New Zealand Acts

STUDENT LOAN SCHEME ACT 2011 - SECT 40

40 Deductions from main benefits

1 This section applies if—

a) a borrower receives a main benefit for a pay period; and

b) the equivalent gross amount of that main benefit exceeds the pay period repayment threshold (calculated in accordance with section 37(4) ) for that pay period.

2 The chief executive—

a) must not make a salary or wage deduction from the main benefit; and

b) must make a deduction from the main benefit of an amount determined by the Commissioner in consultation with the chief executive.

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

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

4 In this section,—  
"equivalent gross amount" means the sum of—  

a) the amount of a main benefit; and

b) any amount that was paid to the Commissioner in accordance with sections 349, 350, 351, and 352 of the Social Security Act 2018 for income tax payable on that main benefit

"main benefit" has the same meaning as in section YA 1 of the Income Tax Act 2007 .

Note: 1992 No 141 s 23

History: Section 40 heading: amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).   Section 40(1)(a): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).     Section 40(1)(b): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).     Section 40(2)(a): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).     Section 40(2)(b): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).     Section 40(2A): inserted (with effect on 1 April 2012), on 12 April 2012, by section 15 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).     Section 40(4) equivalent gross amount paragraph (a): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).     Section 40(4) equivalent gross amount paragraph (b): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).     Section 40(4) equivalent gross amount paragraph (b): amended, on 26 November 2018, by section 459 of the Social Security Act 2018 (2018 No 32).     Section 40(4) income-tested benefit: repealed, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).     Section 40(4) main benefit: inserted, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).