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Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based non-resident borrowers and borrowers with New Zealand-based and overseas-based repayment obligations

115: Repayment obligations of borrowers who are overseas-based for part of tax year

You could also call this:

“Your student loan repayments change when you're overseas for part of the year”

If you have a student loan and spend part of the tax year in New Zealand and part overseas, different rules apply for each part of the year.

For the time you’re in New Zealand:

You follow the usual New Zealand-based repayment rules, but the annual repayment threshold is reduced. It’s lowered based on how many days you were in New Zealand compared to the whole year.

Only the money you earned while in New Zealand is used to work out how much you need to repay.

For the time you’re overseas:

If you’re not on a temporary repayment suspension, you follow the overseas-based repayment rules.

You pay your overseas-based repayment in instalments. The tax department decides how these instalments work.

These rules apply no matter what else the law says, except for one specific situation mentioned in another part of the law.

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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=DLM3180261.

Topics:
Money and consumer rights > Banking and loans Education and learning > Higher education
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114A: Extension of time for notification of Schedule 3 adjustments, or

"Getting more time to report changes to your student loan income or deductions"

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115A: Reassessment of borrower's overseas-based repayment obligations in year of return to New Zealand, or

"Checking your student loan payments when you move back to New Zealand"

Part 2 Repayment obligations of borrowers
New Zealand-based non-resident borrowers and borrowers with New Zealand-based and overseas-based repayment obligations

115Repayment obligations of borrowers who are overseas-based for part of tax year

  1. If a borrower is both New Zealand-based and overseas-based during a tax year,—

  2. subparts 1 and 2 apply to the borrower for the period in the tax year during which he or she is New Zealand-based (the New Zealand-based period), except that, for the purposes of subpart 2, the amount of the annual repayment threshold for the tax year must be proportionately decreased to the same proportion as the number of days in the New Zealand-based period bears to the number of days in a year; and
    1. only the income that the borrower derived during the period that the borrower was New Zealand-based during the year must be taken into account when calculating the borrower’s repayment obligation under subparts 1 and 2; and
      1. section 110(3) or 111 (as applicable) applies to any portion of the tax year during which the borrower is overseas-based and is not entitled to a temporary repayment suspension (as defined in section 106); and
        1. the borrower's overseas-based repayment obligation is payable in instalments as determined by the Commissioner.

          1. Subsection (1) applies despite anything to the contrary in this Act, except as provided in section 115A.

          Compare
          Notes
          • Section 115(1)(a): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on , by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
          • Section 115(1)(b): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on , by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
          • Section 115(1)(c): replaced (with effect on 1 April 2012), on , by section 35 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
          • Section 115(1)(c): amended, on , by section 67 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
          • Section 115(2): amended, on , by section 19 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).