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Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based borrowers' repayment obligations for salary or wages - Exemption from standard deductions for borrowers who are full-time students

57: Consequences of exemption from standard deductions

You could also call this:

“What happens when you don't need student loan money taken from your pay”

If you’re a student who has been given permission not to have standard deductions taken from your pay for your student loan, here’s what happens:

Your employer will be told in writing that you don’t need to have these deductions taken out. When this happens, the codes ‘SL’ or ‘TTC’ that were used on your payslip will no longer apply to you. Also, some rules about how much should be deducted from your pay won’t apply to you anymore.

These changes will start from whichever is later: the date your permission to not have deductions starts, or the date your employer is told about it.

Even though you don’t have to have standard deductions taken out, your employer might still need to make deductions in some situations.

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Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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56: Notice from Commissioner, or

"What happens when you tell the government about your student loan payments"

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58: Withdrawal of declaration, or

"You can change your mind about not paying your student loan from your pay"

Part 2 Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Exemption from standard deductions for borrowers who are full-time students

57Consequences of exemption from standard deductions

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

  2. the repayment codes SL or TTC, as applicable, cease to apply to the borrower; and
    1. nothing in sections 34 to 37 or 40 applies in relation to the borrower.

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

      2. the start date of the exemption period specified in the notice issued in accordance with section 56(b); and
        1. the date on which the borrower's employer is notified in writing that the exemption has been granted to the borrower.

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

          Notes
          • Section 57(1)(a): amended, on , by section 331 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
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