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Student Loan Scheme Act 2011

Matters of general application and miscellaneous matters - Matters of general application

195: Date on which salary or wage deductions and payments treated as being made and credited

You could also call this:

“When money is taken from your pay or given to the government for your student loan”

When money gets taken from your salary or wages for your student loan, it happens on the day the money is taken out. When you make a payment to the Commissioner, it’s counted on the day they get it.

For some important things like working out interest on your loan, late payment interest, if you need to pay a yearly fee, and if your loan balance is $20 or less, the rules are a bit different. In these cases, salary or wage deductions are counted the day after they’re taken out. Other payments are counted the day after the Commissioner gets them.

For everything else, there are different rules again. Salary or wage deductions are counted on the last day of the month they’re taken out. If you live in New Zealand and make a payment that’s not from your salary or wages, it’s counted when the Commissioner works out how much you need to pay back at the end of the tax year. If you live overseas and make a payment that’s not from your salary or wages, it’s counted on the day the Commissioner gets it.

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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=DLM3828400.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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194: Order in which certain deductions and payments offset against borrower's consolidated loan balance, or

"How your student loan payments are used to pay off your debts"

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195B: Date on which final-year fees-free entitlement treated as being credited, or

"When your final-year fees-free money is added to your student loan account"

Part 5 Matters of general application and miscellaneous matters
Matters of general application

195Date on which salary or wage deductions and payments treated as being made and credited

  1. A salary or wage deduction is made on the date the deduction is made.

  2. A payment is made to the Commissioner on the date it is received by the Commissioner.

  3. For the purposes of calculating loan interest and late payment interest, determining whether an annual administration fee is payable, and determining whether a borrower’s consolidated loan balance is not more than $20 for the purposes of section 197,—

  4. a salary or wage deduction is credited on the day after the date on which the deduction is made; and
    1. all other payments are credited on the day after the date on which they are received by the Commissioner.

      1. Repealed

      2. Other than for the purposes set out in subsection (3),—

      3. a salary or wage deduction is credited on the last day of the month in which the deduction is made; and
        1. a payment made by a New Zealand-based borrower (excluding a salary or wage deduction) for a tax year is credited at the time when the Commissioner assesses the borrower's end-of-year repayment obligation for that tax year; and
          1. a payment made by an overseas-based borrower (excluding a salary or wage deduction) is credited on the date it is received by the Commissioner.

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            Notes
            • Section 195(3): replaced, on , by section 76 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
            • Section 195(3A): repealed, on , by section 76 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
            • Section 195(4)(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).