Student Loan Scheme Act 2011

Consequential amendments and repeals

Schedule 2: Application of PAYE rules for purposes of section 70

You could also call this:

"How the rules for taking money from your pay for student loans work"

The PAYE rules apply to salary or wage deductions for student loans. When you read these rules, you should think of income tax as a salary or wage deduction, and taxpayers as borrowers. The repayment codes SL, TTC, SLCIR, or SLBOR are used instead of tax codes, and the repayment percentage is used instead of basic tax rates.

However, some parts of the PAYE rules don't apply to salary or wage deductions for student loans. These include certain sections of the Income Tax Act 2007 and the Tax Administration Act 1994. You can find the specific sections that don't apply in the original text.

It's important to know that a salary or wage deduction for a student loan is separate from the tax withheld from your pay. They are not treated as the same thing, even though they might be taken out of your pay at the same time.

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This page was last updated on 22 April 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180465.

Topics:

Education and learning > Higher educationMoney and consumer rights > Banking and loans

Schedule 1: Conditions to borrower being treated as being physically in New Zealand, or

"Rules for when you're outside New Zealand but still count as being here for your student loan"

Schedule 3: Adjustments to net income for purposes of section 73, applying from 1 April 2014 for 2014–2015 and later tax years, or

"How to change your income amount for student loan repayments from April 2014 onwards"

2Application of PAYE rules for purposes of section 70 Empowered by s 70

The PAYE rules apply for the purposes of section 70, as far as applicable and with all necessary modifications, as if—
- every reference to income tax or tax were a reference to a salary or wage deduction; and
- every reference to an amount of tax for a PAYE income payment that is withheld and paid to the Commissioner were a reference to a salary or wage deduction; and
- every reference to a taxpayer or a person were a reference to a borrower; and
- every reference to a tax code were a reference to, as applicable, the repayment codes SL, TTC, SLCIR, or SLBOR; and
- every reference to basic tax rates were a reference to the repayment percentage.
Notes
- Schedule 2 clause 1 paragraph (d): replaced (with effect on 1 April 2012), on 12 April 2012, by section 54 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
- Schedule 2 clause 1 paragraph (d): amended, on 1 April 2019, by section 333(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

However,—
- the following do not apply to salary or wage deductions:
  - sections BC 1, LA 6, RC 2(1), RC 6, RC 7, RC 16, RC 17, RD 8 to RD 10B, RD 13, RD 13B, RD 17(2) and (3), and RD 18 to RD 20 of the Income Tax Act 2007:
  - sections 24F, 24G, 24H, and 24I, and schedule 5, part C of the Tax Administration Act 1994.
- a salary or wage deduction must not be treated as part of, or included in, an amount of tax for a PAYE income payment that is withheld and paid to the Commissioner under the PAYE rules.
Notes
- Schedule 2 clause 2(a): replaced, on 1 April 2019, by section 395(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
- Schedule 2 clause 2(a)(i): amended, on 1 April 2019, by section 333(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).


	Compare: 1992 No 141 s 25