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Student Loan Scheme Act 2011

Interest, relief, penalties and offences, rights of objection, and rights to challenge - Penalties and offences - Student loan shortfall penalties

159: Commissioner may impose student loan shortfall penalties

You could also call this:

“You might have to pay extra if you don't pay enough of your student loan”

The Commissioner can decide to give you a penalty if you don’t pay enough of your student loan. This is called a student loan shortfall penalty.

To work out how much the penalty is, the Commissioner uses a special calculation. They take the amount you should have paid but didn’t, and multiply it by a percentage. This percentage comes from the Tax Administration Act 1994.

When figuring out how much you should have paid, the Commissioner doesn’t consider any relief you might have gotten under section 147. The percentage used in the calculation might be adjusted based on other rules in the Tax Administration Act 1994.

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Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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158: Student loan shortfall penalties may be imposed on certain borrowers, or

"Sometimes you might have to pay extra if you make a mistake with your student loan"

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160: Notification and payment obligations if Commissioner imposes student loan shortfall penalty, or

"What happens if you get a penalty on your student loan"

Part 4 Interest, relief, penalties and offences, rights of objection, and rights to challenge
Penalties and offences: Student loan shortfall penalties

159Commissioner may impose student loan shortfall penalties

  1. If this section applies to a borrower, the Commissioner may, at his or her discretion, impose a student loan shortfall penalty on the borrower.

  2. The amount of a student loan shortfall penalty is calculated in accordance with the formula—

    a = b × c

    Where:

    • a a

      is the amount of the student loan shortfall penalty

    • b b

      is the amount of the repayment obligation shortfall (treating any relief granted under section 147 as if it had not been granted)

    • c c

      is the final percentage imposed under the Tax Administration Act 1994 for the shortfall penalty after adjustment, if any, under section 141FB, 141G, 141H, 141I, 141J, or 141K of the Tax Administration Act 1994, as applicable.

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Notes
  • Section 159(2) formula item b: replaced, on (applying for 2013–14 and later tax years), by section 64 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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