Repayments for the 2012 tax year or earlier
Find out about repayments for the 2012 tax year or earlier if you're a salary or wage earner in New Zealand from 1 April 2012.
- Salary and wage earners in New Zealand
- Repayment obligations on your income
- Repayment obligation calculation for tax years 2012 and earlier
If you receive salary or wages and you expected to earn:
- less than or equal to the annual repayment threshold, you weren't required to add the SL" repayment code to your tax code for your salary or wage income.
- more than the annual repayment threshold, you should have added "SL" to your tax code for your salary or wage income and had student loan repayment deductions made by your employer.
Your repayment obligation for the 2012 tax year or earlier is calculated on your total net income. This is your total income from all sources, less any expenses and deductions you are entitled to claim.
If you earned salary or wages and didn't use the right tax code then you may be required to have an end-of-year repayment calculation.
You may also need an end-of-year repayment calculation if you earned or received income other than salary or wages.
An end-of-year repayment calculation determines whether you've overpaid or underpaid your student loan obligations for the tax.
We'll calculate your repayment obligations based on either your personal tax summary or IR3 return, depending on which one you need.
Total net income doesn't include a loss brought forward from a previous tax year.
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The following calculation applies to all tax years 2012 and earlier:
(Total net income minus annual repayment threshold) x 10% is you total repayment obligation.
Tim files his 2012 IR3 return that includes the following income and expenses:
- $35,000 salary
- $20,200 self-employed income
- $200 expense claim for getting his return completed
Tim's total net income is $55,000.
Tim's repayment obligation for the tax year is: ($55,000 minus $19,084) x 10% equals $3,591.60.
($19,084 is the annual repayment threshold for the 2012 tax year.)
If you earned income from salary or wages
If you earned income from salary or wages, the student loan deductions your employer made during the tax year are subtracted from your repayment obligation to work out your residual repayment obligation.
Repayment obligation minus repayment deductions is your residual repayment obligation.
During the year, Tim had $1,591.60 deducted by his employer from his salary income. Tim's 2012 residual repayment obligation is $2,000, calculated as follows:
Repayment obligation minus repayment deductions is the residual repayment obligation
$3,591.60 minus $1,591.60 is $2,000.
If you've made any interim or voluntary repayments
If you've made any interim or voluntary repayments for the tax year, these are deducted from your residual repayment obligation to work out whether you've paid enough.
Residual repayment obligation minus interim and voluntary repayments is your end of year repayment.
If your end of year repayment calculation is a:
- credit amount you've paid more than you needed to. We'll tell you how much and what your options are regarding your overpayment.
- debit amount - you'll have to make a further payment. We'll tell you how much and when it's due.
- zero amount - you've paid the right amount for the tax year.
Tim made interim repayments totalling $1,800 for the 2012 tax year. These interim repayments are deducted from Tim's residual repayment obligation to arrive at his end of year repayment of $200/
Residual repayment obligation minus interim or voluntary repayments is the end-of-year repayment $2,000 minus $1,800 is $200.
Tim has to make a further repayment of $200 by 7 February 2013.
Back to Repayments you have to make
Date published: 23 Feb 2012