Other interest write-offs if you're not eligible for an interest free student loan
Please note that other interest write-offs are not available for tax years after 2007.
However, you can still apply to have interest written off for years prior to 2007, if you think you may have been eligible at the time (and if the interest hasn't already been written off).
You may be eligible for other write-offs for years prior to 2007.
| If you... | you may get... |
|---|---|
|
were studying for that year |
|
|
earned less than the repayment threshold for that year |
|
|
didn't meet either of the above, and the base interest charged on your loan was more than 50% of your repayment obligation for that year |
Important condition
You must have been a New Zealand resident for tax purposes to be eligible for these write-offs. To find out if you were a resident, see "Find out more" below.
If you were a non-resident studying full-time overseas, you may also be eligible for an interest write-off. See "Find out more" below, for details about studying overseas.
Interest rate information
To understand these write-offs, you need to know about the following two components that made up the interest rate for that year:
- Base interest rate - the total interest rate less the interest adjustment rate.
- Interest adjustment rate - based on the movement of the consumer price index. This rate is affected each year by inflation.
Interest rates
| Tax year | Total interest rate | Base interest rate | Interest adjustment rate |
|---|---|---|---|
|
1 April 2006 - 31 March 2007 |
6.9% |
3.8% |
3.1% |
|
1 April 2005 - 31 March 2006 |
7.0% |
4.2% |
2.8% |
|
1 April 2004 - 31 March 2005 |
7.0% |
5.5% |
1.5% |
|
1 April 2003 - 31 March 2004 |
7.0% |
4.2% |
2.8% |
|
1 April 2002 - 31 March 2003 |
7.0% |
5.1% |
1.9% |
Full interest write-offs
Requirements
You must have been either:
- a full-time, full-year student studying for a minimum of 32 weeks or more in any 52 week period, or
- a part-time or part-year student with income under the full interest write-off threshold for that year.
Full interest write-off thresholds
| Tax year | Full interest write-off threshold |
|---|---|
|
1 April 2006 - 31 March 2007 |
$27,699 |
|
1 April 2005 - 31 March 2006 |
$26,799 |
|
1 April 2004 - 31 March 2005 |
$26,140 |
|
1 April 2003 - 31 March 2004 |
$25,909 |
|
1 April 2002 - 31 March 2003 |
$25,378 |
What you need to do
Full-time student
If you gave your IRD number to your tertiary provider when you completed your enrolment form then you don't have to do anything. Your write-off will have been automatically calculated and processed.
Part-time student
Your write-off will have been automatically calculated and processed when you either:
- completed an Individual tax return (IR3), or
- received a personal tax summary from us in July.
What happens next
We'll calculate your write-off after the end of the 2007 tax year. You'll see the interest write-off appear on the next statement you receive from us.
Base interest write-offs
Requirements
Your annual income must have been below the repayment threshold for that year.
Repayment thresholds
| Tax year | Repayment threshold | Equivalent per week (before tax) |
|---|---|---|
|
1 April 2006 - 31 March 2007 |
$17,160 |
$330.00 |
|
1 April 2005 - 31 March 2006 |
$16,588 |
$319.00 |
|
1 April 2004 - 31 March 2005 |
$16,172 |
$311.00 |
|
1 April 2003 - 31 March 2004 |
$15,964 |
$307.00 |
|
1 April 2002 - 31 March 2003 |
$15,496 |
$298.00 |
What you need to do
Your write-off will have been automatically calculated and processed when you either:
- completed an Individual tax return (IR3) or
- received a personal tax summary from us in the July following the end of the tax year.
What happens next
We'll write off all the base interest charged for the year after the end of the tax year (31 March). You'll see the interest write-off appear on the statement you receive from us once you've filed your IR3 or received your personal tax summary.
Interest reductions
Requirements
If the base interest charged on your loan was more than 50% of your repayment obligation, you can get the difference in interest written off.
What you need to do
Your write-off will have been automatically calculated and processed when you either:
- completed an Individual tax return (IR3) or
- received a personal tax summary from us in the July following the end of the tax year.
What happens next
We'll write-off the base interest minus 50% of your repayment obligation, after the end of the 2007 tax year (31 March). You'll see the interest write-off appear on the statement you receive from us once you've filed your IR3 or received your personal tax summary.
Find out more
- Eligibility for interest free student loans
- How interest write-offs work
- Interest write-offs if you study overseas
Next steps
Date published: 26 Mar 2008
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