The purposes of this Act are to—

In this Act, unless the context otherwise requires,—

A reference to a borrower estimating his or her end-of-year repayment obligation is a reference to a borrower making a fair and reasonable estimate of his or her end-of-year repayment obligation in accordance with section RC 7 of the Income Tax Act 2007, as applied by section 86 and Schedule 4 of this Act.

In this Act, unpaid amount, in relation to a borrower, means each of the following to the extent that it, and any late payment interest that has been added to it under section 139(2), has not been paid on or before its due date and has not been decreased, reduced, or written off by the Commissioner:

In this section,—

This Act applies—

However, regulations made under section 216, sections 218 to 220, and Schedules 5 and 6 override subsection (1).

An amount repayable under a bonded scholarship (the default amount), along with interest payable in accordance with the scholarship agreement, may be recovered under this Act as if—

Despite any enactment or rule of law, if a provision in an agreement for a bonded scholarship conflicts with this section, this section prevails.

In this section, bonded scholarship means an allowance or agreement that is declared under clause 11 of Schedule 9 of the Education and Training Act 2020 to be a bonded scholarship.

This Act binds the Crown.

Schedule 6 contains application, savings, and transitional provisions that affect this Act’s other provisions as from time to time amended, repealed, and replaced (see section 220).

The purposes of sections 10, 11, 16, and 17 are to authorise the transfer of information between the loan manager and the Commissioner so as to—

The loan manager must notify the Commissioner of all persons who apply for a student loan.

That notification must include the following information:

The Commissioner and the loan manager may, for the purpose of this section, determine by written agreement between them—

Subsection (3)(b) and (c) apply despite section 211.

The Commissioner must notify the loan manager—

The Commissioner and the loan manager may, for the purpose of this section, determine by written agreement between them—

Subsection (2)(b) and (c) apply despite section 211.

The loan manager must provide a person who applies for a student loan with a copy of the loan contract before the day that is 6 working days after the day on which the person enters into the contract.

Every loan contract entered into after 31 March 2012 must specify the following information that applies at the date the loan contract is entered into:

A student loan establishment fee of $60 (or any other amount prescribed by regulations) must be charged by the loan manager to a borrower each time the borrower enters into a loan contract after 31 March 2012.

A borrower may cancel his or her loan contract by—

If a borrower cancels his or her loan contract in accordance with subsection (1), the loan manager must waive the student loan establishment fee charged under section 14.

The loan manager must notify the Commissioner—

That notification must—

The Commissioner and the loan manager may, for the purpose of this section, determine by written agreement between them—

Subsection (3)(b) and (c) apply despite section 211.

In any case where a borrower has advised the loan manager of the details of the borrower’s contact person, the loan manager must notify the Commissioner of the following details, to the extent that they are available:

The Commissioner and the loan manager may, for the purpose of this section, determine by written agreement between them—

Subsection (2)(b) and (c) apply despite section 211.

After a loan advance is made or charged to a borrower, the loan manager must—

The Commissioner and the loan manager may, for the purpose of this section, determine by written agreement between them—

Subsection (2)(b) and (c) apply despite section 211.

The Commissioner must notify a borrower in writing if a loan advance debt that belongs to that borrower is transferred to the Commissioner in accordance with section 17(1).

The notification must—

The Commissioner—

For the purposes of subsection (1), the Commissioner must provide the following information for each borrower:

The Commissioner must correct that information if the Commissioner becomes aware that any of the information is incorrect or has changed.

The Commissioner must notify a borrower if—

Details of the change must be notified to the borrower within 7 months after the day on which the change is made.

However, subsections (1) and (2) do not apply if the Commissioner is aware that he or she has incorrect contact details for the borrower or cannot reasonably locate the borrower.

This subpart specifies when a borrower is treated as being New Zealand-based and when a borrower is treated as being overseas-based.

Under Part 2, different repayment obligations apply to a borrower depending upon whether that borrower is New Zealand-based or overseas-based.

Under subpart 1 of Part 4, a borrower is liable to pay loan interest for each day that that borrower is overseas-based.

This section is intended as a guide only.

A borrower is New Zealand-based if—

A day on which a borrower is treated as being physically in New Zealand under section 24 or 25 counts in the same way as a day on which the borrower is actually physically in New Zealand.

A period of 183 consecutive days may include any days before the day on which a person becomes a borrower.

For the purposes of subsection (1), a borrower is treated as being New Zealand-based—

A borrower ceases to be New Zealand-based if that borrower becomes overseas-based.

The following persons are overseas-based:

A borrower must not be treated as being physically absent from New Zealand for any day on which that borrower is treated as being physically in New Zealand under section 22(1)(b).

A day on which a borrower is treated as being physically in New Zealand under section 24 or 25 counts in the same way as a day on which the borrower is actually physically in New Zealand.

A period of 184 consecutive days may include any days before the day on which a person becomes a borrower.

For the purposes of subsection (1), a borrower is treated as being overseas-based—

A borrower ceases to be overseas-based if that borrower becomes New Zealand-based.

For the purposes of sections 22 and 23, if a borrower is physically in New Zealand for part of a day, that borrower is treated as—

On the application of a borrower, the Commissioner may, for the purposes of sections 22 to 24 and if the Commissioner considers that it is fair and reasonable to do so, treat a borrower as being physically in New Zealand if the principal reason that the borrower is not, was not, or will not be physically in New Zealand is because—

Subsection (1)(b) to (j) and subsection (3) are subject to the conditions set out in, as applicable, clauses 2 to 11 of Schedule 1.

On application, the Commissioner may, for the purposes of sections 22 to 24 and if the Commissioner considers that it is fair and reasonable to do so, treat a borrower as being physically in New Zealand if the Commissioner is satisfied that the borrower—

In subsection (3), serious illness means an injury, illness, or disability that—

A borrower who applies to the Commissioner to be treated as being physically in New Zealand under section 25 must—

If the Commissioner treats a borrower as being physically in New Zealand under section 25, the Commissioner must—

The Commissioner must keep a list of entities that are charities for the purposes of section 25(1)(b).

The list must specify—

The Commissioner must publish the list in a manner chosen by the Commissioner.

An entity qualifies to be listed as a charity under section 27A if the Commissioner is satisfied that—

In determining whether it is appropriate for the entity to be listed as a charity under subsection (1)(b), the Commissioner may have regard to—

An entity may apply to be listed as a charity by—

The Commissioner may request further information from the applicant and obtain information relating to the applicant from other persons before deciding whether or not to list the applicant.

The Commissioner must list an applicant as a charity (by adding the applicant’s name to the list and a date on and from which the listing applies) if the entity qualifies for listing under section 27B.

The date on and from which the listing applies must not be earlier than the date of the entity’s application under this section.

If the Commissioner proposes to refuse to list an applicant as a charity, the Commissioner must—

The Commissioner must notify the applicant in writing of the final decision under this section.

The Commissioner may list an entity as a charity, even if there is no application under section 27C, if the entity is qualified under section 27B(1)(a) (by adding the entity’s name to the list and a date on and from which the listing applies).

The date on and from which the listing applies must not be earlier than the date of the Commissioner’s decision under this section.

The Commissioner may remove an entity’s listing as a charity (by adding to the list a date on which the entity’s listing as a charity ceases to apply) if the Commissioner determines that the entity no longer qualifies under section 27B to be listed.

The date on which the listing ceases to apply must not be earlier than the Commissioner’s final decision under this section.

If the Commissioner proposes to remove an entity’s listing as a charity, the Commissioner must—

The Commissioner must notify the entity in writing of the final decision under this section.

A borrower who intends to be, or will be, physically absent from New Zealand for a period of 184 or more consecutive days must, before leaving New Zealand, notify the Commissioner of the following matters:

A borrower who is physically absent from New Zealand must notify the Commissioner of the matters required by subsection (1), as well as the date on which the borrower left New Zealand, as soon as practicable after the earlier of the following:

See section 193C concerning the obligation on a borrower if there is a change in any of the contact details provided to the Commissioner under this section.

An overseas-based borrower who is physically in New Zealand must comply with subsection (2) as soon as practicable after the earlier of the following:

The borrower must notify the Commissioner of—

This subpart applies to New Zealand-based borrowers who derive salary or wages.

For the purpose of the application of the PAYE rules under section 70, the repayment code of all New Zealand-based borrowers who derive salary or wages is either—

The repayment code “TTC” applies to a borrower if—

If another Act requires an employer to withhold an amount of tax for a PAYE income payment to a borrower and pay the amount to the Commissioner,—

A borrower whose repayment code is “SL” must notify his or her employer in a manner acceptable to the Commissioner.

The borrower must notify his or her employer as soon as practicable—

This section applies if—

Each time the employer or PAYE intermediary pays an amount to the borrower that is salary or wages for a pay period, the employer or PAYE intermediary must make a deduction from that amount in accordance with section 37(1) or (2).

If the employer of a borrower has not been notified that a special deduction rate applies to the borrower, deductions must be made at the rate of 12 cents in each complete dollar from—

If the employer has been notified that a special deduction rate applies to the borrower, deductions must be made at the special deduction rate specified in the applicable special deduction rate certificate from—

If the repayment percentage is changed by regulations, the deduction rate in subsection (1) is changed accordingly.

When a change occurs to a rate in this Act, or in regulations made under this Act, affecting the deduction from primary employment earnings paid to the borrower or secondary employment earnings paid to the borrower, the calculation of the amount of the deduction must be made at the rate applying on the day on which the employment earnings are paid to the borrower.

In this section, pay period repayment threshold means,—

This section applies if a borrower’s employer or PAYE intermediary has received an additional deduction rate notice that has been issued in relation to the borrower under section 49(2).

Each time the employer or PAYE intermediary pays an amount to the borrower that is salary or wages for a pay period, the employer or PAYE intermediary must make a deduction from that amount at the additional deduction rate specified in the notice.

Deductions made in accordance with this section must—

Nothing in this section limits section 36, 37, or 39.

This section applies if a borrower requests his or her employer or PAYE intermediary to make deductions at an additional deduction rate or of a specified amount.

Each time the employer or PAYE intermediary pays an amount to the borrower that is salary or wages for a pay period, the employer or PAYE intermediary must make a deduction from that amount at the additional deduction rate, or of the amount, requested by the borrower.

Deductions made in accordance with this section must—

Nothing in this section limits section 36, 37, or 38.

This section applies if—

The chief executive—

If the amount of the deduction determined under subsection (2)(b) is zero, then sections 34 and 35 do not apply.

This section overrides sections 36(2), 38, and 39.

In this section,—

In sections 42 to 48,—

Subsection (2) applies to a New Zealand-based borrower who, for a quarter,—

The borrower may apply to the Commissioner for the borrower’s unused repayment threshold for a pay period to be allocated to the borrower’s secondary employment earnings.

The borrower must apply by notifying the Commissioner, in a manner acceptable to the Commissioner, of—

A borrower must determine his or her estimated salary or wages by making a fair and reasonable estimate of the total income the borrower will derive for the relevant quarter from each of the following:

The borrower must—

A borrower’s unused repayment threshold for a pay period is calculated in accordance with the formula—

Upon receiving an application in accordance with section 42, the Commissioner may issue a special deduction rate certificate that, in relation to the borrower’s secondary employment earnings,—

If the Commissioner issues a special deduction rate certificate under section 45, the Commissioner must give a copy of the certificate to the borrower.

The special deduction rate certificate—

The borrower—

The borrower must notify the Commissioner in a manner acceptable to the Commissioner, and provide details, if—

The special deduction rate applies until the earlier of—

The Commissioner may obtain Commissioner deductions from a borrower’s salary or wages if—

To obtain Commissioner deductions from a borrower’s salary or wages, the Commissioner must issue an additional deduction rate notice that—

The additional deduction rate specified under subsection (2)(a) must be 5% or less.

If the Commissioner issues an additional deduction rate notice under section 49(2), the Commissioner must—

An additional deduction rate notice issued to an employer or a PAYE intermediary in relation to a borrower revokes an additional deduction rate notice previously issued to that employer or PAYE intermediary in relation to the borrower.

Despite subsection (1)(b), the Commissioner may dispense with the requirement to send the information described in subsection (1)(b)(i) to (iii) to the borrower if the Commissioner, after making reasonable inquiries, has, or can find, no valid address for the borrower.

Nothing in section 49 or this section limits the application of sections 147 to 153 (concerning hardship relief).

This section applies if, in relation to a borrower,—

The Commissioner may make an assessment in relation to the borrower to determine the standard deductions that ought to have been made for any period.

In making an assessment under this section, the Commissioner may have regard to any information that the Commissioner considers to be relevant.

The assessment must be made in accordance with this subpart and the loan contract.

Section 203 applies if there is an inconsistency between this subpart and the loan contract.

The Commissioner must, as soon as practicable after making an assessment under section 51, notify the borrower in writing—

The amount specified in accordance with subsection (1)(b) must be no greater than the amount the Commissioner considers the borrower should or would have paid under this subpart for the period in question.

In sections 54 to 60,—

This section applies to a New Zealand-based borrower who—

The borrower may obtain an exemption from future standard deductions for an exemption period by making a declaration in accordance with section 55.

A declaration must—

Upon receiving a declaration that complies with section 55 from a borrower, the Commissioner must—

If a borrower’s employer is notified in writing that an exemption from standard deductions has been granted to the borrower, then—

Subsection (1)(a) and (b) apply from the later of—

The grant of an exemption from standard deductions does not limit section 38 or 39.

A borrower may withdraw a declaration under section 55 by—

A borrower must notify the Commissioner and the borrower’s employer, and provide details, as soon as practicable, if—

If the Commissioner becomes aware that any of the matters in section 54(1) have ceased, or will cease, to apply to a borrower, the Commissioner may—

A notification under subsection (1) or (2) must specify the date on which the matters ceased, or will cease, to apply to the borrower.

Section 57 ceases to apply in relation to a borrower from the earliest of the following:

From the date on which section 57 ceases to apply in relation to a borrower,—

The Commissioner may—

The Commissioner must notify the employer or PAYE intermediary in writing of a requirement under subsection (1).

An employer or PAYE intermediary must provide the Commissioner with any information required under subsection (1) by notifying the Commissioner, in a manner acceptable to the Commissioner, on or before the date specified by the Commissioner.

An employer or PAYE intermediary may request the Commissioner to determine any question as to the amount, if any, of salary or wage deductions that ought to be made.

The Commissioner must, as soon as practicable after receiving a request under subsection (1),—

A request under subsection (1) must be made by notifying the Commissioner (see section 211).

The purpose of this section is to reduce the likelihood that a deduction under this subpart will result in a borrower’s consolidated loan balance falling below zero.

When a borrower’s consolidated loan balance is close to zero, the Commissioner may—

The Commissioner must give a copy of the notification to the borrower.

However, subsection (3) does not apply if the Commissioner is aware that he or she has incorrect contact details for the borrower or cannot reasonably locate the borrower.

The notification revokes, for the payday or paydays, all other deduction rate certificates previously issued to the employer or those employers in relation to the borrower under this subpart.

The Commissioner must determine the thresholds (which may differ) for what is to be treated as a significant under-deduction or a significant over-deduction.

The Commissioner must exercise his or her discretion under subsection (1)—

A determination under subsection (1) may—

The Commissioner must, on or before 31 March each year, inform borrowers of the threshold determined by the Commissioner for significant over-deductions for the next tax year.

Subsection (2) applies if—

If this subsection applies,—

Subsection (2) applies despite anything to the contrary.

In this section, incorrect deduction means a standard deduction that—

If a borrower reasonably believes that a significant over-deduction was made in relation to him or her, the borrower—

The borrower must make a request under subsection (1)(a) within 6 months after the date on which the significant over-deduction is believed to have occurred.

A request under subsection (1)(a) must be made by notifying the Commissioner (see section 211).

If the Commissioner receives a request in accordance with section 65, the Commissioner must, as soon as practicable,—

This section applies if the Commissioner—

The Commissioner must, as soon as practicable, notify the borrower—

In any case where there is also, in relation to the borrower and any tax year, a significant under-deduction or an unpaid amount that the Commissioner has at any time identified, the significant under-deduction or unpaid amount may be offset against the significant over-deduction before any refund is made.

To receive a refund of the over-deduction, the borrower must notify the Commissioner in a manner acceptable to the Commissioner within 6 months after the date on which the borrower was notified in accordance with subsection (2).

A choice made by the borrower to receive a refund of the over-deduction is irrevocable.

The procedures in section 49 or 51 may be applied to a borrower if there is a significant under-deduction in relation to him or her.

If a borrower reasonably believes that a Commissioner over-deduction was made in relation to him or her, the borrower may request the Commissioner to determine whether a Commissioner over-deduction was made.

A request under subsection (1) must be made by notifying the Commissioner (see section 211).

In this section, and in sections 68B and 68C, Commissioner over-deduction means a Commissioner deduction that is made on or after the date on which—

If the Commissioner receives a request in accordance with section 68A, the Commissioner must, as soon as practicable,—

This section applies if the Commissioner—

The Commissioner must, as soon as practicable, notify the borrower—

In any case where there is also, in relation to the borrower and any tax year, a significant under-deduction or an unpaid amount that the Commissioner has at any time identified, the significant under-deduction or unpaid amount may be offset against a Commissioner over-deduction identified or determined under subsection (1) before any refund is made.

To receive a refund of the Commissioner over-deduction, the borrower must notify the Commissioner in a manner acceptable to the Commissioner within 6 months after the date on which the borrower was notified in accordance with subsection (2).

A choice made by the borrower to receive a refund of the Commissioner over-deduction is irrevocable.

The Commissioner may prohibit a borrower from making an application under section 42 (application for unused repayment threshold to be allocated to secondary employment earnings) or a declaration under section 55 (declaration by eligible borrowers for exemption from standard deductions) if the Commissioner is satisfied that that borrower is using, or has used, either of those procedures in a manner that damages the integrity of the student loan scheme.

Subject to Schedule 2,—

Salary or wage deductions are in addition to amounts of tax for PAYE income payments that are required to be withheld and paid to the Commissioner under the PAYE rules.

This subpart applies to the following New Zealand-based borrowers, other than new borrowers: