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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

82: Calculation of interim payments for next tax year

You could also call this:

"How the government works out your student loan payments throughout the year"

When you need to pay back your student loan, you make interim payments throughout the year. Here's how those payments are calculated:

Your interim payment amount can change each time. It's worked out using a special math formula. This formula takes into account how much you expect to owe at the end of the tax year, which payment number it is, how many payments you need to make in total, and how much you've already paid.

If you don't provide information about your income, the amount you need to pay might be higher. It could be 5% more than last year's amount, or 10% more than the year before that if you didn't give information last year either.

But don't worry, you won't have to pay more than you owe. The most you'll need to pay is the amount of your loan at the start of the tax year, plus any new loan amounts you got during that year.

When figuring out how much you owe at the start of the tax year, they subtract any amounts you've already been asked to pay.

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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=DLM3885534.

Topics:
Money and consumer rights > Banking and loansEducation and learning > Higher education
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81: Due date for terminal payment, or

"When you need to pay the last bit of your student loan"

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83: Commissioner may assess interim payments if information for preceding year not provided, or

"The Commissioner can guess your loan payments if you didn't share last year's income information"

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

82Calculation of interim payments for next tax year

  1. The amount of each of the borrower's interim payments for the tax year may vary and must be calculated separately in accordance with the formula—

    a = b × (c ÷ d) − e

    Where:

    • a a

      is the amount of the borrower's interim payment

    • b b

      is, as applicable,—

    • the amount of the borrower's estimated end-of-year repayment obligation for the tax year; or
      1. the amount of the borrower's uplifted end-of-year repayment obligation for the tax year

        1. c c

          is a number reflecting which of the interim payments for the tax year is being calculated (for example, 2 if the second interim payment for the tax year is being calculated)

        2. d d

          is the total number of interim payment due dates the borrower has for the tax year

        3. e e

          is the aggregate amount of all of the borrower's interim payments for the tax year that were due before the interim payment being calculated.

      2. For the purposes of this section, the total number of interim payment due dates a borrower has is determined by reference to the number of interim payments the borrower must make as determined in accordance with section 84 or 85.

      3. In this section, uplifted end-of-year repayment obligation—

      4. means—
        1. the amount of the borrower's end-of-year repayment obligation for the immediately preceding tax year multiplied by 105%; or
          1. if the borrower did not provide a statement of adjusted net income for the immediately preceding tax year, the amount of the borrower’s end-of-year repayment obligation for the year before the immediately preceding tax year multiplied by 110%; but
          2. the amount calculated in accordance with paragraph (a) must not exceed the sum of the borrower's loan balance on 1 April of the relevant tax year plus any loan advances made or charged to the borrower for that tax year after that date.

            1. For the purposes of subsection (3)(b), the borrower's loan balance on 1 April of the relevant tax year must be determined by subtracting the amount of any repayment obligation or other amount that the Commissioner has, on or before that day, required the borrower to pay and that is payable on or after that day.

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            Notes
            • Section 82: 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 82(3)(a)(ii): replaced, on , by section 15 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).