Student Loan Scheme Act 2011

Interest, relief, penalties and offences, rights of objection, and rights to challenge - Penalties and offences - Student loan shortfall penalties

158: Student loan shortfall penalties may be imposed on certain borrowers

You could also call this:

“Sometimes you might have to pay extra if you make a mistake with your student loan”

If you borrow money for your studies, you need to know about something called student loan shortfall penalties. These penalties might apply to you in certain situations. You could face these penalties if you make a mistake when reporting your income or paying your taxes. This mistake needs to do two things: it must cause you to pay less income tax than you should have, and it must also mean you didn’t pay back enough of your student loan. If both of these things happen because of your mistake, you might have to pay extra penalties on top of what you already owe.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180342.


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157: Definitions relating to student loan shortfall penalties, or

"Explaining important words about student loan mistakes and penalties"


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159: Commissioner may impose student loan shortfall penalties, or

"You might have to pay extra if you don't pay enough of your student loan"

Part 4 Interest, relief, penalties and offences, rights of objection, and rights to challenge
Penalties and offences: Student loan shortfall penalties

158Student loan shortfall penalties may be imposed on certain borrowers

  1. Section 159 applies to a borrower if—

  2. the borrower is liable to pay a shortfall penalty; and
    1. the incorrect tax position, action, or omission that resulted in the shortfall penalty (the incorrect tax position)—
      1. created a shortfall in the income tax paid or payable by the borrower; and
        1. resulted in the borrower having a repayment obligation shortfall.