tax department.

If you owe $1,000 or more at the end of the tax year, or if you didn't tell the tax department about your income and you owed $1,000 or more last year, you have to make extra payments for the next year too. These extra payments are called interim payments.

The interim payments are also worked out using special calculations. You have to pay them by certain due dates set by the law or the tax department.

But don't worry, if you owe less than $1,000 at the end of the tax year, you don't have to make these extra payments for the next year.

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 It might be out of date or be missing some parts.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=DLM3180178.

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

78: Calculation of borrower's end-of-year repayment obligation where salary or wages equal to or more than annual repayment threshold, or

"How the government works out how much of your student loan you need to pay back each year if you earn enough money"

Next

80: Calculation of terminal payment for tax year, or

"Figuring out your final student loan payment for the year"

Part 2Repayment obligations of borrowers
Repayment obligations for New Zealand-based borrowers with income other than, or as well as, salary or wages

79Payment of end-of-year repayment obligation

  1. A borrower whose end-of-year repayment obligation for a tax year is greater than zero must pay a terminal payment—

  2. calculated in accordance with section 80:
    1. on or before the due date under section 81 or a due date determined by the Commissioner under section 85.

      1. Subsection (3) applies to a borrower if—

      2. the borrower's end-of-year repayment obligation for a tax year is $1,000 or more; or
        1. the borrower has not provided a statement of adjusted net income for a tax year, and the borrower’s end-of-year repayment obligation for the immediately preceding tax year was $1,000 or more.

          1. A borrower must also pay interim payments for the next tax year—

          2. calculated in accordance with section 82 or 83:
            1. on or before the due dates determined in accordance with section 84 or 85.

              1. However, a borrower is not liable to make interim payments for a tax year if the borrower's end-of-year repayment obligation for that year is less than $1,000.

              Notes
              • Section 79: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on , by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
              • Section 79(2)(b): replaced, on , by section 14 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).